Document:

<PAGE>

                                                                     Exhibit 4.1

                                                                  EXECUTION COPY

                     MERRILL LYNCH MORTGAGE INVESTORS, INC.
                                    Depositor

                            LITTON LOAN SERVICING LP
                                    Servicer

                                       and

                        LASALLE BANK NATIONAL ASSOCIATION
                                     Trustee

                                   ----------

                         POOLING AND SERVICING AGREEMENT
                            Dated as of March 1, 2006

                                   ----------

                           OWNIT MORTGAGE LOAN TRUST,
             MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2006-3

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I    DEFINITIONS.................................................     1

ARTICLE II   CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND
             WARRANTIES..................................................     53
             SECTION 2.01.  Conveyance of Mortgage Loans.................     53
             SECTION 2.02.  Acceptance by the Trustee of the Mortgage
                            Loans........................................     56
             SECTION 2.03.  Representations, Warranties and Covenants of
                            the Depositor................................     58
             SECTION 2.04.  Representations and Warranties of the
                            Servicer.....................................     62
             SECTION 2.05.  Substitutions and Repurchases of Mortgage
                            Loans that are not "Qualified Mortgages."....     65
             SECTION 2.06.  Authentication and Delivery of Certificates..     65
             SECTION 2.07.  REMIC Elections..............................     65
             SECTION 2.08.  [RESERVED]...................................     69
             SECTION 2.09.  Covenants of the Servicer....................     69
             SECTION 2.10.  [RESERVED]...................................     70
             SECTION 2.11.  Permitted Activities of the Trust............     70
             SECTION 2.12.  Qualifying Special Purpose Entity............     70

ARTICLE III  ADMINISTRATION AND SERVICING OF MORTGAGE LOANS..............     70
             SECTION 3.01.  Servicer to Service Mortgage Loans...........     70
             SECTION 3.02.  Servicing and Subservicing; Enforcement of
                            the Obligations of Servicer..................     72
             SECTION 3.03.  Rights of the Depositor and the Trustee in
                            Respect of the Servicer......................     73
             SECTION 3.04.  Trustee to Act as Servicer...................     73
             SECTION 3.05.  Collection of Mortgage Loan Payments;
                            Collection Account; Certificate Account......     74
             SECTION 3.06.  Collection of Taxes, Assessments and Similar
                            Items; Escrow Accounts.......................     77
             SECTION 3.07.  Access to Certain Documentation and
                            Information Regarding the Mortgage Loans.....     78
             SECTION 3.08.  Permitted Withdrawals from the Collection
                            Account and Certificate Account..............     78
             SECTION 3.09.  [RESERVED]...................................     80
             SECTION 3.10.  Maintenance of Hazard Insurance..............     80
             SECTION 3.11.  Enforcement of Due-On-Sale Clauses;
                            Assumption Agreements........................     81
             SECTION 3.12.  Realization Upon Defaulted Mortgage Loans;
                            Determination of Excess Proceeds.............     82
             SECTION 3.13.  Trustee to Cooperate; Release of Mortgage
                            Files........................................     86
             SECTION 3.14.  Documents, Records and Funds in Possession of
                            Servicer to be Held for the Trustee..........     87
             SECTION 3.15.  Servicing Compensation.......................     87
             SECTION 3.16.  Access to Certain Documentation..............     88
             SECTION 3.17.  Annual Statement as to Compliance............     88
             SECTION 3.18.  Reports on Assessment of Compliance and
                            Attestation..................................     88
             SECTION 3.19.  Rights of the NIMs Insurer...................     89
             SECTION 3.20.  [RESERVED]...................................     89
</TABLE>

                                       ii

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
             SECTION 3.21.  [RESERVED]...................................     89
             SECTION 3.22.  [RESERVED]...................................     89
             SECTION 3.23.  Prepayment Charge Reporting Requirements.....     90
             SECTION 3.24.  Statements to Trustee........................     90
             SECTION 3.25.  Indemnification..............................     90
             SECTION 3.26.  Nonsolicitation..............................     92
             SECTION 3.27.  Periodic Filings.............................     92

ARTICLE IV   DISTRIBUTIONS...............................................     92
             SECTION 4.01.  Advances.....................................     92
             SECTION 4.02.  Reduction of Servicing Compensation in
                            Connection with Prepayment Interest
                            Shortfalls...................................     93
             SECTION 4.03.  Distributions on the REMIC Interests.........     94
             SECTION 4.04.  Distributions................................     94
             SECTION 4.05.  Monthly Statements to Certificateholders.....    100

ARTICLE V    THE CERTIFICATES............................................    104
             SECTION 5.01.  The Certificates.............................    104
             SECTION 5.02.  Certificate Register; Registration of
                            Transfer and Exchange of Certificates........    105
             SECTION 5.03.  Mutilated, Destroyed, Lost or Stolen
                            Certificates.................................    113
             SECTION 5.04.  Persons Deemed Owners........................    113
             SECTION 5.05.  Access to List of Certificateholders' Names
                            and Addresses................................    113
             SECTION 5.06.  Book-Entry Certificates......................    113
             SECTION 5.07.  Notices to Depository........................    114
             SECTION 5.08.  Definitive Certificates......................    114
             SECTION 5.09.  Maintenance of Office or Agency..............    115
             SECTION 5.10.  Authenticating Agent.........................    115

ARTICLE VI   THE DEPOSITOR AND THE SERVICER..............................    115
             SECTION 6.01.  Respective Liabilities of the Depositor and
                            the Servicer.................................    115
             SECTION 6.02.  Merger or Consolidation of the Depositor or
                            the Servicer.................................    116
             SECTION 6.03.  Limitation on Liability of the Depositor, the
                            Servicer and Others..........................    116
             SECTION 6.04.  Limitation on Resignation of Servicer........    117
             SECTION 6.05.  Errors and Omissions Insurance; Fidelity
                            Bonds........................................    118

ARTICLE VII  DEFAULT; TERMINATION OF SERVICER............................    119
             SECTION 7.01.  Events of Default............................    119
             SECTION 7.02.  Servicer Trigger Event.......................    120
             SECTION 7.03.  Trustee to Act; Appointment of Successor.....    121
             SECTION 7.04.  Notification to Certificateholders...........    123

ARTICLE VIII CONCERNING THE TRUSTEE......................................    123
             SECTION 8.01.  Duties of the Trustee........................    123
             SECTION 8.02.  Certain Matters Affecting the Trustee........    124
             SECTION 8.03.  Trustee Not Liable for Certificates or
                            Mortgage Loans...............................    126
</TABLE>

                                       iii

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
             SECTION 8.04.  Trustee May Own Certificates.................    126
             SECTION 8.05.  Trustee's Fees and Expenses..................    126
             SECTION 8.06.  Indemnification and Expenses of Trustee......    126
             SECTION 8.07.  Eligibility Requirements for Trustee.........    127
             SECTION 8.08.  Resignation and Removal of Trustee...........    128
             SECTION 8.09.  Successor Trustee............................    128
             SECTION 8.10.  Merger or Consolidation of Trustee...........    129
             SECTION 8.11.  Appointment of Co-Trustee or Separate
                            Trustee......................................    129
             SECTION 8.12.  Tax Matters..................................    130

ARTICLE IX   TERMINATION.................................................    132
             SECTION 9.01.  Termination upon Liquidation or Auction of
                            all Mortgage Loans...........................    132
             SECTION 9.02.  Final Distribution on the Certificates.......    133
             SECTION 9.03.  Additional Termination Requirements..........    134

ARTICLE X    MISCELLANEOUS PROVISIONS....................................    135
             SECTION 10.01. Amendment....................................    135
             SECTION 10.02. Counterparts.................................    136
             SECTION 10.03. Governing Law................................    136
             SECTION 10.04. Intention of Parties.........................    137
             Section 10.05. Notices......................................    137
             SECTION 10.06. Severability of Provisions...................    138
             SECTION 10.07. Assignment...................................    138
             SECTION 10.08. Limitation on Rights of Certificateholders...    138
             SECTION 10.09. Inspection and Audit Rights..................    139
             SECTION 10.10. Certificates Nonassessable and Fully Paid....    139
             SECTION 10.11. Third Party Rights...........................    139
             SECTION 10.12. Additional Rights of the NIMs Insurer........    139
             SECTION 10.13. Assignment; Sales; Advance Facilities........    140
             SECTION 10.14. Compliance with Regulation AB................    140
</TABLE>

                                       iv

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
EXHIBIT A    FORMS OF CERTIFICATES
EXHIBIT B-1  MORTGAGE LOAN SCHEDULE - MORTGAGE POOL
EXHIBIT B-2  MORTGAGE LOAN SCHEDULE - GROUP ONE MORTGAGE LOANS
EXHIBIT B-3  MORTGAGE LOAN SCHEDULE - GROUP TWO MORTGAGE LOANS
EXHIBIT C    [RESERVED]
EXHIBIT D    FORM OF TRUSTEE CERTIFICATION
EXHIBIT E-1  FORM OF CLASS R TRANSFEREE'S LETTER AND AFFIDAVIT
EXHIBIT E-2  FORM OF CLASS TRANSFEROR'S AFFIDAVIT
EXHIBIT F    FORM OF TRANSFEROR CERTIFICATE
EXHIBIT G    FORM OF INVESTMENT LETTER (ACCREDITED INVESTOR)
EXHIBIT H    FORM OF RULE 144A LETTER (QUALIFIED INSTITUTIONAL BUYER)
EXHIBIT I    FORM OF REQUEST FOR RELEASE
EXHIBIT J    [RESERVED]
EXHIBIT K    [RESERVED]
EXHIBIT L    [RESERVED]
EXHIBIT M-1  [RESERVED]
EXHIBIT M-2  [RESERVED]
EXHIBIT M-3  [RESERVED]
EXHIBIT N-1  FORM OF CLASS A-1 CAP CONTRACT
EXHIBIT N-2  FORM OF CLASS A-2 CAP CONTRACT
EXHIBIT N-3  FORM OF FLOATING RATE SUBORDINATE CERTIFICATES CAP CONTRACT
EXHIBIT O-1  ONE-MONTH LIBOR CAP TABLE - CLASS A-1 CAP CONTRACT
EXHIBIT O-2  ONE-MONTH LIBOR CAP TABLE - CLASS A-2 CAP CONTRACT
EXHIBIT O-3  ONE-MONTH LIBOR CAP TABLE - FLOATING RATE SUBORDINATE
             CERTIFICATES CAP CONTRACT
EXHIBIT P    FORM OF POWER OF ATTORNEY
EXHIBIT Q    FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER TO
             REGULATION S BOOK-ENTRY CERTIFICATE FROM A HOLDER OF A RULE
             144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT R    FORM OF TRANSFEROR REPRESENTATION LETTER FOR TRANSFER
             PURSUANT TO RULE 144A FROM A HOLDER OF A REGULATION S BOOK-
             ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE
EXHIBIT S    FORM OF SWAP AGREEMENT
EXHIBIT T-1  FORM OF ASSESSMENT OF COMPLIANCE
EXHIBIT T-2  SERVICING CRITERIA (EXHIBIT A TO FORM OF ASSESSMENT OF
             COMPLIANCE)
EXHIBIT T-3  FORM OF SARBANES-OXLEY CERTIFICATION (SERVICER)
EXHIBIT T-4  FORM OF ITEM 1123 CERTIFICATION (SERVICER)
EXHIBIT T-5  FORM OF OFFICER'S CERTIFICATE (TRUSTEE)
EXHIBIT U    [RESERVED]
EXHIBIT V    [RESERVED]
EXHIBIT W    [RESERVED]
EXHIBIT X    ITEMS FOR FORM 8-K
EXHIBIT Y    ITEMS FOR FORM 10-D
EXHIBIT Z    ITEMS FOR FORM 10-K
EXHIBIT Z-1  ADDITIONAL DISCLOSURE INFORMATION
</TABLE>

                                        v
<PAGE>

     POOLING AND SERVICING AGREEMENT (the "Agreement"), dated as of March 1,
2006, among MERRILL LYNCH MORTGAGE INVESTORS, INC., a Delaware corporation, as
depositor (the "Depositor"), LITTON LOAN SERVICING LP, a Delaware limited
partnership, as servicer (the "Servicer") and LASALLE BANK NATIONAL ASSOCIATION,
a national banking association, as trustee (the "Trustee").

     The Depositor is the owner of the Trust Fund that is hereby conveyed to the
Trustee in return for the Certificates. The Trust Fund for federal income tax
purposes will consist of (i) three real estate mortgage investment conduits,
(ii) the right to receive payments distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof, (iii) each Cap Contract and the Cap
Contract Account, (iv) the grantor trusts described in Section 2.07 hereof and
(v) the Supplemental Interest Trust, which in turn will hold the Swap Agreement.
The SWAP REMIC will consist of all of the assets constituting the Trust Fund
(other than the assets described in clauses (ii), (iii), (iv) and (v) above,
other than the SWAP REMIC Regular Interests and other than the Lower Tier REMIC
Regular Interests) and will be evidenced by the SWAP REMIC Regular Interests
(which will be uncertificated and will represent the "regular interests" in the
SWAP REMIC) and the Class SWR Interest as the single "residual interest" in the
SWAP REMIC. The Lower Tier REMIC will consist of SWAP REMIC Regular Interests
and will be evidenced by the Lower Tier REMIC Regular Interests (which will be
uncertificated and will represent the "regular interests" in the Lower Tier
REMIC) and the Class LTR Interest as the single "residual interest" in the Lower
Tier REMIC. The Trustee will hold the Lower Tier REMIC Regular Interests. The
Upper Tier REMIC will consist of the Lower Tier REMIC Regular Interests and will
be evidenced by the REMIC Regular Interests (which will represent the "regular
interests" in the Upper Tier REMIC) and the Residual Interest as the single
"residual interest" in the Upper Tier REMIC. The Class R Certificate will
represent beneficial ownership of the Class SWR Interest, the Class LTR Interest
and the Residual Interest. The "latest possible maturity date" for federal
income tax purposes of all interests created hereby will be the Latest Possible
Maturity Date.

     All covenants and agreements made by the Transferor in the Transfer
Agreement, by the Sponsor in the Sale Agreement and by the Depositor and the
Trustee herein with respect to the Mortgage Loans and the other property
constituting the Trust Fund are for the benefit of the Holders from time to time
of the Certificates and, to the extent provided herein, the NIMs Insurer.

THE SWAP REMIC

The following table sets forth the designations, initial principal balances and
interest rates for each interest in the SWAP REMIC:

<TABLE>
<CAPTION>
              Initial
             Principal      Interest
 Class        Balance         Rate
 -----    ---------------   --------
<S>       <C>               <C>
1-SW1     $38,169,623.698      (1)
1-SW1A    $ 2,792,182.039      (2)
1-SW1B    $ 2,792,182.039      (3)
1-SW2A    $ 3,274,317.616      (2)
1-SW2B    $ 3,274,317.616      (3)
1-SW3A    $ 3,646,909.236      (2)
1-SW3B    $ 3,646,909.236      (3)
1-SW4A    $ 4,010,720.306      (2)
1-SW4B    $ 4,010,720.306      (3)
1-SW5A    $ 4,350,288.097      (2)
</TABLE>

<PAGE>

<TABLE>
<S>       <C>               <C>
1-SW5B    $ 4,350,288.097      (3)
1-SW6A    $ 4,577,008.741      (2)
1-SW6B    $ 4,577,008.741      (3)
1-SW7A    $ 4,563,145.766      (2)
1-SW7B    $ 4,563,145.766      (3)
1-SW8A    $ 4,324,909.530      (2)
1-SW8B    $ 4,324,909.530      (3)
1-SW9A    $ 4,066,048.913      (2)
1-SW9B    $ 4,066,048.913      (3)
1-SW10A   $ 3,826,114.089      (2)
1-SW10B   $ 3,826,114.089      (3)
1-SW11A   $ 3,599,843.357      (2)
1-SW11B   $ 3,599,843.357      (3)
1-SW12A   $ 3,373,124.937      (2)
1-SW12B   $ 3,373,124.937      (3)
1-SW13A   $ 3,166,382.911      (2)
1-SW13B   $ 3,166,382.911      (3)
1-SW14A   $ 2,969,653.136      (2)
1-SW14B   $ 2,969,653.136      (3)
1-SW15A   $ 2,825,479.938      (2)
1-SW15B   $ 2,825,479.938      (3)
1-SW16A   $ 2,817,228.730      (2)
1-SW16B   $ 2,817,228.730      (3)
1-SW17A   $ 2,967,362.144      (2)
1-SW17B   $ 2,967,362.144      (3)
1-SW18A   $ 3,149,838.860      (2)
1-SW18B   $ 3,149,838.860      (3)
1-SW19A   $ 2,987,388.866      (2)
1-SW19B   $ 2,987,388.866      (3)
1-SW20A   $ 2,571,525.499      (2)
1-SW20B   $ 2,571,525.499      (3)
1-SW21A   $ 2,225,609.832      (2)
1-SW21B   $ 2,225,609.832      (3)
1-SW22A   $ 1,959,665.231      (2)
1-SW22B   $ 1,959,665.231      (3)
1-SW23A   $ 1,746,851.421      (2)
1-SW23B   $ 1,746,851.421      (3)
1-SW24A   $ 1,587,852.972      (2)
1-SW24B   $ 1,587,852.972      (3)
1-SW25A   $ 1,464,663.720      (2)
1-SW25B   $ 1,464,663.720      (3)
1-SW26A   $   847,582.578      (2)
1-SW26B   $   847,582.578      (3)
1-SW27A   $   562,402.946      (2)
1-SW27B   $   562,402.946      (3)
</TABLE>

                                        2

<PAGE>

<TABLE>
<S>       <C>               <C>
1-SW28A   $    33,085.879      (2)
1-SW28B   $    33,085.879      (3)
1-SW29A   $ 1,536,315.869      (2)
1-SW29B   $ 1,536,315.869      (3)
1-SW30A   $ 1,404,608.414      (2)
1-SW30B   $ 1,404,608.414      (3)
1-SW31A   $ 1,142,671.987      (2)
1-SW31B   $ 1,142,671.987      (3)
1-SW32A   $   945,894.714      (2)
1-SW32B   $   945,894.714      (3)
1-SW33A   $   820,444.788      (2)
1-SW33B   $   820,444.788      (3)
1-SW34A   $   728,057.094      (2)
1-SW34B   $   728,057.094      (3)
1-SW35A   $   649,924.885      (2)
1-SW35B   $   649,924.885      (3)
1-SW36A   $   582,407.435      (2)
1-SW36B   $   582,407.435      (3)
1-SW37A   $   523,812.826      (2)
1-SW37B   $   523,812.826      (3)
1-SW38A   $   474,304.974      (2)
1-SW38B   $   474,304.974      (3)
1-SW39A   $   432,475.936      (2)
1-SW39B   $   432,475.936      (3)
1-SW40A   $   396,791.444      (2)
1-SW40B   $   396,791.444      (3)
1-SW41A   $   366,126.517      (2)
1-SW41B   $   366,126.517      (3)
1-SW42A   $   339,190.642      (2)
1-SW42B   $   339,190.642      (3)
1-SW43A   $   315,305.716      (2)
1-SW43B   $   315,305.716      (3)
1-SW44A   $   293,945.025      (2)
1-SW44B   $   293,945.025      (3)
1-SW45A   $ 5,953,912.428      (2)
1-SW45B   $ 5,953,912.428      (3)
2-SW2     $56,255,144.262      (4)
2-SW1A    $ 4,115,172.961      (5)
2-SW1B    $ 4,115,172.961      (6)
2-SW2A    $ 4,825,753.884      (5)
2-SW2B    $ 4,825,753.884      (6)
2-SW3A    $ 5,374,886.764      (5)
2-SW3B    $ 5,374,886.764      (6)
2-SW4A    $ 5,911,078.694      (5)
2-SW4B    $ 5,911,078.694      (6)
</TABLE>

                                        3

<PAGE>

<TABLE>
<S>       <C>               <C>
2-SW5A    $ 6,411,540.403      (5)
2-SW5B    $ 6,411,540.403      (6)
2-SW6A    $ 6,745,685.759      (5)
2-SW6B    $ 6,745,685.759      (6)
2-SW7A    $ 6,725,254.234      (5)
2-SW7B    $ 6,725,254.234      (6)
2-SW8A    $ 6,374,136.970      (5)
2-SW8B    $ 6,374,136.970      (6)
2-SW9A    $ 5,992,623.087      (5)
2-SW9B    $ 5,992,623.087      (6)
2-SW10A   $ 5,639,002.411      (5)
2-SW10B   $ 5,639,002.411      (6)
2-SW11A   $ 5,305,520.143      (5)
2-SW11B   $ 5,305,520.143      (6)
2-SW12A   $ 4,971,378.063      (5)
2-SW12B   $ 4,971,378.063      (6)
2-SW13A   $ 4,666,677.589      (5)
2-SW13B   $ 4,666,677.589      (6)
2-SW14A   $ 4,376,733.364      (5)
2-SW14B   $ 4,376,733.364      (6)
2-SW15A   $ 4,164,248.062      (5)
2-SW15B   $ 4,164,248.062      (6)
2-SW16A   $ 4,152,087.270      (5)
2-SW16B   $ 4,152,087.270      (6)
2-SW17A   $ 4,373,356.856      (5)
2-SW17B   $ 4,373,356.856      (6)
2-SW18A   $ 4,642,294.640      (5)
2-SW18B   $ 4,642,294.640      (6)
2-SW19A   $ 4,402,872.634      (5)
2-SW19B   $ 4,402,872.634      (6)
2-SW20A   $ 3,789,965.001      (5)
2-SW20B   $ 3,789,965.001      (6)
2-SW21A   $ 3,280,147.668      (5)
2-SW21B   $ 3,280,147.668      (6)
2-SW22A   $ 2,888,193.269      (5)
2-SW22B   $ 2,888,193.269      (6)
2-SW23A   $ 2,574,544.079      (5)
2-SW23B   $ 2,574,544.079      (6)
2-SW24A   $ 2,340,209.028      (5)
2-SW24B   $ 2,340,209.028      (6)
2-SW25A   $ 2,158,650.280      (5)
2-SW25B   $ 2,158,650.280      (6)
2-SW26A   $ 1,249,183.922      (5)
2-SW26B   $ 1,249,183.922      (6)
2-SW27A   $   828,880.554      (5)
</TABLE>

                                        4

<PAGE>

<TABLE>
<S>       <C>               <C>
2-SW27B   $   828,880.554      (6)
2-SW28A   $    48,762.621      (5)
2-SW28B   $    48,762.621      (6)
2-SW29A   $ 2,264,252.631      (5)
2-SW29B   $ 2,264,252.631      (6)
2-SW30A   $ 2,070,139.586      (5)
2-SW30B   $ 2,070,139.586      (6)
2-SW31A   $ 1,684,092.513      (5)
2-SW31B   $ 1,684,092.513      (6)
2-SW32A   $ 1,394,078.286      (5)
2-SW32B   $ 1,394,078.286      (6)
2-SW33A   $ 1,209,187.712      (5)
2-SW33B   $ 1,209,187.712      (6)
2-SW34A   $ 1,073,024.906      (5)
2-SW34B   $ 1,073,024.906      (6)
2-SW35A   $   957,872.115      (5)
2-SW35B   $   957,872.115      (6)
2-SW36A   $   858,363.565      (5)
2-SW36B   $   858,363.565      (6)
2-SW37A   $   772,005.674      (5)
2-SW37B   $   772,005.674      (6)
2-SW38A   $   699,040.026      (5)
2-SW38B   $   699,040.026      (6)
2-SW39A   $   637,391.564      (5)
2-SW39B   $   637,391.564      (6)
2-SW40A   $   584,799.056      (5)
2-SW40B   $   584,799.056      (6)
2-SW41A   $   539,604.483      (5)
2-SW41B   $   539,604.483      (6)
2-SW42A   $   499,905.858      (5)
2-SW42B   $   499,905.858      (6)
2-SW43A   $   464,703.784      (5)
2-SW43B   $   464,703.784      (6)
2-SW44A   $   433,221.975      (5)
2-SW44B   $   433,221.975      (6)
2-SW45A   $ 8,774,993.572      (5)
2-SW45B   $ 8,774,993.572      (6)
SWR                    (7)     (7)
</TABLE>

(1)  The interest rate on the Class 1-SW1 Interest shall be a per annum rate
     equal to the Group One Net WAC.

(2)  For any Distribution Date, the interest rate on each SWAP REMIC Regular
     Interest beginning with the designation "1" and ending with the designation
     "A" shall be a per annum rate equal to 2 times the Group One Net WAC,
     subject to a maximum rate of 2 times the REMIC Swap Rate for such
     Distribution Date.

                                        5
<PAGE>

(3) For any Distribution Date, the interest rate on each SWAP REMIC Regular
Interest beginning with the designation "1" and ending with the designation "B"
shall be a per annum rate equal to the greater of (x) the excess, if any, of (i)
2 times the Group One Net WAC over (ii) 2 times the REMIC Swap Rate for such
Distribution Date and (y) 0.00%.

(4) The interest rate on the Class 2-SW2 Interest shall be a per annum rate
equal to the Group Two Net WAC.

(5) For any Distribution Date, the interest rate on each SWAP REMIC Regular
Interest beginning with the designation "2" and ending with the designation "A"
shall be a per annum rate equal to 2 times the Group Two Net WAC, subject to a
maximum rate of 2 times the REMIC Swap Rate for such Distribution Date.

(6) For any Distribution Date, the interest rate on each SWAP REMIC Regular
Interest beginning with the designation "2" and ending with the designation "B"
shall be a per annum rate equal to the greater of (x) the excess, if any, of (i)
2 times the Group Two Net WAC over (ii) 2 times the REMIC Swap Rate for such
Distribution Date and (y) 0.00%.

(7) The Class SWR Interest shall have no principal amount and shall bear no
interest.

THE LOWER TIER REMIC

The following table sets forth the designations, initial principal balances,
interest rates, Corresponding Classes of Certificates and related Mortgage Group
for each interest in the Lower Tier REMIC:

<TABLE>
<CAPTION>
                                      Class(es) of
          Initial                    Corresponding
         Principal   Interest   Certificates or Related
 Class    Balance      Rate          Mortgage Group
------   ---------   --------   -----------------------
<S>      <C>         <C>        <C>
LTA-1       (1)         (8)              A-1, R
LTA-2A      (1)         (8)               A-2A
LTA-2B      (1)         (8)               A-2B
LTA-2C      (1)         (8)               A-2C
LTA-2D      (1)         (8)               A-2D
LTM-1       (1)         (8)               M-1
LTM-2       (1)         (8)               M-2
LTM-3       (1)         (8)               M-3
LTM-4       (1)         (8)               M-4
LTM-5       (1)         (8)               M-5
LTM-6       (1)         (8)               M-6
LTB-1       (1)         (8)               B-1
LTB-2       (1)         (8)               B-2
LTB-3       (1)         (8)               B-3
LTB-4       (1)         (8)               B-4
LTIX        (2)         (8)               N/A
LTII1A      (3)         (8)            Group One
LTII1B      (4)         (9)            Group One
LTII2A      (5)         (8)            Group Two
LTII2B      (6)        (10)            Group Two
LTIIX       (7)         (8)               N/A
LT-IO       (11)       (11)               N/A
</TABLE>

                                       6

<PAGE>

<TABLE>
<S>      <C>         <C>        <C>
LTR         (12)       (12)               N/A
</TABLE>

(1) The initial principal balance of each of these Lower Tier REMIC Regular
Interests shall equal 1/4 of the initial Certificate Principal Balance of its
Corresponding Certificates.

(2) The initial principal balance of the Class LTIX Interest shall equal the
excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
Mortgage Loans over (ii) the initial principal balance of the Lower Tier REMIC I
Marker Interests.

(3) The initial principal balance of the Class LTII1A Interest shall equal 0.05%
of the excess of (i) the aggregate Cut-off Date Principal Balance of the Group
One Mortgage Loans over (ii) the aggregate of the initial Certificate Principal
Balances of Certificate Group One.

(4) The initial principal balance of the Class LTII1B Interest shall equal 0.05%
of the aggregate Cut-off Date Principal Balance of the Group One Mortgage Loans.

(5) The initial principal balance of the Class LTII2A Interest shall equal 0.05%
of the excess of (i) the aggregate Cut-off Date Principal Balance of the Group
Two Mortgage Loans over (ii) the aggregate of the initial Certificate Principal
Balances of Certificate Group Two.

(6) The initial principal balance of the Class LTII2B Interest shall equal 0.05%
of the aggregate Cut-off Date Principal Balance of the Group Two Mortgage Loans.

(7) The initial principal balance of the Class LTIIX Interest shall equal the
excess of (i) 50% of the aggregate Cut-off Date Principal Balance of the
Mortgage Loans over (ii) the initial principal balance of the Lower Tier REMIC
II Marker Interests.

(8) For each Distribution Date, the interest rate for each of the Lower Tier
REMIC Regular Interests (other than the Class LTII1B, the Class LTII2B and the
Class LT-IO Interests) shall be a per annum rate (but not less than zero) equal
to the product of (i) the weighted average of the interest rates on the SWAP
REMIC Regular Interests for such Distribution Date and (ii) a fraction the
numerator of which is 30 and the denominator of which is the actual number of
days in the Accrual Period for the LIBOR Certificates, provided however, that
for any Distribution Date on which the Class LT-IO Interest is entitled to a
portion of interest accruals on a SWAP REMIC Regular Interest ending with a
designation "A" as described in footnote 11 below, such weighted average shall
be computed by first subjecting the rate on such SWAP REMIC Regular Interest to
a cap equal to Swap LIBOR for such Distribution Date.

(9) For each Distribution Date, the interest rate for the Class LTII1B Interest
shall be a per annum rate equal to the product of (i) the weighted average of
the interest rates on the SWAP REMIC Regular Interests beginning with the
designation "1" for such Distribution Date and (ii) a fraction the numerator of
which is 30 and the denominator of which is the actual number of days in the
Accrual Period for the LIBOR Certificates, provided, however, that for any
Distribution Date on which the Class LT-IO Interest is entitled to a portion of
interest accruals on a SWAP REMIC Regular Interest ending with a designation "A"
as described in footnote 11 below, such weighted average shall be computed by
first subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
Swap LIBOR for such Distribution Date.

(10) For each Distribution Date, the interest rate for the Class LTII2B Interest
shall be a per annum rate equal to the product of (i) the weighted average of
the interest rates on the SWAP REMIC Regular Interests beginning with the
designation "2" for such Distribution Date and (ii) a fraction the numerator of
which is 30 and the denominator of which is the actual number of days in the
Accrual Period for the LIBOR Certificates, provided, however, that for any
Distribution Date on which the Class LT-IO Interest is entitled to a portion of
interest accruals on a SWAP REMIC Regular Interest ending with a designation "A"
as described in footnote 11 below, such weighted average shall be computed by
first subjecting the rate on such SWAP REMIC Regular Interest to a cap equal to
Swap LIBOR for such Distribution Date.

                                       7

<PAGE>

(11) The Class LT-IO Interest is an interest-only class that does not have a
principal balance. For only those Distribution Dates listed in the first column
of the table below, the Class LT1-IO shall be entitled to interest accrued on
the SWAP REMIC Regular Interest listed in the second column below at a per annum
rate equal to the excess, if any, of (i) the interest rate for such SWAP REMIC
Regular Interest for such Distribution Date over (ii) Swap LIBOR for such
Distribution Date.

<TABLE>
<CAPTION>
Distribution Date   SWAP REMIC Regular Interest
-----------------   ---------------------------
<S>                 <C>
        7                  Class 1-SW1A
                           Class 2-SW1A
       7-8                 Class 1-SW2A
                           Class 2-SW2A
       7-9                 Class 1-SW3A
                           Class 2-SW3A
       7-10                Class 1-SW4A
                           Class 2-SW4A
       7-11                Class 1-SW5A
                           Class 2-SW5A
       7-12                Class 1-SW6A
                           Class 2-SW6A
       7-13                Class 1-SW7A
                           Class 2-SW7A
       7-14                Class 1-SW8A
                           Class 2-SW8A
       7-15                Class 1-SW9A
                           Class 2-SW9A
       7-16                Class 1-SW10A
                           Class 2-SW10A
       7-17                Class 1-SW11A
                           Class 2-SW11A
       7-18                Class 1-SW12A
                           Class 2-SW12A
       7-19                Class 1-SW13A
                           Class 2-SW13A
       7-20                Class 1-SW14A
                           Class 2-SW14A
       7-21                Class 1-SW15A
                           Class 2-SW15A
       7-22                Class 1-SW16A
                           Class 2-SW16A
       7-23                Class 1-SW17A
                           Class 2-SW17A
       7-24                Class 1-SW18A
                           Class 2-SW18A
       7-25                Class 1-SW19A
                           Class 2-SW19A
       7-26                Class 1-SW20A
                           Class 2-SW20A
       7-27                Class 1-SW21A
                           Class 2-SW21A
       7-28                Class 1-SW22A
                           Class 2-SW22A
       7-29                Class 1-SW23A
                           Class 2-SW23A
       7-30                Class 1-SW24A
</TABLE>

                                        8

<PAGE>

<TABLE>
<S>                 <C>
                           Class 2-SW24A
       7-31                Class 1-SW25A
                           Class 2-SW25A
       7-32                Class 1-SW26A
                           Class 2-SW26A
       7-35                Class 1-SW27A
                           Class 2-SW27A
       7-36                Class 1-SW28A
                           Class 2-SW28A
       7-37                Class 1-SW29A
                           Class 2-SW29A
       7-38                Class 1-SW30A
                           Class 2-SW30A
       7-39                Class 1-SW31A
                           Class 2-SW31A
       7-40                Class 1-SW32A
                           Class 2-SW32A
       7-41                Class 1-SW33A
                           Class 2-SW33A
       7-42                Class 1-SW34A
                           Class 2-SW34A
       7-43                Class 1-SW35A
                           Class 2-SW35A
       7-44                Class 1-SW36A
                           Class 2-SW36A
       7-45                Class 1-SW37A
                           Class 2-SW37A
       7-46                Class 1-SW38A
                           Class 2-SW38A
       7-47                Class 1-SW39A
                           Class 2-SW39A
       7-48                Class 1-SW40A
                           Class 2-SW40A
       7-49                Class 1-SW41A
                           Class 2-SW41A
       7-50                Class 1-SW42A
                           Class 2-SW42A
       7-51                Class 1-SW43A
                           Class 2-SW43A
       7-52                Class 1-SW44A
                           Class 2-SW44A
       7-53                Class 1-SW45A
                           Class 2-SW45A
</TABLE>

(12) The Class LTR Interest shall have no principal amount and shall bear no
interest.

UPPER TIER REMIC

The following table sets forth the designation, the initial principal balances,
the interest rates and Classes of Related Certificates for each of the interests
in the Upper Tier REMIC.

                                        9

<PAGE>

<TABLE>
<CAPTION>
                                  Initial Principal                Class of
Class                                  Balance        Rate   Related Certificates
-----                             -----------------   ----   --------------------
<S>                               <C>                 <C>    <C>
UTA-1                                    (1)           (2)            A-1
UTA-2A                                   (1)           (2)            A-2A
UTA-2B                                   (1)           (2)            A-2B
UTA-2C                                   (1)           (2)            A-2C
UTA-2D                                   (1)           (2)            A-2D
UTM-1                                    (1)           (2)            M-1
UTM-2                                    (1)           (2)            M-2
UTM-3                                    (1)           (2)            M-3
UTM-4                                    (1)           (2)            M-4
UTM-5                                    (1)           (2)            M-5
UTM-6                                    (1)           (2)            M-6
UTB-1                                    (1)           (2)            B-1
UTB-2                                    (1)           (2)            B-2
UTB-3                                    (1)           (2)            B-3
UTB-4                                    (1)           (2)            B-4
Uncertificated Class C Interest          (3)           (3)            N/A
UT-IO                                    (4)           (4)            N/A
Residual Interest                        (1)           (2)             R
</TABLE>

(1) The initial principal balance of each of these REMIC Regular Interests shall
equal the initial principal balance of its Class of Related Certificates.

(2) The interest rates on each of these REMIC Regular Interests shall be an
annual rate equal to the Pass-Through Rate for the Class of Related
Certificates, provided that in lieu of the applicable Available Funds Caps set
forth in the definition of an applicable Pass-Through Rate, the applicable Upper
Tier REMIC Net WAC Cap shall be used.

(3) The Uncertificated Class C Interest shall have an initial principal balance
equal to the initial Overcollateralization Amount. The Uncertificated Class C
Interest shall accrue interest on a notional balance set forth in the definition
of Class C Current Interest at a rate equal to the Class C Distributable
Interest Rate. The Uncertificated Class C Interest shall be represented by the
Class C Certificates.

(4) The Class UT-IO Interest shall have no principal amount and will not have an
interest rate, but will be entitled to 100% of the interest accrued with respect
to the Class LT-IO Interest. The Class UT-IO Interest shall be represented by
the Class C Certificates.

THE CERTIFICATES

The following table sets forth the Class designation, interest rate and initial
Class principal amount for each Class of Certificates comprising interests in
the Trust Fund.

<TABLE>
<CAPTION>
Class   Initial Class Principal Amount   Interest Rate
-----   ------------------------------   -------------
<S>     <C>                              <C>
A-1                  (1)                      (2)
A-2A                 (1)                      (2)
A-2B                 (1)                      (2)
A-2C                 (1)                      (2)
A-2D                 (1)                      (2)
M-1                  (1)                      (2)
M-2                  (1)                      (2)
M-3                  (1)                      (2)
</TABLE>

                                       10

<PAGE>

<TABLE>
<S>     <C>                              <C>
M-4                  (1)                      (2)
M-5                  (1)                      (2)
M-6                  (1)                      (2)
B-1                  (1)                      (2)
B-2                  (1)                      (2)
B-3                  (1)                      (2)
B-4                  (1)                      (2)
C                    (3)                      (3)
P                    (4)                      (4)
R                    (1)                     (2)(5)
</TABLE>

(1) Each of these Classes of Certificates shall have initial principal balances
as set forth in Section 5.01 hereof.

(2) Each of these Classes of Certificates shall bear interest at a per annum
rate equal to the Pass-Through Rate for such Certificates set forth in the
definitions herein.

(3) For federal income tax purposes, the Class C Certificate shall represent (i)
the right to receive all distributions with respect to the REMIC Regular
Interests represented by the Uncertificated Class C Interest and the Class UT-IO
Interest and (ii) certain rights and obligations with respect to notional
principal contracts as described in Section 2.07.

(4) The Class P Certificates shall be entitled to the amounts distributable
pursuant to Section 4.04(b) hereof and shall not represent a REMIC regular
interest.

(5) The Class R Interest represents ownership of the Class SWR Interest, the
Class LTR Interest and the Residual Interest.

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

                                   ARTICLE I

                                   DEFINITIONS

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

     Accepted Servicing Practices: The Servicer's normal servicing practices,
which will conform to the mortgage servicing practices of prudent mortgage
lending institutions that service for their own account mortgage loans of the
same type as the Mortgages Loans in the jurisdictions in which the related
Mortgaged Properties (or Underlying Mortgaged Properties in the case of Co-op
Loans) are located.

     Accountant's Attestation: As defined in Section 3.18.

     Accrual Period: With respect to each Class of Certificates and their
Corresponding REMIC Regular Interests (other than the Class B-1, Class B-2 and
Class B-3 Certificates and their Corresponding REMIC Regular Interests) and the
Lower Tier REMIC Interests and any Distribution Date, the period commencing on
the immediately preceding Distribution Date (or, in the case of the first
Distribution Date, the Closing Date) and ending on the day immediately preceding
such Distribution Date. With respect to the Class B-1, Class B-2 and Class B-3
Certificates, their Corresponding REMIC Regular Interests and the SWAP REMIC
Regular Interests and any Distribution Date, the calendar month immediately
preceding the month in which such Distribution Date occurs. All calculations of
interest on

                                       11

<PAGE>

each Class of Certificates and their Corresponding REMIC Regular Interests
(other than the Class B-1, Class B-2 and Class B-3 Certificates and their
Corresponding REMIC Regular Interests) and the Lower Tier REMIC Interests will
be made on the basis of the actual number of days elapsed in the related Accrual
Period and a 360 day year. All calculations of interest on the Class B-1, Class
B-2 and Class B-3 Certificates, their Corresponding REMIC Regular Interests and
the SWAP REMIC Regular Interests will be made on the basis of a 360-day year
consisting of twelve 30-day months.

     Additional Disclosure Notification: the form of notification to be included
with any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or
Form 8-K Disclosure Information, which is attached hereto as Exhibit Z-1.

     Additional Form 10-D Disclosure: Has the meaning set forth in Section 3.27.

     Additional Form 10-K Disclosure: Has the meaning set forth in Section 3.27.

     Adjustable Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage
Loan Schedule as having a Mortgage Rate that is adjustable.

     Adjustment Date: As to each Adjustable Rate Mortgage Loan, each date on
which the related Mortgage Rate is subject to adjustment, as provided in the
related Mortgage Note.

     Advance: The aggregate of the advances required to be made by the Servicer
with respect to any Distribution Date pursuant to Section 4.01, the amount of
any such advances being equal to the sum of the aggregate amount of all payments
of principal and interest (net of the Servicing Fee) on the Mortgage Loans that
were due during the applicable Due Period and not received as of the close of
business on the related Determination Date (other than the principal portion of
any Balloon Amount), less the aggregate amount of any such Delinquent payments
that the Servicer has determined would constitute a Non-Recoverable Advance were
an advance to be made with respect thereto; provided, however, that with respect
to any Mortgage Loan that has been converted to an REO Property, the obligation
to make advances shall be limited to payments of interest.

     Advance Facility: A financing or other facility as described in Section
10.13.

     Advance Facility Notice: As defined in Section 10.13(b).

     Advance Financing Person: As defined in Section 10.13(a).

     Advance Reimbursement Amount: As defined in Section 10.13(b).

     Affiliate: With respect to any specified Person, any other Person
controlling, controlled by or under common control with such Person. For the
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 the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

     Aggregate Certificate Principal Balance: For any date of determination, the
sum of the Class A-1 Certificate Principal Balance, the Class A-2A Certificate
Principal Balance, the Class A-2B Certificate Principal Balance, the Class A-2C
Certificate Principal Balance, the Class A-2D Certificate Principal Balance, the
Class R Certificate Principal Balance, the Class M-1 Certificate Principal
Balance, the Class M-2 Certificate Principal Balance, the Class M-3 Certificate
Principal Balance, the Class M-4 Certificate Principal Balance, the Class M-5
Certificate Principal Balance, the Class M-6 Certificate Principal

                                       12

<PAGE>

Balance, the Class B-1 Certificate Principal Balance, the Class B-2 Certificate
Principal Balance, the Class B-3 Certificate Principal Balance and the Class B-4
Certificate Principal Balance, in each case as of such date of determination.

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

     Applied Realized Loss Amount: With respect to any Distribution Date, the
amount, if any, by which, the sum of (i) the Aggregate Certificate Principal
Balance and (ii) the Class C Certificate Principal Balance after distributions
of principal on such Distribution Date exceeds the aggregate Stated Principal
Balance of the Mortgage Loans as of such Distribution Date.

     Appraised Value: With respect to a Mortgage Loan the proceeds of which were
used to purchase the related Mortgaged Property (or the related residential
dwelling unit in the Underlying Mortgaged Property in the case of a Co-op Loan),
the "Appraised Value" of a Mortgaged Property (or the related residential
dwelling unit in the Underlying Mortgaged Property in the case of a Co-op Loan)
is the lesser of (1) the appraised value based on an appraisal made for the
Sponsor by an independent fee appraiser at the time of the origination of the
related Mortgage Loan, and (2) the sales price of such Mortgaged Property (or
the related residential dwelling unit in the Underlying Mortgaged Property in
the case of a Co-op Loan) at such time of origination. With respect to a
Mortgage Loan the proceeds of which were used to refinance an existing mortgage
loan, the "Appraised Value" is the appraised value of the Mortgaged Property (or
the related residential dwelling unit in the Underlying Mortgaged Property in
the case of a Co-op Loan) based upon the appraisal obtained at the time of
refinancing.

     Assessment of Compliance: As defined in Section 3.18.

     Assignment of Mortgage: An assignment of the Mortgage, notice of transfer
(or UCC-3 assignment (or equivalent instrument) with respect to each Co-op Loan)
or equivalent instrument, in recordable form (except in the case of a Co-op
Loan) (except for the name of the assignee if such Mortgage Loan is endorsed in
blank), sufficient under the laws of the jurisdiction where the related
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan) is located to reflect of record the sale and assignment of the Mortgage
Loan to the Trustee, which assignment, notice of transfer or equivalent
instrument may, if permitted by law, be in the form of one or more blanket
assignments covering Mortgages secured by Mortgaged Properties located in the
same county.

     Authenticating Agent: As defined in Section 5.10.

     Available Funds Cap: Any of the Class A-1 Available Funds Cap, the Class
A-2 Available Funds Cap or the Weighted Average Available Funds Cap.

     Back-Up Certification: Has the meaning set forth in Section 3.27(k).

     Balloon Loan: A Mortgage Loan having an original term to stated maturity of
approximately 30 years, which provides for level monthly payments of principal
and interest based on a 40-year or 45-year amortization schedule, with a balloon
payment of the remaining outstanding principal balance due on such Mortgage Loan
at its stated maturity.

     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

                                       13

<PAGE>

Section 5.06). As of the Closing Date, each of the Class A (other than the Class
R Certificate), Class M and Class B Certificates constitutes a Class of
Book-Entry Certificates.

     Bring Down Letter: Those certain letter agreements, dated as of April 13,
2006 between Ownit and the Sponsor, with respect to the Mortgage Loans.

     Business Day: Any day other than (1) a Saturday or a Sunday, or (2) a day
on which banking institutions in the State of California, State of Illinois,
State of Texas and in the City of New York, New York are authorized or obligated
by law or executive order to be closed.

     Cap Contract: Any of the Class A-1 Cap Contract, the Class A-2 Cap Contract
or the Floating Rate Subordinate Certificates Cap Contract.

     Cap Contract Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 4.04(k)(i) in the name of the Trustee for the
benefit of the Trust Fund and designated "LaSalle Bank National Association, as
trustee, in trust for registered holders of Ownit Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2006-3." Funds in the Cap Contract
Account shall be held in trust for the Trust Fund for the uses and purposes set
forth in this Agreement.

     Cap Contract Counterparty: The Bank of New York.

     Cap Contract Notional Balance: Any of the Class A-1 Cap Contract Notional
Balance, the Class A-2 Cap Contract Notional Balance or the Floating Rate
Subordinate Certificates Cap Contract Notional Balance.

     Cap Contract Termination Date: Any of the Class A-1 Cap Contract
Termination Date, the Class A-2 Cap Contract Termination Date or the Floating
Rate Subordinate Certificates Cap Contract Termination Date.

     Certificate: Any one of the certificates of any Class executed by the
Trustee and authenticated by the Authenticating Agent in substantially the forms
attached hereto as Exhibit A.

     Certificate Account: The separate Eligible Account created and maintained
by the Trustee pursuant to Section 3.05(e) in the name of the Trustee for the
benefit of the Certificateholders and designated "LaSalle Bank National
Association, as trustee, in trust for registered holders of Ownit Mortgage Loan
Trust, Mortgage Loan Asset-Backed Certificates, Series 2006-3." Funds in the
Certificate Account shall be held in trust for the Certificateholders for the
uses and purposes set forth in this Agreement.

     Certificate Group: Either of Certificate Group One or Certificate Group
Two.

     Certificate Group One: The Class A-1 and Class R Certificates. For purposes
of Section 2.07 hereof, Certificate Group One shall be related to Group One.

     Certificate Group Two: The Class A-2A, Class A-2B Certificates, Class A-2C
Certificates and Class A-2D Certificates. For purposes of Section 2.07 hereof,
Certificate Group Two shall be related to Group Two.

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

                                       14

<PAGE>

     Certificate Principal Balance: As to any Certificate and as of any
Distribution Date, the Initial Certificate Principal Balance of such Certificate
less the sum of (1) all amounts distributed with respect to such Certificate in
reduction of the Certificate Principal Balance thereof on previous Distribution
Dates pursuant to Section 4.04, and (2) any Applied Realized Loss Amounts
allocated to such Certificate on previous Distribution Dates pursuant to Section
4.04(i). On each Distribution Date, after all distributions of principal on such
Distribution Date, a portion of the Class C Interest Carry Forward Amount in an
amount equal to the excess of the Overcollateralization Amount on such
Distribution Date over the Overcollateralization Amount as of the preceding
Distribution Date (or, in the case of the first Distribution Date, the initial
Overcollateralization Amount) will be added to the aggregate Certificate
Principal Balance of the Class C Certificates (on a pro rata basis).
Notwithstanding the foregoing on any Distribution Date relating to a Due Period
in which a Subsequent Recovery has been received by the Servicer, the
Certificate Principal Balance of any Class of Certificates then outstanding for
which any Applied Realized Loss Amount has been allocated will be increased, in
order of seniority, by an amount equal to the lesser of (i) the Unpaid Realized
Loss Amount for such Class of Certificates and (ii) the total of any Subsequent
Recovery distributed on such date to the Certificateholders (reduced by the
amount of the increase in the Certificate Principal Balance of any more senior
Class of Certificates pursuant to this sentence on such Distribution Date).

     Certificate Register: The register maintained pursuant to Section 5.02
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 Class of Regular Certificates or the Class R
Certificate, except that solely for the purpose of giving any consent pursuant
to this Agreement, any Certificate registered in the name of the Depositor or
any Affiliate of the Depositor shall be deemed not to be Outstanding and the
Percentage Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Percentage Interests necessary to
effect such consent has been obtained; provided, however, that if any such
Person (including the Depositor) owns 100% of the Percentage Interests evidenced
by a Class of Certificates, such Certificates shall be deemed to be Outstanding
for purposes of any provision hereof that requires the consent of the Holders of
Certificates of a particular Class as a condition to the taking of any action
hereunder. The Trustee is entitled to rely conclusively on a certification of
the Depositor or any Affiliate of the Depositor in determining which
Certificates are registered in the name of an Affiliate of the Depositor.

     Certification Parties: Has the meaning set forth in Section 3.27(k).

     Certifying Person: Has the meaning set forth in Section 3.27(k).

     Class: All Certificates bearing the same Class designation as set forth in
Section 5.01 hereof.

     Class A Certificate Principal Balance: As of any date of determination, the
sum of the Class A-1 Certificate Principal Balance, the Class A-2A Certificate
Principal Balance, the Class A-2B Certificate Principal Balance, the Class A-2C
Certificate Principal Balance, the Class A-2D Certificate Principal Balance and
the Class R Certificate Principal Balance.

     Class A Certificates: Any of the Class A-1 Certificates, the Class A-2
Certificates and the Class R Certificates.

     Class A Principal Distribution Amount: With respect to any Distribution
Date (1) prior to the related Stepdown Date or any Distribution Date on which a
Stepdown Trigger Event exists, 100% of the Principal Distribution Amount for
such Distribution Date and (2) on or after the Stepdown Date where a Stepdown
Trigger Event does not exist, the excess of (A) the Class A Certificate
Principal Balance

                                       15

<PAGE>

immediately prior to such Distribution Date over (B) the lesser of (i) 54.90% of
the aggregate Stated Principal Balance of the Mortgage Loans as of such
Distribution Date and (ii) the excess of the aggregate Stated Principal Balance
of the Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount; provided, however, that in no event will the Class
A Principal Distribution Amount with respect to any Distribution Date exceed the
aggregate Certificate Principal Balance of the Class A Certificates.

     Class A-1 Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Mortgage Loans in Group One based on the Net Mortgage
Rates, less the pro rata portion (calculated based on the ratio of the Group One
Mortgage Loans to the total pool of Mortgage Loans) allocable to the Group One
Mortgage Loans of any Net Swap Payments or Swap Termination Payments (other than
Defaulted Swap Termination Payments) owed to the Swap Counterparty for such
Distribution Date in effect on the related Due Date divided by (y) the aggregate
Stated Principal Balance of the Mortgage Loans in Group One as of the first day
of the related Accrual Period (or, in the case of the first Distribution Date,
as of the Cut-off Date) and (iii) a fraction, the numerator of which is 30, and
the denominator of which is the actual number of days in the related Accrual
Period.

     Class A-1 Cap Contract: The confirmation and agreement between the Trustee
on behalf of the Issuing Entity and the Cap Contract Counterparty (in the form
of Exhibit N-1 hereto).

     Class A-1 Cap Contract Notional Balance: With respect to any Distribution
Date, the Class A-1 Cap Contract Notional Balance set forth for such
Distribution Date in the Class A-1 One-Month LIBOR Cap Table attached hereto as
Exhibit O-1.

     Class A-1 Cap Contract Termination Date: The Distribution Date in September
2006.

     Class A-1 Certificates: Any Certificate designated as a "Class A-1
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class A-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-1 Certificates.

     Class A-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-1 Pass-Through Rate on
the Class A-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-1 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-1 Certificates.

     Class A-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-1 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class A-1 Pass-Through Rate for the related Accrual Period.

     Class A-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.180% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.360% per annum.

                                       16
<PAGE>

     Class A-1 Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group One Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Group One Mortgage Loans to the total pool of Mortgage
Loans) allocable to the Group One Mortgage Loans of any Net Swap Payments or
Swap Termination Payments owed to the Swap Counterparty for such Distribution
Date (other than Defaulted Swap Termination Payments), divided by (y) the
aggregate Stated Principal Balance of the Group One Mortgage Loans as of the
first day of the related Accrual Period and (iii) a fraction, the numerator of
which is 30 and the denominator of which is the actual number of days in the
related Accrual Period.

     Class A-1 Pass-Through Rate: For the first Distribution Date, 5.0600% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-1 Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class A-1 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-1 Cap Contract, a rate equal to
the lesser of One-Month LIBOR and 10.3200% per annum.

     Class A-2 Available Funds Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest on the Group Two Mortgage Loans based on the Net Mortgage
Rates in effect on the related Due Date, less the pro rata portion (calculated
based on the ratio of the Group Two Mortgage Loans to the total pool of Mortgage
Loans) allocable to the Group Two Mortgage Loans of any Net Swap Payments or
Swap Termination Payments (other than Defaulted Swap Termination Payments) owed
to the Swap Counterparty for such Distribution Date, divided by (y) the
aggregate Stated Principal Balance of the Group Two Mortgage Loans as of the
first day of the related Accrual Period and (iii) a fraction, the numerator of
which is 30 and the denominator of which is the actual number of days in the
related Accrual Period.

     Class A-2 Cap Contract: The confirmation and agreement between the Trustee
on behalf of the Issuing Entity and the Cap Contract Counterparty (in the form
of Exhibit N-2 hereto).

     Class A-2 Cap Contract Notional Balance: With respect to any Distribution
Date, the Class A-2 Cap Contract Notional Balance set forth for such
Distribution Date in the Class A-2 One-Month LIBOR Cap Table attached hereto as
Exhibit O-2.

     Class A-2 Cap Contract Termination Date: The Distribution Date in September
2006.

     Class A-2 Certificates: Any of the Class A-2A, Class A-2B, Class A-2C and
Class A-2D Certificates.

     Class A-2 Maximum Rate Cap: With respect to a Distribution Date, the per
annum rate equal to the product of (i) 12, (ii) the quotient of (x) the total
scheduled interest that would have been due on the Group Two Mortgage Loans had
the Adjustable Rate Mortgage Loans provided for interest at their maximum
lifetime Net Mortgage Rates and the Fixed Rate Mortgage Loans provided for
interest at their Net Mortgage Rates less the pro rata portion (calculated based
on the ratio of the Group Two Mortgage Loans to the total pool of Mortgage
Loans) allocable to the Group Two Mortgage Loans of any Net Swap Payments or
Swap Termination Payments owed to the Swap Counterparty for such Distribution
Date (other than Defaulted Swap Termination Payments), divided by (y) the
aggregate Stated Principal

                                       17

<PAGE>

Balance of the Group Two Mortgage Loans as of the first day of the related
Accrual Period and (iii) a fraction, the numerator of which is 30 and the
denominator of which is the actual number of days in the related Accrual Period.

     Class A-2 Upper Collar: With respect to each Distribution Date with respect
to which payments are received on the Class A-2 Cap Contract, a rate equal to
the lesser of One-Month LIBOR and 10.2800% per annum.

     Class A-2A Certificate: Any Certificate designated as a "Class A-2A
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class A-2A Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2A Certificates.

     Class A-2A Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2A Pass-Through Rate on
the Class A-2A Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2A Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2A Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

     Class A-2A Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2A Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2A Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class A-2A Pass-Through Rate for the related Accrual Period.

     Class A-2A Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.060% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.120% per annum.

     Class A-2A Pass-Through Rate: For the first Distribution Date, 4.9400% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2A Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2B Certificate: Any Certificate designated as a "Class A-2B
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class A-2B Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2B Certificates.

     Class A-2B Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2B Pass-Through Rate on
the Class A-2B Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2B Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2B Certificates.
For purposes of calculating interest, principal

                                       18

<PAGE>

distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

     Class A-2B Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2B Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2B Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class A-2B Pass-Through Rate for the related Accrual Period.

     Class A-2B Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.120% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.240% per annum.

     Class A-2B Pass-Through Rate: For the first Distribution Date, 5.0000% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2B Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2C Certificate: Any Certificate designated as a "Class A-2C
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class A-2C Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2C Certificates.

     Class A-2C Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2C Pass-Through Rate on
the Class A-2C Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2C Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2C Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

     Class A-2C Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2C Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2C Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class A-2C Pass-Through Rate for the related Accrual Period.

     Class A-2C Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.170% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.340% per annum.

     Class A-2C Pass-Through Rate: For the first Distribution Date, 5.0500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2C Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class A-2D Certificate: Any Certificate designated as a "Class A-2D
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

                                       19

<PAGE>

     Class A-2D Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class A-2D Certificates.

     Class A-2D Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class A-2D Pass-Through Rate on
the Class A-2D Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or a Class A-2D Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class A-2D Certificates.
For purposes of calculating interest, principal distributions on a Distribution
Date will be deemed to have been made on the first day of the Accrual Period in
which such Distribution Date occurs.

     Class A-2D Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class A-2D Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
A-2D Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class A-2D Pass-Through Rate for the related Accrual Period.

     Class A-2D Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.270% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.540% per annum.

     Class A-2D Pass-Through Rate: For the first Distribution Date, 5.1500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class A-2D Margin, (2) the Class A-2 Available Funds Cap for such
Distribution Date and (3) the Class A-2 Maximum Rate Cap for such Distribution
Date.

     Class B Certificates: Any of the Class B-1, Class B-2, Class B-3 and Class
B-4 Certificates.

     Class B-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-1 Certificates.

     Class B-1 Certificate: Any Certificate designated as "Class B-1 Certificate
"on the face thereof in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

     Class B-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-1 Certificates.

     Class B-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-1 Pass-Through Rate on
the Class B-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class B-1 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class B-1 Certificates.

     Class B-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-1 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-1 Pass-Through Rate for the related Accrual Period.

                                       20

<PAGE>

     Class B-1 Pass-Through Rate: For any Distribution Date on or before the
Initial Optional Termination Date, the least of (1) 6.250%, (2) the Weighted
Average Available Funds Cap for such Distribution Date and (3) the Weighted
Average Maximum Rate Cap for such Distribution Date; and for any Distribution
Date after the Initial Optional Termination Date, the least of (1) 6.750%, (2)
the Weighted Average Available Funds Cap for such Distribution Date and (3) the
Weighted Average Maximum Rate Cap for such Distribution Date.

     Class B-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and the
Class M Certificate Principal Balance, have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class M-2 Certificate Principal
Balance (after taking into account distributions of the Class M-2 Principal
Distribution Amount on such Distribution Date), (D) the Class M-3 Certificate
Principal Balance (after taking into account distributions of the Class M-3
Principal Distribution Amount on such Distribution Date), (E) the Class M-4
Certificate Principal Balance (after taking into account distributions of the
Class M-4 Principal Distribution Amount on such Distribution Date, (F) the Class
M-5 Certificate Principal Balance (after taking into account distributions of
the Class M-5 Principal Distribution Amount on such Distribution Date, (G) the
Class M-6 Certificate Principal Balance (after taking into account distributions
of the Class M-6 Principal Distribution Amount on such Distribution Date and (H)
the Class B-1 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 86.60% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A Certificates and Class M
Certificates has been reduced to zero, the Class B-1 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-1 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A and Class M
Certificates and (II) in no event will the Class B-1 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-1 Certificate
Principal Balance.

     Class B-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-1 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance."

     Class B-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-2 Certificates.

     Class B-2 Certificate: Any Certificate designated as a "Class B-2
Certificate" on the face thereof in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class B-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-2 Certificates.

                                       21

<PAGE>

     Class B-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-2 Pass-Through Rate on
the Class B-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class B-2 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class B-2 Certificates.

     Class B-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-2 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-2 Pass-Through Rate for the related Accrual Period.

     Class B-2 Pass-Through Rate: For any Distribution Date on or before the
Initial Optional Termination Date, the least of (1) 6.250%, (2) the Weighted
Average Available Funds Cap for such Distribution Date and (3) the Weighted
Average Maximum Rate Cap for such Distribution Date; and for any Distribution
Date after the Initial Optional Termination Date, the least of (1) 6.750%, (2)
the Weighted Average Available Funds Cap for such Distribution Date and (3) the
Weighted Average Maximum Rate Cap for such Distribution Date.

     Class B-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance and the Class B-1 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal Distribution Amount on such
Distribution Date), (C) the Class M-2 Certificate Principal Balance (after
taking into account distributions of the Class M-2 Principal Distribution Amount
on such Distribution Date), (D) the Class M-3 Certificate Principal Balance
(after taking into account distributions of the Class M-3 Principal Distribution
Amount on such Distribution Date), (E) the Class M-4 Certificate Principal
Balance (after taking into account distributions of the Class M-4 Principal
Distribution Amount on such Distribution Date), (F) the Class M-5 Certificate
Principal Balance (after taking into account distributions of the Class M-5
Principal Distribution Amount on such Distribution Date), (G) the Class M-6
Certificate Principal Balance (after taking into account distributions of the
Class M-6 Principal Distribution Amount on such Distribution Date), (H) the
Class B-1 Certificate Principal Balance (after taking into account distributions
of the Class B-1 Principal Distribution Amount on such Distribution Date) and
(I) the Class B-2 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 89.70% of the Stated Principal
Balance of the Mortgage Loans as of such Distribution Date and (B) the excess of
the Stated Principal Balance of the Mortgage Loans as of such Distribution Date
over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A, Class M and Class B-1
Certificates has been reduced to zero, the Class B-2 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-2 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M and Class B-1
Certificates and (II) in no event will the Class B-2 Principal Distribution
Amount with respect to any Distribution Date exceed the Class B-2 Certificate
Principal Balance.

     Class B-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the

                                       22

<PAGE>

Class B-2 Unpaid Realized Loss Amounts on all previous Distribution Dates and
(y) all increases in the Certificate Principal Balance of the Class B-2
Certificates pursuant to the last sentence of the definition of "Certificate
Principal Balance."

     Class B-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-3 Certificates.

     Class B-3 Certificate: Any Certificate designated as a "Class B-3
Certificate" on the face thereof in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class B-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-3 Certificates.

     Class B-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-3 Pass-Through Rate on
the Class B-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class B-3 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class B-3 Certificates.

     Class B-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-3 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-3 Pass-Through Rate for the related Accrual Period.

     Class B-3 Pass-Through Rate: For any Distribution Date on or before the
Initial Optional Termination Date, the least of (1) 6.250%, (2) the Weighted
Average Available Funds Cap for such Distribution Date and (3) the Weighted
Average Maximum Rate Cap for such Distribution Date; and for any Distribution
Date after the Initial Optional Termination Date, the least of (1) 6.750%, (2)
the Weighted Average Available Funds Cap for such Distribution Date and (3) the
Weighted Average Maximum Rate Cap for such Distribution Date.

     Class B-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance, the Class B-1 Certificate Principal
Balance and the Class B-2 Certificate Principal Balance have been reduced to
zero and a Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event
does not exist, the excess of (1) the sum of (A) the Class A Certificate
Principal Balance (after taking into account distributions of the Class A
Principal Distribution Amount on such Distribution Date), (B) the Class M-1
Certificate Principal Balance (after taking into account distributions of the
Class M-1 Principal Distribution Amount on such Distribution Date), (C) the
Class M-2 Certificate Principal Balance (after taking into account distributions
of the Class M-2 Principal Distribution Amount on such Distribution Date), (D)
the Class M-3 Certificate Principal Balance (after taking into account
distributions of the Class M-3 Principal Distribution Amount on such
Distribution Date), (E) the Class M-4 Certificate Principal Balance (after
taking into account distributions of the Class M-4 Principal Distribution Amount
on such Distribution Date), (F) the Class M-5 Certificate Principal Balance
(after taking into account distributions of the Class M-5 Principal Distribution
Amount on such Distribution Date), (G) the Class M-6 Certificate Principal
Balance (after taking into account distributions of the Class M-6 Principal
Distribution Amount on such Distribution Date), (H) the Class B-1 Certificate
Principal Balance (after taking into account distributions of the Class

                                       23

<PAGE>

B-1 Principal Distribution Amount on such Distribution Date), (I) the Class B-2
Certificate Principal Balance (after taking into account distributions of the
Class B-2 Principal Distribution Amount on such Distribution Date) and (J) the
Class B-3 Certificate Principal Balance immediately prior to such Distribution
Date over (2) the lesser of (A) 91.60% of the Stated Principal Balance of the
Mortgage Loans as of such Distribution Date and (B) the excess of the Stated
Principal Balance of the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount. Notwithstanding the foregoing,
(I) on any Distribution Date prior to the Stepdown Date on which the Certificate
Principal Balance of each Class of Class A, Class M, Class B-1 and Class B-2
Certificates has been reduced to zero, the Class B-3 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-3 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M, Class B-1 and
Class B-2 Certificates and (II) in no event will the Class B-3 Principal
Distribution Amount with respect to any Distribution Date exceed the Class B-3
Certificate Principal Balance.

     Class B-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-3 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance".

     Class B-4 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class B-4 Certificates.

     Class B-4 Certificate: Any Certificate designated as a "Class B-4
Certificate" on the face thereof in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class B-4 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class B-4 Certificates.

     Class B-4 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class B-4 Pass-Through Rate on
the Class B-4 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class B-4 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class B-4 Certificates.

     Class B-4 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class B-4 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
B-4 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class B-4 Pass-Through Rate for the related Accrual Period.

     Class B-4 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 2.500% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 3.750% per annum.

     Class B-4 Pass-Through Rate: For the first Distribution Date, 7.3800% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class B-4 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

                                       24

<PAGE>

     Class B-4 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, the
Class M Certificate Principal Balance, the Class B-1 Certificate Principal
Balance, the Class B-2 Certificate Principal Balance and the Class B-3
Certificate Principal Balance have been reduced to zero and a Stepdown Trigger
Event exists, or as long as a Stepdown Trigger Event does not exist, the excess
of (1) the sum of (A) the Class A Certificate Principal Balance (after taking
into account distributions of the Class A Principal Distribution Amount on such
Distribution Date), (B) the Class M-1 Certificate Principal Balance (after
taking into account distributions of the Class M-1 Principal Distribution Amount
on such Distribution Date), (C) the Class M-2 Certificate Principal Balance
(after taking into account distributions of the Class M-2 Principal Distribution
Amount on such Distribution Date), (D) the Class M-3 Certificate Principal
Balance (after taking into account distributions of the Class M-3 Principal
Distribution Amount on such Distribution Date), (E) the Class M-4 Certificate
Principal Balance (after taking into account distributions of the Class M-4
Principal Distribution Amount on such Distribution Date), (F) the Class M-5
Certificate Principal Balance (after taking into account distributions of the
Class M-5 Principal Distribution Amount on such Distribution Date), (G) the
Class M-6 Certificate Principal Balance (after taking into account distributions
of the Class M-6 Principal Distribution Amount on such Distribution Date), (H)
the Class B-1 Certificate Principal Balance (after taking into account
distributions of the Class B-1 Principal Distribution Amount on such
Distribution Date), (I) the Class B-2 Certificate Principal Balance (after
taking into account distributions of the Class B-2 Principal Distribution Amount
on such Distribution Date), (J) the Class B-3 Certificate Principal Balance
(after taking into account distributions of the Class B-3 Principal Distribution
Amount on such Distribution Date) and (K) the Class B-4 Certificate Principal
Balance immediately prior to such Distribution Date over (2) the lesser of (A)
93.60% of the Stated Principal Balance of the Mortgage Loans as of such
Distribution Date and (B) the excess of the Stated Principal Balance of the
Mortgage Loans as of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A, Class M, Class B-1, Class B-2 and Class B-3
Certificates has been reduced to zero, the Class B-4 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class B-4 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M, Class B-1,
Class B-2 and Class B-3 Certificates and (II) in no event will the Class B-4
Principal Distribution Amount with respect to any Distribution Date exceed the
Class B-4 Certificate Principal Balance.

     Class B-4 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class B-4 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class B-4 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of the Class B-4 Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance".

     Class C Applied Realized Loss Amount: As of any Distribution Date, the sum
of all Applied Realized Loss Amounts with respect to the Mortgage Loans which
have been applied to the reduction of the Certificate Principal Balance of the
Class C Certificates.

     Class C Certificate: Any Certificate designated as a "Class C Certificate"
on the face thereof, in the form of Exhibit A hereto, representing the right to
distributions as set forth herein.

     Class C Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class C Certificates.

     Class C Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class C Distributable Interest Rate on
a notional amount equal to the aggregate

                                       25

<PAGE>

principal balance of the Lower Tier REMIC Regular Interests immediately prior to
such Distribution Date, plus the interest portion of any previous distributions
on such Class that is recovered as a voidable preference by a trustee in
bankruptcy, less any Non-Supported Interest Shortfall allocated on such
Distribution Date to the Class C Certificates.

     Class C Distributable Interest Rate: The excess, if any, of (a) the
weighted average of the interest rates on the Lower Tier REMIC Regular Interests
(other than the Class LT-IO Interest) over (b) two times the weighted average of
the interest rates on the Lower Tier REMIC I Marker Interests and the Class LTIX
Interest (treating for purposes of this clause (b) the interest rate on each of
the Lower Tier REMIC I Marker Interests as being subject to a cap and a floor
equal to the interest rate of the Corresponding REMIC Regular Interest of the
Corresponding Certificates (as adjusted to reflect the length of the Accrual
Period for the LIBOR Certificates) and treating the Class LTIX Interest as being
capped at zero). The averages described in the preceding sentence shall be
weighted on the basis of the respective principal balances of the Lower Tier
REMIC Regular Interests immediately prior to any date of determination.

     Class C Interest Carry Forward Amount: As of any Distribution Date, the
excess of (A) the Class C Current Interest with respect to prior Distribution
Dates over (B) the amount actually distributed to the Class C Certificates with
respect to interest on such prior Distribution Dates or added to the aggregate
Certificate Principal Balance of the Class C Certificates.

     Class C Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class C Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class C Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class C Certificates pursuant to the last sentence of
the definition of "Certificate Principal Balance."

     Class LTA-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificates and an interest rate equal to the Net
Rate.

     Class LTA-2A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2C Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTA-2D Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

                                       26

<PAGE>

     Class LTB-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTB-4 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LT-IO Interest: An uncertificated regular interest in the Lower Tier
REMIC with the characteristics set forth in the description of the Lower Tier
REMIC in the Preliminary Statement.

     Class LTIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC I Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTIIX Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to the excess of (i) 50% of the
aggregate Cut-off Date Principal Balance of the Mortgage Loans over (ii) the
initial principal balance of the Lower Tier REMIC II Marker Interests, and with
an interest rate equal to the Net Rate.

     Class LTII1A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group One Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group One, and with an interest rate equal to the Net Rate.

     Class LTII1B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% the aggregate Cut-off
Date Principal Balance of the Group One Mortgage Loans, and with an interest
rate equal to the rate set forth in footnote 9 to the description of the Lower
Tier REMIC in the Preliminary Statement.

     Class LTII2A Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the excess of (i) the
aggregate Cut-off Date Principal Balance of the Group Two Mortgage Loans over
(ii) the aggregate of the initial Certificate Principal Balances of Certificate
Group Two, and with an interest rate equal to the Net Rate.

     Class LTII2B Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 0.05% of the aggregate Cut-off
Date Principal Balance of the Group Two Mortgage Loans and with an interest rate
equal to the rate set forth in footnote 10 to the description of the Lower Tier
REMIC in the Preliminary Statement.

     Class LTM-1 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

                                       27

<PAGE>

     Class LTM-2 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-3 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-4 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-5 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTM-6 Interest: An uncertificated regular interest in the Lower Tier
REMIC with an initial principal balance equal to 1/4 of the initial principal
balance of its Corresponding Certificate and an interest rate equal to the Net
Rate.

     Class LTR Interest: The sole class of "residual interest" in the Lower Tier
REMIC.

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

     Class M Certificate Principal Balance: For any date of determination, the
sum of the Class M-1 Certificate Principal Balance, Class M-2 Certificate
Principal Balance, Class M-3 Certificate Principal Balance, Class M-4
Certificate Principal Balance, Class M-5 Certificate Principal Balance and Class
M-6 Certificate Principal Balance.

     Class M-1 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-1 Certificates.

     Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-1 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-1 Certificates.

     Class M-1 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-1 Pass-Through Rate on
the Class M-1 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-1 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-1 Certificates.

     Class M-1 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-1 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-1 Certificates with respect to interest on such prior Distribution Dates

                                       28

<PAGE>

and (2) interest on such excess (to the extent permitted by applicable law) at
the Class M-1 Pass-Through Rate for the related Accrual Period.

     Class M-1 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.330% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.395% per annum.

     Class M-1 Pass-Through Rate: For the first Distribution Date, 5.2100% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-1 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-1 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance has been
reduced to zero and a Stepdown Trigger Event exists, or as long as a Stepdown
Trigger Event does not exist, the excess of (1) the sum of (A) the Class A
Certificate Principal Balance (after taking into account distributions of the
Class A Principal Distribution Amount on such Distribution Date) and (B) the
Class M-1 Certificate Principal Balance immediately prior to such Distribution
Date over (2) the lesser of (A) 62.20% of the Stated Principal Balances of the
Mortgage Loans as of such Distribution Date and (B) the excess of the Stated
Principal Balances for the Mortgage Loans as of such Distribution Date over the
Minimum Required Overcollateralization Amount. Notwithstanding the foregoing,
(I) on any Distribution Date prior to the Stepdown Date on which the Certificate
Principal Balance of each Class of Class A Certificates has been reduced to
zero, the Class M-1 Principal Distribution Amount will equal the lesser of (x)
the outstanding Certificate Principal Balance of the Class M-1 Certificates and
(y) 100% of the Principal Distribution Amount remaining after any distributions
on such Class A Certificates and (II) in no event will the Class M-1 Principal
Distribution Amount with respect to any Distribution Date exceed the Class M-1
Certificate Principal Balance.

     Class M-1 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-1 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-1 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-1 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-2 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-2 Certificates.

     Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-2 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-2 Certificates.

     Class M-2 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-2 Pass-Through Rate on
the Class M-2 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-2 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-2 Certificates.

                                       29

<PAGE>

     Class M-2 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-2 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-2 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-2 Pass-Through Rate for the related Accrual Period.

     Class M-2 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.340% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.510 % per annum.

     Class M-2 Pass-Through Rate: For the first Distribution Date, 5.2200% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-2 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-2 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance and the
Class M-1 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date) and (C) the Class M-2 Certificate Principal
Balance immediately prior to such Distribution Date over (2) the lesser of (A)
68.90% of the Stated Principal Balances of the Mortgage Loans as of such
Distribution Date and (B) the excess of the Stated Principal Balances of the
Mortgage Loans as of the end of such Distribution Date over the Minimum Required
Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates and the Class M-1 Certificates has
been reduced to zero, the Class M-2 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-2
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A and Class M-1 Certificates and (II) in no
event will the Class M-2 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-2 Certificate Principal Balance.

     Class M-2 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-2 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-2 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-2 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-3 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-3 Certificates.

     Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-3 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-3 Certificates.

                                       30

<PAGE>

     Class M-3 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-3 Pass-Through Rate on
the Class M-3 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-3 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-3 Certificates.

     Class M-3 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-3 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-3 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-3 Pass-Through Rate for the related Accrual Period.

     Class M-3 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.370% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.555% per annum.

     Class M-3 Pass-Through Rate: For the first Distribution Date, 5.2500% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-3 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-3 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance and Class M-2 Certificate Principal Balance
have been reduced to zero and a Stepdown Trigger Event exists, or as long as a
Stepdown Trigger Event does not exist, the excess of (1) the sum of (A) the
Class A Certificate Principal Balance (after taking into account distributions
of the Class A Principal Distribution Amount on such Distribution Date), (B) the
Class M-1 Certificate Principal Balance (after taking into account distributions
of the Class M-1 Principal Distribution Amount on such Distribution Date), (C)
the Class M-2 Certificate Principal Balance (after taking into account
distributions of the Class M-2 Principal Distribution Amount on such
Distribution Date) and (D) the Class M-3 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 72.80% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates and the Class M-2 Certificates has
been reduced to zero, the Class M-3 Principal Distribution Amount will equal the
lesser of (x) the outstanding Certificate Principal Balance of the Class M-3
Certificates and (y) 100% of the Principal Distribution Amount remaining after
any distributions on such Class A, Class M-1 and Class M-2 Certificates and (II)
in no event will the Class M-3 Principal Distribution Amount with respect to any
Distribution Date exceed the Class M-3 Certificate Principal Balance.

     Class M-3 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-3 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-3 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-3 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

                                       31
<PAGE>

     Class M-4 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-4 Certificates.

     Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-4 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-4 Certificates.

     Class M-4 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-4 Pass-Through Rate on
the Class M-4 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-4 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-4 Certificates.

     Class M-4 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-4 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-4 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-4 Pass-Through Rate for the related Accrual Period.

     Class M-4 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.460% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.690% per annum.

     Class M-4 Pass-Through Rate: For the first Distribution Date, 5.3400% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-4 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-4 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance and
Class M-3 Certificate Principal Balance have been reduced to zero and a Stepdown
Trigger Event exists, or as long as a Stepdown Trigger Event does not exist, the
excess of (1) the sum of (A) the Class A Certificate Principal Balance (after
taking into account distributions of the Class A Principal Distribution Amount
on such Distribution Date), (B) the Class M-1 Certificate Principal Balance
(after taking into account distributions of the Class M-1 Principal Distribution
Amount on such Distribution Date), (C) the Class M-2 Certificate Principal
Balance (after taking into account distributions of the Class M-2 Principal
Distribution Amount on such Distribution Date), (C) the Class M-3 Certificate
Principal Balance (after taking into account distributions of the Class M-3
Principal Distribution Amount on such Distribution Date) and (D) the Class M-4
Certificate Principal Balance immediately prior to such Distribution Date over
(2) the lesser of (A) 76.40% of the Stated Principal Balances of the Mortgage
Loans as of such Distribution Date and (B) the excess of the Stated Principal
Balances for the Mortgage Loans as of such Distribution Date over the Minimum
Required Overcollateralization Amount. Notwithstanding the foregoing, (I) on any
Distribution Date prior to the Stepdown Date on which the Certificate Principal
Balance of each Class of Class A Certificates, the Class M-1 Certificates, the
Class M-2 Certificates and the Class M-3 Certificates has been reduced to zero,
the Class M-4 Principal Distribution Amount will equal the lesser of (x) the
outstanding Certificate Principal Balance of the Class

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<PAGE>

M-4 Certificates and (y) 100% of the Principal Distribution Amount remaining
after any distributions on such Class A, Class M-1, Class M-2 and Class M-3
Certificates and (II) in no event will the Class M-4 Principal Distribution
Amount with respect to any Distribution Date exceed the Class M-4 Certificate
Principal Balance.

     Class M-4 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-4 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-4 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-4 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-5 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-5 Certificates.

     Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-5 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-5 Certificates.

     Class M-5 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-5 Pass-Through Rate on
the Class M-5 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-5 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-5 Certificates.

     Class M-5 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-5 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-5 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-5 Pass-Through Rate for the related Accrual Period.

     Class M-5 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.480% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.720% per annum.

     Class M-5 Pass-Through Rate: For the first Distribution Date, 5.3600% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-5 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-5 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance and Class M-4 Certificate Principal
Balance have been reduced to zero and a Stepdown Trigger Event exists, or as
long as a Stepdown Trigger Event does not exist, the excess of (1) the sum of
(A) the Class A Certificate Principal Balance (after taking into account
distributions of the Class A Principal Distribution Amount on such Distribution
Date), (B) the Class M-1 Certificate Principal Balance (after taking into
account distributions of the Class M-1 Principal

                                       33

<PAGE>

Distribution Amount on such Distribution Date), (C) the Class M-2 Certificate
Principal Balance (after taking into account distributions of the Class M-2
Principal Distribution Amount on such Distribution Date), (D) the Class M-3
Certificate Principal Balance (after taking into account distributions of the
Class M-3 Principal Distribution Amount on such Distribution Date), (E) the
Class M-4 Certificate Principal Balance (after taking into account distributions
of the Class M-4 Principal Distribution Amount on such Distribution Date) and
(F) the Class M-5 Certificate Principal Balance immediately prior to such
Distribution Date over (2) the lesser of (A) 79.80% of the Stated Principal
Balances of the Mortgage Loans as of such Distribution Date and (B) the excess
of the Stated Principal Balances for the Mortgage Loans as of such Distribution
Date over the Minimum Required Overcollateralization Amount. Notwithstanding the
foregoing, (I) on any Distribution Date prior to the Stepdown Date on which the
Certificate Principal Balance of each Class of Class A Certificates, the Class
M-1 Certificates, the Class M-2 Certificates, the Class M-3 Certificates an the
Class M-4 Certificates has been reduced to zero, the Class M-5 Principal
Distribution Amount will equal the lesser of (x) the outstanding Certificate
Principal Balance of the Class M-5 Certificates and (y) 100% of the Principal
Distribution Amount remaining after any distributions on such Class A, Class
M-1, Class M-2, Class M-3 and Class M-4 Certificates and (II) in no event will
the Class M-5 Principal Distribution Amount with respect to any Distribution
Date exceed the Class M-5 Certificate Principal Balance.

     Class M-5 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-5 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-5 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-5 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class M-6 Applied Realized Loss Amount: As of any Distribution Date, the
sum of all Applied Realized Loss Amounts with respect to the Mortgage Loans
which have been applied to the reduction of the Certificate Principal Balance of
the Class M-6 Certificates.

     Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A hereto, representing
the right to distributions as set forth herein.

     Class M-6 Certificate Principal Balance: As of any date of determination,
the aggregate Certificate Principal Balance of the Class M-6 Certificates.

     Class M-6 Current Interest: As of any Distribution Date, the interest
accrued during the related Accrual Period at the Class M-6 Pass-Through Rate on
the Class M-6 Certificate Principal Balance as of such Distribution Date plus
the portion of any previous distributions on such Class in respect of Current
Interest or Class M-6 Interest Carry Forward Amount that is recovered as a
voidable preference by a trustee in bankruptcy, less any Non-Supported Interest
Shortfall allocated on such Distribution Date to the Class M-6 Certificates.

     Class M-6 Interest Carry Forward Amount: As of any Distribution Date, the
sum of (1) the excess of (A) the Class M-6 Current Interest with respect to
prior Distribution Dates over (B) the amount actually distributed to the Class
M-6 Certificates with respect to interest on such prior Distribution Dates and
(2) interest on such excess (to the extent permitted by applicable law) at the
Class M-6 Pass-Through Rate for the related Accrual Period.

     Class M-6 Margin: As of any Distribution Date up to and including the
Initial Optional Termination Date, 0.560% per annum and, as of any Distribution
Date after the Initial Optional Termination Date, 0.840% per annum.

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<PAGE>

     Class M-6 Pass-Through Rate: For the first Distribution Date, 5.4400% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class M-6 Margin, (2) the Weighted Average Available Funds Cap for such
Distribution Date and (3) the Weighted Average Maximum Rate Cap for such
Distribution Date.

     Class M-6 Principal Distribution Amount: With respect to any Distribution
Date on or after the Stepdown Date, 100% of the Principal Distribution Amount
for such Distribution Date if the Class A Certificate Principal Balance, Class
M-1 Certificate Principal Balance, Class M-2 Certificate Principal Balance,
Class M-3 Certificate Principal Balance, Class M-4 Certificate Principal Balance
and Class M-5 Certificate Principal Balance have been reduced to zero and a
Stepdown Trigger Event exists, or as long as a Stepdown Trigger Event does not
exist, the excess of (1) the sum of (A) the Class A Certificate Principal
Balance (after taking into account distributions of the Class A Principal
Distribution Amount on such Distribution Date), (B) the Class M-1 Certificate
Principal Balance (after taking into account distributions of the Class M-1
Principal Distribution Amount on such Distribution Date), (C) the Class M-2
Certificate Principal Balance (after taking into account distributions of the
Class M-2 Principal Distribution Amount on such Distribution Date), (D) the
Class M-3 Certificate Principal Balance (after taking into account distributions
of the Class M-3 Principal Distribution Amount on such Distribution Date), (E)
the Class M-4 Certificate Principal Balance (after taking into account
distributions of the Class M-4 Principal Distribution Amount on such
Distribution Date), (F) the Class M-5 Certificate Principal Balance (after
taking into account distributions of the Class M-5 Principal Distribution Amount
on such Distribution Date), and (G) the Class M-6 Certificate Principal Balance
immediately prior to such Distribution Date over (2) the lesser of (A) 83.00% of
the Stated Principal Balances of the Mortgage Loans as of such Distribution Date
and (B) the excess of the Stated Principal Balances for the Mortgage Loans as of
such Distribution Date over the Minimum Required Overcollateralization Amount.
Notwithstanding the foregoing, (I) on any Distribution Date prior to the
Stepdown Date on which the Certificate Principal Balance of each Class of Class
A Certificates, the Class M-1 Certificates, the Class M-2 Certificates, the
Class M-3 Certificates, the Class M-4 Certificates and the Class M-5
Certificates has been reduced to zero, the Class M-6 Principal Distribution
Amount will equal the lesser of (x) the outstanding Certificate Principal
Balance of the Class M-6 Certificates and (y) 100% of the Principal Distribution
Amount remaining after any distributions on such Class A, Class M-1, Class M-2,
Class M-3, Class M-4 and Class M-5 Certificates and (II) in no event will the
Class M-6 Principal Distribution Amount with respect to any Distribution Date
exceed the Class M-6 Certificate Principal Balance.

     Class M-6 Unpaid Realized Loss Amount: As of any Distribution Date, the
excess of (1) the Class M-6 Applied Realized Loss Amount over (2) the sum of (x)
all distributions in reduction of the Class M-6 Unpaid Realized Loss Amounts on
all previous Distribution Dates and (y) all increases in the Certificate
Principal Balance of such Class M-6 Certificates pursuant to the last sentence
of the definition of "Certificate Principal Balance."

     Class P Certificate: Any Certificate designated as a Class P Certificate on
the face thereof, executed by the Trustee and authenticated by the Trustee in
substantially the form set forth in Exhibit A, representing the right to
distributions as set forth herein.

     Class R Certificate: The Class R Certificate executed by the Trustee and
authenticated by the Trustee in substantially the form set forth in Exhibit A.

     Class R Certificate Principal Balance: As of any date of determination, the
aggregate Certificate Principal Balance of the Class R Certificate.

     Class R Current Interest: As of any Distribution Date, the interest accrued
during the related Accrual Period at the Class R Pass-Through Rate on the Class
R Certificate Principal Balance as of such

                                       35

<PAGE>

Distribution Date plus the portion of any previous distributions on such Class
in respect of Current Interest or a Class R Interest Carry Forward Amount that
is recovered as a voidable preference by a trustee in bankruptcy, less any
Non-Supported Interest Shortfall allocated on such Distribution Date to the
Class R Certificate. For purposes of calculating interest, principal
distributions on a Distribution Date will be deemed to have been made on the
first day of the Accrual Period in which such Distribution Date occurs.

     Class R Interest Carry Forward Amount: As of any Distribution Date, the sum
of (1) the excess of (A) the Class R Current Interest with respect to prior
Distribution Dates over (B) the amount actually distributed to the Class R
Certificate with respect to interest on such prior Distribution Dates and (2)
interest on such excess (to the extent permitted by applicable law) at the Class
R Pass-Through Rate for the related Accrual Period.

     Class R Margin: As of any Distribution Date up to and including the Initial
Optional Termination Date for the Certificates, 0.180% per annum and, as of any
Distribution Date after the Initial Optional Termination Date, 0.360% per annum.

     Class R Pass-Through Rate: For the first Distribution Date, 5.0600% per
annum. As of any Distribution Date thereafter, the least of (1) One-Month LIBOR
plus the Class R Margin, (2) the Class A-1 Available Funds Cap for such
Distribution Date and (3) the Class A-1 Maximum Rate Cap for such Distribution
Date.

     Class SWR Interest: The sole class of "residual interest" in the SWAP
REMIC.

     Closing Date: April 13, 2006.

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

     Collection Account: The separate Eligible Account created and initially
maintained by the Servicer pursuant to Section 3.05(d) in the name of the
Trustee for the benefit of the Certificateholders and designated "Litton Loan
Servicing LP, as servicer for the holders of Ownit Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2006-3." Funds in the Collection Account
shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

     Compensating Interest: With respect to any Mortgage Loan and any
Distribution Date, an amount equal to the portion of any Prepayment Interest
Shortfalls required to be deposited in the Collection Account by the Servicer
pursuant to Section 4.02 hereof, provided that such amount shall not exceed
one-half of the product of (x) one-twelfth of the Servicing Fee Rate and (y) the
aggregate Stated Principal Balance of the Mortgage Loans.

     Condemnation Proceeds: All awards or settlements in respect of a Mortgaged
Property (or Underlying Mortgaged Property, in the case of a Co-op Loan),
whether permanent or temporary, partial or entire, by exercise of the power of
eminent domain or condemnation, to the extent not required to be released either
to a Mortgagor in accordance with the terms of the related mortgage loan
documents or to the holder of a senior lien on the Mortgaged Property (or
Underlying Mortgaged Property, in the case of a Co-op Loan).

     Co-op Lease: With respect to a Co-op Loan, the lease with respect to a
dwelling unit occupied by the Mortgagor and relating to the stock allocated to
the related dwelling unit.

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<PAGE>

     Co-op Loan: A Mortgage Loan secured by the pledge of stock allocated to a
dwelling unit in a residential cooperative housing corporation and a collateral
assignment of the related Co-op Lease.

     Corresponding Certificates: With respect to the Class LTA-1 Interest, the
Class A-1 and Class R Certificates. With respect to the Class LTA-2A Interest,
the Class A-2A Certificates. With respect to the Class LTA-2B Interest, the
Class A-2B Certificates. With respect to the Class LTA-2C Interest, the Class
A-2C Certificates. With respect to the Class LTA-2D Interest, the Class A-2D
Certificates. With respect to the Class LTM-1 Interest, the Class M-1
Certificates. With respect to the Class LTM-2 Interest, the Class M-2
Certificates. With respect to the Class LTM-3 Interest, the Class M-3
Certificates. With respect to the Class LTM-4 Interest, the Class M-4
Certificates. With respect to the Class LTM-5 Interest, the Class M-5
Certificates. With respect to the Class LTM-6 Interest, the Class M-6
Certificates. With respect to the Class LTB-1 Interest, the Class B-1
Certificates. With respect to the Class LTB-2 Interest, the Class B-2
Certificates. With respect to the Class LTB-3 Interest, the Class B-3
Certificates. With respect to the Class LTB-4 Interest, the Class B-4
Certificates.

     Corresponding REMIC Regular Interest: For each Class of Certificates, the
interest in the Upper Tier REMIC listed on the same row in the table entitled
"Upper Tier REMIC" in the Preliminary Statement.

     Current Interest: Any of the Class A-1 Current Interest, the Class A-2A
Current Interest, the Class A-2B Current Interest, the Class A-2C Current
Interest, the Class A-2D Current Interest, the Class R Current Interest, the
Class M-1 Current Interest, the Class M-2 Current Interest, the Class M-3
Current Interest, the Class M-4 Current Interest, the Class M-5 Current
Interest, the Class M-6 Current Interest, the Class B-1 Current Interest, the
Class B-2 Current Interest, the Class B-3 Current Interest, the Class B-4
Current Interest and the Class C Current Interest.

     Custodian: LaSalle Bank National Association, on behalf of the Trustee.

     Cut-off Date: March 1, 2006.

     Cut-off Date Principal Balance: As to any Mortgage Loan, the unpaid
principal balance thereof as of the close of business on the calendar day
immediately preceding the Cut-off Date after application of all payments of
principal due on or prior to the Cut-off Date, whether or not received, and all
Principal Prepayments received prior to the Cut-off Date, but without giving
effect to any installments of principal received in respect of Due Dates after
the Cut-off Date.

     Defaulted Swap Termination Payment: Any payment required to be made by the
Supplemental Interest Trust to the Swap Counterparty pursuant to the Swap
Agreement as a result of an event of default under the Swap Agreement with
respect to which the Swap Counterparty is the defaulting party or a termination
event (including a Downgrade Termination Event) under that agreement (other than
illegality or a tax event) with respect to which the Swap Counterparty is the
sole Affected Party (as defined in the Swap Agreement).

     Definitive Certificates: As defined in Section 5.06.

     Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced by a
Replacement Mortgage Loan.

     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

                                       37

<PAGE>

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 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 of this Certificate."

     Depositor: Merrill Lynch Mortgage Investors, Inc., a Delaware corporation,
or any 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(3) of the Uniform
Commercial Code of the State of New York.

     Depository Agreement: With respect to Classes of Book-Entry Certificates,
the agreement between the Trustee and the initial Depository.

     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.

     Designated Transaction: A transaction in which the assets underlying the
Certificates consist of single-family residential, multi-family residential,
home equity, manufactured housing and/or commercial mortgage obligations that
are secured by single-family residential, multi-family residential, commercial
real property or leasehold interests therein.

     Determination Date: With respect to any Distribution Date, the 16th day of
the month of such Distribution Date or, if such 16th day is not a Business Day,
the next succeeding Business Day.

     Disqualified Organization: (1) the United States, any state or political
subdivision thereof, any foreign government, any international organization, or
any agency or instrumentality of any of the foregoing, (2) any organization
(other than a cooperative described in Section 521 of the Code) which is exempt
from tax under Chapter 1 of Subtitle A of the Code unless such organization is
subject to the tax imposed by Section 511 of the Code and (3) any organization
described in Section 1381(a)(2)(C) of the Code.

     Distribution Date: The 25th day of each calendar month, or if such 25th day
is not a Business Day, the next succeeding Business Day, commencing in April
2006.

     Downgrade Termination Event: An event whereby (x) the Swap Counterparty (or
its guarantor) ceases to have short term unsecured and/or long term debt ratings
at least equal to the levels specified in the Swap Agreement, and (y) at least
one of the following events has not occurred (except to the extent otherwise
approved by the Rating Agencies): (i) within the time period specified in the
Swap Agreement with respect to such downgrade, the Swap Counterparty shall
transfer the Swap Agreement, in whole, but not in part, to a substitute swap
counterparty that satisfies the requirements set forth in the Swap Agreement,
subject to the satisfaction of the Rating Agency Condition or (ii) within the
time period specified in the Swap Agreement with respect to such downgrade, the
Swap Counterparty shall collateralize its exposure to the Trust Fund pursuant to
an ISDA Credit Support Annex, subject to the

                                       38

<PAGE>

satisfaction of the Rating Agency Condition; provided that such ISDA Credit
Support Annex shall be made a credit support document for the Swap Counterparty
pursuant to an amendment to the Swap Agreement.

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

     Due Period: With respect to any Distribution Date, the period beginning on
the second day of the calendar month preceding the calendar month in which such
Distribution Date occurs and ending on the first day of the month in which such
Distribution Date occurs.

     Eligible Account: An account that is (i) maintained with a depository
institution the long-term unsecured debt obligations of which are rated by each
Rating Agency in one of its two highest rating categories, or (ii) maintained
with the corporate trust department of a bank which (A) has a rating of at least
Baa3 or P-3 by Moody's and (B) is either the Depositor or the corporate trust
department of a national bank or banking corporation which has a rating of at
least A-1 by S&P or F1 by Fitch, or (iii) an account or accounts the deposits in
which are fully insured by the FDIC, or (iv) an account or accounts, acceptable
to each Rating Agency without reduction or withdrawal of the rating of any Class
of Certificates, as evidenced in writing, by a depository institution in which
such accounts are insured by the FDIC (to the limit established by the FDIC),
the uninsured deposits in which accounts are otherwise secured such that, as
evidenced by an Opinion of Counsel delivered to and acceptable to the Trustee
and each Rating Agency, the Certificateholders have a claim with respect to the
funds in such account and a perfected first 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 (v) maintained
at an eligible institution whose commercial paper, short-term debt or other
short-term deposits are rated at least A-1+ by S&P and F-1+ by Fitch, or (vi)
maintained with a federal or state chartered depository institution the deposits
in which are insured by the FDIC to the applicable limits and the short-term
unsecured debt obligations of which (or, in the case of a depository institution
that is a subsidiary of a holding company, the short-term unsecured debt
obligations of such holding company) are rated A-1 by S&P or Prime-1 by Moody's
at the time any deposits are held on deposit therein, or (vii) otherwise
acceptable to each Rating Agency, as evidenced by a letter from each Rating
Agency to the Trustee.

     ERISA: The Employee Retirement Income Security Act of 1974, including any
successor or amendatory provisions.

     ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that would satisfy the requirements of
Prohibited Transaction Exemption 90-29, Exemption Application No. D-8012, 55
Fed. Reg. 21459 (1990), as amended, granted to the Underwriter by the United
States Department of Labor (or any other applicable underwriter's exemption
granted by the United States Department of Labor), except, in relevant part, for
the requirement that the certificates have received a rating at the time of
acquisition that is in one of the three (or four, in the case of a "designated
transaction") highest generic rating categories by at least one of the Rating
Agencies.

     ERISA Restricted Certificates: The Class C and Class P Certificates and any
other Certificate, as long as the acquisition and holding of such Certificate is
not covered by and exempt under the Underwriter's exemption.

     Event of Default: As defined in Section 7.01 hereof.

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<PAGE>

     Excess Interest: On any Distribution Date, for each Class of the Class A,
Class M and Class B Certificates, the excess, if any, of (1) the amount of
interest such Class of Certificates is entitled to receive on such Distribution
Date over (2) the amount of interest such Class of Certificates would have been
entitled to receive on such Distribution Date at an interest rate equal to the
REMIC Pass-Through Rate.

     Excess Proceeds: With respect to any Liquidated Loan, any Liquidation
Proceeds that are in excess of the sum of (1) the unpaid principal balance of
such Liquidated Loan as of the date of such liquidation plus (2) interest at the
Mortgage Rate from the Due Date as to which interest was last paid or advanced
to Certificateholders (and not reimbursed to the Servicer) up to the Due Date in
the month in which such Liquidation Proceeds are required to be distributed on
the unpaid principal balance of such Liquidated Loan outstanding during each Due
Period as to which such interest was not paid or advanced.

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

     Extra Principal Distribution Amount: With respect to any Distribution Date,
(1) prior to the Stepdown Date, the excess of (A) the sum of (i) the Aggregate
Certificate Principal Balance immediately preceding such Distribution Date
reduced by the Principal Funds with respect to such Distribution Date and (ii)
$18,409,682 and over (B) the aggregate Stated Principal Balance of the Mortgage
Loans as of such Distribution Date and (2) on and after the Stepdown Date, (A)
the sum of (x) the Aggregate Certificate Principal Balance immediately preceding
such Distribution Date, reduced by the Principal Funds with respect to such
Distribution Date and (y) the greater of (a) 6.40% of the aggregate Stated
Principal Balance of the Mortgage Loans and (b) the Minimum Required
Overcollateralization Amount less (B) the aggregate Stated Principal Balance of
the Mortgage Loans as of such Distribution Date; provided, however, that if on
any Distribution Date a Stepdown Trigger Event is in effect, the Extra Principal
Distribution Amount will not be reduced to the applicable percentage of the
then-current aggregate Stated Principal Balance of the Mortgage Loans (and will
remain fixed at the applicable percentage of the aggregate Stated Principal
Balance of the Mortgage Loans as of the Due Date immediately prior to the
Stepdown Trigger Event) until the next Distribution Date on which the Stepdown
Trigger Event is not in effect.

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

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

     Fitch: Fitch, Inc., or any successor in interest.

     Fixed Rate Mortgage Loan: A Mortgage Loan identified in the Mortgage Loan
Schedule as having a Mortgage Rate that is fixed.

     Floating Rate Certificate Carryover: With respect to a Distribution Date,
in the event that the Pass-Through Rate for a class of Class A, Class M or Class
B Certificates is based upon the related Available Funds Cap, the excess of (1)
the amount of interest that such Class would have been entitled to receive on
such Distribution Date had the Pass-Through Rate for that Class not been
calculated based on the related Available Funds Cap, up to but not exceeding
greater of (x) the related Maximum Rate Cap or (y) the sum of (i) the related
Available Funds Cap and (ii) the product of (A) a fraction, the numerator of
which is 360 and the denominator of which is the actual number of days in the
related Accrual Period and (B) the quotient obtained by dividing (I) an amount
equal to the proceeds, if any, payable under the related Cap Contract with
respect to such Distribution Date by (II) the aggregate Certificate Principal
Balance of each of the Classes of Certificates to which such Cap Contract
relates for such Distribution Date over (2) the amount of interest such class
was entitled to receive on such Distribution Date based on

                                       40

<PAGE>

the related Available Funds Cap, together with (i) the unpaid portion of any
such excess from prior Distribution Dates (and interest accrued thereon at the
then applicable Pass-Through Rate, without giving effect to the applicable
Available Funds Cap) and (ii) any amount previously distributed with respect to
Floating Rate Certificate Carryover for such class that is recovered as a
voidable preference by a trustee in bankruptcy.

     Floating Rate Subordinate Certificates: The Class M and Class B-4
Certificates.

     Floating Rate Subordinate Certificates Cap Contract: The confirmation and
agreement between the Trust Fund or the Trustee and the Cap Contract
Counterparty (in the form of Exhibit N-4 hereto).

     Floating Rate Subordinate Certificates Cap Contract Notional Balance: With
respect to any Distribution Date, the Floating Rate Subordinate Certificates Cap
Contract Notional Balance set forth for such Distribution Date in the Floating
Rate Subordinate Certificates One-Month LIBOR Cap Table attached hereto as
Exhibit O-4.

     Floating Rate Subordinate Certificates Cap Contract Termination Date: The
Distribution Date in September 2006.

     Floating Rate Subordinate Certificates Upper Collar: With respect to each
Distribution Date with respect to which payments are received on the Subordinate
Certificate Cap Contract, a rate equal to the lesser of One-Month LIBOR and
8.9400% per annum.

     Form 8-K Disclosure Information: Has the meaning set forth in Section 3.27.

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

     Grantor Trusts: The grantor trusts described in Section 2.07 hereof.

     Gross Margin: The percentage set forth in the related Mortgage Note for
each of the Adjustable Rate Mortgage Loans which is to be added to the
applicable index for use in determining the Mortgage Rate on each Adjustment
Date, and which is set forth in the Mortgage Loan Schedule for each Adjustable
Rate Mortgage Loan.

     Group One: The portion of the Mortgage Pool identified as "Group One" in
the Prospectus Supplement.

     Group One Mortgage Loan: Any Mortgage Loan at any time identified in the
Group One Mortgage Loan Schedule attached hereto as Exhibit B-2.

     Group One Net WAC: The Net WAC of Group One.

     Group One Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class A-1 and Class R Certificates and (ii) the product of (x) the Group One
Principal Distribution Percentage and (y) the Class A Principal Distribution
Amount; provided, however, that with respect to any Distribution Date on which
the Class A-1 and Class R Certificates are outstanding and the Certificate
Principal Balance of the Class A-2 Certificates has been reduced to zero, the
Group One Principal Distribution Amount will equal the Class A Principal
Distribution Amount.

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     Group One Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group One and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Group Two: The portion of the Mortgage Pool identified as "Group Two" in
the Prospectus Supplement.

     Group Two Mortgage Loan: Any Mortgage Loan at any time identified in the
Group Two Mortgage Loan Schedule attached hereto as Exhibit B-3.

     Group Two Net WAC: The Net WAC of Group Two.

     Group Two Principal Distribution Amount: As of any Distribution Date, the
amount equal to the lesser of (i) the aggregate Certificate Principal Balance of
the Class A-2 Certificates and (ii) the product of (x) the Group Two Principal
Distribution Percentage and (y) the Class A Principal Distribution Amount;
provided, however, that with respect to any Distribution Date on which the Class
A-2 Certificates are outstanding and the Certificate Principal Balances of the
Class A-1 and Class R Certificates have been reduced to zero, the Group Two
Principal Distribution Amount will equal the Class A Principal Distribution
Amount.

     Group Two Principal Distribution Percentage: With respect to any
Distribution Date, a fraction expressed as a percentage, the numerator of which
is the amount of Principal Funds received with respect to Mortgage Loans in
Group Two and the denominator of which is the amount of Principal Funds received
from all of the Mortgage Loans in the mortgage pool.

     Indenture: An indenture relating to the issuance of notes guaranteed by the
NIMs Insurer.

     Initial Adjustment Date: As to any Adjustable Rate Mortgage Loan, the first
Adjustment Date following the origination of such Mortgage Loan.

     Initial Certificate Principal Balance: With respect to any Certificate, the
Certificate Principal Balance of such Certificate or any predecessor Certificate
on the Closing Date as set forth in Section 5.01 hereof.

     Initial Mortgage Rate: As to each Mortgage Loan, the Mortgage Rate in
effect prior to the Initial Adjustment Date.

     Initial Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans (or if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) is equal to
or less than 10% of the aggregate Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

     Insurance Policy: With respect to any Mortgage Loan or the related
Mortgaged Property (or the related Underlying Mortgaged Property, in the case of
a Co-op Loan) included in the Trust Fund, any insurance policy, including all
riders and endorsements thereto in effect with respect to such Mortgage Loan or
Mortgaged Property (or related Underlying Mortgage Property, in the case of a
Co-op Loan), including any replacement policy or policies for any insurance
policies.

     Insurance Proceeds: Proceeds paid in respect of a Mortgage Loan or the
related Mortgaged Property (or the related Underlying Mortgaged Property, in the
case of a Co-op Loan) pursuant to any

                                       42

<PAGE>

Insurance Policy or any other insurance policy covering such Mortgage Loan or
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan), to the extent such proceeds are payable to the mortgagee under the
Mortgage, the Servicer or the trustee under the deed of trust and are not
applied to the restoration of the related Mortgaged Property (or the related
Underlying Mortgaged Property, in the case of a Co-op Loan) or released either
to the Mortgagor or to the holder of a senior lien on the related Mortgaged
Property (or the related Underlying Mortgaged Property in the case of a Co-op
Loan) in accordance with the procedures that the 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 an Insurance Policy or any other
insurance policy with respect to a Mortgage Loan or the related Mortgaged
Property (or the related Underlying Mortgaged Property, in the case of a Co-op
Loan).

     Interest Carry Forward Amount: Any of the Class A-1 Interest Carry Forward
Amount, the Class A-2A Interest Carry Forward Amount, the Class A-2B Interest
Carry Forward Amount, the Class A-2C Interest Carry Forward Amount, the Class
A-2D Interest Carry Forward Amount, the Class R Interest Carry Forward Amount,
the Class M-1 Interest Carry Forward Amount, the Class M-2 Interest Carry
Forward Amount, the Class M-3 Interest Carry Forward Amount, the Class M-4
Interest Carry Forward Amount, the Class M-5 Interest Carry Forward Amount, the
Class M-6 Interest Carry Forward Amount, the Class B-1 Interest Carry Forward
Amount, the Class B-2 Interest Carry Forward Amount, the Class B-3 Interest
Carry Forward Amount, the B-4 Interest Carry Forward Amount or the Class C
Interest Carry Forward Amount, as the case may be.

     Interest Determination Date: With respect to the LIBOR Certificates, (i)
for any Accrual Period other than the first Accrual Period, the second LIBOR
Business Day preceding the commencement of such Accrual Period and (ii) for the
first Accrual Period, April 11, 2006.

     Interest Funds: With respect to any Distribution Date, the sum, without
duplication, of (1) all scheduled interest due during the related Due Period and
received before the related Servicer Remittance Date or advanced on or before
the related Servicer Remittance Date less the Servicing Fee and the Trustee Fee,
(2) all Advances relating to interest with respect to the Mortgage Loans and
such Distribution Date, (3) all Compensating Interest with respect to the
Mortgage Loans and such Distribution Date, (4) Liquidation Proceeds with respect
to the Mortgage Loans (to the extent such Liquidation Proceeds relate to
interest) collected during the related Prepayment Period, (5) all proceeds of
any purchase pursuant to Section 2.02 or 2.03 during the related Prepayment
Period or pursuant to Section 9.01 not later than the related Determination Date
(to the extent that such proceeds relate to interest) less the Servicing Fee and
the Trustee Fee and (6) all Prepayment Charges received with respect to the
Mortgage Loans during the related Prepayment Period less (A) all Non-Recoverable
Advances relating to interest and (B) other amounts reimbursable to the Servicer
and the Trustee pursuant to this Agreement.

     Issuing Entity: Ownit Mortgage Loan Trust, Series 2006-3.

     LaSalle: LaSalle Bank National Association.

     Latest Possible Maturity Date: The latest maturity date for any Mortgage
Loan in the Trust Fund plus one year.

     LIBOR Business Day: Any day on which banks in the City of London, England
and New York City, U.S.A. are open and conducting transactions in foreign
currency and exchange.

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<PAGE>

     LIBOR Certificates: The Class A, Class M and Class B-4 Certificates.

     Liquidated Loan: With respect to any Distribution Date, a defaulted
Mortgage Loan that either (a) pursuant to Section 3.12 has been realized upon or
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
Servicer has certified (in accordance with Section 3.12) in the related
Prepayment Period that it has received all amounts it expects to receive in
connection with such liquidation or (b) as to which is not a first lien Mortgage
Loan and is delinquent 180 days or longer, the Servicer has certified in a
certificate of an officer of the Servicer delivered to the Depositor and the
Trustee that it does not believe that there is a reasonable likelihood that any
further net proceeds will be received or recovered with respect to such Mortgage
Loan.

     Liquidation Proceeds: Amounts, including Condemnation Proceeds, Insurance
Proceeds, received in connection with the partial or complete liquidation of a
Mortgage Loan, whether through trustee's sale, foreclosure sale, sale by the
Servicer pursuant to this Agreement or otherwise or amounts received in
connection with any condemnation or partial release of a Mortgaged Property and
any other proceeds received in connection with the final sale of a related REO
Property, less the sum of related unreimbursed Advances, Servicing Fees,
Servicing Advances and any other expenses related to such Mortgage Loan.

     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 lesser
of (X) the Appraised Value of the related Mortgaged Property (or applicable
dwelling unit, in the case of a Co-op Loan) and (Y) the sales price of the
related Mortgaged Property (or applicable dwelling unit, in the case of a Co-op
Loan) at the time of origination.

     Losses: Any losses, claims, damages, liabilities or expenses collectively.

     Lower Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Lower Tier REMIC Interests: Each of the Class LTA-1 Interest, the Class
LTA-2A Interest, the Class LTA-2B Interest, the Class LTA-2C Interest, the Class
LTA-2D Interest, the Class LTM-1 Interest, the Class LTM-2 Interest, the Class
LTM-3 Interest, the Class LTM-4 Interest, the Class LTM-5 Interest, the Class
LTM-6 Interest, the Class LTB-1 Interest, the Class LTB-2 Interest, the Class
LTB-3 Interest, the Class LTB-4 Interest, the Class LTIX Interest, the Class
LTIIX Interest, the Class LTII1A Interest, the Class LTII1B Interest, the Class
LTII2A Interest, the Class LTII2B Interest, the Class LT-IO Interest and the
Class LTR Interest.

     Lower Tier REMIC I Marker Interests: Each of the classes of Lower Tier
REMIC Regular Interests other than the Class LTIX Interest, the Class LTIIX
Interest, the Class LTII1A Interest, the Class LTII1B Interest, the Class LTII2A
Interest, the Class LTII2B Interest and the Class LT-IO Interest.

     Lower Tier REMIC II Marker Interests: Each of the Class LTII1A Interest,
the Class LTII1B Interest, the Class LTII2A Interest and the Class LTII2B
Interest.

     Lower Tier REMIC Regular Interests: Each of the Lower Tier REMIC Interests
other than the Class LTR Interest.

     Lower Tier REMIC Subordinated Balance Ratio: The ratio of (i) the principal
balance of the Class LTII1A Interest to (ii) the principal balance of the Class
LTII2A Interest that is equal to the ratio of

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<PAGE>

(i) the excess of (A) the aggregate Stated Principal Balance of Group One over
(B) the current Certificate Principal Balance of the Class A-1 and Class R
Certificates to (ii) the excess of (A) the aggregate Stated Principal Balance of
Group Two over (B) the current Certificate Principal Balance of the Class A-2
Certificates.

     Maximum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the maximum rate of interest set forth as such in the related Mortgage Note and
with respect to each Fixed Rate Mortgage Loan, the rate of interest set forth in
the related Mortgage Note.

     Maximum Rate Cap: Any of the Class A-1 Maximum Rate Cap, the Class A-2
Maximum Rate Cap or the Weighted Average Maximum Rate Cap.

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

     MERS Loan: Any Mortgage Loan registered with MERS on the MERS System.

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

     MIN: The loan number for any MERS Loan.

     Minimum Mortgage Rate: With respect to each Adjustable Rate Mortgage Loan,
the minimum rate of interest set forth as such in the related Mortgage Note.

     Minimum Required Overcollateralization Amount: An amount equal to the
product of (x) 0.50% and (y) the Stated Principal Balance of the Mortgage Loans
as of the Cut-off Date.

     MOM Loan: Any Mortgage Loan as to which MERS is acting as mortgagee, solely
as nominee for the originator of such Mortgage Loan and its successors and
assigns.

     Monthly Statement: The statement delivered to the Certificateholders
pursuant to Section 4.05.

     Moody's: Moody's Investors Service, Inc. or any successor in interest.

     Mortgage: With respect to a Mortgage Loan that is not a Co-op Loan, the
mortgage, deed of trust or other instrument with all riders attached thereto
creating a first or second lien or a first or second priority ownership interest
in an estate in fee simple in real property securing a Mortgage Note. With
respect to a Co-op Loan, the security agreement with all riders attached thereto
creating a security interest in the stock allocated to a dwelling unit in a
residential cooperative housing corporation and pledged to secure such Co-op
Loan and the related Co-op Lease.

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

     Mortgage Group: Either of Group One or Group Two.

     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 Properties the mortgage loans so held
being identified in the Mortgage Loan Schedule, notwithstanding

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<PAGE>

foreclosure or other acquisition of title of the related Mortgaged Property. Any
mortgage loan that was intended by the parties hereto to be transferred to the
Trust Fund as indicated by such Mortgage Loan Schedule which is in fact not so
transferred for any reason shall continue to be a Mortgage Loan hereunder until
the Purchase Price with respect thereto has been paid to the Trust Fund.

     Mortgage Loan Schedule: The list of Mortgage Loans (as from time to time
amended by the Trustee to reflect the deletion of Deleted Mortgage Loans and the
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, attached hereto as Exhibits B-1, B-2 and B-3,
setting forth the following information with respect to each Mortgage Loan:

          (i) the loan number;

          (ii) borrower name and address;

          (iii) the unpaid principal balance of the Mortgage Loans;

          (iv) the Initial Mortgage Rate;

          (v) the original maturity date and the months remaining before
     maturity date;

          (vi) the original principal balance;

          (vii) the Cut-off Date Principal Balance;

          (viii) the first payment due date of the Mortgage Loan;

          (ix) the Loan-to-Value Ratio at origination with respect to a Mortgage
     Loan;

          (x) a code indicating whether the residential dwelling at the time of
     origination was represented to be owner-occupied;

          (xi) a code indicating the property type;

          (xii) with respect to each Adjustable Rate Mortgage Loan;

               (A) the frequency of each Adjustment Date;

               (B) the next Adjustment Date;

               (C) the Maximum Mortgage Rate;

               (D) the Minimum Mortgage Rate;

               (E) the Mortgage Rate as of the Cut-off Date;

               (F) the related Periodic Rate Cap;

               (G) the Gross Margin;

               (H) the lifetime rate cap;

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<PAGE>

          (xiii) location of the related Mortgaged Property (or Underlying
     Mortgaged Property, in the case of a Co-op Loan);

          (xiv) a code indicating whether a Prepayment Charge is applicable and,
     if so, the term of such Prepayment Charge;

          (xv) the Credit Score and date obtained; and

          (xvi) the MIN.

     Mortgage Note: The original executed note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan and all
amendments, modifications and attachments thereto with all riders attached
thereto.

     Mortgage Pool: The aggregate of the Mortgage Loans identified in the
Mortgage Loan Schedule.

     Mortgaged Property: The underlying property securing a Mortgage Loan.

     Mortgage Rate: The annual rate of interest borne by a Mortgage Note from
time to time.

     Mortgagor: The obligor on a Mortgage Note.

     Net Mortgage Rate: As to each Mortgage Loan, and at any time, the per annum
rate equal to the then current Mortgage Rate less (1) the Servicing Fee Rate and
(2) the Trustee Fee Rate.

     Net Rate: The per annum rate set forth in footnote 8 to the description of
the Lower Tier REMIC in the Preliminary Statement hereto (such rate being based
on the weighted average of the interest rates on the SWAP REMIC Regular
Interests as adjusted and as set forth in such footnote).

     Net Swap Payment: With respect to any Distribution Date, any net payment
(other than a Swap Termination Payment or Defaulted Swap Termination Payment)
made by the Supplemental Interest Trust to the Swap Counterparty on the related
Fixed Rate Payer Payment Date (as defined in the Swap Agreement) or made by the
Swap Counterparty to the Supplemental Interest Trust on the related Floating
Rate Payer Payment Date (as defined in the Swap Agreement). In each case, the
Net Swap Payment shall not be less than zero.

     Net WAC: With respect to any Distribution Date and for any Mortgage Group,
the weighted average Net Mortgage Rate for the Mortgage Loans in such Mortgage
Group calculated based on the respective Net Mortgage Rates and the Stated
Principal Balances of such Mortgage Loans as of the preceding Distribution Date
(or, in the case of the first Distribution Date, as of the Cut-off Date).

     NIM Notes: The notes to be issued pursuant to the Indenture.

     NIMs Insurer: Any of the one or more insurers, if any, that is guaranteeing
certain payments under any NIM Notes; provided, that upon the payment in full of
the NIM Notes, all rights of the NIMs Insurer hereunder shall terminate.

     NIMs Insurer Default: As defined in Section 10.12.

     Non-Recoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Servicer that, in the good faith judgment of the
Servicer, will not or, in the case of a current

                                       47

<PAGE>

delinquency, would not, be ultimately recoverable by the Servicer from the
related Mortgagor, related Liquidation Proceeds or otherwise with respect to the
related Mortgage Loan.

     Non-Recoverable Servicing Advance: Any portion of a Servicing Advance
previously made or proposed to be made by the Servicer that, in the good faith
judgment of the Servicer, will not or, in the case of a current Servicing
Advance, would not, be ultimately recoverable by the Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise with respect to the related
Mortgage Loan.

     Non-Supported Interest Shortfall: As defined in Section 4.02.

     Officer's Certificate: A certificate (1) 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, the
Servicer or the Trustee (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 (2),
if provided for in this Agreement, signed by a Servicing Officer, as the case
may be, and delivered to the Depositor, the Servicer 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 (a) the
offered rates for one-month United States dollar deposits, as such rates appear
on Telerate page 3750, as of 11:00 a.m. (London time) on such Interest
Determination Date or (b) if such rate does not appear on Telerate Page 3750 as
of 11:00 a.m. (London time), the offered rates of the Reference Banks for
one-month United States dollar deposits, as such rates appear on the Reuters
Screen LIBO Page, as of 11:00 a.m. (London time) on such Interest Determination
Date. If One-Month LIBOR is determined pursuant to clause (b) above, on each
Interest Determination Date, One-Month LIBOR for the related Accrual Period will
be established by the Trustee as follows:

          (i) If on such Interest Determination Date two or more Reference Banks
     provide such offered quotations, One-Month LIBOR for the related Accrual
     Period shall be the arithmetic mean of such offered quotations (rounded
     upwards if necessary to the nearest whole multiple of 0.03125%).

          (ii) If on such Interest Determination Date fewer than two Reference
     Banks provide such offered quotations, One-Month LIBOR for the related
     Accrual Period shall be the higher of (i) One-Month LIBOR as determined on
     the previous Interest Determination Date and (ii) the Reserve Interest
     Rate.

     Opinion of Counsel: A written opinion of counsel, who may be counsel for
the Depositor, the Servicer or the Trustee, reasonably acceptable to each
addressee of such opinion; provided, however, that with respect to Section 6.04
or 10.01, or the interpretation or application of the REMIC Provisions, such
counsel must (1) in fact be independent of the Depositor, the Servicer or the
Trustee, (2) not have any direct financial interest in the Depositor, the
Servicer or the Trustee or in any affiliate of any such party and (3) not be
connected with the Depositor, the Servicer or the Trustee as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions.

     Optional Termination: The termination of the Trust Fund hereunder pursuant
to clause (b) of Section 9.01 hereof.

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<PAGE>

     Optional Termination Amount: The amount received by the Trustee in
connection with any purchase of all of the Mortgage Loans and REO Properties
pursuant to Section 9.01(b).

     Optional Termination Price: On any date after the Initial Optional
Termination Date an amount equal to the sum of (i) the then aggregate
outstanding Stated Principal Balance of the Mortgage Loans (or, if such Mortgage
Loan is an REO Property, the fair market value of such REO Property) plus
accrued interest thereon at the applicable Mortgage Rate through the Due Date in
the month in which the Optional Termination Price is to be distributed to the
Certificateholders; (ii) any unreimbursed out-of-pocket costs and expenses owed
to the Trustee or the Servicer, any unpaid or unreimbursed Servicing Fees,
Trustee Fees and all unreimbursed Advances and Servicing Advances, in each case
incurred by such party in the performance of its obligations; (iii) any
unreimbursed costs, penalties and/or damages incurred by the Trust Fund in
connection with any violation relating to any of the Mortgage Loans of any
predatory or abusive lending law; and (iv) any Swap Termination Payment, other
than a Defaulted Swap Termination Payment, owed to the Swap Counterparty.

     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: (1) Certificates theretofore canceled by the Trustee or
delivered to the Trustee for cancellation; and (2) Certificates in exchange for
which or in lieu of which other Certificates have been executed by the Trustee
and delivered by the Trustee pursuant to this Agreement.

     Outstanding Mortgage Loan: As of any Distribution Date, 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 Due Period.

     Overcollateralization Amount: As of any date of determination, the excess
of (1) the sum of (x) the Stated Principal Balance of the Mortgage Loans over
(2) the Certificate Principal Balance of the Certificates (other than the Class
P Certificates and the Class C Certificates).

     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.

     Ownit: Ownit Mortgage Solutions Inc., a California corporation, or its
successor in interest.

     Pass-Through Rate: With respect to any Class of Certificates, the
corresponding Pass-Through Rate for such Class of Certificates.

     Percentage Interest: With respect to:

          (i) any Class, the percentage interest in the undivided beneficial
     ownership interest evidenced by such Class which shall be equal to the
     Certificate Principal Balance of such Class divided by the aggregate
     Certificate Principal Balance of all Classes; and

          (ii) any Certificate, the Percentage Interest evidenced thereby of the
     related Class shall equal the percentage obtained by dividing the
     Denomination of such Certificate by the aggregate of the Denominations of
     all Certificates of such Class; except that in the case of any Class P
     Certificates, the Percentage Interest with respect to such Certificate
     shown on the face of such Certificate.

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<PAGE>

     Periodic Rate Cap: As to each Adjustable Rate Mortgage Loan and the related
Mortgage Note, the provision therein that limits permissible increases and
decreases in the Mortgage Rate on any Adjustment Date.

     Permitted Activities: The primary activities of the Trust Fund created
pursuant to this Agreement, which shall be:

          (i) holding Mortgage Loans transferred from the Depositor and other
     assets of the Trust Fund, including the Cap Contracts and the Supplemental
     Interest Trust subtrust, which in turn holds the Swap Agreement, and any
     credit enhancement and passive derivative financial instruments that
     pertain to beneficial interests issued or sold to parties other than the
     Depositor, its Affiliates, or its agents;

          (ii) issuing Certificates and other interests in the assets of the
     Trust Fund;

          (iii) through the appropriate subtrust, as applicable, receiving
     collections on the Mortgage Loans and the Swap Agreement and making
     payments on such Certificates and interests in accordance with the terms of
     this Agreement; and

          (iv) engaging in other activities that are necessary or incidental to
     accomplish these limited purposes, which activities cannot be contrary to
     the status of the Trust Fund as a qualified special purpose entity under
     existing accounting literature.

     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 rating the Certificates;

          (iii) commercial or finance company paper, other than commercial or
     finance company paper issued by the Depositor, the Trustee or any of its
     Affiliates, which is then receiving the highest commercial or finance
     company paper rating of each such Rating Agency;

          (iv) certificates of deposit, demand or time deposits, or bankers'
     acceptances (other than banker's acceptances issued by the Trustee or any
     of its Affiliates) 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, 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;

          (v) demand or time deposits or certificates of deposit issued by any
     bank or trust company or savings institution to the extent that such
     deposits are fully insured by the FDIC;

          (vi) guaranteed reinvestment agreements issued by any bank, insurance
     company or other corporation rated in the two highest long-term or the
     highest short-term ratings of each Rating Agency containing, at the time of
     the issuance of such agreements, such terms and

                                       50

<PAGE>

     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 by a letter from each Rating Agency;

          (vii) 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;

          (viii) 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,
     other than the Trustee or any of its Affiliates, 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 long term ratings of each Rating
     Agency;

          (ix) interests in any money market fund (including those managed or
     advised the Trustee or its respective affiliates) 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 long term rating
     by each Rating Agency rating such fund; and

          (x) short term investment funds sponsored by any trust company or
     national banking association incorporated under the laws of the United
     States or any state thereof, other than the Trustee or any of its
     Affiliates, which on the date of acquisition has been rated by each such
     Rating Agency in their respective highest applicable rating category;

     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 above par 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 of money market funds pursuant to clause (ix) above); and
provided, further, (I) that no amount beneficially owned by any REMIC
(including, without limitation, any amounts collected by the Servicer but not
yet deposited in the Collection Account) may be invested in investments (other
than money market funds) treated as equity interests for Federal income tax
purposes, unless the Servicer shall receive an Opinion of Counsel, at the
expense of the party requesting that such investment be made, to the effect that
such investment will not adversely affect the status of the any REMIC provided
for herein as a REMIC under the Code or result in imposition of a tax on the
Trust Fund or any REMIC provided for herein and (II) each such investment must
be a "permitted investment" within the meaning of Section 860G(a)(5) of the
Code. Permitted Investments that are subject to prepayment or call may not be
purchased at a price in excess of par. The Trustee may trade with itself or an
affiliate when purchasing or selling Permitted Investments.

     Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, 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 the
Class R Certificate, (iv) rural electric and telephone cooperatives described in
Section 1381(a)(2)(C) of the Code, and (v) a Person that is not a citizen or
resident of the United States, a corporation or partnership (or other entity
treated as a corporation or partnership for United States federal

                                       51

<PAGE>

income tax purposes) created or organized in or under the laws of the United
States or any State thereof or the District of Columbia or an estate whose
income from sources without the United States is includable 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 trust, unless, in the case of this
clause (v), such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI or applicable successor form. The
terms "United States," "State" and "International Organization" shall have the
meanings set forth in Section 7701 of the Code. A corporation will not be
treated as an instrumentality of the United States or of any State thereof for
these purposes if all of its activities are subject to tax and, with the
exception of the Federal Home Loan Mortgage Corporation, a majority of its board
of directors is not selected by such government unit.

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

     Pool Stated Principal Balance: As to any Distribution Date, the aggregate
of the Stated Principal Balances, as of such Distribution Date, of the Mortgage
Loans that were Outstanding Mortgage Loans as of such date.

     Preference Claim: The meaning set forth in Section 4.04(j) hereof.

     Prepayment Assumption: A rate or rates of prepayment, as described in the
Prospectus Supplement in the definition of "Modeling Assumptions," relating to
the Certificates.

     Prepayment Charges: Any prepayment fees, premiums or charges to be paid by
the Mortgagor on a Mortgage Loan pursuant to the terms of the related Mortgage
Note or Mortgage, as applicable, as identified on the Mortgage Loan Schedule.

     Prepayment Interest Excess: With respect to any Servicer Remittance Date,
for each Mortgage Loan that was the subject of a Principal Prepayment in full
during the portion of the related Prepayment Period occurring between the first
day of the calendar month in which such Servicer Remittance Date occurs and the
last day of the related Prepayment Period, an amount equal to interest (to the
extent received) at the applicable Net Mortgage Rate on the amount of such
Principal Prepayment for the number of days commencing on the first day of the
calendar month in which such Servicer Remittance Date occurs and ending on the
date on which such Principal Prepayment is so applied.

     Prepayment Interest Shortfall: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment in full (other
than a Principal Prepayment in full resulting from the purchase of a Mortgage
Loan pursuant to Section 2.02, 2.03 or 9.01 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 as of the preceding Distribution Date or
in the case of a partial Principal Prepayment, on the amount of such prepayment,
exceeds (ii) the amount of interest paid or collected in connection with such
Principal Prepayment.

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

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<PAGE>

     Principal Distribution Amount: With respect to each Distribution Date, the
sum of (i) the Principal Funds for such Distribution Date and (ii) any Extra
Principal Distribution Amount for such Distribution Date.

     Principal Funds: With respect to the Mortgage Loans and any Distribution
Date, the sum, without duplication, of (1) all scheduled principal due during
the related Due Period and received before the related Servicer Remittance Date
or advanced on or before the related Servicer Remittance Date, (2) Principal
Prepayments collected in the related Prepayment Period, (3) the Stated Principal
Balance of each Mortgage Loan that was purchased by the Depositor or the
Servicer during the related Prepayment Period or, in the case of a purchase
pursuant to Section 9.01, on any Business Day prior to such Distribution Date,
(4) the amount, if any, by which the aggregate unpaid principal balance of any
Replacement Mortgage Loan is less than the aggregate unpaid principal of the
related Deleted Mortgage Loans delivered by the Sponsor in connection with a
substitution of a Mortgage Loan pursuant to Section 2.03(c), (5) all Liquidation
Proceeds collected during the related Prepayment Period (to the extent such
Liquidation Proceeds related to principal), (6) all Subsequent Recoveries
received during the related Due Period, and (7) all other collections and
recoveries in respect of principal during the related Prepayment Period less (A)
all Non-Recoverable Advances relating to principal with respect to the Mortgage
Loans and (B) other amounts reimbursable to the Servicer and the Trustee
pursuant to this Agreement and allocable to principal.

     Principal Prepayment: Any Mortgagor payment or other recovery of (or
proceeds with respect to) principal on a Mortgage Loan (including Mortgage Loans
purchased or repurchased under Sections 2.02, 2.03, 3.12 and 9.01 hereof) that
is received or recovered in advance of its scheduled Due Date 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 Servicer in accordance
with the terms of the related Mortgage Note.

     Privately Offered Certificates: The Class B Certificates.

     Prospectus Supplement: The Prospectus Supplement dated April 11, 2006
relating to the public offering of the Class A and Class M Certificates.

     PUD: A Planned Unit Development.

     Purchase Price: With respect to any Mortgage Loan required to be
repurchased by the Sponsor or the Transferor pursuant to Section 2.02 or 2.03
hereof or purchased by the Servicer pursuant to Section 3.12(c) hereof, an
amount equal to the sum of (i) 100% of the unpaid principal balance of the
Mortgage Loan as of the date of such purchase together with any unreimbursed
Servicing Advances, (ii) accrued interest on such unpaid principal balance at
the applicable Mortgage Rate from (a) the date through which interest was last
paid by the Mortgagor to (b) the Due Date in the month in which the Purchase
Price is to be distributed to Certificateholders and (iii) any unreimbursed
costs, penalties and/or damages incurred by the Trust Fund (or the Trustee on
behalf of the Trust Fund) in connection with any violation relating to such
Mortgage Loan of any predatory or abusive lending law. With respect to any REO
Property purchased by the Servicer pursuant to Section 3.12(c) hereof, an amount
equal to the fair market value of such REO Property, as determined in good faith
by the Servicer

     Rating Agency: Either of S&P or Moody's. 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.

                                       53

<PAGE>

     Rating Agency Condition: As defined in the Swap Agreement.

     Realized Loss: With respect to (1) a Liquidated Loan, the amount, if any,
by which the Stated Principal Balance and accrued interest thereon at the Net
Mortgage Rate exceeds the amount actually recovered by the Servicer with respect
thereto (net of reimbursement of Advances and Servicing Advances) at the time
such Mortgage Loan became a Liquidated Loan or (2) a Mortgage Loan which is not
a Liquidated Loan, any amount of principal that the Mortgagor is no longer
legally required to pay (except for the extinguishment of debt that results from
the exercise of remedies due to default by the Mortgagor).

     Record Date: With respect to any Distribution Date, the close of business
on the last Business Day of the month preceding the month in which the
applicable Distribution Date occurs (or, in the case of the first Distribution
Date, the Closing Date).

     Reference Banks: Barclays Bank PLC, JPMorgan Chase Bank, N.A., Citibank,
N.A., Wells Fargo Bank, N.A. and NatWest, N.A.; provided that if any of the
foregoing banks are not suitable to serve as a Reference Bank, then any leading
banks selected by the Trustee which are engaged in transactions in Eurodollar
deposits in the international Eurocurrency market (i) with an established place
of business in London, England, (ii) whose quotations appear on the Reuters
Screen LIBO Page on the relevant Interest Determination Date and (iii) which
have been designated as such by the Trustee.

     Regular Certificate: Any one of the Class A, Class M and Class B
Certificates.

     Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation AB),
17 C.F.R. Sections 229.1100-229.1123, as such may be amended from time to time,
and subject to such clarification and interpretation as have been provided by
the Securities and Exchange Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed Reg. 1,506, 1.531 (Jan.
7, 2005) or by the staff of the Securities and Exchange Commission, or as may be
provided by the Securities and Exchange Commission or its staff from time to
time.

     Regulation S: Regulation S promulgated under the Securities Act or any
successor provision thereto, in each case as the same may be amended from time
to time; and all references to any rule, section or subsection of, or definition
or term contained in, Regulation S means such rule, section, subsection,
definition or term, as the case may be, or any successor thereto, in each case
as the same may be amended from time to time.

     Regulation S Book-Entry Certificates: Certificates sold in offshore
transactions in reliance on Regulation S in the form of one or more permanent
global Certificates in definitive, fully registered form without interest
coupons, which shall be deposited on behalf of the subscribers for such
Certificates represented thereby with the Trustee, as custodian for DTC and
registered in the name of a nominee of DTC.

     Related Certificates: For each interest in the Upper Tier REMIC, the Class
of Certificates listed on the same row in the table entitled "Upper Tier REMIC"
in the Preliminary Statement.

     Relevant Servicing Criteria: The Servicing Criteria applicable to the
various parties, as set forth on Exhibit Q attached hereto. For clarification
purposes, multiple parties can have responsibility for the same Relevant
Servicing Criteria. With respect to a Subcontractor engaged by the Trustee or
the Servicer, the term "Relevant Servicing Criteria" may refer to one or more
discrete functions specified in the Relevant Servicing Criteria applicable to
the Servicer or the Trustee.

                                       54

<PAGE>

     Relief Act: The Servicemembers Civil Relief Act or any similar state or
local law.

     Relief Act Shortfall: With respect to any Distribution Date and any
Mortgage Loan, any reduction in the amount of interest or principal collectible
on such Mortgage Loan for the most recently ended calendar month as a result of
the application of the Relief Act.

     REMIC: A "real estate mortgage investment conduit" within the meaning of
section 860D of the Code. References herein to "the REMICs" or "a REMIC" shall
mean any of (or, as the context requires, all of) the SWAP REMIC, the Lower Tier
REMIC and the Upper Tier REMIC.

     REMIC Pass-Through Rate: In the case of a Class of the Class A, Class M and
Class B Certificates, the Upper Tier REMIC Net WAC Cap for the Corresponding
REMIC Regular Interest.

     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.

     REMIC Regular Interests: Each of the interests in the Upper Tier REMIC as
set forth in the Preliminary Statement other than the Residual Interest.

     REMIC SWAP Rate: For each Distribution Date (and the related Accrual
Period), a per annum rate equal to the Fixed Rate under the Swap Agreement for
such Distribution Date, as set forth in the Prospectus Supplement.

     Remittance Report: As defined in Section 4.04(j) hereof.

     REO Property: A Mortgaged Property acquired by the Servicer, on behalf of
the Trustee for the benefit of the Certificateholders, through foreclosure or
deed-in-lieu of foreclosure in connection with a defaulted Mortgage Loan.

     Replacement Mortgage Loan: A Mortgage Loan substituted by the Depositor for
a Deleted Mortgage Loan, which must, on the date of such substitution, as
confirmed in a Request for Release, substantially in the form of Exhibit I (1)
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; (2)
with respect to any Fixed Rate Mortgage Loan, have a Mortgage Rate not less than
or no more than 1% per annum higher than the Mortgage Rate of the Deleted
Mortgage Loan and, with respect to any Adjustable Rate Mortgage Loan: (A) have a
Maximum Mortgage Rate no more than 1% per annum higher or lower than the Maximum
Mortgage Rate of the Deleted Mortgage Loan; (B) have a Minimum Mortgage Rate no
more than 1% per annum higher or lower than the Minimum Mortgage Rate of the
Deleted Mortgage Loan; (C) have the same index and Periodic Rate Cap as that of
the Deleted Mortgage Loan and a Gross Margin not more than 1% per annum higher
or lower than that of the Deleted Mortgage Loan; (D) not permit conversion of
the related Mortgage Rate to a fixed Mortgage Rate and (F) currently be accruing
interest at a rate not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan; (3) have a similar or higher FICO score or credit grade
than that of the Deleted Mortgage Loan; (4) have a Loan-to-Value Ratio no higher
than that of the Deleted Mortgage Loan; (5) have a remaining term to maturity no
greater than (and not more than one year less than) that of the Deleted Mortgage
Loan; (6) provide for a Prepayment Charge on terms substantially similar to
those of the Prepayment Charge, if any, of the Deleted Mortgage Loan; (7) have
the same lien priority as the Deleted Mortgage Loan; (8) constitute the

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<PAGE>

same occupancy type as the Deleted Mortgage Loan; and (9) comply with each
representation and warranty set forth in Section 2.03 hereof.

     Reportable Event: Has the meaning set forth in Section 3.27.

     Request for Release: The Request for Release of Documents submitted by the
Servicer to the Trustee or the Custodian, substantially in the form of Exhibit I
hereto.

     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.

     Required Percentage: As of any Distribution Date following the Stepdown
Date, the quotient of (1) the excess of (A) the Stated Principal Balances of the
Mortgage Loans as of such Distribution Date, over (B) the Certificate Principal
Balance of the most senior Class of Certificates outstanding as of such
Distribution Date, prior to giving effect to distributions to be made on such
Distribution Date and (2) the Stated Principal Balance of the Mortgage Loans as
of such Distribution Date.

     Reserve Interest Rate: With respect to any Interest Determination Date, the
rate per annum that the Trustee determines to be (1) the arithmetic mean
(rounded upwards if necessary to the nearest whole multiple of 0.03125%) of the
one-month United States dollar lending rates which New York City banks selected
by the Trustee are quoting on the relevant Interest Determination Date to the
principal London offices of leading banks in the London interbank market or (2)
in the event that the Trustee can determine no such arithmetic mean, the lowest
one-month United States dollar lending rate which New York City banks selected
by the Trustee are quoting on such Interest Determination Date to leading
European banks.

     Residual Interest: An interest in the Upper Tier REMIC that is entitled to
all distributions of principal and interest on the Class R Certificate other
than distributions in respect of the Class SWR Interest and Class LTR Interest
and distributions on the Class R Certificate in respect of Excess Interest.

     Responsible Officer: When used with respect to the Trustee or the Servicer,
any officer of the Trustee or the Servicer with direct responsibility for the
administration of this Agreement and any other officer 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.

     Reuters Screen LIBO Page: The display designated as page "LIBO" on the
Reuters Monitor Money Rates Service (or such other page as may replace such LIBO
page on that service for the purpose of displaying London interbank offered
rates of major banks.

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

     Sale Agreement: The Mortgage Loan Sale and Assignment Agreement dated as of
March 1, 2006 between the Depositor and the Sponsor.

     Sarbanes-Oxley Act: means the Sarbanes-Oxley Act of 2002 and the rules and
regulations of the Securities and Exchange Commission promulgated thereunder
(including any interpretations thereof by the Securities and Exchange
Commission's staff).

     Sarbanes-Oxley Certification: Has the meaning set forth in Section 3.27(k).

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<PAGE>

     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.

     Section 302 Requirements: Any rules or regulations promulgated pursuant to
the Sarbanes-Oxley Act of 2002 (as such may be amended from time to time).

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

     Servicer: Litton Loan Servicing LP, a Delaware limited partnership, or its
successor in interest.

     Servicer Advance Date: As to any Distribution Date, the related Servicer
Remittance Date.

     Servicer Remittance Date: With respect to any Distribution Date, the 20th
day (or if the 20th day is not a Business Day, the next succeeding Business Day)
of the month in which such Distribution Date occurs.

     Servicer Trigger Event: As defined in Section 7.02 hereof.

     Servicer's Assignee: As defined in Section 10.14(a).

     Servicing Advances: All customary, reasonable and necessary "out of pocket"
costs and expenses incurred in the performance of the Servicer's servicing
obligations hereunder, including, but not limited to, the cost of (1) the
preservation, inspection, restoration and protection of a Mortgaged Property (or
Underlying Mortgaged Property, in the case of a Co-op Loan), including without
limitation advances in respect of real estate taxes and assessments, (2) any
collection, enforcement or judicial proceedings, including without limitation
foreclosures, collections and liquidations, (3) the conservation, management,
sale and liquidation of any REO Property, (4) executing and recording
instruments of satisfaction, deeds of reconveyance or Assignments of Mortgage to
the extent not otherwise recovered from the related Mortgages or payable under
this Agreement, (5) correcting errors of prior servicers; costs and expenses
charged to the Servicer by the Trustee; tax tracking; title research; flood
certifications; lender paid mortgage insurance, (6) obtaining or correcting any
legal documentation required to be included in the Mortgage Files and reasonably
necessary for the Servicer to perform its obligations under this Agreement and
(7) compliance with the obligations under Sections 3.01 and 3.10; provided that
such amounts are required to be advanced only to the extent such advances
constitute "unanticipated expenses" within the meaning of Treasury Regulation
Section 1.860G-1(b)(3)(ii).

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

     Servicing Fee: As to each Mortgage Loan and any Distribution Date, an
amount equal to the product of (x) one-twelfth of the Servicing Fee Rate and (y)
the Stated Principal Balance of such Mortgage Loan as of the preceding
Distribution Date or, in the event of any payment of interest that accompanies a
Principal Prepayment in full made by the Mortgagor, interest at the Servicing
Fee Rate on the Stated Principal Balance of such Mortgage Loan as of the
preceding Distribution Date for the period covered by such payment of interest.

     Servicing Fee Rate: 0.50% for each Mortgage Loan.

     Servicing Officer: Any officer of the Servicer involved in, or responsible
for, the administration and servicing of the Mortgage Loans whose name appears
on a list of servicing officers furnished to the

                                       57

<PAGE>

Trustee by the Servicer on the Closing Date pursuant to this Agreement, as such
list may from time to time be amended.

     Servicing Rights Pledgee: One or more lenders, selected by the Servicer, to
which the Servicer may pledge and assign all of its right, title and interest
in, to and under this Agreement (other than rights with respect to Advances and
Servicing Advances herein), including JPMorgan Chase Bank, N.A., as the
representative of certain lenders.

     Servicing Transfer Costs: In the event that the Servicer does not reimburse
the Trustee under this Agreement, all costs associated with the transfer of
servicing from the predecessor Servicer, including, without limitation, any
costs or expenses associated with the termination of the predecessor servicer,
the appointment of a successor servicer, the complete transfer of all servicing
data and the manipulation, completion or correction of such servicing data as
may be required by the Trustee or any successor servicer to correct any errors
or insufficiencies in the servicing data or otherwise to enable the Trustee or
successor servicer to service the Mortgage Loans properly and effectively.

     SFAS 140: Statement of Financial Accounting Standard No. 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities dated September 2000, published by the Financial Accounting
Standards Board of the Financial Accounting Foundation.

     Significance Estimate: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be an amount determined based
on the reasonable good-faith estimate by the Depositor or its affiliate of the
aggregate maximum probable exposure of the outstanding Certificates to the Swap
Agreement.

     Significance Percentage: With respect to any Distribution Date, and in
accordance with Item 1115 of Regulation AB, shall be a percentage equal to the
Significance Estimate divided by the aggregate outstanding Certificate Principal
Balance of the Certificates, prior to the distribution of the Principal
Distribution Amount on such Distribution Date.

     Sponsor: Merrill Lynch Mortgage Lending, Inc., a Delaware corporation, or
its successor in interest.

     Startup Day: As defined in Section 2.07 hereof.

     Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property (1) as of the Cut-off Date, the Cut-off Date Principal Balance thereof,
and (2) as of any Distribution Date, such Cut-off Date Principal Balance minus
the sum of (A) the principal portion of the Scheduled Payments (x) due with
respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date and (y) that were received by the Servicer as of the close of
business on the Determination Date related to such Distribution Date or with
respect to which Advances were made on the Servicer Advance Date prior to such
Distribution Date and (B) all Principal Prepayments with respect to such
Mortgage Loan received on or prior to the last day of the related Prepayment
Period, and all Liquidation Proceeds to the extent applied by the Servicer as
recoveries of principal in accordance with Section 3.12 with respect to such
Mortgage Loan, that were received by the Servicer as of the close of business on
the last day of the related Due Period. Notwithstanding the foregoing, the
Stated Principal Balance of a Liquidated Loan shall be deemed to be zero.

     Stepdown Date: The earlier of: (A) the first Distribution Date on which the
aggregate Certificate Principal Balance of the Class A-1 Certificates and Class
A-2 Certificates has been reduced to zero; and (B) the later to occur of (1) the
Distribution Date in April 2009 or (2) the first Distribution Date on which

                                       58

<PAGE>

(A) the Class A Certificate Principal Balance (reduced by the Principal Funds
with respect to such Distribution Date) is less than or equal to (B) 54.90% of
the aggregate Stated Principal Balances of the Mortgage Loans as of such
Distribution Date.

     Stepdown Required Loss Percentage: For any Distribution Date, the
applicable percentage for such Distribution Date set forth in the following
table:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN   STEPDOWN REQUIRED LOSS PERCENTAGE
------------------------------   ---------------------------------
<S>                              <C>
April 2008 - March 2009          1.40% with respect to April 2008, plus
                                 an additional 1/12th of 1.35% for each
                                 month thereafter

April 2009 - March 2010          2.75% with respect to April 2090, plus
                                 an additional 1/12th of 0.75% for each
                                 month thereafter

April 2010 - March 2011          3.50% with respect to April 2010, plus
                                 an additional 1/12th of 0.75% for each
                                 month thereafter

April 2011 - March 2012          4.25% with respect to April 2011, plus
                                 an additional 1/12th of 0.25% for each
                                 month thereafter

April 2012 and thereafter        4.50%
</TABLE>

     Stepdown Trigger Event: With respect to the Certificates on or after the
Stepdown Date, a Distribution Date on which (1) the quotient of (A) the
aggregate Stated Principal Balance of all Mortgage Loans that are 60 or more
days Delinquent measured on a rolling three month basis (including, for the
purposes of this calculation, Mortgage Loans in foreclosure and REO Properties
and Mortgage Loans with respect to which the applicable Mortgagor is in
bankruptcy) and (B) the Stated Principal Balance of the Mortgage Loans as of the
preceding Servicer Remittance Date, equals or exceeds the product of (i) 35.45%
and (ii) the Required Percentage or (2) the quotient (expressed as a percentage)
of (A) the aggregate Realized Losses incurred from the Cut-off Date through the
last day of the calendar month preceding such Distribution Date and (B) the
aggregate principal balance of the Mortgage Loans as of the Cut-off Date exceeds
the Stepdown Required Loss Percentage.

     Subcontractor: Any vendor, subcontractor or other Person that is not
responsible for the overall servicing (as "servicing" is commonly understood by
participants in the mortgage-backed securities market) of Mortgage Loans but
performs one or more discrete functions identified in Item 1122(d) of Regulation
AB with respect to Mortgage Loans under the direction or authority of the
Servicer or a Subservicer.

     Subordinate Certificates: Each Class of the Class M and Class B
Certificates.

     Subsequent Recovery: Any amount received on a Mortgage Loan (net of amounts
reimbursed to the Servicer related to such Mortgage Loan) subsequent to such
Mortgage Loan being determined to be a Liquidated Mortgage Loan.

     Subservicer: Any Person that services Mortgage Loans on behalf of the
Servicer or any Subservicer and is responsible for the performance (whether
directly or through Subservicers or Subcontractors) of the material servicing
functions required to be performed by the Servicer under this

                                       59

<PAGE>

Agreement, with respect to some or all of the Mortgage Loans, that are
identified in Item 1122(d) of Regulation AB and meets any of the criteria of
Item 1108(a)(2)(i), (ii) or (iii).

     Subservicing Agreement: As defined in Section 3.02(a).

     Substitution Adjustment Amount: The meaning ascribed to such term pursuant
to Section 2.03(c).

     Supplemental Interest Trust: The separate trust, established pursuant to
Section 4.04(l) of this Agreement and held by the Trustee for the benefit of the
holders of the Certificates as a segregated subtrust of the Trust Fund, in which
the Swap Agreement will be held, out of which any Swap Termination Payments or
Net Swap Payments owed to the Swap Counterparty will be paid, certain
distributions to Certificateholders will be made, and into which any Swap
Termination Payments or Net Swap Payments received from the Swap Counterparty
will be deposited as set forth in Section 4.04 hereof.

     Swap Account: The separate Eligible Account created and maintained by the
Trustee pursuant to Section 4.04(l)(i) in the name of the Trustee for the
benefit of the Trust Fund and designated "LaSalle Bank National Association, as
trustee, in trust for registered holders of Ownit Mortgage Loan Trust, Mortgage
Loan Asset-Backed Certificates, Series 2006-3." Funds in the Swap Account shall
be held in trust for the Trust Fund for the uses and purposes set forth in this
Agreement.

     Swap Agreement: The confirmation to the master agreement, dated as of March
31, 2006, between the Swap Counterparty and the trustee of the Supplemental
Interest Trust for the benefit of the Issuing Entity or any other cap agreement
or swap agreement (including any related schedules) held by the Supplemental
Interest Trust pursuant to Section 4.04(l) hereof.

     Swap Counterparty: The Bank of New York or any successor counterparty who
meets the requirements set forth in the Swap Agreement.

     Swap LIBOR: With respect to any Distribution Date (and the related Accrual
Period) the product of (i) the Floating Rate Option (as defined in the Swap
Agreement for the related Swap Payment Date), (ii) two and (iii) the quotient of
(a) the actual number of days in the Accrual Period for the Lower Tier REMIC
Interests divided by (b) 30.

     Swap Payment Date: For so long as the Swap Agreement is in effect or
amounts remain unpaid thereunder, the second Business Day preceding each
Distribution Date.

     SWAP REMIC: As described in the Preliminary Statement and Section 2.07.

     SWAP REMIC Interests: Each of the interests in the SWAP REMIC as set forth
in the Preliminary Statement.

     SWAP REMIC Regular Interests: Each of the SWAP REMIC Interests other than
the Class SWR Interest.

     Swap Termination Payment: Any payment payable by the Supplemental Interest
Trust or the Swap Counterparty upon termination of the Swap Agreement as a
result of termination of the Swap Agreement.

     Tax Matters Person: The Person designated as "tax matters person" in the
manner provided under Treasury regulation Section 1.860F-4(d) and Treasury
regulation Section 301.6231(a)(7)-1.

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

     Transfer Agreement: The Master Mortgage Loan Purchase and Interim Servicing
Agreement dated as of April 1, 2005, between Merrill Lynch Mortgage Capital
Inc., as purchaser and Ownit, as seller and interim servicer, as amended, and as
supplemented by the Bring Down Letter.

     Transferor: Ownit.

     Transferor Affirmation Notice: A notice from Fitch to the Depositor or the
Sponsor that the ratings of the Certificates will not be negatively impacted by
the removal of the Sponsor's obligation to honor the Transferor's
representations and warranties, a copy of which notice shall be provided by
either the Sponsor or the Depositor to the Trustee.

     Trust Fund: The corpus of the trust (the "Ownit Mortgage Loan Trust, Series
2006-3") created hereunder consisting of (i) the Mortgage Loans and all interest
and principal received on or with respect thereto on and after the Cut-off Date
to the extent not applied in computing the Cut-off Date Principal Balance
thereof, exclusive of interest not required to be deposited in the Collection
Account; (ii) the Collection Account, the Certificate 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) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or other
liquid property; (vi) the Cap Contracts and Cap Contract Account and (vii) the
Supplemental Interest Trust, which in turn holds the Swap Agreement.

     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: A fee paid monthly to the Trustee from interest collected with
respect to each Mortgage Loan equal to the product of (a) one-twelfth of the
Trustee Fee Rate and (b) the Stated Principal Balance of such Mortgage Loan. The
Trustee is also entitled to a portion of investment income earned on amounts on
deposit in the Certificate Account as set forth in Section 3.05(g) hereof.

     Trustee Fee Rate: 0.0060% for each Mortgage Loan.

     Uncertificated Class C Interest: An uncertificated REMIC Regular Interest
having the characteristics described in the Preliminary Statement.

     Underlying Mortgaged Property: With respect to each Co-op Loan, the
underlying real property owned by the related residential cooperative housing
corporation.

     Unpaid Realized Loss Amount: The Class M-1 Unpaid Realized Loss Amount,
Class M-2 Unpaid Realized Loss Amount, Class M-3 Unpaid Realized Loss Amount,
Class M-4 Unpaid Realized Loss Amount, Class M-5 Unpaid Realized Loss Amount,
Class M-6 Unpaid Realized Loss Amount, Class B-1 Unpaid Realized Loss Amount,
Class B-2 Unpaid Realized Loss Amount, Class B-3 Unpaid Realized Loss Amount,
Class B-4 Unpaid Realized Loss Amount and Class C Unpaid Realized Loss Amount,
collectively.

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<PAGE>

     Upper Collar: Any of the Class A-1 Upper Collar, the Class A-2 Upper Collar
or the Floating Rate Subordinate Certificate Upper Collar.

     Upper Tier REMIC: As described in the Preliminary Statement and Section
2.07.

     Upper Tier REMIC Net WAC Cap: In the case of the Class UTA-1 Interest and
the Residual Interest, a per annum rate equal to the weighted average of the
interest rate of the Class LTII1B Interest for such Distribution Date. In the
case of the Class UTA-2A, Class UTA-2B, Class UTA-2C and Class UTA-2D Interests,
a per annum rate equal to the weighted average of the interest rate for the
Class LTII2B Interest for such Distribution Date. In the case of the Class
UTM-1, Class UTM-2, Class UTM-3, Class UTM-4, Class UTM-5, Class UTM-6, Class
UTB-1, Class UTB-2, Class UTB-3 and Class UTB-4 Interests, a per annum rate
equal to the weighted average (adjusted, in the case of the Class UTB-1, Class
UTB-2 and Class UTB-3 Interests, to reflect accruals on the basis of a 360 day
year consisting of twelve 30 day months) of the interest rates of Class LTII1B
and Class LTII2B Interests for such Distribution weighted, respectively, on the
basis of the uncertificated principal balances of the Class LTII1A and the Class
LTII2A Interests.

     Voting Rights: The portion of the voting rights of all the Certificates
that is allocated to any of the Certificates for purposes of the voting
provisions hereunder. Voting Rights allocated to each Class of Certificates
shall be allocated as follows: (1) 98% to the Class A, Class M and Class B
Certificates, with the allocation among such Certificates to be in proportion to
the Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other Classes and (2) each Class of the Class C and
Class P will be allocated 1% of the Voting Rights. Voting Rights will be
allocated among the Certificates of each such Class in accordance with their
respective Percentage Interests.

     Weighted Average Available Funds Cap: With respect to a Distribution Date,
the per annum rate equal to the weighted average of the Class A-1 Available
Funds Cap and the Class A-2 Available Funds Cap (weighted in proportion to the
results of subtracting from the aggregate stated principal balance of each
mortgage group, the current certificate principal balance of the class A-1 and
class R certificates, in the case of group one, or the class A-2 certificates,
in the case of group two) and, only with respect to the Class B-1, Class B-2 and
Class B-3 Certificates, multiplied by the actual number of days in the accrual
period divided by 30.

     Weighted Average Maximum Rate Cap: With respect to a Distribution Date, the
per annum rate equal to the weighted average (weighted in proportion to the
results of subtracting from the aggregate Stated Principal Balance of each
Mortgage Group, the current Certificate Principal Balance of the Class A-1 and
Class R Certificates, in the case of Group One, or the Class A-2 Certificates,
in the case of Group Two) of the Class A-1 Maximum Rate Cap and the Class A-2
Maximum Rate Cap, and, only with respect to the Class B-1, Class B-2 and Class
B-3 Certificates, multiplied by the actual number of days in the accrual period
divided by 30.

                                   ARTICLE II

                         CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

     SECTION 2.01. Conveyance of Mortgage Loans.

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     The Depositor, concurrently with the execution and delivery hereof, does
hereby sell, transfer, assign, set over and convey to the Trustee without
recourse all the right, title and interest of the Depositor in and to the assets
of the Trust Fund. Such assignment includes all interest and principal received
on or with respect to the Mortgage Loans, on or after the Cut-off Date (other
than Scheduled Payments due on the Mortgage Loans on or before the Cut-off
Date).

     It is agreed and understood by the Depositor, the Servicer and the Trustee
that it is not intended that any Mortgage Loan be included in the Trust that is,
without limitation, a "High-Cost Home Loan" as defined by the Home Ownership and
Equity Protection Act of 1994 or any other applicable anti-predatory lending
laws, including but not limited to (i) a "High-Cost Home Loan" as defined in the
New Jersey Home Ownership Act effective November 27, 2003; (ii) a "High-Cost
Home Loan" as defined in the New Mexico Home Loan Protection Act effective
January 1, 2004; or (iii) a "High-Cost Home Loan" as defined in the
Massachusetts Predatory Home Loan Practices Act effective November 7, 2004; (iv)
a "High-Cost Home Loan" as defined by the Indiana High Cost Home Loan Law
effective January 1, 2005 or (v) a "High-Cost Home Loan" as defined by the
Illinois High-Risk Home Loan Act effective January 1, 2004.

     (i) In connection with such assignment, the Depositor does hereby deliver
to, and deposit with, the Trustee or the Custodian, the following documents or
instruments with respect to each Mortgage Loan so assigned that is not a Co-op
Loan:

          (A) The original Mortgage Note endorsed in blank or, "Pay to the order
     of LaSalle Bank National Association, as trustee, without recourse"
     together with all riders thereto. The Mortgage Note shall include all
     intervening endorsements showing a complete chain of the title from the
     originator to [____________________] or "Pay to the order of LaSalle Bank
     National Association, as trustee, without recourse";

          (B) Except as provided below and for each Mortgage Loan that is not a
     MERS Loan, the original recorded Mortgage with all riders thereto, with
     evidence of recording thereon, or, if the original Mortgage has not yet
     been returned from the recording office, a copy of the original Mortgage
     certified by the Transferor to be true copy of the original of the Mortgage
     that has been delivered for recording in the appropriate recording office
     of the jurisdiction in which the Mortgaged Property is located and in the
     case of each MERS Loan, the original Mortgage, noting the presence of the
     MIN of the Loan and either language indicating that the Mortgage Loan is a
     MOM Loan or if the Mortgage Loan was not a MOM Loan at origination, the
     original Mortgage and the assignment thereof to MERS, with evidence of
     recording indicated thereon, or a copy of the Mortgage certified by the
     public recording office in which such Mortgage has been recorded;

          (C) In the case of each Mortgage Loan that is not a MERS Loan, the
     original Assignment of each Mortgage endorsed either in blank or, to
     "LaSalle Bank National Association, as trustee;"

          (D) The original policy of title insurance (or a preliminary title
     report, commitment or binder if the original title insurance policy has not
     been received from the title insurance company);

          (E) Originals of any intervening assignments of the Mortgage, with
     evidence of recording thereon or, if the original intervening assignment
     has not yet been returned from the recording office, a copy of such
     assignment certified to be a true copy of the original of the assignment
     which has been sent for recording in the appropriate jurisdiction in which
     the Mortgaged Property is located; and

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<PAGE>

          (F) Originals of all assumption and modification agreements, if any.

     (ii) In connection with such assignment, the Depositor does hereby deliver
to, and deposit with, the Trustee or the Custodian the following documents or
instruments with respect to each Mortgage Loan so assigned that is a Co-op Loan:

          (A) (i) The original Mortgage Note (or a lost note affidavit
     (including a copy of the original Mortgage Note)) or (ii) original
     consolidation, extension and modification agreement (or a lost note
     affidavit (including a copy of the original consolidation, extension and
     modification agreement)), in either case endorsed either in blank or, "Pay
     to the order of LaSalle Bank National Association, as trustee, without
     recourse;"

          (B) The original Mortgage entered into by the Mortgagor with respect
     to such Co-Op Loan;

          (C) The original Assignment of Mortgage endorsed either in blank or to
     "LaSalle Bank National Association, as trustee;"

          (D) Original assignments of Mortgage showing a complete chain of
     assignment from the originator of the related Co-Op Loan to the last
     endorsee on the Mortgage Note;

          (E) Original Form UCC-1 (or copy thereof) and any continuation
     statements with evidence of filing thereon entered into by the Mortgagor
     with respect to such Co-Op Loan (or a recorded copy thereof);

          (F) Form UCC-3 (or copy thereof) by the Transferor or its agent
     assigning the security interest covered by such Form UCC-1 to "LaSalle Bank
     National Association, as trustee," together with all Forms UCC-3 (or copies
     thereof) showing a complete chain of assignment from the originator of the
     related Co-op Loan to the Transferor, with evidence of recording thereon;

          (G) Original stock certificate representing the stock allocated to the
     related dwelling unit in the related residential cooperative housing
     corporation and pledged by the related Mortgagor to the originator of such
     Co-op Loan with a stock power in blank attached;

          (H) Original proprietary lease;

          (I) Original assignment of proprietary lease or a copy thereof, to the
     Trustee or in blank, and all intervening assignments thereof;

          (J) Original recognition agreement or a copy thereof of the interests
     of the mortgagee with respect to the Co-op Loan by the residential
     cooperative housing corporation, the stock of which was pledged by the
     related Mortgagor to the originator of such Co-op Loan; and

          (K) Originals of any assumption, consolidation or modification
     agreements relating to any of the items specified in (A) through (F) above
     with respect to such Co-op Loan.

     If in connection with any Mortgage Loan that is not a Co-op Loan, the
Depositor cannot deliver the Mortgage, Assignments of Mortgage or assumption,
consolidation or modification, as the case may be, with evidence of recording
thereon, if applicable, concurrently with the execution and delivery of this
Agreement solely because of a delay caused by the public recording office where
such Mortgage,

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<PAGE>

Assignments of Mortgage or assumption, consolidation or modification, as the
case may be, has been delivered for recordation, the Depositor shall deliver or
cause to be delivered to the Trustee or the Custodian written notice stating
that such Mortgage or assumption, consolidation or modification, as the case may
be, has been delivered to the appropriate public recording office for
recordation. Thereafter, the Depositor shall deliver or cause to be delivered to
the Trustee or the Custodian such Mortgage, Assignments of Mortgage or
assumption, consolidation or modification, as the case may be, with evidence of
recording indicated thereon, if applicable, upon receipt thereof from the public
recording office. To the extent any required endorsement is not contained on a
Mortgage Note or an Assignment of Mortgage, the Depositor shall make or cause
such endorsement to be made.

     With respect to any Mortgage Loan that is not a Co-op Loan, none of the
Depositor, the Servicer or the Trustee shall be obligated to cause to be
recorded the Assignment of Mortgage referred to in this Section 2.01. With
respect to any Co-op Loan, none of the Depositor, the Servicer or the Trustee
shall be obligated to cause to be filed the Form UCC-3 referred to in this
Section 2.01. In the event that any Assignment of Mortgage referred to in this
Section 2.01 is not recorded or is improperly recorded, the Servicer and the
Trustee shall have no liability for any failure to receive or act on notices
related to such Assignment of Mortgage.

     The ownership of each Mortgage Note, the Mortgage and the contents of the
related Mortgage File is vested in the Trustee on behalf of the
Certificateholders. None of the Depositor, the Servicer or the Trustee shall
take any action inconsistent with such ownership and shall not claim any
ownership interest therein. The Depositor, the Servicer and the Trustee shall
respond to any third party inquiries with respect to ownership of the Mortgage
Loans by stating that such ownership is held by the Trustee on behalf of the
Certificateholders. Mortgage documents relating to the Mortgage Loans not
delivered to the Trustee or the Custodian are and shall be held in trust by the
Servicer, for the benefit of the Trustee as the owner thereof, and the
Servicer's possession of the contents of each Mortgage File so retained is for
the sole purpose of servicing the related Mortgage Loan, and such retention and
possession by the Servicer is in a custodial capacity only. The Depositor agrees
to take no action inconsistent with the Trustee's ownership of the Mortgage
Loans, to indicate promptly to all inquiring parties that the Mortgage Loans
have been sold and to claim no ownership interest in the Mortgage Loans.

     It is the intention of this Agreement that the conveyance of the
Depositor's right, title and interest in and to the Trust Fund pursuant to this
Agreement shall constitute a purchase and sale and not a loan. If a conveyance
of Mortgage Loans from the Sponsor to the Depositor is characterized as a pledge
and not a sale, then the Depositor shall be deemed to have transferred to the
Trustee all of the Depositor's right, title and interest in, to and under the
obligations of the Sponsor deemed to be secured by said pledge; and it is the
intention of this Agreement that the Depositor shall also be deemed to have
granted to the Trustee a first priority security interest in all of the
Depositor's right, title, and interest in, to and under the obligations of the
Sponsor to the Depositor deemed to be secured by said pledge and that the
Trustee shall be deemed to be an independent custodian for purposes of
perfection of the security interest granted to the Depositor. If the conveyance
of the Mortgage Loans from the Depositor to the Trustee is characterized as a
pledge, it is the intention of this Agreement that this Agreement shall
constitute a security agreement under applicable law, and that the Depositor
shall be deemed to have granted to the Trustee a first priority security
interest in all of the Depositor's right, title and interest in, to and under
the Mortgage Loans, all payments of principal of or interest on such Mortgage
Loans, all other rights relating to and payments made in respect of the Trust
Fund, and all proceeds of any thereof. If the trust created by this Agreement
terminates prior to the satisfaction of the claims of any Person in any
Certificates, the security interest created hereby shall continue in full force
and effect and the Trustee shall be deemed to be the collateral agent for the
benefit of such Person.

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<PAGE>

     In addition to the conveyance made in the first paragraph of this Section
2.01, the Depositor does hereby convey, assign and set over to the Trustee for
the benefit of the Certificateholders its rights and interests under the Sale
Agreement, including the Depositor's right, title and interest in the
representations and warranties contained in the Sale Agreement, the rights in
the Transfer Agreement described therein and the benefit of the repurchase
obligations and the obligation of the Sponsor contained in the Sale Agreement to
take, at the request of the Depositor or the Trustee, all action on its part
which is reasonably necessary to ensure the enforceability of a Mortgage Loan.
The Trustee hereby accepts such assignment, and shall be entitled to exercise
all rights of the Depositor under the Sale Agreement as if, for such purpose, it
were the Depositor. The foregoing sale, transfer, assignment, set-over, deposit
and conveyance does not and is not intended to result in creation or assumption
by the Trustee of any obligation of the Depositor, the Sponsor, or any other
Person in connection with the Mortgage Loans or any other agreement or
instrument relating thereto except as specifically set forth herein.

     SECTION 2.02. Acceptance by the Trustee of the Mortgage Loans.

     Except as set forth in the exception report delivered contemporaneously
herewith (the "Exception Report"), the Trustee acknowledges receipt of the
Mortgage Note for each Mortgage Loan and delivery of a Mortgage File (but does
not acknowledge receipt of all documents required to be included in such
Mortgage File) with respect to each Mortgage Loan and declares that it (or the
Custodian) holds and will hold such documents and any other documents
constituting a part of the Mortgage Files delivered to it in trust for the use
and benefit of all present and future Certificateholders. The Depositor will
cause the Sponsor to repurchase any Mortgage Loan to which a material exception
was taken in the Exception Report unless such exception is cured to the
satisfaction of the Trustee within 45 Business Days of the Closing Date.

     The Trustee acknowledges receipt of the three Cap Contracts (forms of which
are attached hereto as Exhibits N-1, N-2 and N-3), the Transfer Agreement, the
Bring Down Letter and the Sale Agreement.

     The Trustee acknowledges receipt of the Swap Agreement (a form of which is
attached hereto as Exhibit S) that will be held in the Supplemental Interest
Trust and is hereby instructed to enter into the Swap Agreement, not in its
individual capacity, but solely as Trustee for the Supplemental Interest Trust.

     The Trustee agrees, for the benefit of Certificateholders and the NIMs
Insurer, to review or cause its Custodian to review each Mortgage File delivered
to it within 60 days after the Closing Date to ascertain and to certify, within
70 days of the Closing Date, to the NIMs Insurer, the Depositor and the Servicer
that all documents required by Section 2.01 (provided that with respect to the
items listed in Sections 2.01(i)(F) and 2.01(ii)(E)-(K), to the extent
identified on the Mortgage Loan Schedule) have been executed and received, and
that such documents relate to the Mortgage Loans identified in Exhibit B that
have been conveyed to it. It is herein acknowledged that, in conducting such
review, the Trustee shall not be under any duty or obligation to inspect, review
or examine any such documents, instruments, certificates or other papers to
determine that they are genuine, enforceable or appropriate for the represented
purpose, that they have actually been recorded or that they are other than what
they purport to be on their face. If the Trustee or the Custodian finds any
document or documents constituting a part of a Mortgage File to be missing or
defective (that is, mutilated, damaged, defaced or unexecuted) in any material
respect, the Trustee or the Custodian shall promptly (and in any event within no
more than five Business Days) after such finding so notify the NIMs Insurer, the
Servicer, the Sponsor and the Depositor. In addition, the Trustee or the
Custodian shall also notify the NIMs Insurer, the Servicer, the Sponsor and the
Depositor if the original Mortgage with evidence of recording thereon with
respect to a Mortgage Loan is not received within 70 days of the Closing Date;
if it has not been received because of a delay caused by the public recording
office where such Mortgage has been delivered for recordation, the Depositor
shall deliver or cause to be delivered to the Trustee written notice stating
that such Mortgage

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<PAGE>

has been delivered to the appropriate public recording office for recordation
and thereafter the Depositor shall deliver or cause to be delivered such
Mortgage with evidence of recording thereon upon receipt thereof from the public
recording office. The Trustee shall request that the Sponsor correct or cure
such omission, defect or other irregularity, or substitute a Mortgage Loan
pursuant to the provisions of Section 2.03, within 90 days from the date the
Sponsor was notified of such omission or defect and, if the Sponsor does not
correct or cure such omission or defect within such period, that the Sponsor
purchase such Mortgage Loan from the Trust Fund within 90 days from the date the
Trustee notified the Sponsor of such omission, defect or other irregularity at
the Purchase Price of such Mortgage Loan.

     The Purchase Price for any Mortgage Loan purchased pursuant to this Section
2.02 shall be paid to the Servicer and deposited by the Servicer in the
Certificate Account or Collection Account, as appropriate, promptly upon
receipt, and, upon receipt by the Trustee of written notification of such
deposit signed by a Servicing Officer, the Trustee, upon receipt of a Request
for Release, shall promptly release to the Sponsor the related Mortgage File and
the Trustee shall execute and deliver such instruments of transfer or
assignment, without recourse, as shall be requested by the Sponsor and necessary
to vest in the Sponsor or its designee, as the case may be, any Mortgage Loan
released pursuant hereto, and the Trustee shall have no further responsibility
with regard to such Mortgage Loan. It is understood and agreed that the
obligation of the Sponsor to purchase, cure or substitute any Mortgage Loan as
to which a material defect in or omission of a constituent document exists shall
constitute the sole remedy respecting such defect or omission available to the
Trustee on behalf of Certificateholders and the NIMs Insurer. The preceding
sentence shall not, however, limit any remedies available to the
Certificateholders, the NIMs Insurer, the Depositor or the Trustee pursuant to
the Sale Agreement, the Transfer Agreement and the Bring Down Letter.

     The Trustee shall be under no duty or obligation to inspect, review and
examine such documents, instruments, certificates or other papers to determine
that they are genuine, enforceable, recordable, duly authorized, sufficient,
legal, valid or appropriate to the represented purpose, or that they have
actually been recorded, or that they are other than what they purport to be on
their face. The Servicer and the Trustee shall keep confidential the name of
each Mortgagor except as required by this Agreement and the Servicer and the
Trustee shall not solicit any such Mortgagor for the purpose of refinancing the
related Mortgage Loan; notwithstanding anything herein to the contrary, the
foregoing shall not be construed to prohibit (i) disclosure of any and all
information that is or becomes publicly known, or information obtained by the
Trustee or the Servicer from sources other than the other parties hereto, (ii)
disclosure of any and all information (A) if required by any applicable law,
rule or regulation, (B) to any government agency or regulatory body having or
claiming authority to regulate or oversee any aspects of the Trustee's business
or that of its affiliates, (C) pursuant to any subpoena, civil investigation
demand or similar demand or request of any court, regulatory authority,
arbitrator or arbitration to which Trustee or any affiliate or an officer,
director, employer or shareholder thereof is a party or (D) to any affiliate,
independent or internal auditor, agent, employee or attorney of the Trustee or
the Servicer having a need to know the same, provided that the Trustee or the
Servicer, as applicable, advises such recipient of the confidential nature of
the information being disclosed, or (iii) any other disclosure authorized by the
Depositor. It is understood and agreed that all rights and benefits relating to
the solicitation of any Mortgagors and the attendant rights, title and interest
in and to the list of Mortgagors and data relating to the Mortgages shall be
retained by the Servicer.

     Within 70 days of the Closing Date, the Trustee or the Custodian shall
deliver to the NIMs Insurer, the Depositor and the Servicer, the Trustee's
Certification, substantially in the form of Exhibit D attached hereto,
evidencing the completeness of the Mortgage Files, with any exceptions noted
thereto.

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<PAGE>

     SECTION 2.03. Representations, Warranties and Covenants of the Depositor.

          (a) The Depositor hereby represents and warrants to the Servicer, the
NIMs Insurer and the Trustee as follows, as of the date hereof:

          (i) The Depositor is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and
     has full power and authority (corporate and other) 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 and the Sale
     Agreement.

          (ii) The Depositor has the full corporate power and authority to
     execute, deliver and perform, and to enter into and consummate the
     transactions contemplated by, this Agreement and the Sale Agreement and has
     duly authorized, by all necessary corporate action on its part, the
     execution, delivery and performance of this Agreement and the Sale
     Agreement; and this Agreement and the Sale 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 and the Sale
     Agreement by the Depositor, the consummation of the transactions
     contemplated by this Agreement and the Sale Agreement, and the fulfillment
     of or compliance with the terms hereof are in the ordinary course of
     business of the Depositor and will not (A) result in a material breach of
     any term or provision of the charter or by-laws of the Depositor or (B)
     materially conflict with, result in a violation or acceleration of, or
     result in a material 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 material 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 and the Sale Agreement or the ability of the Depositor to perform
     its obligations under this Agreement and the Sale Agreement in accordance
     with the terms hereof.

          (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 and the Sale Agreement or the consummation of the transactions
     contemplated hereby, 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 with respect to each Mortgage
     Loan as of the Closing Date and following the transfer of the Mortgage
     Loans to it by the Sponsor, the Depositor had good title to the Mortgage
     Loans and the Mortgage Notes were subject to no offsets, claims, liens,
     mortgage, pledge, charge, security interest, defenses or counterclaims.

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          (b) The representations and warranties of the Transferor with respect
to the Mortgage Loans contained in the Transfer Agreement were made as of the
date of the Transfer Agreement and brought forward to the Closing Date pursuant
to the Bring Down Letter. The representations and warranties of the Transferor
with respect to the Mortgage Loans contained in the Bring Down Letter were made
as of the Closing Date. The representations and warranties of the Sponsor with
respect to the Mortgage Loans contained in the Sale Agreement were made as of
the Closing Date.

     To the extent that any fact, condition or event with respect to a Mortgage
Loan constitutes a breach of a representation or warranty of the Transferor
under the Transfer Agreement (whether or not such fact, condition or event would
also constitute a breach of a representation or warranty of the Sponsor under
the Sale Agreement), the only rights or remedies of the Trustee, the NIMs
Insurer or of any Certificateholder shall be first, the Trustee's right to
enforce the obligations of the Transferor under such applicable representation
or warranty made by it and, second, only if the Transferor is unable or
unwilling to fulfill its obligations to cure or repurchase such Mortgage Loan,
the Trustee shall exercise its right to enforce any rights it may have against
the Sponsor under the Sale Agreement with respect to such representation or
warranty; provided, that in the event the Trustee shall have received a copy of
any Transferor Affirmation Notice, the Trustee shall only be entitled to enforce
any rights it has against the Transferor under the Transfer Agreement and shall
not have any rights against the Sponsor under the Sale Agreement with respect to
such representation or warranty. To the extent that any fact, condition or event
with respect to a Mortgage Loan constitutes a breach of a representation or
warranty made by the Sponsor in the Sale Agreement that does not also constitute
a breach of a representation or warranty of the Transferor under the Transfer
Agreement, the Trustee shall enforce any rights it may have against the Sponsor
under the Sale Agreement. In furtherance of the above, the Sponsor expressly
acknowledges that prior to the issuance of a Transferor Affirmation Notice, it
shall be obligated and liable to the Trustee, the NIMs Insurer and the
Certificateholders for any breach of a representation or warranty made under the
Transfer Agreement, but only after the Transferor evidences that it is unwilling
or unable to fulfill its contractual obligations under the Transfer Agreement.
The Trustee acknowledges that the Depositor shall have no obligation or
liability with respect to any breach of any representation or warranty with
respect to the Mortgage Loans (except as set forth in Section 2.03(a)(v)) under
any circumstances.

     In addition to the representations and warranties of the Transferor in the
Transfer Agreement that were brought forward to the Closing Date pursuant to the
Bring Down Letter, with respect to each Mortgage Loan, the Transferor made
certain additional covenants regarding such Mortgage Loan, as set forth in the
Transfer Agreement. With respect to any breach of such additional covenants that
materially and adversely affects the interests of the Certificateholders in such
Mortgage Loan, the Sponsor shall (1) use reasonable efforts to enforce such
covenant against the Transferor and (2) if the Sponsor successfully enforces any
obligation of the Transferor to repurchase such Mortgage Loan, the Sponsor shall
repurchase such Mortgage Loan in accordance with this Section 2.03. If the
Sponsor does not successfully enforce the obligation, if any, of the Transferor
to repurchase a Mortgage Loan with respect to any breach of any such additional
covenants, the Sponsor shall have no obligation or right to repurchase or cure
such Mortgage Loan.

          (c) Upon discovery by any of the Depositor, the Servicer, the NIMs
Insurer or the Trustee of a breach of any of such representations and warranties
that adversely and materially affects the value of the related Mortgage Loan,
Prepayment Charges or the interests of the Certificateholders, the party
discovering such breach shall give prompt written notice to the other parties.
Within 90 days of the discovery of such breach of any representation or
warranty, the Transferor or the Sponsor, as applicable, shall either (a) cure
such breach in all material respects, (b) repurchase such Mortgage Loan or any
property acquired in respect thereof from the Trustee at the Purchase Price or
(c) within the two

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year period following the Closing Date, substitute a Replacement Mortgage Loan
for the affected Mortgage Loan. In the event of discovery of a breach of any
representation and warranty of the Transferor or the Sponsor, the Trustee shall
enforce its rights under the Transfer Agreement or the Sale Agreement for the
benefit of Certificateholders and the NIMs Insurer. If a breach of the
representations and warranties set forth in the Transfer Agreement exists solely
due to the unenforceability of a Prepayment Charge, the Trustee shall notify the
NIMs Insurer thereof and not seek to enforce the repurchase remedy provided for
herein unless directed in writing to do so by the NIMs Insurer. In the event of
a breach of the representations and warranties with respect to the Mortgage
Loans set forth in the Transfer Agreement, the Trustee shall, at the request of
the NIMs Insurer, enforce the right of the Trust Fund and the NIMs Insurer to be
indemnified for such breach of representation and warranty. In the event that
such breach relates solely to the unenforceability of a Prepayment Charge,
amounts received in respect of such indemnity up to the amount of such
Prepayment Charge shall be distributed pursuant to Section 4.04(b)(i). As
provided in the Sale Agreement, if the Transferor substitutes for a Mortgage
Loan for which there is a breach of any representations and warranties in the
Transfer Agreement which adversely and materially affects the value of such
Mortgage Loan and such substitute mortgage loan is not a Replacement Mortgage
Loan, under the terms of the Sale Agreement, the Sponsor will, in exchange for
such substitute Mortgage Loan, (i) provide the applicable Purchase Price for the
affected Mortgage Loan or (ii) within two years of the Closing Date, substitute
such affected Mortgage Loan with a Replacement Mortgage Loan. Any such
substitution shall not be effected prior to the additional delivery to the
Trustee of a Request for Release substantially in the form of Exhibit I and
shall not be effected unless it is within two years of the Startup Day. As
provided in the Sale Agreement, the Sponsor indemnifies and holds the Trust
Fund, the Trustee, the Custodian, the Depositor, the NIMs Insurer, the Servicer
and each Certificateholder harmless against any and all taxes, claims, losses,
penalties, fines, forfeitures, reasonable legal fees and related costs,
judgments, and any other costs, fees and expenses that the Trust Fund, the
Trustee, the Custodian, the Depositor, the NIMs Insurer, the Servicer and any
Certificateholder may sustain in connection with any actions of the Sponsor
relating to a repurchase of a Mortgage Loan other than in compliance with the
terms of this Section 2.03 and the Sale Agreement, to the extent that any such
action causes (i) any federal or state tax to be imposed on the Trust Fund or
any REMIC provided for herein, including without limitation, any federal tax
imposed on "prohibited transactions" under Section 860F(a)(1) of the Code or on
"contributions after the startup day" under Section 860G(d)(1) of the Code, or
(ii) any REMIC created hereunder to fail to qualify as a REMIC at any time that
any Certificate is outstanding. In furtherance of the foregoing, if the Sponsor
is not a member of MERS and repurchases a Mortgage Loan which is registered on
the MERS System, the Sponsor, at its own expense and without any right of
reimbursement, shall cause MERS to execute and deliver an assignment of the
Mortgage in recordable form to transfer the Mortgage from MERS to the Sponsor
and shall cause such Mortgage to be removed from registration on the MERS System
in accordance with MERS' rules and regulations.

     With respect to any Mortgage Loan repurchased by the Depositor pursuant to
this Agreement, by the Sponsor pursuant to the Sale Agreement or by the
Transferor pursuant to the Transfer Agreement, the principal portion of the
funds received by the Servicer in respect of such repurchase of a Mortgage Loan
will be considered a Principal Prepayment and shall be deposited by the Servicer
in the Collection Account pursuant to Section 3.05 and the Servicer shall notify
the Trustee of its receipt of the same. The Trustee, upon receipt of notice from
the Servicer of its receipt of the full amount of the Purchase Price for a
Deleted Mortgage Loan, or upon receipt of the Mortgage File for a Replacement
Mortgage Loan substituted for a Deleted Mortgage Loan, shall release or cause to
be released and reassign to the Depositor, the Sponsor or the Transferor, as
applicable, the related Mortgage File for the Deleted Mortgage Loan and shall
execute and deliver such instruments of transfer or assignment, in each case
without recourse, representation or warranty, as shall be necessary to vest in
such party or its designee or assignee title to any Deleted Mortgage Loan
released pursuant hereto, free and clear of all security interests, liens and
other encumbrances created by this Agreement, which instruments shall be
prepared

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by the Depositor or the Sponsor, and the Trustee shall not have any further
responsibility with respect to the Mortgage File relating to such Deleted
Mortgage Loan.

     With respect to each Replacement Mortgage Loan to be delivered to the
Trustee or the Custodian pursuant to the terms of this Article II in exchange
for a Deleted Mortgage Loan: (i) the Depositor, the Transferor or the Sponsor,
as applicable, must deliver to the Trustee or the Custodian the Mortgage File
for the Replacement Mortgage Loan containing the documents set forth in Section
2.01 along with a written certification certifying as to the delivery of such
Mortgage File and containing the granting language set forth in Section 2.01;
and (ii) the Depositor will be deemed to have made, with respect to such
Replacement Mortgage Loan, each of the representations and warranties made by it
with respect to the related Deleted Mortgage Loan. The Trustee or the Custodian
shall review the Mortgage File with respect to each Replacement Mortgage Loan
and certify to the NIMs Insurer and the Depositor that all documents required by
Section 2.01 have been executed and received.

     For any month in which the Sponsor substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Sponsor will
determine the amount (if any) by which the aggregate principal balance of all
such Replacement Mortgage Loans as of the date of substitution and the aggregate
Prepayment Charges with respect to such Replacement Mortgage Loans is less than
the aggregate Stated Principal Balance (after application of the principal
portion of the Scheduled Payment due in the month of substitution) and aggregate
Prepayment Charges of all such Deleted Mortgage Loans. An amount equal to the
aggregate of the deficiencies described in the preceding sentence (such amount,
the "Substitution Adjustment Amount") plus an amount equal to any unreimbursed
costs, penalties and/or damages incurred by the Trust Fund in connection with
any violation relating to such Deleted Mortgage Loan of any predatory or abusive
lending law shall be remitted by the Sponsor to the Servicer for deposit into
the Collection Account 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.

     Notwithstanding any other provision of this Agreement, the right to
substitute Mortgage Loans pursuant to this Article II shall be subject to the
additional limitations that no substitution of a Replacement Mortgage Loan for a
Deleted Mortgage Loan shall be made unless the Trustee and the NIMs Insurer
shall each have received an Opinion of Counsel (at the expense of the party
seeking to make the substitution) that, under current law, such substitution
will not (A) affect adversely the status of any REMIC established hereunder as a
REMIC, or of the related "regular interests" as "regular interests" in any such
REMIC, or (B) cause any such REMIC to engage in a "prohibited transaction" or
prohibited contribution pursuant to the REMIC Provisions.

     The Sponsor shall cause the Mortgage Loan Schedule to be amended in
accordance with the terms of this Agreement.

     The Sponsor shall give or cause to be given written notice to the
Certificateholders and the NIMs Insurer that such substitution has taken place,
shall amend the Mortgage Loan Schedule to reflect the removal of such Deleted
Mortgage Loan from the terms of this Agreement and the substitution of the
Replacement Mortgage Loan or Replacement Mortgage Loans and shall deliver a copy
of such amended Mortgage Loan Schedule to the NIMs Insurer, the Servicer, and
the Trustee. Upon such substitution by the Sponsor, such Replacement Mortgage
Loan or Replacement Mortgage Loans shall constitute part of the Mortgage Pool
and shall be subject in all respects to the terms of this Agreement and the Sale
Agreement, including all applicable representations and warranties thereof
included in the Sale Agreement as of the date of substitution.

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          (d) It is understood and agreed that the representations, warranties
and indemnification (i) set forth in this Section 2.03, (ii) of the Sponsor and
the Depositor set forth in the Sale Agreement and assigned to the Trustee by the
Depositor hereunder and (iii) of the Transferor, assigned by the Sponsor to the
Depositor pursuant to the Sale Agreement and assigned to the Trustee by the
Depositor hereunder shall each survive delivery of the Mortgage Files and the
Assignment of Mortgage of each Mortgage Loan to the Trustee and shall continue
throughout the term of this Agreement.

          (e) The Depositor shall deliver a copy of the Mortgage Loan Schedule
to the Servicer on the Closing Date.

          (f) The Depositor shall notify the Servicer and the Trustee when any
NIM Notes are issued and when such NIM Notes are no longer outstanding.

     SECTION 2.04. Representations and Warranties of the Servicer

          (a) The Servicer hereby represents and warrants to the Depositor and
the Trustee as follows, as of the date hereof:

               (i) The Servicer is duly organized and is validly existing as a
limited partnership 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 Servicer in any state in which a
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan) 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 this Agreement and to perform any of its other obligations under this
Agreement in accordance with the terms hereof.

               (ii) The Servicer has the 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 the part of the Servicer the
execution, delivery and performance of this Agreement; and this Agreement,
assuming the due authorization, execution and delivery hereof by the other
parties hereto, constitutes a legal, valid and binding obligation of the
Servicer, enforceable against the Servicer 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
Servicer, the servicing of the Mortgage Loans 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 are in the ordinary
course of business of the Servicer and will not (A) result in a material breach
of any term or provision of the charter or by-laws of the Servicer or (B)
materially conflict with, result in a material breach, violation or acceleration
of, or result in a material default under, the terms of any other material
agreement or instrument to which the Servicer is a party or by which it may be
bound, or (C) constitute a material violation of any statute, order or
regulation applicable to the Servicer of any court, regulatory body,
administrative agency or governmental body having jurisdiction over the
Servicer; and the Servicer 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

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governmental body having jurisdiction over it which breach or violation may
materially impair the Servicer's ability to perform or meet any of its
obligations under this Agreement.

               (iv) The Servicer is an approved servicer of mortgage loans for
Fannie Mae and is an approved servicer of mortgage loans for Freddie Mac.

               (v) No litigation is pending or, to the best of the Servicer's
knowledge, threatened, against the Servicer that would materially and adversely
affect the execution, delivery or enforceability of this Agreement or the
ability of the Servicer 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 the execution, delivery and
performance by the Servicer of, or compliance by the Servicer with, this
Agreement or the consummation of the transactions contemplated hereby, or if any
such consent, approval, authorization or order is required, the Servicer has
obtained the same.

               (vii) The Servicer has fully furnished and will fully furnish
(for the period it serviced the Mortgage Loans), in accordance with the Fair
Credit Reporting Act and its implementing regulations, accurate and complete
information (e.g., favorable and unfavorable) on its borrower credit files to
Equifax, Experian and Trans Union Credit Information Company on a monthly basis.

               (viii) Notwithstanding any state or federal law to the contrary,
the Servicer shall not impose or collect a Prepayment Charge in any instance
when the mortgage debt is accelerated as the result of the Mortgagor's default
in making the Mortgage Loan payments.

     SECTION 2.05. Substitutions and Repurchases of Mortgage Loans that are not
"Qualified Mortgages."

     Upon discovery by the Depositor, the Servicer or the Trustee 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. In connection therewith, the Depositor shall, at
the Depositor's option, either (i) substitute, if the conditions in Section
2.03(c) 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 contained in Section 2.03. The
Trustee, upon the written request of the Depositor, shall reconvey to the
Depositor the Mortgage Loan to be released pursuant hereto 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 contained in Section 2.03.

     SECTION 2.06. Authentication and Delivery of Certificates.

     The Trustee acknowledges the transfer and assignment to it of the Trust
Fund and, concurrently with such transfer and assignment, the Trustee has caused
to be authenticated and delivered to or upon the order of the Depositor, in
exchange for the Mortgage Loans, Certificates duly authenticated by the
Authenticating Agent in authorized denominations evidencing ownership of the
entire 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 its duties set forth in this Agreement in
accordance with the provisions hereof.

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     SECTION 2.07. REMIC Elections.

          (a) The Depositor hereby instructs and authorizes the Trustee to make
an appropriate election to treat each of the Upper Tier REMIC, the Lower Tier
REMIC and the SWAP REMIC as a REMIC. The Trustee shall sign the returns
providing for such elections and such other tax or information returns that are
required to be signed by the Trustee under applicable law. This Agreement shall
be construed so as to carry out the intention of the parties that each of the
Upper Tier REMIC, the Lower Tier REMIC and the SWAP REMIC be treated as a REMIC
at all times prior to the date on which the Trust Fund is terminated.

          (b) The Preliminary Statement sets forth the designations and "latest
possible maturity date" for federal income tax purposes of all interests created
hereby. The "Startup Day" for purposes of the REMIC Provisions shall be the
Closing Date. Each REMIC's fiscal year shall be the calendar year.

          The SWAP REMIC shall consist of all of the assets of the Trust Fund,
other than (i) amounts distributable to the Class P Certificates pursuant to
Section 4.04(b)(i) hereof, (ii) the interests issued by the SWAP REMIC and the
interests issued by the Lower Tier REMIC, (iii) the grantor trusts described in
Section 2.07 hereof, (iv) each Cap Contract and the Cap Contract Account and (v)
the Swap Agreement and the Supplemental Interest Trust. The SWAP REMIC shall
issue the SWAP REMIC Regular Interests, which shall be designated as regular
interests of such REMIC, and shall issue the Class SWR Interest, which shall be
designated as the sole class of residual interest in the SWAP REMIC. Each of the
SWAP REMIC Regular Interests shall have the characteristics set forth in the
Preliminary Statement and this Section 2.07.

          The Lower Tier REMIC shall consist of the SWAP REMIC Regular
Interests. The Lower Tier REMIC shall issue the Lower Tier REMIC Regular
Interests, which shall be designated as regular interests of such REMIC and
shall issue the Class LTR Interest, which shall be designated as the sole class
of residual interest in the Lower Tier REMIC. Each of the Lower Tier REMIC
Regular Interests shall have the characteristics set forth in its definition and
the Preliminary Statement.

          The assets of the Upper Tier REMIC shall be the Lower Tier REMIC
Regular Interests. The REMIC Regular Interests shall be designated as the
regular interests in the Upper Tier REMIC and the Residual Interest shall be
designated as the sole class of residual interest in the Upper Tier REMIC. For
federal income tax purposes, the pass-through rate on each REMIC Regular
Interest (other than the Uncertificated Class C Interest and the Class UT-IO
Interest) and on the sole class of residual interest in the Upper Tier REMIC
shall be subject to a cap equal to the Upper Tier REMIC Net WAC Cap.

          The beneficial ownership of the Class SWR Interest, Class LTR Interest
and the Residual Interest shall be represented by the Class R Certificate. The
Class SWR Interest and Class LTR Interest shall not have a principal balance or
bear interest.

          (c) The "tax matters person" with respect to each REMIC for purposes
of the REMIC Provisions shall be the beneficial owner of the Class R
Certificate; provided, however, that the Holder of the Class R Certificate, by
its acceptance thereof, irrevocably appoints the Trustee as its agent and
attorney-in-fact to act as "tax matters person" with respect to each such REMIC
for purposes of the REMIC Provisions. If there is more than one beneficial owner
of the Class R Certificate, the "tax matters person" shall be the Person with
the greatest percentage interest in the Class R Certificate and, if there is
more than one such Person, shall be determined under Treasury regulation Section
1.860F-4(d) and Treasury regulation Section 301.6231(a)(7)-1.

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          (d) (i) It is intended that the rights of each Class of the Class A,
Class M and Class B Certificates to receive payments in respect of Excess
Interest shall be treated as a right in interest rate cap contracts written by
the Class C Certificateholders in favor of the holders of each Class of the
Class A, Class M and Class B Certificates and such shall be accounted for as
property held separate and apart from the regular interests in the Upper Tier
REMIC held by the holders of the Class A (other than the Class R Certificate),
Class M and Class B Certificates, and the residual interest in the Upper Tier
REMIC held by the holder of the Class R Certificate. For information reporting
requirements, the rights of the Class A, Class M and Class B Certificates to
receive payments in respect of Excess Interest shall be assumed to have zero or
a de minimis value. This provision is intended to satisfy the requirements of
Treasury Regulations Section 1.860G-2(i) for the treatment of property rights
coupled with REMIC interests to be separately respected and shall be interpreted
consistently with such regulation. On each Distribution Date, to the extent that
any of the Class A, Class M and Class B Certificates receive payments in respect
of Excess Interest, such amounts, to the extent not derived from payments on the
Cap Contracts or the Swap Agreement, will be treated as distributed by the Upper
Tier REMIC to the Class C Certificates pro rata in payment of the amounts
specified in Section 4.04(g) and then paid to the relevant Class of Certificates
pursuant to the related interest rate cap agreement.

          (ii) It is intended that the beneficial owners of the Certificates
(other than the Class P and Class C Certificates) shall be treated as having
entered into a notional principal contract with respect to the beneficial owners
of the Class C Certificates. Pursuant to each such notional principal contract,
all beneficial owners of each Class of Certificates (other than the Class P and
Class C Certificates) shall be treated as having agreed to pay, on each
Distribution Date, to the beneficial owners of the Class C Certificates an
aggregate amount equal to the excess, if any, of (i) the amount payable on such
Distribution Date on the Corresponding REMIC Regular Interest of such Class of
Certificates over (ii) the amount payable on such Class of Certificates on such
Distribution Date (such excess, a "Class Payment Shortfall"). A Class Payment
Shortfall shall be allocated to each Class of Certificates to the extent that
interest accrued on such Class for the related Accrual Period at the
Pass-Through Rate for a Class, computed by substituting "Upper Tier REMIC Net
WAC Cap" for the Available Funds Cap set forth in the definition thereof,
exceeds the amount of interest accrued on such Certificate at the Pass-Through
Rate (without such substitution) for the related Accrual Period, and a Class
Payment Shortfall 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.

          (e) The parties intend that the portion of the Trust Fund consisting
of the Uncertificated Class C Interest, the uncertificated Class UT-IO Interest,
the rights to receive payments deemed made by the Class A, Class M and Class B
Certificates in respect of notional principal contracts described in Section
2.07(d)(ii), the Supplemental Interest Trust which holds the Swap Agreement, the
Cap Contracts, the Cap Contract Account and the obligation of the holders of the
Class C Certificates to pay amounts in respect of Excess Interest to the holders
of the Class A, Class M and Class B Certificates shall be treated as a "grantor
trust" under the Code, for the benefit of the holders of the Class C
Certificates, and the provisions hereof shall be interpreted consistently with
this intention. In furtherance of such intention, the Trustee shall (i) furnish
or cause to be furnished to the holders of the Class C Certificates information
regarding their allocable share, if any, of the income with respect to such
grantor trust, (ii) file or cause to be filed with the Internal Revenue Service
Form 1041 (together with any necessary attachments) and such other forms as may
be applicable and (iii) comply with such information reporting obligations with
respect to payments from such grantor trust to the holders of Class A, Class M,
Class B and Class C Certificates as may be applicable under the Code.

          (f) The parties intend that the portion of the Trust Fund consisting
of the right to receive amounts distributable to the Class P Certificates
pursuant to Section 4.04(b)(i) hereof shall be treated as a "grantor trust"
under the Code, for the benefit of the holders of the Class P Certificates, and

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the provisions hereof shall be interpreted consistently with this intention. In
furtherance of such intention, the Trustee shall (i) furnish or cause to be
furnished to the holders of the Class P Certificates information regarding their
allocable share of the income with respect to such grantor trust and (ii) file
or cause to be filed with the Internal Revenue Service Form 1041 (together with
any necessary attachments) and such other forms as may be applicable.

          (g) The parties intend that amounts paid to the Swap Counterparty
under the Swap Agreement shall be deemed for federal income tax purposes to be
paid by the Class C Certificates first, out of funds deemed received in respect
of the Class UT-IO Interest, second, out of funds deemed received in respect of
the Uncertificated Class C Interest and third, out of funds deemed received in
respect of notional principal contracts described in Section 2.07(d)(ii), and
the provisions hereof shall be interpreted consistently with this intention. On
each Distribution Date, to the extent that amounts paid to the Swap Counterparty
are deemed paid out of funds received in respect of the Uncertificated Class C
Interest, such amounts will be treated as distributed by the Upper Tier REMIC to
the Class C Certificates pro rata in payment of the amounts specified in Section
4.04(g) and then paid to the Swap Counterparty pursuant to the Swap Agreement.

          The Supplemental Interest Trust shall be an "outside reserve fund" for
federal income tax purposes and not an asset of any REMIC. Furthermore, the
Holders of the Class C Certificates shall be the beneficial owners of the
Supplemental Interest Trust for all federal income tax purposes, and shall be
taxable on all income earned thereon.

          (h) All payments of principal and interest at the Net Mortgage Rate on
each of the Mortgage Loans (other than amounts distributable to the Class P
Certificates pursuant to Section 4.04(b)(i) hereof) received by the SWAP REMIC
with respect to the Mortgage Loans shall be paid to the SWAP REMIC Regular
Interests until the principal balance of all such interests have been reduced to
zero and any losses allocated to such interests have been reimbursed. Any
available funds remaining in the SWAP REMIC on a Distribution Date after
distributions to the SWAP REMIC Regular Interests shall be distributed to the
Class R Certificates on account of the Class SWR Interest. On each Distribution
Date, the Trustee shall distribute the aggregate Interest Funds (net of expenses
and payments to the Class P Certificates) with respect to each of the SWAP REMIC
Regular Interests based on the interest rates for each such SWAP REMIC Regular
Interest. On each Distribution Date, the Trustee shall distribute the aggregate
Principal Funds with respect to the Group One Mortgage Loans first to the Class
1-SW1 Interest until its principal balance is reduced to zero and then
sequentially to each of the other SWAP REMIC Regular Interests beginning with
designation "1" in ascending order of their numerical class designation, in
equal amounts to each such class in such numerical designation, until the
principal balance of each such class is reduced to zero. All losses with respect
to the Group One Mortgage Loans shall be allocated among the SWAP REMIC Regular
Interests beginning with the designation "1" in the same manner that principal
distributions are allocated. On each Distribution Date, the Trustee shall
distribute the aggregate Principal Funds with respect to the Group Two Mortgage
Loans first to the Class 2-SW2 Interest until its principal balance is reduced
to zero and then sequentially to each of the other SWAP REMIC Regular Interests
beginning with designation "2" in ascending order of their numerical class
designation, in equal amounts to each such class in such numerical designation,
until the principal balance of each such class is reduced to zero. All losses
with respect to the Group Two Mortgage Loans shall be allocated among the SWAP
REMIC Regular Interests beginning with the designation "2" in the same manner
that principal distributions are allocated. Subsequent Recoveries with respect
to the Group One and Group Two Mortgage Loans shall be allocated in the reverse
fashion from the manner in which losses are allocated.

     All payments received by the Lower Tier REMIC with respect to the SWAP
REMIC Regular Interests shall be paid to the Lower Tier REMIC Regular Interests
until the principal balance of all such

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interests have been reduced to zero and any losses allocated to such interests
have been reimbursed. Any excess amounts shall be distributed to the Class LTR
Interest. On each Distribution Date, payments and losses shall be allocated
among the Lower Tier REMIC Regular Interests so that (i) each of the Lower Tier
REMIC I Marker Interests shall have a principal balance equal to 25% of the
principal balance of the Corresponding Certificates, (ii) the Class LTIX
Interest has a principal balance equal to the excess of (x) 50% of the remaining
principal balance of the Mortgage Loans over (y) the aggregate principal balance
of the Lower Tier REMIC I Marker Interests (if necessary to reflect an increase
in overcollateralization, accrued and unpaid interest on the Class LTIX interest
may be added to its principal amount to achieve this result) and (iii) the
aggregate principal amount of the Class LTII1A Interest, Class LTII1B Interest,
Class LTII2A Interest, Class LTII2B Interest and the Class LTIIX Interest shall
equal 50% of the remaining principal balance of the Mortgage Loans.
Distributions and losses allocated to the Lower Tier REMIC Regular Interests
described in clause (iii) of the preceding sentence will be allocated among such
Lower Tier REMIC Regular Interests in the following manner: (x) such
distributions shall be deemed made to such Lower Tier REMIC Regular Interests
first, so as to keep the principal balance of the each such Lower Tier REMIC
Regular Interest with "B" at the end of its designation equal to 0.05% of the
aggregate scheduled principal balance of the Mortgage Loans in the related
Mortgage Group and second, to such Lower Tier REMIC Regular Interests with "A"
at the end of its designation so that the uncertificated principal balance of
each such Lower Tier REMIC Regular Interest is equal to 0.05% of the excess of
(I) the aggregate scheduled principal balance of the Mortgage Loans in the
related Mortgage Group over (II) the aggregate principal balance of Certificate
Group One, in the case of the Class LTII1A Interest, or Certificate Group Two,
in the case of the Class LTII2A Interest (except that if 0.05% of any such
excess is greater than the principal amount of the related Lower Tier REMIC II
Marker Interest with "A" at the end of its designation, the least amount of
principal shall be distributed to each Lower Tier REMIC II Marker Interest with
"A" at the end of its designation such that the Lower Tier REMIC Subordinated
Balance Ratio is maintained) and finally, any remaining distributions of
principal to the Class LTIIX Interest and (y) such losses shall be allocated
among the Lower Tier REMIC Regular Interests described in clause (iii) of the
preceding sentence first, so as to keep the principal balance of the each such
Lower Tier REMIC Regular Interest with "B" at the end of its designation equal
to 0.05% of the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group; second, to such Lower Tier REMIC Regular Interests
with "A" at the end of its designation so that the uncertificated principal
balance of each such Lower Tier REMIC Regular Interest is equal to 0.05% of the
excess of (I) the aggregate scheduled principal balance of the Mortgage Loans in
the related Mortgage Group over (II) the aggregate principal balance of
Certificate Group One, in the case of the Class LTII1A Interest, or Certificate
Group Two, in the case of the Class LTII2A Interest (except that if 0.05% of any
such excess is greater than the principal amount of the related Lower Tier REMIC
II Marker Interest with "A" at the end of its designation, the least amount of
losses shall be allocated to each Lower REMIC II Marker Interest with "A" at the
end of its designation such that the Lower Tier REMIC Subordinated Balance Ratio
is maintained) and finally, any remaining losses to the Class LTIIX Interest.
Notwithstanding the preceding two sentences, however, losses not allocated to
any Class of Certificates will not be allocated to any Lower Tier REMIC Regular
Interests. All computations with respect to the Lower Tier REMIC Regular
Interests shall be taken out to ten decimal places.

          Any available funds remaining in the Lower Tier REMIC on a
Distribution Date after distributions to the Lower Tier REMIC Regular Interests
shall be distributed to the Class R Certificates in respect of the Class LTR
Interest.

          If on any Distribution Date the Certificate Principal Balance of any
Class of Certificates is increased pursuant to the last sentence of the
definition of "Certificate Principal Balance", then there shall be an equivalent
increase in the principal amounts of the Lower Tier REMIC Regular Interests,
with such increase allocated (before the making of distributions and the
allocation of losses on the Lower Tier REMIC Regular Interests on such
Distribution Date) among the Lower Tier REMIC Regular Interests so

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that, to the greatest extent possible, (i) each of the Lower Tier REMIC I Marker
Interests has a principal balance equal to 25% of the principal balance of the
Corresponding Certificates, (ii) the Class LTIX Interest has a principal balance
equal to the excess of (x) 50% of the remaining principal balance of the
Mortgage Loans over (y) the aggregate principal balance of the Lower Tier REMIC
I Marker Interests and (iii) the aggregate principal amount of the Lower Tier
REMIC II Marker Interests and the Class LTIIX Interest shall equal 50% of the
remaining principal balance of the Mortgage Loans. Allocations in connection
with clause (iii) shall be made so that, to the greatest extent possible, (a)
the principal balance of each Lower Tier REMIC II Marker Interest with "B" at
the end of its designation equals 0.05% of the aggregate scheduled principal
balance of the Mortgage Loans in related Mortgage Group, (b) the principal
balance of each Lower Tier REMIC II Marker Interest with "A" at the end of its
designation equals 0.05% of the excess of (x) the aggregate scheduled principal
balance of the Mortgage Loans in related Mortgage Group over (y) the aggregate
principal balance of Certificate Group One in the case of the Class LTII1A
Interest, or Certificate Group Two in the case of the Class LTII2A Interest and
(c) any remaining allocations are made to the Class LTIIX Interest.

          (i) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Servicer of its duties
and obligations set forth herein, the Servicer shall indemnify the NIMs Insurer,
the Trustee and the Trust Fund against any and all Losses resulting from such
negligence; provided, however, that the Servicer shall not be liable for any
such Losses attributable to the action or inaction of the Trustee, the Depositor
or the Holder of the residual interest in such REMIC, as applicable, nor for any
such Losses resulting from misinformation provided by the Holder of the residual
interest in such REMIC on which the Servicer has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of the
residual interest in such REMIC now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Servicer have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than those arising out of a
negligent performance by the Servicer of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

          (j) In the event that any REMIC provided for herein fails to qualify
as a REMIC, loses its status as a REMIC, or incurs federal, state or local taxes
as a result of a prohibited transaction or prohibited contribution under the
REMIC Provisions due to the negligent performance by the Trustee of its duties
and obligations set forth herein, the Trustee shall indemnify the NIMs Insurer
and the Trust Fund against any and all Losses resulting from such negligence;
provided, however, that the Trustee shall not be liable for any such Losses
attributable to the action or inaction of the Servicer, the Depositor or the
Holder of the residual interest in such REMIC, as applicable, nor for any such
Losses resulting from misinformation provided by the Holder of the residual
interest in such REMIC on which the Trustee has relied. The foregoing shall not
be deemed to limit or restrict the rights and remedies of the Holder of the
residual interest in such REMIC now or hereafter existing at law or in equity.
Notwithstanding the foregoing, however, in no event shall the Trustee have any
liability (1) for any action or omission that is taken in accordance with and in
compliance with the express terms of, or which is expressly permitted by the
terms of, this Agreement, (2) for any Losses other than those arising out of a
negligent performance by the Trustee of its duties and obligations set forth
herein, and (3) for any special or consequential damages to Certificateholders
(in addition to payment of principal and interest on the Certificates).

     SECTION 2.08. [RESERVED]

     SECTION 2.09. Covenants of the Servicer.

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     The Servicer hereby covenants to each of the other parties to this
Agreement as follows: (a) the Servicer shall comply in the performance of its
obligations under this Agreement with all reasonable rules and requirements of
the insurer under each Required Insurance Policy; and (b) no written
information, certificate of an officer, statement furnished in writing or
written report delivered to the Depositor, the NIMs Insurer or the Trustee, any
affiliate of the Depositor, the NIMs Insurer or the Trustee and prepared by the
Servicer pursuant to this Agreement is inaccurate in any material respect,
provided, however, that the Servicer shall not be responsible for inaccurate
information provided to it by third parties.

     SECTION 2.10. [RESERVED]

     SECTION 2.11. Permitted Activities of the Trust. The Trust is created for
the object and purpose of engaging in the Permitted Activities. In furtherance
of the foregoing, the Trustee is hereby authorized and directed to execute and
deliver on behalf of the Trust, and to perform the duties and obligations of the
Issuing Entity under, the Cap Contracts, an insurance and indemnity agreement
with a NIMs Insurer and any other agreement or instrument related thereto, in
each case in such form as the Depositor shall direct or shall approve, the
execution and delivery of any such agreement by the Depositor to be conclusive
evidence of its approval thereof.

     SECTION 2.12. Qualifying Special Purpose Entity. For purposes of SFAS 140,
the parties hereto intend that the Trust Fund shall be treated as a "qualifying
special purpose entity" as such term is used in SFAS 140 and any successor rule
thereto and its power and authority as stated in Section 2.11 of this Agreement
shall be limited in accordance with paragraph 35 thereof.

                                   ARTICLE III

                          ADMINISTRATION AND SERVICING
                                OF MORTGAGE LOANS

     SECTION 3.01. Servicer to Service Mortgage Loans.

     For and on behalf of the Certificateholders, the Servicer shall service and
administer the Mortgage Loans, including without limitation, any powers of
attorney, in accordance with Accepted Servicing Practices. In connection with
such servicing and administration, the Servicer shall have full power and
authority, acting alone and/or through Subservicers as provided in Section 3.02
hereof, 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 Mortgaged Property (or the stock allocated to a
dwelling unit related to a Co-op Loan) and assumptions of the Mortgage Notes and
related Mortgages (but only in the manner provided in this Agreement), (iii) to
collect any Insurance Proceeds and other Liquidation Proceeds and (iv) subject
to Section 3.12(a), to effectuate foreclosure or other conversion of the
ownership of the Mortgaged Property (or the stock allocated to a dwelling unit
related to a Co-op Loan) securing any Mortgage Loan; provided that, subject to
Section 6.03, the Servicer shall not take any action that is inconsistent with
or prejudices the interests of the Trust Fund or the Certificateholders in any
Mortgage Loan serviced by it under this Agreement or the rights and interests of
the other parties to this Agreement except as otherwise required by this
Agreement or by law. The Servicer shall not make or permit any modification,
waiver or amendment of any term of any Mortgage Loan which would cause any of
the REMICs provided for herein to fail to qualify as a REMIC or result in the
imposition of any tax under Section 860G(a) or 860G(d) of the Code. The Servicer
shall represent and protect the interest of the Trust Fund in the same manner as
it currently protects its own interest in mortgage loans in its own portfolio in
any claim, proceeding or litigation regarding a Mortgage Loan, but

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in any case not in any manner that is a lesser standard than that provided in
the first sentence of this Section 3.01. Without limiting the generality of the
foregoing, the Servicer, in its own name or in the name of the Depositor and the
Trustee, is hereby authorized and empowered by the Depositor and the Trustee,
when the 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, subordinations 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
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 Servicer to service and administer the
Mortgage Loans, including without limitation, any powers of attorney. Upon
receipt of such documents, the Depositor and/or the Trustee shall execute such
documents and deliver them to the Servicer. For purposes of this Section 3.01,
the Trustee hereby grants to the Servicer a limited power of attorney
substantially in the form of Exhibit P to execute and file any and all documents
necessary to fulfill the obligations of the Servicer under this Section 3.01.

     The Trustee shall deliver powers of attorney in the form attached hereto as
Exhibit P to the Servicer promptly after the Closing Date and additional powers
of attorney promptly after request therefor by the Servicer. The Trustee shall
not be responsible for and the Servicer shall indemnify the Trustee for any
misuse by the Servicer of any power of attorney. Notwithstanding anything
contained herein to the contrary, the Servicer shall not without the Trustee's
written consent, hire or procure counsel to represent the Trustee without
indicating its representative capacity

     In accordance with the standards of the preceding paragraph, the 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 3.06, and further as
provided in Section 3.08. To the extent that a Mortgage does not provide for
escrow payments, (i) the Servicer shall determine whether any such payments are
made by the Mortgagor in a manner and at a time that is necessary to avoid the
loss of the Mortgaged Property due to a tax sale or to foreclosure as a result
of a tax lien and (ii) the Servicer shall ensure that all insurance required to
be maintained on the Mortgaged Property pursuant to this Agreement is
maintained. If any such payment has not been made and the Servicer receives
notice of a tax lien being imposed with respect to the Mortgage Loan, the
Servicer will, to the extent required to avoid loss of the Mortgaged Property,
advance or cause to be advanced funds necessary to discharge such lien on the
Mortgaged Property.

     All costs incurred by the Servicer, if any, in effecting the timely payment
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.

     In the event that the Mortgage Loan Documents relating to any Mortgage Loan
contain provisions requiring the related Mortgagor to submit to binding
arbitration any disputes arising in connection with such Mortgage Loan, the
Servicer shall be entitled to waive any such provisions on behalf of the Trust
and to send written notice of such waiver to the related Mortgagor, although the
Mortgagor may still require arbitration of such disputes at its option.

     The Servicer shall not be required to make any Servicing Advance with
respect to a Mortgage Loan that is 150 days or more delinquent.

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     The Servicer shall have at least 30 days' notice of the appointment of a
NIMs Insurer prior to being required to deliver any notices pursuant to this
Agreement to such NIMs Insurer.

     The Servicer shall deliver a list of Servicing Officers to the Trustee by
the Closing Date.

     The Servicer will transmit full-file credit reporting data for each
Mortgage Loan pursuant to Fannie Mae Guide Announcement 97-02 and for each
Mortgage Loan, the Servicer agrees that it shall report one of the following
statuses each month as follows: current, delinquent (30-, 60-, 90-days, etc.),
foreclosed or charged-off.

     The Servicer further is authorized and empowered by the Trustee, on behalf
of the Certificateholders and the Trustee, in its own name or in the name of the
Subservicer, when the Servicer or the Subservicer, as the case may be, believes
it is appropriate in its best judgment to register any Mortgage Loan on the MERS
System, or cause the removal from the registration of any Mortgage Loan on the
MERS System, to execute and deliver, on behalf of the Trustee and the
Certificateholders or any of them, any and all instruments of assignment,
release and other comparable instruments with respect to such assignment,
release or re-recording of a Mortgage in the name of MERS, solely as nominee for
the Trustee and its successors and assigns; provided, however, the Trustee will
not be responsible for monitoring MERS loan activity. Any reasonable expenses
incurred in connection with the actions described in the preceding sentence or
as a result of MERS discontinuing or becoming unable to continue operations in
connection with the MERS System, shall be subject to withdrawal by the Servicer
from the Collection Account (provided that such expenses constitute
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii)).

     With respect to any Mortgage Loan, the Servicer may consent to the
refinancing of the prior senior lien relating to such Mortgage Loan, provided
that the following requirements are met:

          (a) the resulting Combined Loan-to-Value Ratio of such Mortgage Loan
is no higher than the Combined Loan-to-Value Ratio prior to such refinancing;
and

          (b) the interest rate for the loan evidencing the refinanced senior
lien is no more than 2.0% higher than the interest rate on the loan evidencing
the existing senior lien immediately prior to the date of such refinancing; and

          (c) the loan evidencing the refinanced senior lien is not subject to
negative amortization;

     provided, however, the above requirements shall not be applicable if the
Mortgage Loan is in default or, in the judgment of the Servicer, such default is
reasonably foreseeable.

     In connection with any modification pursuant to this Section and to the
extent there are any unreimbursed Advances or Servicing Advances, the Servicer
shall reimburse itself for such amounts from the Collection Account.

     SECTION 3.02. Servicing and Subservicing; Enforcement of the Obligations of
Servicer.

          (a) The Servicer may arrange for the subservicing of any Mortgage Loan
by a Subservicer, which may be an affiliate, pursuant to a subservicing
agreement (each, a "Subservicing Agreement"); provided, however, that (i) such
subservicing arrangement and the terms of the related Subservicing Agreement
must provide for the servicing of such Mortgage Loans in a manner consistent
with the servicing arrangements contemplated hereunder, (ii) that such agreement
would not result in a

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withdrawal or downgrading by any Rating Agency of the ratings of any
Certificates or any of the NIM Notes evidenced by a letter to that effect
delivered by each Rating Agency to the Depositor and the NIMs Insurer and (iii)
the NIMs Insurer shall have consented to such Subservicing Agreement, which
consent shall not be unreasonably withheld. Notwithstanding the provisions of
any Subservicing Agreement, any of the provisions of this Agreement relating to
agreements or arrangements between the Servicer and a Subservicer or reference
to actions taken through a Subservicer or otherwise, the Servicer shall remain
obligated and liable to the Depositor, the Trustee and the Certificateholders
for the servicing and administration of the Mortgage Loans in accordance with
the provisions of this Agreement without diminution of such obligation or
liability by virtue of such Subservicing Agreements or arrangements or by virtue
of indemnification from the Subservicer and to the same extent and under the
same terms and conditions as if the Servicer alone were servicing and
administering the Mortgage Loans. Every Subservicing Agreement entered into by
the Servicer shall contain a provision giving any successor servicer the option
to terminate such agreement, with the consent of the NIMs Insurer (which consent
shall not be unreasonably withheld), in the event a successor servicer is
appointed. All actions of the each Subservicer performed pursuant to the related
Subservicing Agreement shall be performed as an agent of the Servicer with the
same force and effect as if performed directly by the Servicer. The Servicer
shall deliver to the NIMs Insurer copies of all Subservicing Agreements. The
Trustee shall have no obligations, duties or liabilities with respect to a
Subservicer, including, without limitation, any obligation, duty or liability to
monitor such Subservicer or to pay a Subservicer's fees and expenses.

          (b) For purposes of this Agreement, the Servicer shall be deemed to
have received any collections, recoveries or payments with respect to the
Mortgage Loans that are received by a Subservicer regardless of whether such
payments are remitted by the Subservicer to the Servicer.

     SECTION 3.03. Rights of the Depositor and the Trustee in Respect of the
Servicer.

     Neither the Trustee nor the Depositor shall have any responsibility or
liability for any action or failure to act by the Servicer, and none of them is
obligated to supervise the performance of the Servicer hereunder or otherwise.

     SECTION 3.04. Trustee to Act as Servicer.

     Subject to Sections 6.04 and 7.02, in the event that the Servicer shall,
for any reason, no longer be the servicer hereunder (including by reason of an
Event of Default), the Trustee or its designee shall, within a period of time
not to exceed ninety (90) days from the date of notice of termination or
resignation, thereupon assume all of the rights and obligations of the Servicer
hereunder arising thereafter (except that the Trustee shall not be (i) liable
for losses of the Servicer pursuant to Section 3.10 hereof or any acts or
omissions of the Servicer or any predecessor servicer hereunder, (ii) obligated
to make Advances if it is prohibited from doing so by applicable law, (iii)
obligated to effectuate repurchases or substitutions of Mortgage Loans
hereunder, including pursuant to Section 2.02 or 2.03 hereof, (iv) responsible
for any expenses of the Servicer pursuant to Section 2.03 or (v) deemed to have
made any representations and warranties hereunder, including pursuant to Section
2.04 or the first paragraph of Section 6.02 hereof; provided, however that the
Trustee (subject to clause (ii) above) or its designee, in its capacity as the
successor servicer, shall immediately assume the Servicer's obligation to make
Advances and Servicing Advances). No such termination or resignation shall
affect any obligation of the Servicer to pay amounts owed under this Agreement
and to perform its duties under this Agreement until its successor assumes all
of its rights and obligations hereunder. If the Servicer shall for any reason no
longer be the servicer (including by reason of any Event of Default), the
Trustee (or any other successor servicer) may, at its option, succeed to any
rights and obligations of the Servicer under any subservicing agreement in
accordance with the terms thereof; provided, however, that the Trustee (or any
other successor servicer) shall not incur any liability or have any obligations
in its capacity as servicer under a

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subservicing agreement arising prior to the date of such succession unless it
expressly elects to succeed to the rights and obligations of the Servicer
thereunder; and the Servicer shall not thereby be relieved of any liability or
obligations under any subservicing agreement arising prior to the date of such
succession. To the extent any costs or expenses, including without limitation
Servicing Transfer Costs incurred by the Trustee in connection with this Section
3.04 or Section 7.02, are not paid by the Servicer pursuant to this Agreement
within 30 days of the date of the Trustee's invoice thereof, such amounts shall
be payable out of the Certificate Account; provided that the terminated servicer
shall reimburse the Trust Fund for any such expense incurred by the Trust Fund
upon receipt of a reasonably detailed invoice evidencing such expenses. If the
Trustee is unwilling or unable to act as servicer, the Trustee shall seek to
appoint a successor servicer that is eligible in accordance with the criteria
specified in this Agreement and reasonably acceptable to the NIMs Insurer.

     The Servicer shall, upon request of the Trustee, but at the expense of the
Servicer, deliver to the assuming party all documents and records relating to
each subservicing agreement and the Mortgage Loans then being serviced and
otherwise use its best efforts to effect the orderly and efficient transfer of
the subservicing agreement to the assuming party.

     Notwithstanding anything to the contrary above, the Trustee and the
Depositor hereby agree that within 10 Business Days of delivery to the Trustee
by the Servicing Rights Pledgee of a letter signed by the Servicer whereby the
Servicer shall resign as Servicer under this Agreement, the Servicing Rights
Pledgee or its designee shall be appointed as successor servicer (provided that
at the time of such appointment the Servicing Rights Pledgee or such designee
meets the requirements of a successor servicer set forth in Section 7.02 of this
Agreement) and the Servicing Rights Pledgee agrees to be subject to the terms of
this Agreement.

     SECTION 3.05. Collection of Mortgage Loan Payments; Collection Account;
Certificate Account.

          (a) The Servicer shall make reasonable efforts in accordance with
Accepted Servicing Practices 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 and subject to Section
3.01, the Servicer may in its discretion (i) waive any late payment charge or,
if applicable, any default interest charge, or (ii) extend the due dates for
payments due on a Mortgage Note for a period not greater than 180 days;
provided, however, that any extension pursuant to clause (ii) above shall not
affect the amortization schedule of any Mortgage Loan for purposes of any
computation hereunder, except as provided below; provided, further, that the
NIMs Insurer's prior written consent shall be required for any modification,
waiver or amendment after the Cut-off Date if the aggregate number of
outstanding Mortgage Loans which have been modified, waived or amended exceeds
5% of the number of Mortgage Loans as of the Cut-Off Date. In the event of any
such arrangement pursuant to clause (ii) above, subject to Section 4.01, the
Servicer shall make any 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.
Notwithstanding the foregoing, in the event that any Mortgage Loan is in default
or, in the judgment of the Servicer, such default is reasonably foreseeable, the
Servicer, consistent with the standards set forth in Section 3.01, may also
waive, modify or vary any term of such Mortgage Loan (including modifications
that would change the Mortgage Rate, forgive the payment of principal or
interest or extend the final maturity date of such Mortgage Loan), accept
payment from the related Mortgagor of an amount less than the Stated Principal
Balance in final satisfaction of such Mortgage Loan, or consent to the
postponement of strict compliance with any such term or otherwise grant
indulgence to any Mortgagor (any and all such waivers, modifications, variances,
forgiveness of principal or interest, postponements, or indulgences collectively
referred to

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herein as "forbearance"), provided, however, that in no event shall the Servicer
grant any such forbearance (other than as permitted by the second sentence of
this Section) with respect to any one Mortgage Loan more than once in any 12
month period or more than three times over the life of such Mortgage Loan, and
provided, further, that in determining which course of action permitted by this
sentence it shall pursue, the Servicer shall adhere to the standards of Section
3.01. In connection with any modification pursuant to this Section 3.05(a) and
to the extent there are any unreimbursed Advances, the Servicer shall reimburse
itself for such amounts from the Collection Account.

          (b) The Servicer will not waive any Prepayment Charge or portion
thereof unless, (i) the enforceability thereof shall have been limited by
bankruptcy, insolvency, moratorium, receivership and other similar laws relating
to creditors' rights generally or is otherwise prohibited by law, or (ii) the
collectability thereof shall have been limited due to acceleration in connection
with a foreclosure or other involuntary payment, or (iii) in the Servicer's
reasonable judgment as described in Section 3.01 hereof, (x) such waiver relates
to a default or a reasonably foreseeable default, (y) such waiver would maximize
recovery of total proceeds taking into account the value of such Prepayment
Charge and related Mortgage Loan and (z) doing so is standard and customary in
servicing similar Mortgage Loans (including any waiver of a Prepayment Charge in
connection with a refinancing of a Mortgage Loan that is related to a default or
a reasonably foreseeable default), or (iv) sufficient information is not made
available to enable it to collect the Prepayment Charge. Except as provided in
the preceding sentence, in no event will the Servicer waive a Prepayment Charge
in connection with a refinancing of a Mortgage Loan that is not related to a
default or a reasonably foreseeable default. If the Servicer waives or does not
collect all or a portion of a Prepayment Charge relating to a Principal
Prepayment in full or in part due to any action or omission of the Servicer,
other than as provided above, the Servicer shall deposit the amount of such
Prepayment Charge (or such portion thereof as had been waived for deposit) into
the Collection Account for distribution in accordance with the terms of this
Agreement.

          (c) The 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.

          (d) The Servicer shall establish and maintain so long as it is acting
as servicer hereunder, on behalf of the Trustee for the benefit of the
Certificateholders, the Collection Account. The Servicer shall deposit into the
Collection Account, as soon as proper allocation can be determined, generally
within two Business Days of receipt thereof, in immediately available funds, the
following payments and collections received or made by it on and after the
Cut-Off Date with respect to the Mortgage Loans:

               (i) all payments on account of principal, including Principal
Prepayments, on the Mortgage Loans, other than principal due on the Mortgage
Loans on or prior to the Cut-off Date;

               (ii) all payments on account of interest on the Mortgage Loans
net of the related Servicing Fee permitted under Section 3.15, other than (x)
interest due on the Mortgage Loans on or prior to the Cut-off Date and (y) any
Prepayment Interest Excess;

               (iii) all Liquidation Proceeds, other than proceeds to be applied
to the restoration or repair of the Mortgaged Property (or Underlying Mortgaged
Property, in the case of a Co-op Loan) or released to either the Mortgagor or
the holder of a senior lien on the Mortgaged Property (or

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Underlying Mortgaged Property, in the case of a Co-op Loan) in accordance with
the Servicer's normal servicing procedures;

               (iv) all Subsequent Recoveries;

               (v) all Compensating Interest;

               (vi) any amount required to be deposited by the Servicer pursuant
to Section 3.05(f) in connection with any losses on Permitted Investments;

               (vii) any amounts required to be deposited by the Servicer
pursuant to Section 3.10 hereof;

               (viii) all Purchase Prices and Substitution Adjustment Amounts;

               (ix) all Advances made by the Servicer pursuant to Section 4.01;

               (x) all Prepayment Charges received;

               (xi) all net monthly rental income from REO Properties required
to be deposited by the Servicer pursuant to Section 3.12; and

               (xii) any other amounts required to be deposited hereunder.

     The foregoing requirements for remittance by the Servicer into the
Collection Account shall be exclusive, it being understood and agreed that,
without limiting the generality of the foregoing, all servicing-related fees,
including all late payment charges, insufficient funds charges, customary real
estate referral fees and payments in the nature of assumption fees (i.e. fees
related to the assumption of a Mortgage Loan upon the purchase of the related
Mortgaged Property or stock allocated to a dwelling unit in the case of a Co-op
Loan), modification fees, extension fees and other similar ancillary fees and
charges (other than Prepayment Charges) if collected, and any Prepayment
Interest Excess need not be remitted by the Servicer. Rather, such fees and
charges and similar amounts may be retained by the Servicer as additional
servicing compensation. In the event that the Servicer shall remit any amount
not required to be remitted and not otherwise subject to withdrawal pursuant to
Section 3.08 hereof, it may at any time withdraw or direct the Trustee, or such
other institution maintaining the Collection Account, to withdraw such amount
from the Collection Account, any provision herein to the contrary
notwithstanding. The Servicer shall maintain adequate records with respect to
all withdrawals made pursuant to this Section. All funds deposited in the
Collection Account shall be held in trust for the Certificateholders until
withdrawn in accordance with Section 3.08. In no event shall the Trustee incur
liability for withdrawals from the Collection Account at the direction of the
Servicer.

     The Servicer shall give notice to the NIMs Insurer and the Trustee of the
location of the Collection Account maintained by it when established and prior
to any change thereof. Not later than twenty days after each Distribution Date,
the Servicer shall forward to the NIMs Insurer, and upon request, to the Trustee
and the Depositor the most current available bank statement for the Collection
Account. Copies of such statement shall be provided by the Trustee to any
Certificateholder and to any Person identified to the Trustee as a prospective
transferee of a Certificate, upon request at the expense of the requesting
party, provided such statement is delivered by the Servicer to the Trustee.

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          (e) The Trustee shall establish and maintain, on behalf of the
Certificateholders, the Certificate Account. The Trustee shall, promptly upon
receipt, deposit or cause to be deposited in the Certificate Account and retain
therein the following:

               (i) the aggregate amount withdrawn by the Servicer from the
Collection Account and required to be deposited in the Certificate Account;

               (ii) any amount required to be deposited by the Trustee pursuant
to Section 3.05(g) in connection with any losses on Permitted Investments; and

               (iii) the Optional Termination Amount received by the Trustee
pursuant to Section 9.01.

     Any amounts received by the Trustee prior to 1:00 p.m. Eastern time (or
such earlier deadline for investment in the Permitted Investments designated by
the Trustee) which are required to be deposited in the Certificate Account by
the Servicer shall be invested at the written direction of the Servicer in
Permitted Investments on the Business Day on which they were received. The
foregoing requirements for remittance by the Servicer and deposit by the Trustee
into the Certificate Account shall be exclusive. In the event that the Servicer
shall remit any amount not required to be remitted and not otherwise subject to
withdrawal pursuant to Section 3.08 hereof, it may at any time cause the Trustee
to withdraw such amount from the Certificate Account, any provision herein to
the contrary notwithstanding. All funds deposited in the Certificate Account
shall be held by the Trustee in trust for the Certificateholders until disbursed
in accordance with this Agreement or withdrawn in accordance with Section 3.08.
In no event shall the Trustee incur liability for withdrawals from the
Certificate Account at the direction of the Servicer. The Trustee shall give
notice to the NIMs Insurer and the Servicer of the location of the Certificate
Account maintained by it when established and prior to any change thereof.

          (f) Each institution that maintains the Collection Account or the
Certificate Account shall invest the funds in each such account as directed by
the Servicer or the Trustee, as applicable, in writing, in Permitted
Investments, which shall mature not later than (i) in the case of the Collection
Account the Business Day preceding the related Servicer Remittance Date (except
that if such Permitted Investment is an obligation of the institution that
maintains such Collection Account or is otherwise immediately available, then
such Permitted Investment shall mature not later than the Servicer Remittance
Date) and (ii) in the case of the Certificate Account, the Business Day
immediately preceding the first Distribution Date that follows the date of such
investment (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account or is otherwise immediately
available, then such Permitted Investment shall mature not later than such
Distribution Date) and, in each case, 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 amounts on deposit in the Collection Account shall be
for the benefit of the Servicer as servicing compensation and shall be remitted
to it or withdrawn by it monthly as provided herein. The amount of any losses
incurred in the Collection Account in respect of any such investments shall be
deposited by the Servicer in the Collection Account out of the Servicer's own
funds immediately as realized.

          (g) All income and gain net of any losses realized from amounts on
deposit in the Certificate Account shall be for the benefit of (i) the Servicer
to the extent such income and gain (net of any losses) relates to the period
from the date of deposit into the Certificate Account to, but not including, the
Business Day prior to the related Distribution Date and (ii) the Trustee to the
extent such income and gain (net of any losses) relates to the Business Day
prior to the related Distribution Date. Any amounts in such Certificate Account
earned for the benefit of the Servicer shall be remitted by the

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Trustee to the Servicer not later than the third Business Day of the month
immediately succeeding the month in which such amounts were earned. The amount
of any losses incurred in the Certificate Account in respect of any such
investments shall be deposited by the Trustee in the Certificate Account out of
the Trustee's own funds immediately as realized; provided that the Trustee shall
be reimbursed by the Servicer for any such losses which relate to the period
from the date of deposit into the Certificate Account to but not including the
Business Day immediately preceding the related Distribution Date.

     SECTION 3.06. Collection of Taxes, Assessments and Similar Items; Escrow
Accounts.

     To the extent required by the related Mortgage Note, the 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 Servicer) for the payment of taxes, assessments, hazard insurance premiums
or comparable items for the account of the Mortgagors. Nothing herein shall
require the 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, insurance premiums,
condominium or PUD association dues, or comparable items, to reimburse the
Servicer out of related collections for any payments made pursuant to Sections
3.01 hereof (with respect to taxes, assessments, dues or comparable items and
insurance premiums) and 3.10 hereof (with respect to hazard insurance), to
refund to any Mortgagors 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 Mortgagors on balances in the Escrow Account to withdraw funds
deposited in error or amounts previously deposited but returned as unpaid due to
a "not sufficient funds" or other denial by the related Mortgagor's banking
institution or to clear and terminate the Escrow Account at the termination of
this Agreement in accordance with Section 9.01 hereof. The Escrow Accounts shall
not be a part of the Trust Fund.

     SECTION 3.07. Access to Certain Documentation and Information Regarding the
Mortgage Loans.

     Upon reasonable advance notice in writing if required by federal
regulation, the Servicer will provide to each Certificateholder that is a
savings and loan association, bank or insurance company certain reports and
reasonable access to information and documentation regarding the Mortgage Loans
sufficient to permit such Certificateholder to comply with applicable
regulations of the OTS or other regulatory authorities with respect to
investment in the Certificates; provided, that the Servicer shall be entitled to
be reimbursed by each such Certificateholder for actual expenses incurred by the
Servicer in providing such reports and access.

     SECTION 3.08. Permitted Withdrawals from the Collection Account and
Certificate Account.

          (a) The Servicer may from time to time, make withdrawals from the
Collection Account for the following purposes (the order below not constituting
an order of priority):

               (i) to pay to the Servicer (to the extent not previously paid to
or withheld by the Servicer), as servicing compensation in accordance with
Section 3.15, that portion of any payment or recovery of interest on a Mortgage
Loan that equals the Servicing Fee for the period with respect to which such
interest payment or recovery was made or allocated, and, as additional servicing
compensation, those other amounts set forth in Section 3.15;

               (ii) to reimburse the Servicer (or the Trustee as successor
servicer) for Advances made by it (or to reimburse the Advance Financing Person
for Advances made by it) with

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respect to the Mortgage Loans, such right of reimbursement pursuant to this
subclause (ii) being limited to amounts received on particular Mortgage Loan(s)
(including, for this purpose, Condemnation Proceeds, Insurance Proceeds,
Liquidation Proceeds) 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 Servicer for any Non-Recoverable Advance
previously made and any Non-Recoverable Servicing Advances previously made to
the extent that, in the case of Non-Recoverable Servicing Advances,
reimbursement therefor constitutes "unanticipated expenses" within the meaning
of Treasury Regulation Section 1.860G-1(b)(3)(ii);

               (iv) to pay to the Servicer earnings on or investment income with
respect to funds in or credited to the Collection Account;

               (v) to reimburse the Servicer from Insurance Proceeds for Insured
Expenses covered by the related Insurance Policy;

               (vi) to pay the Servicer (or the Trustee as successor servicer)
any unpaid Servicing Fees and to reimburse it for any unreimbursed Servicing
Advances (to the extent that reimbursement for Servicing Advances would
constitute an "unanticipated expense" within the meaning of Treasury Regulation
Section 1.860G-1(b)(3)(ii)), the Servicer's right to reimbursement of Servicing
Advances pursuant to this subclause (vi) with respect to any Mortgage Loan being
limited to amounts received on particular Mortgage Loan(s)(including, for this
purpose, Liquidation Proceeds and purchase and repurchase proceeds) that
represent late recoveries of the payments for which such advances were made
pursuant to Section 3.01 or Section 3.06;

               (vii) to pay to the Depositor or the Servicer, 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 3.12, all amounts received
thereon and not taken into account in determining the related Stated Principal
Balance of such repurchased Mortgage Loan;

               (viii) to reimburse the Servicer, the Trustee or the Depositor
for expenses incurred by any of them in connection with the Mortgage Loans or
the Certificates and reimbursable pursuant to Section 3.25 or Section 6.03
hereof provided that reimbursement therefor would constitute "unanticipated"
expenses within the meaning of Treasury Regulation Section 1.860G1(b)(3)(ii);

               (ix) to reimburse the Trustee for enforcement expenses reasonably
incurred in respect of a breach or defect giving rise to the purchase obligation
in Section 2.03 that were incurred in the Purchase Price of the Mortgage Loans
including any expenses arising out of the enforcement of the purchase
obligation; provided that any such expenses will be reimbursable under this
subclause (ix) only to the extent that such expenses would constitute
"unanticipated expenses" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii) if paid by one of the REMICs provided for herein;

               (x) to withdraw any amount deposited in the Collection Account
and not required to be deposited therein;

               (xi) to withdraw funds deposited in error or amounts previously
deposited but returned as unpaid due to insufficient funds or other denial by
the related Mortgagor's banking institution;

               (xii) to clear and terminate the Collection Account upon
termination of this Agreement pursuant to Section 9.01 hereof;

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               (xiii) to reimburse itself for Advances or Servicing Advances
from amounts in the Collection Account held for future distributions that were
not included in Available Funds for the preceding Distribution Date. An amount
equal to the amount withdrawn from the Collection Account pursuant to this
subclause (xiii) shall be deposited in the Collection Account by the Servicer on
the next succeeding Distribution Date on which funds are to be distributed to
Certificateholders; and

               (xiv) to reimburse itself from any amounts in the Collection
Account for any prior Advances or Servicing Advances made by the Servicer that
have not otherwise been reimbursed to the Servicer at the time a Mortgage Loan
is modified.

     In addition, no later than 12:00 p.m. Eastern time on the Servicer
Remittance Date, the Servicer shall cause to be withdrawn from the Collection
Account the Interest Funds, the Principal Funds and the Trustee Fee to the
extent on deposit, and such amount shall be deposited in the Certificate
Account; provided, however, if the Trustee does not receive such Interest Funds,
Principal Funds and Trustee Fee by 2:00 p.m. Eastern time, such Interest Funds
and Principal Funds shall be deposited in the Certificate Account on the next
Business Day.

     The Servicer shall keep and maintain separate accounting, on a Mortgage
Loan by Mortgage Loan basis, for the purpose of justifying any withdrawal from
the Collection Account.

     The Servicer shall provide written notification to the Trustee on or prior
to the next succeeding Servicer Remittance Date upon making any withdrawals from
the Collection Account pursuant to subclauses (iii) and (viii) above.

     In the event of any failure by the Servicer to remit to the Trustee for
deposit into the Certificate Account any amounts (including any Advance)
required to be so remitted by the Servicer on the Servicer Remittance Date, the
Servicer shall pay to the Trustee, for its own account, interest on such amounts
at the "prime rate" (as specified in the New York edition of The Wall Street
Journal) until such failure is remedied.

     Unless otherwise specified, any amounts reimbursable to the Servicer or the
Trustee from amounts on deposit in the Collection Account or the Certificate
Accounts shall be deemed to come from first, Interest Funds, and thereafter,
Principal Funds for the related Distribution Date.

          (b) The Trustee shall withdraw funds from the Certificate Account for
distribution to the Certificateholders in the manner specified in this Agreement
(and shall withhold from the amounts so withdrawn, the amount of any taxes that
it is authorized to retain pursuant to this Agreement). In addition, prior to
making such distributions to the Certificateholders, the Trustee may from time
to time make withdrawals from the Certificate Account for the following purposes
(the order below not constituting an order of priority):

               (i) to withdraw any amount deposited in the Certificate Account
and not required to be deposited therein;

               (ii) to clear and terminate the Certificate Account upon
termination of the Agreement pursuant to Section 9.01 hereof (after paying all
amounts necessary to the Trustee or the Servicer in connection with any such
termination);

               (iii) to reimburse the Trustee and the Custodian for any fees,
expenses and indemnification reimbursable pursuant to this Agreement, including
without limitation Sections 3.04, 6.03, 8.05 and 8.06 hereof; and

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               (iv) to pay to the Servicer or the Trustee, as applicable,
earnings on or investment income with respect to funds in or credited to the
Certificate Account as provided in Section 3.05(g).

     SECTION 3.09. [RESERVED]

     SECTION 3.10. Maintenance of Hazard Insurance.

     The Servicer shall cause to be maintained, for each first lien Mortgage
Loan (other than a Co-op Loan), fire and hazard insurance with extended coverage
in an amount that is at least equal to the lesser of (i) the replacement value
of the improvements that are part of such Mortgaged Property, or (ii) the
greater of (a) the outstanding principal balance of the Mortgage Loan and (b) an
amount such that the proceeds of such policy shall be sufficient to prevent the
related Mortgagor and/or mortgagee from becoming a co-insurer or (iii) the
amount required under applicable HUD/FHA regulations. Each policy of standard
hazard insurance shall contain, or have an accompanying endorsement that
contains, a standard mortgagee clause. The 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 3.05 hereof, any amounts collected by the 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 Servicer's normal servicing procedures)
shall be deposited in the Collection Account. Any cost incurred by the 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 Servicer out of late payments by the related Mortgagor or
out of Liquidation Proceeds to the extent and as otherwise permitted by Section
3.08 hereof. 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
Servicer shall cause flood insurance to be maintained with respect to such first
lien Mortgage Loan. Such flood insurance shall be in an amount equal to the
lesser of (i) the original principal balance of the related Mortgage Loan, (ii)
the replacement value of the improvements that are part of such Mortgaged
Property, 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 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 3.10, 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 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 3.10, and there shall have
been a loss that would have been covered by such policy, deposit in the
Collection Account the amount not otherwise payable under the blanket policy
because of such deductible clause. In connection with its activities as servicer
of the Mortgage Loans, the 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 3.11. Enforcement of Due-On-Sale Clauses; Assumption Agreements.

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          (a) Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the 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, but only to the extent that such enforcement will not adversely affect
or jeopardize coverage under any Required Insurance Policy; provided, however,
that the Servicer shall not exercise any such right if the due-on-sale clause,
in the reasonable belief of the Servicer, is not enforceable under applicable
law. An opinion of counsel, which shall be reimbursable as a Servicing Advance
(to the extent it is an "unanticipated expense" within the meaning of Treasury
Regulation Section 1.860G-1(b)(3)(ii)), delivered to the Trustee and the
Depositor shall conclusively establish the reasonableness of such belief to the
extent permitted under applicable law. Notwithstanding the foregoing, the
Servicer is not required to exercise such rights with respect to a Mortgage Loan
if the Person to whom the related Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) 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 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 Servicer is authorized,
subject to Section 3.11(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 Servicer enters such agreement) by the applicable Required
Insurance Policies. The Servicer, subject to Section 3.11(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 Servicer shall not be deemed to be in default
under this Section 3.11(a) by reason of any transfer or assumption that the
Servicer reasonably believes it is restricted by law from preventing.

          (b) Subject to the Servicer's duty to enforce any due-on-sale clause
to the extent set forth in Section 3.11(a) hereof, in any case in which a
Mortgaged Property (or stock allocated to a dwelling unit, in the case of Co-op
Loan) 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 Mortgage Loan, the 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 (or the stock allocated to a dwelling
unit, in the case of a Co-op Loan) 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 (or stock allocated to a dwelling
unit, in the case of a Co-op Loan) 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, the Maximum Rate,
the Minimum Rate, the Gross Margin, the Periodic Rate Cap, the Adjustment Date,
any prepayment penalty and any other term affecting the amount or timing of
payment on the Mortgage Loan) may be changed. The Servicer shall notify the
Trustee and the NIMs Insurer that any such substitution or assumption agreement
has been completed by forwarding to the Trustee (with a copy to the NIMs
Insurer) 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

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as all other documents and instruments constituting a part thereof. The Servicer
shall be responsible for recording any such assumption or substitution
agreements. Any fee collected by the Servicer for entering into an assumption or
substitution of liability agreement will be retained by the Servicer as
additional servicing compensation.

     SECTION 3.12. Realization Upon Defaulted Mortgage Loans; Determination of
Excess Proceeds.

          (a) The Servicer shall use reasonable efforts consistent with the
servicing standard set forth in Section 3.01 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 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,
however, that the Servicer shall not be required to expend its own funds in
connection with the restoration of any property that shall have suffered damage
due to an uninsured cause unless it shall determine (i) that such restoration
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 Liquidation Proceeds (respecting which it shall have
priority for purposes of withdrawals from the Collection Account pursuant to
Section 3.08 hereof). The Servicer shall be responsible for all other costs and
expenses incurred by it in any such proceedings; provided, however, that it
shall be entitled to reimbursement thereof from the proceeds of liquidation of
the related Mortgaged Property (or stock allocated to a dwelling unit, in the
case of a Co-op Loan) and if applicable, as a Non-Recoverable Servicing Advance,
as contemplated in Section 3.08 hereof. If the Servicer has knowledge that a
Mortgaged Property (or Underlying Mortgaged Property, in the case of a Co-op
Loan) that the 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 Servicer, the Servicer will,
prior to acquiring the Mortgaged Property (or stock allocated to a dwelling
unit, in the case of a Co-op Loan), consider such risks and only take action in
accordance with Accepted Servicing Practices.

     With respect to any REO Property, the deed or certificate of sale shall be
taken in the name of the Trustee or its nominee. Pursuant to its efforts to sell
such REO Property, the Servicer shall either itself or through an agent selected
by the 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 Servicer deems to
be in the best interest of the Servicer and the Certificateholders for the
period prior to the sale of such REO Property. The Servicer or its affiliate may
receive usual and customary real estate referral fees for real estate brokers in
connection with the listing and disposition of REO Property. The Servicer shall
prepare 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 Servicer 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 Collection Account no later
than the close of business on the Determination Date immediately following the
month concerned. The 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 (or stock
allocated to a dwelling unit, in the case of a Co-op Loan) as aforesaid or
otherwise in connection with a default or

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imminent default on a Mortgage Loan, the Servicer shall dispose of such
Mortgaged Property (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) prior to the expiration of three years from the end of the year of
its acquisition by the Trust Fund or, at the expense of the Trust Fund, obtain,
in accordance with applicable procedures for obtaining an automatic extension of
the grace period, 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, in
which case such property must be disposed of prior to the end of such extension,
unless the Trustee and the NIMs Insurer shall have been supplied with an Opinion
of Counsel (such Opinion of Counsel not to be an expense of the Trustee or the
NIMs Insurer), to the effect that the holding by the Trust Fund of such
Mortgaged Property (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) subsequent to such three-year period or extension will not result in
the imposition of taxes on "prohibited transactions" of the Trust Fund or any of
the REMICs provided for herein as defined in section 860F of the Code or cause
any of the REMICs provided for herein 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 (or stock allocated to a dwelling unit, in the
case of a Co-op Loan) (subject to any conditions contained in such Opinion of
Counsel). Notwithstanding any other provision of this Agreement, no Mortgaged
Property (or stock allocated to a dwelling unit, in the case of a Co-op Loan)
acquired by the Trust Fund shall be held, 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 (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) to fail to qualify as "foreclosure property" within the meaning of
section 860G(a)(8) of the Code or (ii) subject the Trust Fund or any REMIC
provided for herein to the imposition of any federal, state or local income
taxes on the income earned from such Mortgaged Property (or stock allocated to a
dwelling unit, in the case of a Co-op Loan) under section 860G(c) of the Code or
otherwise, unless the Servicer or the Depositor has agreed to indemnify and hold
harmless the Trust Fund with respect to the imposition of any such taxes. The
Servicer shall have no liability for any losses resulting from a foreclosure on
a second lien Mortgage Loan, if any, in connection with the foreclosure of the
related first lien mortgage loan that is not a Mortgage Loan if the Servicer
does not receive notice of such foreclosure action.

     The decision of the Servicer to foreclose on a defaulted Mortgage Loan
shall be subject to a determination by the 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
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 (or stock allocated to a
dwelling unit, in the case of Co-op Loan), shall be applied for the purpose of
the Trust Fund 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 net income shall be deemed, for all purposes
and as between the parties to this Agreement, to be payments on account of
principal and interest on the related Mortgage Notes and shall be deposited into
the Collection Account. To the extent that any such net 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 Servicer as provided above, shall be deposited in the
Collection Account on the next succeeding Determination Date following receipt
thereof for distribution on the related Distribution Date.

     The proceeds of any Liquidated Loan, as well as any recovery resulting from
a partial collection of Liquidation Proceeds and any net income from an REO
Property, will be applied as between the parties in the following order of
priority: first, to reimburse the Servicer for any related unreimbursed
Servicing

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Advances and unpaid Servicing Fees, pursuant to Section 3.08(a)(vi) or this
Section 3.12; second, to reimburse the Servicer for any unreimbursed Advances,
pursuant to Section 3.08(a)(ii) or this Section 3.12; third, to any Prepayment
Charges and then to accrued and unpaid interest (to the extent no Advance has
been made for such amount) on the Mortgage Loan or related REO Property, at the
applicable Net Mortgage Rate to the Due Date occurring in 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 Servicer shall determine the
respective aggregate amounts of Excess Proceeds, if any, that occurred in the
related Prepayment Period.

          (c) The Servicer, in its sole discretion, shall have the right to
elect (by written notice sent to the Trustee) to purchase for its own account
from the Trust Fund any Mortgage Loan that is 90 days or more Delinquent or REO
Property for which the Servicer has accepted a deed-in-lieu of foreclosure at a
price equal to the Purchase Price. The Purchase Price for any Mortgage Loan or
REO Property purchased hereunder shall be delivered to the Trustee for deposit
to the Certificate Account and the Trustee or the Custodian, upon receipt of
such confirmation of deposit and a Request for Release from the Servicer in the
form of Exhibit I hereto, shall release or cause to be released to the Servicer
the related Mortgage File and shall execute and deliver such instruments of
transfer or assignment prepared by the Servicer, in each case without recourse,
representation or warranty, as shall be necessary to vest in the Servicer any
Mortgage Loan or REO Property released pursuant hereto and the Servicer shall
succeed to all the Trustee's right, title and interest in and to such Mortgage
Loan and all security and documents related thereto. Such assignment shall be an
assignment outright and not for security. The Servicer shall thereupon own such
Mortgage Loan, and all security and documents, free of any further obligation to
the Trustee or the Certificateholders with respect thereto. The Servicer shall
not use any procedure in selecting Mortgage Loans to be repurchased which is
materially adverse to the interests of the Certificateholders.

          (d) With respect to such of the Mortgage Loans as come into and
continue in default, the Servicer will decide, in its reasonable business
judgment, whether to (i) foreclose upon the Mortgaged Properties securing those
Mortgage Loans pursuant to Section 3.12(a), (ii) write off the unpaid principal
balance of the Mortgage Loans as bad debt (unless the Servicer, after making a
reasonable estimate of the expected recovery, determines that foreclosure
proceedings or other liquidation of the related Mortgaged Property would yield a
net recovery), (iii) take a deed in lieu of foreclosure, (iv) accept a short
sale or short refinance; (v) arrange for a repayment plan, or (vi) agree to a
modification of such Mortgage Loan.

          (e) Any Mortgage Loan that is charged off, pursuant to (d) above, may
continue to be serviced by the Servicer for the Certificateholders using
specialized collection procedures (including foreclosure, if appropriate). The
Servicer will be entitled to Servicing Fees and reimbursement of expenses in
connection with such Mortgage Loans after the date of charge off, only to the
extent of funds available from any recoveries on all such Mortgage Loans.

     In the event that the Servicer (or an affiliate of the Servicer) is the
owner of more than 50% of the Class of Certificates which is then currently in a
first loss position and such party is deemed to be the "Primary Beneficiary" as
defined in FIN 40, the provisions of the preceding paragraph shall not apply and
the Servicer (or an affiliate of the Servicer), in its sole discretion, shall
have the right to elect to purchase for its own account from the Trust Fund any
Mortgage Loan that is 120 days or more Delinquent or REO Property for which the
Servicer has accepted a deed-in-lieu of foreclosure, during the period
commencing on the first day of the calendar quarter succeeding the calendar
quarter in which the Initial Delinquency Date (as defined below) occurred with
respect to such Mortgage Loan and ending on the last Business Day of such
calendar quarter. If the Servicer (or an affiliate of the Servicer) does not
exercise its

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purchase right with respect to a Mortgage Loan during the period specified in
the preceding sentence, such Mortgage Loan shall thereafter again become
eligible for purchase pursuant to the preceding sentence only after the Mortgage
Loan ceases to be 120 days or more Delinquent and thereafter becomes 120 days
Delinquent again. The "Initial Delinquency Date" of a Mortgage Loan shall mean
the date on which the Mortgage Loan first became 120 days Delinquent. Prior to
repurchase pursuant to this Section 3.12, the Servicer shall be required to
continue to make monthly advances pursuant to Section 4.01. The Servicer shall
not use any procedure in selecting Mortgage Loans to be repurchased which is
materially adverse to the interests of the Certificateholders. The Servicer
shall purchase any Mortgage Loan or REO Property pursuant to this paragraph at a
price equal to the Purchase Price. The Purchase Price for any Mortgage Loan or
REO Property purchased hereunder shall be delivered to the Trustee for deposit
in the Certificate Account. The Trustee, upon receipt of notice of such deposit
and a Request for Release from the Servicer in the form of Exhibit I hereto,
shall release or cause to be released to the Servicer the related Mortgage File
and shall execute and deliver such instruments of transfer or assignment
prepared by the Servicer, in each case without recourse, representation or
warranty, as shall be necessary to vest in the Servicer any Mortgage Loan or REO
Property released pursuant hereto and the Servicer shall succeed to all the
Trustee's right, title and interest in and to such Mortgage Loan and all
security and documents related thereto. The provisions in this paragraph shall
only apply if Litton Loan Servicing LP is the servicer. The Trustee shall not be
responsible for any independent calculations or other determinations in
connection with the application of the provisions set forth in this paragraph.

     SECTION 3.13. Trustee to Cooperate; Release of Mortgage Files.

     Upon the payment in full of any Mortgage Loan, or the receipt by the
Servicer of a notification that payment in full will be escrowed in a manner
customary for such purposes, the Servicer will promptly notify the Trustee or
its custodian by delivering a Request for Release substantially in the form of
Exhibit I. Upon receipt of two copies of such request, the Trustee or its
custodian shall promptly release the related Mortgage File to the Servicer, and
the Servicer is authorized to cause the removal from the registration on the
MERS System of any such Mortgage if applicable, and the Servicer, on behalf of
the Trustee shall execute and deliver the request for reconveyance, deed of
reconveyance or release or satisfaction of mortgage or such instrument releasing
the lien of the Mortgage together with the Mortgage Note with written evidence
of cancellation thereon. Expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Mortgagor to the
extent permitted by law, and otherwise to the Trust Fund to the extent such
expenses constitute "unanticipated expenses" within the meaning of Treasury
Regulations Section 1.860G-(1)(b)(3)(ii). From time to time and as shall be
appropriate for the servicing or foreclosure of any Mortgage Loan, including for
such purpose, collection under any policy of flood insurance, any fidelity bond
or errors or omissions policy, or for the purposes of effecting a partial
release of any Mortgaged Property from the lien of the Mortgage or the making of
any corrections to the Mortgage Note or the Mortgage or any of the other
documents included in the Mortgage File, the Trustee or its custodian shall,
upon delivery to the Trustee or its custodian of a Request for Release in the
form of Exhibit I signed by a Servicing Officer, release the Mortgage File to
the Servicer. Subject to the further limitations set forth below, the Servicer
shall cause the Mortgage File or documents so released to be returned to the
Trustee or its custodian when the need therefor by the Servicer no longer
exists, unless the Mortgage Loan is liquidated and the proceeds thereof are
deposited in the Collection Account.

     Each Request for Release may be delivered to the Trustee or its custodian
(i) via mail or courier, (ii) via facsimile or (iii) by such other means,
including, without limitation, electronic or computer readable medium, as the
Servicer and the Trustee or its custodian shall mutually agree. The Trustee or
its designee shall promptly release the related Mortgage File(s) within five (5)
Business Days of receipt of a properly completed Request for Release pursuant to
clauses (i), (ii) or (iii) above. Receipt of a properly completed Request for
Release shall be authorization to the Trustee or its custodian to release such

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Mortgage Files, provided the Trustee or its custodian has determined that such
Request for Release has been executed, with respect to clauses (i) or (ii)
above, or approved, with respect to clause (iii) above, by an authorized
Servicing Officer of the Servicer, and so long as the Trustee or its custodian
complies with its duties and obligations under the agreement. If the Trustee or
its custodian is unable to release the Mortgage Files within the period
previously specified, the Trustee or its custodian shall immediately notify the
Servicer indicating the reason for such delay. If the Servicer is required to
pay penalties or damages due to the Trustee or its custodian's negligent failure
to release the related Mortgage File or the Trustee or its custodian's negligent
failure to execute and release documents in a timely manner, the Trustee or its
custodian, shall be liable for such penalties or damages respectively caused by
it.

     On each day that the Servicer remits to the Trustee or its custodian
Requests for Releases pursuant to clauses (ii) or (iii) above, the Servicer
shall also submit to the Trustee or its custodian a summary of the total number
of such Requests for Releases requested on such day by the same method as
described in such clauses (ii) and (iii).

     If the Servicer at any time seeks to initiate a foreclosure proceeding in
respect of any Mortgaged Property (or stock allocated to a dwelling unit, in the
case of a Co-op Loan) as authorized by this Agreement, the Servicer may deliver
or cause to be delivered to the Trustee or its custodian, for signature, as
appropriate or on behalf of the Trustee, execute any court pleadings, requests
for trustee's sale or other documents necessary to effectuate such foreclosure
or any legal action brought to obtain judgment against the Mortgagor on the
Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce
any other remedies or rights provided by the Mortgage Note or the Mortgage or
otherwise available at law or in equity. Notwithstanding the foregoing, the
Servicer shall cause possession of any Mortgage File or of the documents therein
that shall have been released by the Trustee or its custodian to be returned to
the Trustee promptly after possession thereof shall have been released by the
Trustee or its custodian unless (i) the Mortgage Loan has been liquidated and
the Liquidation Proceeds relating to the Mortgage Loan have been deposited in
the Collection Account, and the Servicer shall have delivered to the Trustee or
its custodian a Request for Release in the form of Exhibit I or (ii) the
Mortgage File or document shall have 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 (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) and the Servicer shall have delivered to the Trustee or its
custodian an Officer's Certificate of a Servicing Officer certifying as to the
name and address of the Person to which the Mortgage File or the documents
therein were delivered and the purpose or purposes of such delivery.

     SECTION 3.14. Documents, Records and Funds in Possession of Servicer to be
Held for the Trustee.

     All Mortgage Files and funds collected or held by, or under the control of,
the Servicer in respect of any Mortgage Loans, whether from the collection of
principal and interest payments or from Liquidation Proceeds, including but not
limited to, any funds on deposit in the Collection Account, shall be held by the
Servicer for and on behalf of the Trustee and shall be and remain the sole and
exclusive property of the Trust Fund, subject to the applicable provisions of
this Agreement. The Servicer also agrees that it shall not create, incur or
subject any Mortgage File or any funds that are deposited in the Collection
Account or Certificate 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 Servicer shall
be entitled to set off against and deduct from any such funds any amounts that
are properly due and payable to the Servicer under this Agreement.

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     SECTION 3.15. Servicing Compensation.

     As compensation for its activities hereunder, the Servicer shall be
entitled to retain or withdraw from the Collection Account out of each payment
or recovery of interest on a Mortgage Loan included in the Trust Fund an amount
equal to interest at the applicable Servicing Fee Rate on the Stated Principal
Balance of the related Mortgage Loan as of the immediately preceding
Distribution Date.

     Additional servicing compensation in the form of any Excess Proceeds, late
payment fees, assumption fees (i.e. fees related to the assumption of a Mortgage
Loan upon the purchase of the related Mortgaged Property (or stock allocated to
a dwelling unit, in the case of Co-op Loan)), modification fees, customary real
estate referral fees, extension fees and similar fees payable by the Mortgagor,
any Prepayment Interest Excess and all income and gain net of any losses
realized from Permitted Investments in the Collection Account shall be retained
by the Servicer to the extent not required to be deposited in the Collection
Account pursuant to Sections 3.05 or 3.12(a) hereof. In addition, the Servicer
shall be entitled to income and gain from amounts on deposit in the Certificate
Account during the period from the Servicer Remittance date to but not including
the Business Day immediately preceding the related Distribution Date as
described in Section 3.05(g). The 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 3.10 hereof
and maintenance of the other forms of insurance coverage required by Section
3.10 hereof) and shall not be entitled to reimbursement therefor except as
specifically provided in this Agreement. In no event shall the Trustee be liable
for any Servicing Fee or for any differential between the Servicing Fee and the
amount necessary to induce a successor servicer to act as successor servicer
under this Agreement.

     SECTION 3.16. Access to Certain Documentation.

     The Servicer shall provide to the OTS and the FDIC and to comparable
regulatory authorities supervising Holders of the Certificates and the examiners
and supervisory agents of the OTS, the FDIC and such other authorities, access
to the documentation regarding the Mortgage Loans required by applicable
regulations of the OTS and the FDIC. Such access shall be afforded without
charge, but only upon reasonable and prior written request and during normal
business hours at the offices of the Servicer designated by it provided, that
the Servicer shall be entitled to be reimbursed by each such Certificateholder
for actual expenses incurred by the Servicer in providing such reports and
access. Nothing in this Section shall limit the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Mortgagors and the failure of the Servicer to provide access as provided in this
Section as a result of such obligation shall not constitute a breach of this
Section.

     SECTION 3.17. Annual Statement as to Compliance.

          (a) The Servicer and the Trustee, each at its own expense, will
deliver, and the Servicer shall use its reasonable efforts to cause any
Subservicer engaged by the Servicer to deliver, to the Trustee and the
Depositor, not later than March 1 of each year, commencing in 2007, an Officer's
Certificate, in the form attached hereto as Exhibit T-4, stating, as to each
signer thereof, that (i) a review of the activities of such party during such
preceding calendar year (or such shorter period in the case of the first such
report) and of performance of such party under this Agreement or such other
applicable servicing agreement has been made under such officers' supervision,
and (ii) to the best of such officers' knowledge, based on such review, such
party has fulfilled all its obligations under this Agreement or such other
applicable servicing agreement in all material respects throughout such year or
a portion thereof, or, if there has been a failure to fulfill any such
obligation in any material respect, specifying each such failure known to such
officer and the nature and status thereof.

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          (b) Delivery of such reports, information and documents to the Trustee
is for informational purposes only and its receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Servicer's compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers' Certificates).

     SECTION 3.18. Reports on Assessment of Compliance and Attestation.

          (a) The Servicer and the Trustee, each at its own expense, shall
furnish, by March 15 of each year, commencing in March 2007, and each of the
preceding parties, as applicable, shall cause any Subservicer or Subcontractor
(with respect to any calendar year during which an annual report on Form 10-K is
required to be filed pursuant to Section 3.27 on behalf of the Issuing Entity)
engaged by it to furnish to the Depositor and the Trustee an officer's
certification and assessment of its compliance with the Relevant Servicing
Criteria during the preceding calendar year as required by Rules 13a-18 and
15d-18 of the Exchange Act and Item 1122 of Regulation AB (the "Assessment of
Compliance"), which assessment shall contain (A) a statement by such party of
its responsibility for assessing compliance with the Relevant Servicing Criteria
applicable to it, (B) a statement that such party used the Relevant Servicing
Criteria to assess compliance with the Relevant Servicing Criteria applicable to
it, (C) such party's assessment of compliance with the Relevant Servicing
Criteria as of and for the fiscal year covered by the Form 10-K required to be
filed pursuant to Section 3.27, including, if there has been any material
instance of noncompliance with the relevant Servicing Criteria applicable to it,
and (D) a statement that a registered public accounting firm has issued an
attestation report on such party's assessment of compliance with the Relevant
Servicing Criteria applicable to it as of and for such period. Such Assessment
of Compliance shall be substantially in the form of Exhibit T-1 hereto. The
parties acknowledge and agree that the items indicated as being subject to
assessment by each such party on Exhibit T-2 hereto are the items to be assessed
by such party as of the Closing Date and that any changes to such allocation of
assessment responsibilities will be made by mutual agreement of the parties. Any
such changes will not require an amendment of this Agreement.

     In the event the Servicer or the Trustee is terminated or resigns pursuant
to the terms of this Agreement, such party shall provide, and each such party
shall cause any Subcontractor engaged by it to provide, and the Servicer shall
use its reasonable efforts to cause any Subservicer that resigns or is
terminated under any applicable servicing agreement to provide, an annual
assessment of compliance pursuant to this Section 3.18, coupled with an
attestation as required in this Section 3.18 with respect to the period of time
that the Servicer or the Trustee was subject to this Agreement or the period of
time that the Subservicer was subject to such other servicing agreement.

          (b) The Servicer and the Trustee, each at its own expense, shall
cause, and each of the preceding parties, as applicable, shall cause any
Subservicer or Subcontractor engaged by it to cause, a nationally or regionally
recognized firm of independent registered public accountants (who may also
render other services to the Servicer, the Trustee, the Sponsor or any affiliate
thereof), which is a member of the American Institute of Certified Public
Accountants to furnish, by March 15 of each year, commencing in March 2007, a
report (the "Accountants Attestation") to the Trustee, the Servicer and the
Depositor to the effect that (i) it has obtained a representation regarding
certain matters from the management of such party, which includes an assertion
that such party has complied with the Relevant Servicing Criteria, and (ii) on
the basis of an examination conducted by such firm in accordance with standards
for attestation engagements issued or adopted by the PCAOB, it is expressing an
opinion as to whether such party's compliance with the Relevant Servicing
Criteria was fairly stated in all material respects, or it cannot express an
overall opinion regarding such party's assessment of compliance with the
Relevant Servicing Criteria. In the event that an overall opinion cannot be
expressed, such registered public accounting firm shall state in such report why
it was unable to express such an opinion. Such

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report must be available for general use and not contain restricted use
language. Such Accountant's Attestation shall be in accordance with Rules
1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the
Exchange Act. Notwithstanding anything contained herein to the contrary, the
statements and attestations required under this Section 3.18 with respect to any
Subservicer or Subcontractor shall not be required to be delivered with respect
to any year in which an annual report on Form 10-K for the Issuing Entity is not
required to be filed pursuant to the Exchange Act.

               Promptly after receipt of such report from the Servicer and the
Trustee, and any Subservicer or Subcontractor engaged by the parties, the
Trustee shall confirm that each assessment submitted pursuant to Section 3.18(a)
is coupled with an attestation meeting the requirements of this Section 3.18(b)
and notify the Depositor of any exceptions.

          (c) The Servicer agrees to indemnify and hold harmless each of the
Depositor, the Trustee and each Person, if any, who "controls" the Depositor or
the Trustee within the meaning of the Securities Act 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 that such Person actually sustains
out of third party claims based on (i) the failure of the Servicer or any
related Subservicer or Subcontractor to deliver or cause to be delivered when
required any Assessment of Compliance or Accountant's Attestation required of it
pursuant to this Section 3.18, as applicable, or (ii) any material misstatement
contained in any Assessment of Compliance provided on its behalf pursuant to
Section 3.18, as applicable.

          (d) The Trustee agrees to indemnify and hold harmless each of the
Depositor, the Servicer and each Person, if any, who "controls" the Depositor or
the Servicer within the meaning of the Securities Act 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 that such Person may sustain
arising out of third party claims based on (i) the failure of the Trustee to
deliver or cause to be delivered when required any Assessment of Compliance or
Accountant's Attestation required of it pursuant to this Section 3.18, as
applicable, or (ii) any material misstatement contained in any Assessment of
Compliance provided on its behalf pursuant to this Section 3.18, as applicable.

          (e) Copies of such Assessments of Compliance and Accountant's
Attestations shall be available on the Trustee's website www.etrustee.net to any
Certificateholder, provided such statement is delivered to the Trustee. The
initial Assessments of Compliance and Accountant's Attestations required
pursuant to this Section 3.18 shall be delivered to the Trustee and the
Depositor, as applicable, by each party no later than March 15, 2007.

     SECTION 3.19. Rights of the NIMs Insurer.

     Each of the rights of the NIMs Insurer set forth in this Agreement shall
exist so long as the NIM Notes issued pursuant to the Indenture remain
outstanding or the NIMs Insurer is owed amounts in respect of its guarantee of
payment on such NIM notes.

     SECTION 3.20. [RESERVED]

     SECTION 3.21. [RESERVED]

     SECTION 3.22. [RESERVED]

     SECTION 3.23. Prepayment Charge Reporting Requirements.

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     On or before the 18th of each month (or if such date is not a Business Day,
the next succeeding Business Day), the Servicer shall provide to the Depositor
and the Trustee the following information with regard to each Mortgage Loan that
has prepaid during the related Prepayment Period:

          (i)  loan number;

          (ii) current Mortgage Rate;

          (iii) current principal balance;

          (iv) Prepayment Charge amount due;

          (v)  Prepayment Charge amount collected; and

          (vi) reason why full Prepayment Charge amount was not collected, if
               applicable.

     SECTION 3.24. Information to the Trustee.

     On or before the 18th of each month (or if such date is not a Business Day,
the next succeeding Business Day), the Servicer shall furnish to the Trustee a
delinquency report, a monthly remittance advice and a realized loss report (each
in such form or forms as the Trustee and the Servicer may from time to time
agree) for the period ending on the last Business Day of the preceding month,
and not later than three days after the tenth calendar day of each month, the
Servicer shall furnish to the Trustee such reports for the applicable Prepayment
Period with respect to prepayments, in the format mutually agreed upon between
the Servicer and the Trustee, including but not limited to information
sufficient to allow the Trustee to prepare the Monthly Statement described in
Section 4.05(a).

     SECTION 3.25. Indemnification.

     The Servicer shall indemnify the Sponsor, the Issuing Entity, the Trustee
(in its individual capacity and in its capacity as trustee), the Depositor, the
NIMs Insurer and their officers, directors, employees and agents and hold each
of them harmless against any and all claims, losses, damages, penalties, fines,
forfeitures, reasonable and necessary legal fees and related costs, judgments,
and any other costs, fees and expenses that any of such parties may sustain in
any way related to the failure of the Servicer to perform its duties and service
the Mortgage Loans in compliance with the terms of this Agreement. The Servicer
immediately shall notify the Sponsor, the Trustee, the NIMs Insurer and the
Depositor or any other relevant party if a claim is made by a third party with
respect to this Agreement or the Mortgage Loans, assume (with the prior written
consent of the indemnified party, which consent shall not be unreasonably
withheld or delayed) the defense of any such claim and pay all expenses in
connection therewith, including counsel fees, and promptly pay, discharge and
satisfy any judgment or decree which may be entered against it or any of such
parties in respect of such claim. The Servicer shall provide the Depositor, the
Trustee and the NIMs Insurer with a written report of all expenses and advances
incurred by the Servicer pursuant to this Section 3.25, and the Servicer shall
promptly reimburse itself from the assets of the Trust Fund in the Collection
Account for all amounts advanced by it pursuant to the preceding sentence except
when and to the extent a determination has been made that the claim in any way
relates to the failure of the Servicer to service and administer the Mortgage
Loans in material compliance with the terms of this Agreement or the gross
negligence, bad faith or willful misconduct of the Servicer. The provisions of
this paragraph shall survive the termination of this Agreement and the payment
of the outstanding Certificates.

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     SECTION 3.26. Nonsolicitation.

     For as long as the Servicer services the Mortgage Loans, the Servicer
hereby covenants that neither it nor any Affiliate of the Servicer will directly
solicit any Mortgagor hereunder to refinance the related Mortgage Loan.
Notwithstanding the foregoing, the Servicer and its Affiliates shall be
permitted to solicit a Mortgagor if the Servicer or such Affiliate has received
a request for verification of mortgage, a request for demand for payoff, a
Mortgagor initiated written or verbal communication indicating a desire to
prepay or refinance the related Mortgage Loan, or the Mortgagor initiates a
title search, or if the Mortgagor receives marketing materials which are
generally disseminated.

     SECTION 3.27. Periodic Filings.

          (a) Within four (4) Business Days after the occurrence of an event
requiring disclosure on Form 8-K (each such event, a "Reportable Event"), and if
directed by the Depositor and to the extent it receives the Form 8-K Disclosure
Information described below, the Trustee shall prepare and file on behalf of the
Issuing Entity a Form 8-K, as required by the Exchange Act, provided that the
Depositor shall file the initial Form 8-K in connection with the issuance of the
Certificates. Any disclosure or information related to a Reportable Event or
that is otherwise required to be included on Form 8-K (other than the initial
Form 8-K) ("Form 8-K Disclosure Information") shall, pursuant to the paragraph
immediately below, be reported by the parties set forth on Exhibit X and
directed and approved by the Depositor, and the Trustee will have no duty or
liability for any failure hereunder to determine or prepare any Form 8-K
Disclosure Information absent such reporting, direction and approval.

          (b) For so long as the Issuing entity is subject to the reporting
requirements of the Exchange Act, no later than close of business (Eastern time)
on the second Business Day after the occurrence of a Reportable Event (i) the
parties listed on Exhibit X hereto shall be required to provide to the Trustee
and the Depositor, to the extent known, by a responsible officer thereof, in
EDGAR-compatible format, or in such other format as otherwise agreed upon by the
Trustee and the Depositor and such party, the form and substance of the Form 8-K
Disclosure Information described on Exhibit X applicable to such party, (ii) the
parties listed on Exhibit X hereto shall include with such Additional Form 8-K
Disclosure, an Additional Disclosure Notification in the form attached hereto as
Exhibit Z-1, and (iii) the Depositor, by the end of business Eastern time on the
second day following such Reportable Event, shall approve, as to form and
substance, or disapprove, as the case may be, the inclusion of the Form 8-K
Disclosure Information on Form 8-K. The Trustee has no duty under this Agreement
to monitor or enforce the performance by the parties listed on Exhibit X of
their duties under this paragraph or proactively solicit or procure from such
parties any Form 8-K Disclosure Information. The Depositor will be responsible
for any reasonable fees and expenses assessed or incurred by the Trustee in
connection with including any Form 8-K Disclosure Information on Form 8-K
pursuant to this paragraph.

          (c) After preparing the Form 8-K, the Trustee shall forward
electronically, no later than close of business (Eastern time) on the third
Business Day after the Reportable Event (but in no event earlier than 24 hours
after having received the Form 8-K Disclosure Information pursuant to the
immediately preceding paragraph), a copy of the Form 8-K to the Depositor and
the Servicer for review. No later than the close of business on the third
Business Day after the Reportable Event, the Depositor shall notify the Trustee
and the Servicer in writing (which notice may be delivered electronically) of
any changes to or approval of such Form 8-K. No later than Noon Eastern time on
the fourth Business Day after the Reportable Event, a senior officer of the
Servicer shall sign the Form 8-K and return an electronic or fax copy of such
signed Form 8-K (with an original executed hard copy to follow by

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overnight mail) to the Trustee. If a Form 8-K cannot be filed on time or if a
previously filed Form 8-K needs to be amended, the Trustee will follow the
procedures set forth in Section 3.27(n).

          (d) Promptly (but no later than one Business Day) after filing with
the Securities and Exchange Commission, the Trustee will make available on its
internet website a final executed copy of each Form 8-K prepared by the Trustee.
The signing party at the Servicer can be contacted at Litton Loan Servicing LP,
4828 Loop Central Drive, Houston, Texas 77081 Attention: Janice McClure. The
parties to this Agreement acknowledge that the performance by the Trustee of its
duties under this Section 3.27 related to the timely preparation, arrangement
for execution and filing of Form 8-K is contingent upon the other parties hereto
strictly observing all applicable deadlines in the performance of their duties
under this Section 3.27. The Trustee shall not have any liability for any loss,
expense, damage or claim arising out of or with respect to any failure to
properly prepare, arrange for preparation and/or timely file such Form 8-K,
where such failure results from the Trustee's inability or failure to receive,
on a timely basis, any information from any other party hereto needed to
prepare, arrange for execution or file such Form 8-K.

          (e) Within fifteen days after each Distribution Date (subject to
permitted extensions under the Exchange Act), the Trustee shall, on behalf of
the Issuing Entity and in accordance with industry standards, prepare and file
with the Securities and Exchange Commission via the Electronic Data Gathering
and Retrieval System (EDGAR), a Form 10-D with (1) a copy of the report to the
Certificateholders for such Distribution Date as an exhibit thereto. Any
necessary disclosure in addition to the Monthly Statement that is required to be
included on Form 10-D ("Additional Form 10-D Disclosure") shall, pursuant to the
paragraph immediately below, be reported by the parties set forth on Exhibit Y
to the Depositor and the Trustee and directed and approved by the Depositor, and
the Trustee will have no duty or liability for any failure hereunder to
determine or prepare any Additional Form 10-D Disclosure absent such reporting,
direction and approval.

          (f) As set forth in Exhibit X hereto, for so long as the Issuing
Entity is subject to the reporting requirements of the Exchange Act, within five
calendar days after the related Distribution Date (i) each party listed on
Exhibit Y hereto shall be required to provide to the Depositor and the Trustee,
to the extent known, in EDGAR-compatible format, or in such other format as
otherwise agreed upon by the Trustee and the Depositor and such party, the form
and substance of any Additional Form 10-D Disclosure described on Exhibit Y
applicable to such party, (ii) the parties listed on Exhibit Y hereto shall
include with such Additional Form 10-D Disclosure, an Additional Disclosure
Notification in the form attached hereto as Exhibit Z-1 and (ii) the Depositor
will approve, as to form and substance, or disapprove, as the case may be, the
inclusion of the Additional Form 10-D Disclosure. The Trustee has no duty under
this Agreement to monitor or enforce the performance by the parties (other than
the Trustee) listed on Exhibit Y of their duties under this paragraph or
proactively solicit or procure from such parties any Additional Form 10-D
Disclosure Information. The Depositor will be responsible for any reasonable
fees and expenses incurred by the Trustee in connection with including any
Additional Form 10-D Disclosure on Form 10-D pursuant to this paragraph.

          (g) After preparing the Form 10-D at the direction of the Depositor,
the Trustee will forward electronically a copy of the Form 10-D to the Depositor
for review and to the Servicer for execution. Within two Business Days after
receipt of such copy, but no later than the 12th calendar day after the
Distribution Date, the Depositor shall notify the Trustee and the Servicer in
writing (which may be furnished electronically) of any changes to or approval of
such Form 10-D and a duly authorized representative of the Servicer shall sign
the Form 10-D and return an electronic or fax copy of such Form 10-D (with an
original executed hard copy to follow by overnight mail) to the Trustee and the
Trustee shall file such Form 10-D. In the absence of receipt of any written
changes or approval, the Trustee shall be entitled to assume that such Form 10-D
is in final form and the Trustee may proceed

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with the filing of the Form 10-D. If a Form 10-D cannot be filed on time or if a
previously filed Form 10-D needs to be amended, the Trustee will follow the
procedures set forth in Section 3.27(n). Promptly (but not later than one
Business Day) after filing with the Securities and Exchange Commission, the
Trustee will make available on its internet website a final executed copy of
each Form 10-D prepared and filed by the Trustee. The signing party at the
Servicer can be contacted at Litton Loan Servicing LP, 4828 Loop Central Drive,
Houston, Texas 77081 Attention: Janice McClure. The parties to this Agreement
acknowledge that the performance by the Trustee of its respective duties under
this Section 3.27 related to the timely preparation, arrangement for execution
and filing of Form 10-D is contingent upon the other parties hereto strictly
observing all applicable deadlines in the performance of their duties under this
Section 3.27. The Trustee will not have any liability for any loss, expense,
damage or claim arising out of or with respect to any failure to properly
prepare, arrange for execution and/or timely file such Form 10-D resulting from
the Trustee's inability or failure to receive any information needed to prepare,
arrange for execution or file such Form 10-D on a timely basis.

          (h) On or prior to the 90th calendar day after the end of the fiscal
year for the Issuing Entity or such earlier date as may be required by the
Exchange Act (the "10-K Filing Deadline") (it being understood that the fiscal
year for the Issuing Entity ends on December 31st of each year) commencing in
March 2007, the Trustee shall, on behalf of the Issuing Entity and in accordance
with industry standards, prepare and file with the Securities and Exchange
Commission via EDGAR a Form 10-K with respect to the Issuing Entity. Such Form
10-K shall include the following items, in each case, as applicable, to the
extent they have been delivered to the Trustee within the applicable time frames
set forth in this Agreement, (i) an annual compliance statement for the Trustee,
the Servicer and each Subservicer, as described in Section 3.17 of the
Agreement, (ii)(A) the annual reports on assessment of compliance with servicing
criteria for the Trustee, the Servicer and each Subservicer and Subcontractor
(unless the Depositor has determined that such compliance statement is not
required by Regulation AB), as described in Section 3.18 of the Agreement, and
(B) if any such party's report on assessment of compliance with servicing
criteria described in Section 3.18 identifies any material instance of
noncompliance, disclosure identifying such instance of noncompliance, or if any
report on assessment of compliance with servicing criteria described in Section
3.18 of the Agreement is not included as an exhibit to such Form 10-K,
disclosure that such report is not included and an explanation why such report
is not included, (iii)(A) the registered public accounting firm attestation
report for the Trustee, the Servicer and each Subservicer and Subcontractor (if
applicable), as described in Section 3.18 of this Agreement, and (B) if any
registered public accounting firm attestation report described under Section
3.18 of this Agreement identifies any material instance of noncompliance,
disclosure identifying such instance of noncompliance, or if any such registered
public accounting firm attestation report is not included as an exhibit to such
Form 10-K, disclosure that such report is not included and an explanation why
such report is not included, and (iv) a Sarbanes-Oxley Certification in the form
attached hereto as Exhibit T-3, executed by the senior officer in charge of
securitizations of the Servicer. Any disclosure or information in addition to
(i) through (iv) above that is required to be included on Form 10-K ("Additional
Form 10-K Disclosure") shall be reported by the parties as set forth in Exhibit
Z to the Depositor and the Trustee and directed and approved by the Depositor
pursuant to the following paragraph and the Trustee will have no duty or
liability for any failure hereunder to determine or prepare any Additional Form
10-K Disclosure absent such reporting, direction or approval.

          (i) As set forth in Exhibit Z hereto, no later than March 1 of each
year that the Issuing Entity is subject to the Exchange Act reporting
requirements, commencing in March 2007, (i) the parties listed on Exhibit Z
hereto shall be required to provide to the Trustee and the Depositor, to the
extent known by a responsible officer thereof, in EDGAR-compatible format, or in
such other format as otherwise agreed upon by the Trustee and the Depositor and
such party, the form and substance of the Additional Form 10-K Disclosure
described on Exhibit Z applicable to such party, (ii) the parties listed on
Exhibit Z hereto shall include with such Additional Form 10-K Disclosure, an
Additional Disclosure

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Notification in the form attached hereto as Exhibit Z-1 and (iii) the Depositor
will approve, as to form and substance, or disapprove, as the case may be, the
inclusion of the Additional Form 10-K Disclosure on Form 10-K. The Trustee has
no duty under this Agreement to monitor or enforce the performance by the
parties listed on Exhibit Z of their duties under this paragraph or proactively
solicit or procure from such parties any Additional Form 10-K Disclosure
Information. The Depositor will be responsible for any reasonable fees and
expenses incurred by the Trustee in connection with including any Additional
Form 10-K Disclosure on Form 10-K pursuant to this paragraph.

          (j) After preparing the Form 10-K, the Trustee shall forward
electronically a copy of the Form 10-K to the Depositor for review and to the
Servicer for execution. Within three Business Days after receipt of such copy,
but no later than March 25th, the Depositor shall notify the Trustee and the
Servicer in writing (which may be furnished electronically) of any changes to or
approval of such Form 10-K. No later than the end of business Eastern time on
the fourth Business Day after receipt thereof, a senior officer of the Servicer
shall sign the Form 10-K and return an electronic or fax copy of such signed
Form 10-K (with an original executed hard copy to follow by overnight mail) to
the Trustee, and the Trustee shall file such Form 10-K. In the absence of
receipt of any written changes or approval, the Trustee shall be entitled to
assume that such Form 10-K is in final form and the Trustee may proceed with the
filing of the Form 10-K. If a Form 10-K cannot be filed on time or if a
previously filed Form 10-K needs to be amended, the Trustee will follow the
procedures set forth in Section 3.27(n). Promptly (but no later than one
Business Day) after filing with the Securities and Exchange Commission, the
Trustee will, pursuant to the Agreement, make available on its internet website
a final executed copy of each Form 10-K prepared and filed by the Trustee. The
signing party at the Servicer can be contacted at Litton Loan Servicing LP, 4828
Loop Central Drive, Houston, Texas 77081 Attention: Janice McClure. The parties
to this Agreement acknowledge that the performance by the Trustee of its duties
under this Section 3.27 related to the timely preparation, arrangement for
execution and filing of Form 10-K is contingent upon such parties (and any
Subservicer or Subcontractor) strictly observing all applicable deadlines in the
performance of their duties under this Section 3.27, Section 3.17 and Section
3.18. The Trustee shall have no liability for any loss, expense, damage or claim
arising out of or with respect to any failure to properly prepare, arrange for
execution and/or timely file such Form 10-K resulting from the Trustee's
inability or failure to receive any information needed to prepare, arrange for
execution or file such Form 10-K on a timely basis.

          (k) Each Form 10-K shall include a Sarbanes-Oxley Certification
required to be included therewith pursuant to the Sarbanes-Oxley Act. The
Trustee shall provide, and the Servicer and the Trustee shall cause any
Subcontractor engaged by it to provide, and the Servicer shall use its
reasonable efforts to cause any Subservicer to provide, to the Person who signs
the Sarbanes-Oxley Certification (the "Certifying Person"), by March 1 of each
year in which the Issuing Entity is subject to the reporting requirements of the
Exchange Act and otherwise within a reasonable period of time upon request, a
certification (each, a "Back-Up Certification"), in the form attached hereto as
Exhibit T-5 in the case of the Trustee, upon which the Certifying Person, the
entity for which the Certifying Person acts as an officer, and such entity's
officers, directors and Affiliates (collectively with the Certifying Person,
"Certification Parties") can reasonably rely. The senior officer of the Servicer
in charge of the servicing function shall serve as the Certifying Person on
behalf of the Issuing Entity. Such officer of the Certifying Person can be
contacted at Litton Loan Servicing LP, 4828 Loop Central Drive, Houston, Texas
77081 Attention: Janice McClure. In the event the Servicer or the Trustee is
terminated or resigns pursuant to the terms of this Agreement, the Trustee shall
provide, and each such party shall cause any Subcontractor engaged by it to
provide, and the Servicer shall use its reasonable efforts to cause any
Subservicer to provide, a Back-Up Certification to the Certifying Person
pursuant to this Section 3.27(k) with respect to the period of time that the
Servicer or the Trustee was subject to this Agreement. The Servicer or the
Subservicer will be entitled to rely upon a certification of any Subcontractor
not affiliated with the Servicer or Subservicer.

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          (l) The Servicer agrees to furnish promptly to the Trustee, from time
to time upon reasonable request, such further information and reports within its
control related to this Agreement and the Mortgage Loans as the Depositor
reasonably deems appropriate to prepare and file all necessary reports with the
Securities and Exchange Commission. The Trustee shall have no responsibility to
file any items with the Securities and Exchange Commission other than those
specified in this section and the Servicer shall execute any and all Form 10-Ds,
8-Ks and 10-Ks required hereunder.

          (m) On or prior to January 30 of the first year in which the Trustee
is able to do so under applicable law, the Trustee shall prepare and file a Form
15 Suspension Notification relating to the automatic suspension of reporting in
respect of the Issuing Entity under the Exchange Act.

          (n) In the event that the Trustee is unable to timely file with the
Securities and Exchange Commission all or any required portion of any Form 8-K,
10-D or 10-K required to be filed by this Agreement because required disclosure
information was either not delivered to it or delivered to it after the delivery
deadlines set forth in this Agreement or for any other reason, the Trustee will
promptly notify the Depositor and the Servicer of such inability to make a
timely filing with the Securities and Exchange Commission. In the case of Form
10-D and 10-K, the Depositor and Trustee will cooperate to prepare and file a
Form 12b-25 and a 10-DA and 10KA, as applicable, pursuant to Rule 12b-25 of the
Exchange Act. In the case of Form 8-K, the Trustee will, upon receipt of all
required Form 8-K Disclosure Information and upon the approval and direction of
the Depositor, include such disclosure information on the next succeeding Form
10-D to be filed for the Issuing Entity. In the event that any previously filed
Form 8-K, 10-D or 10-K needs to be amended, the Trustee will notify the
Depositor and the Servicer, and such parties agree to cooperate to prepare any
necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form 12b-25 or any amendment to
Form 8-K, 10-D or 10-K shall be signed by a senior officer of the Servicer upon
receipt by the Servicer of notice that any such forms are acceptable to the
Depositor. The Depositor and Servicer acknowledge that the performance by the
Trustee of its duties under this Section 3.27 related to the timely preparation,
arrangement for execution and filing of Form 15, a Form 12b-25 or any amendment
to Form 8-K, 10-D or 10-K is contingent upon the Servicer and the Depositor
performing their duties under this Section. The Trustee shall have no liability
for any loss, expense, damage or claim arising out of or with respect to any
failure to properly prepare, arrange for execution and/or timely file any such
Form 15, Form 12b-25 or any amendments to Forms 8-K, 10-D or 10-K, where such
failure results from the Trustee's inability or failure to receive, on a timely
basis, any information from any other party hereto needed to prepare, arrange
for execution or file such Form 15, Form 12b-25 or any amendments to Forms 8-K,
10-D or 10-K.

          (o) The obligations set forth in paragraphs (a) through (n) of this
Section 3.27 shall only apply with respect to periods for which reports are
required to be filed with respect to the Issuing Entity under the Exchange Act.
On or prior to January 30 of the first year in which the Trustee is able to do
so under applicable law, the Trustee shall file a Form 15 Suspension
Notification with respect to the Issuing Entity. As of the beginning of any
fiscal year after the filing of a Form 15 Suspension Notification, if the number
of Certificateholders of record exceeds the number set forth in Section 15(d) of
the Exchange Act or the regulations promulgated pursuant thereto which would
cause the Issuing Entity to again become subject to the reporting requirements
of the Exchange Act, the Trustee, solely at the Depositor's prior written
direction and expense, shall recommence preparing and filing reports on Form
10-K, 8-K and 10-D as required pursuant to this Section 3.27 and the parties
hereto shall again have the obligations set forth in this Section; provided that
if the Trustee re-commences the preparing and filing of Exchange Act reports, it
may, as soon as permitted by the Exchange Act, file another Form 15 Suspension
Notification.

          (p) The Trustee shall indemnify and hold harmless the Servicer and its
officers, directors and Affiliates from and against any losses, damages,
penalties, fines, forfeitures, reasonable and

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necessary legal fees and related costs, judgments and other costs and expenses
arising out of or based upon a breach by the Trustee or any of its officers,
directors, agents or Affiliates of its obligations under Section 3.27,
including, without limitation, the Trustee's failure to deliver the
certification (in the form attached hereto as Exhibit T-5) pursuant to Section
3.27(k) or any inaccuracy in such certification, other than any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments and other costs and expenses arising out of the Servicer's
breach of its obligations under this Agreement. If the indemnification provided
for herein is unavailable or insufficient to hold harmless the Servicer and its
officers, directors and Affiliates, then the Trustee shall contribute to the
amount paid or payable by the Servicer, its officers, directors or Affiliates as
a result of the losses, claims, damages or liabilities of the Servicer, its
officers, directors or Affiliates in such proportion as is appropriate to
reflect the relative fault of the Servicer and its officers, directors and
Affiliates on the one hand and the Trustee on the other.

          (q) The Servicer 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 the Servicer's
failure to sign and deliver either the certification or the Form 10-K within the
time frame provided in this Section 3.27, other than any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments and other costs and expenses arising out of the Trustee's
breach of its obligations under this Agreement. If the indemnification provided
for herein is unavailable or insufficient to hold harmless the Trustee and its
officers, directors and Affiliates, then the Servicer shall contribute to the
amount paid or payable by the Trustee, its officers, directors or Affiliates as
a result of the losses, claims, damages or liabilities of the Trustee, its
officers, directors or Affiliates in such proportion as is appropriate to
reflect the relative fault of the Trustee and its officers, directors and
Affiliate on the one hand and the Servicer on the other.

          (r) If the Securities and Exchange Commission issues additional
interpretative guidance or promulgates additional rules or regulations with
respect to Regulation AB or otherwise, or if other changes in applicable law
occur, that would require the reporting arrangements, or the allocation of
responsibilities with respect thereto, described in this Section 3.27, to be
conducted differently than as described, the Depositor, the Servicer, and the
Trustee will reasonably cooperate to amend the provisions of this Section 3.27
in order to comply with such amended reporting requirements and such amendment
of this Section 3.27. Any such amendment shall be made in accordance with the
first paragraph of Section 10.01 without the consent of the Certificateholders
and without the requirement to deliver notice in writing to the Depositor, the
Servicer and the Trustee from the Rating Agencies that such action will not
result in the reduction or withdrawal of the rating of any outstanding Class of
Certificates with respect to which it is a Rating Agency. Such Amendment may
result in the reduction of the reports filed by the Trustee on behalf of the
Trust under the Exchange Act. Notwithstanding the foregoing, none of the
Depositor, the Servicer and the Trustee shall be obligated to enter into any
amendment pursuant to this Section 3.27 that adversely affects its obligations
and immunities under this Agreement.

          (s) The Depositor, the Servicer and the Trustee agree to use their
good faith efforts to cooperate in complying with the requirements of this
Section 3.27.

          (t) Upon any filing with the Securities and Exchange Commission, the
Trustee shall promptly deliver to the Depositor and the Servicer a copy of any
such executed report, statement or information.

          (u) Any notice required to be delivered by the Trustee to the
Depositor or the Servicer pursuant to this Section 3.27, the Trustee may deliver
such notice, notwithstanding any contrary

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provision in Section 10.05 (i) to the Depositor via facsimile to (212) 449-2357,
via email to alan_chan@ml.com or telephonically by calling Alan Chan at (212)
449-1000, and (ii) to the Servicer via facsimile to (713) 960-0539, via email to
elizabeth.folk@litton.c-bass.com or telephonically by calling Elizabeth Folk at
(713)966-8966.

                                   ARTICLE IV

                                  DISTRIBUTIONS

     SECTION 4.01. Advances.

          (a) Subject to the conditions of this Article IV, the Servicer, as
required below, shall make an Advance and deposit such Advance in the Collection
Account. Each such Advance shall be remitted to the Collection Account no later
than 1:00 p.m. Eastern time on the Servicer Advance Date in immediately
available funds. The Servicer shall be obligated to make any such Advance only
to the extent that such advance would not be a Non-Recoverable Advance. If the
Servicer shall have determined that it has made a Non-Recoverable Advance or
that a proposed Advance or a lesser portion of such Advance would constitute a
Non-Recoverable Advance, the 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, the NIMs Insurer and the
Trustee an Officer's Certificate setting forth the basis for such determination.
The Servicer may, in its sole discretion, make an Advance with respect to the
principal portion of the final Scheduled Payment on a Balloon Loan, but the
Servicer is under no obligation to do so; provided, however, that nothing in
this sentence shall affect the Servicer's obligation under this Section 4.01 to
advance the interest portion of the final Scheduled Payment with respect to a
Balloon Loan as if such Balloon Loan were a fully amortizing Mortgage Loan. If a
Mortgagor does not pay its final Scheduled Payment on a Balloon Loan when due,
the Servicer shall Advance (unless it determines in its good faith judgment that
such amounts would constitute a Non-Recoverable Advance) a full month of
interest (net of the Servicing Fee) on the Stated Principal Balance thereof each
month until its Stated Principal Balance is reduced to zero.

     In lieu of making all or a portion of such Advance from its own funds, the
Servicer may (i) cause to be made an appropriate entry in its records relating
to the Collection Account that any amount held for future distribution has been
used by the Servicer in discharge of its obligation to make any such Advance and
(ii) transfer such funds from the Collection Account to the Certificate Account.
In addition, the Servicer shall have the right to reimburse itself for any such
Advance from amounts held from time to time in the Collection Account to the
extent such amounts are not then required to be distributed. Any funds so
applied and transferred pursuant to the previous two sentences shall be replaced
by the Servicer by deposit in the Collection Account no later than the close of
business on the Servicer Advance Date on which such funds are required to be
distributed pursuant to this Agreement. The Servicer shall be entitled to be
reimbursed from the Collection Account for all Advances of its own funds made
pursuant to this Section as provided in Section 3.08. The obligation to make
Advances with respect to any Mortgage Loan shall continue until the earlier of
(i) the date such Mortgage Loan is paid in full, (ii) the date the related
Mortgaged Property (or stock allocated to a dwelling unit, in the case of a
Co-op Loan) 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 4.01, or (iii) the date on which such Mortgage Loan becomes 150 days
delinquent as set forth below.

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          (b) Notwithstanding anything in this Agreement to the contrary
(including, but not limited to, Sections 3.01 and 4.01(a) hereof), no Advance or
Servicing Advance shall be required to be made hereunder by the Servicer (or,
including for the avoidance of doubt, the Trustee as successor servicer) if such
Advance or Servicing Advance would, if made, constitute a Non-Recoverable
Advance or a Non-Recoverable Servicing Advance. The determination by the
Servicer that it has made a Non-Recoverable Advance or a Non-Recoverable
Servicing Advance or that any proposed Advance or Servicing Advance, if made,
would constitute a Non-Recoverable Advance or a Non-Recoverable Servicing
Advance, respectively, shall be evidenced by an Officer's Certificate of the
Servicer delivered to the Depositor and the Trustee. In addition, the Servicer
shall not be required to advance any Relief Act Shortfalls. The Servicer will
not make any Advances of principal on REO Properties.

          (c) Notwithstanding the foregoing, the Servicer shall not be required
to make any Advances for any Mortgage Loan after such Mortgage Loan becomes 150
days delinquent. The Servicer shall identify such delinquent Mortgage Loans in
the delinquency reports to be furnished by the Servicer to the Trustee pursuant
to Section 3.24.

     SECTION 4.02. Reduction of Servicing Compensation in Connection with
Prepayment Interest Shortfalls.

     In the event that any Mortgage Loan is the subject of a Prepayment Interest
Shortfall resulting from a Principal Prepayment in full, the Servicer shall,
from amounts in respect of the Servicing Fee for such Distribution Date, deposit
into the Collection Account, as a reduction of the Servicing Fee for such
Distribution Date, no later than the Servicer Advance Date immediately preceding
such Distribution Date, an amount up to the Prepayment Interest Shortfall;
provided that the amount so deposited with respect to any Distribution Date
shall be limited to one half of the product of (x) one-twelfth of 0.50% and (y)
the aggregate Stated Principal Balance of the Mortgage Loans. In case of such
deposit, the Servicer shall not be entitled to any recovery or reimbursement
from the Depositor, the Trustee, the Issuing Entity or the Certificateholders.
With respect to any Distribution Date, to the extent that the Prepayment
Interest Shortfall exceeds Compensating Interest (such excess, a "Non-Supported
Interest Shortfall"), such Non-Supported Interest Shortfall shall reduce the
Current Interest with respect to each Class of Certificates, pro rata, based
upon the amount of interest each such Class would otherwise be entitled to
receive on such Distribution Date. Notwithstanding the foregoing, there shall be
no reduction of the Servicing Fee in connection with Prepayment Interest
Shortfalls relating to the Relief Act and the Servicer shall not be obligated to
pay Compensating Interest with respect to Prepayment Interest Shortfalls related
to the Relief Act.

     SECTION 4.03. Distributions on the REMIC Interests.

     On each Distribution Date, amounts on deposit in the Certificate Account
shall be treated for federal income tax purposes as applied to distributions on
the interests in each of the SWAP REMIC and the Lower Tier REMIC in an amount
sufficient to make the distributions on the respective Certificates on such
Distribution Date in accordance with the provisions of Section 4.04.

     SECTION 4.04. Distributions.

          (a) [RESERVED]

          (b) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions from funds then available
in the Certificate Account, of an amount equal to the Interest Funds, in the
following order of priority:

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               (i) to the Class P Certificates, an amount equal to any
Prepayment Charges received with respect to the Mortgage Loans and all amounts
paid by the Servicer, the Sponsor or the Transferor in respect of Prepayment
Charges pursuant to this Agreement or the Transfer Agreement, as applicable, and
all amounts received in respect of any indemnification paid as a result of a
Prepayment Charge being unenforceable in breach of the representations and
warranties set forth in the Sale Agreement or the Transfer Agreement for the
related Prepayment Period;

               (ii) to the Supplemental Interest Trust, any Net Swap Payments
owed to the Swap Counterparty;

               (iii) to the Supplemental Interest Trust, any Swap Termination
Payment owed by the Issuing Entity to the Swap Counterparty (other than any
Defaulted Swap Termination Payment);

               (iv) concurrently, to each class of the Class A Certificates, the
Current Interest and any Interest Carry Forward Amount with respect to each such
class; provided, however, that if Interest Funds are insufficient to make a full
distribution of the aggregate Current Interest and the aggregate Interest Carry
Forward Amount to the Class A Certificates, Interest Funds will be distributed
pro rata among each class of the Class A Certificates based upon the ratio of
(x) the Current Interest and Interest Carry Forward Amount for each class of the
Class A Certificates to (y) the total amount of Current Interest and any
Interest Carry Forward Amount for the Class A-1, Class A-2 and Class R
Certificates in the aggregate;

               (v) to the Class M-1 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such class;

               (vi) to the Class M-2 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such class;

               (vii) to the Class M-3 Certificates, the Current Interest for
such class and any Interest Carry Forward Amount with respect to such class;

               (viii) to the Class M-4 Certificates, the Current Interest for
such class and any Interest Carry Forward Amount with respect to such class;

               (ix) to the Class M-5 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such class;

               (x) to the Class M-6 Certificates, the Current Interest for such
class and any Interest Carry Forward Amount with respect to such class;

               (xi) to the Class B-1 Certificates, the Current Interest for each
such class and any Interest Carry Forward Amount with respect to each such
class;

               (xii) to the Class B-2 Certificates, the Current Interest for
each such class and any Interest Carry Forward Amount with respect to each such
class;

               (xiii) to the Class B-3 Certificates, the Current Interest for
each such class and any Interest Carry Forward Amount with respect to each such
class;

               (xiv) to the Class B-4 Certificates, the Current Interest for
each such class and any Interest Carry Forward Amount with respect to each such
class; and

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               (xv) any remainder pursuant to Section 4.04(f) hereof.

     On each Distribution Date, subject to the proviso in (iv) above, Interest
Funds received on the Group One Mortgage Loans will be deemed to be distributed
to the Class R and Class A-1 Certificates and Interest Funds received on the
Group Two Mortgage Loans will be deemed to be distributed to the Class A-2
Certificates, in each case, until the related Current Interest and Interest
Carry Forward Amount of each such class of Certificates for such Distribution
Date has been paid in full. Thereafter, Interest Funds not required for such
distributions are available to be applied to if necessary, to the class or
classes of Certificates that are not related to such group of Mortgage Loans.

          (c) [RESERVED]

          (d) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions from the Certificate
Account of an amount equal to the Principal Distribution Amount in the following
order of priority, and each such distribution shall be made only after all
distributions pursuant to Section 4.04(b) above shall have been made until such
amount shall have been fully distributed for such Distribution Date:

               (i) to the Supplemental Interest Trust, any Swap Termination
Payment owed by the Issuing Entity to the Swap Counterparty (other than any
Defaulted Swap Termination Payment);

               (ii) to the Class A Certificates, the Class A Principal
Distribution Amount shall be distributed as follows:

                    (a) the Group One Principal Distribution Amount will be
distributed as follows: sequentially to the Class R and Class A-1 Certificates,
until the Certificate Principal Balance of each such class has been reduced to
zero;

                    (b) the Group Two Principal Distribution Amount will be
distributed sequentially, to the Class A-2A Certificates until the Certificate
Principal Balance thereof has been reduced to zero, then to the Class A-2B
Certificates until the Certificate Principal Balance thereof has been reduced to
zero, then to the Class A-2C Certificates until the Certificate Principal
Balance thereof has been reduced to zero and then to the Class A-2D Certificates
until the Certificate Principal Balance thereof has been reduced to zero;
provided, however, that on and after the Distribution Date on which the
aggregate Certificate Principal Balance of the Subordinate Certificates has been
reduced to zero and the Stated Principal Balance of the Mortgage Loans is equal
to or less than the aggregate Certificate Principal Balance of the Class A
Certificates, any principal distributions allocated to the Class A-2A, Class
A-2B, Class A-2C and Class A-2D Certificates are required to be allocated pro
rata, among such classes, based on their respective Certificate Principal
Balances, until their Certificate Principal Balances have been reduced to zero;

               (iii) to the Class M-1 Certificates, the Class M-1 Principal
Distribution Amount;

               (iv) to the Class M-2 Certificates, the Class M-2 Principal
Distribution Amount;

               (v) to the Class M-3 Certificates, the Class M-3 Principal
Distribution Amount;

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               (vi) to the Class M-4 Certificates, the Class M-4 Principal
Distribution Amount;

               (vii) to the Class M-5 Certificates, the Class M-5 Principal
Distribution Amount;

               (viii) to the Class M-6 Certificates, the Class M-6 Principal
Distribution Amount;

               (ix) to the Class B-1 Certificates, the Class B-1 Principal
Distribution Amount;

               (x) to the Class B-2 Certificates, the Class B-2 Principal
Distribution Amount;

               (xi) to the Class B-3 Certificates, the Class B-3 Principal
Distribution Amount;

               (xii) to the Class B-4 Certificates, the Class B-4 Principal
Distribution Amount; and

               (xiii) any remainder pursuant to Section 4.04(f) hereof.

          (e) [RESERVED]

          (f) On each Distribution Date, the Trustee shall, to the extent of
funds then available, make the following distributions up to the following
amounts from the Certificate Account of the remainders pursuant to Section
4.04(b)(xv) and (d)(xiii) hereof and each such distribution shall be made only
after all distributions pursuant to Sections 4.04(b) and (d) above shall have
been made until such remainders shall have been fully distributed for such
Distribution Date:

               (i) for distribution as part of the Principal Distribution
Amount, the Extra Principal Distribution Amount;

               (ii) to the Class M-1 Certificates, any Unpaid Realized Loss
Amount for such class;

               (iii) to the Class M-2 Certificates, any Unpaid Realized Loss
Amount for such class;

               (iv) to the Class M-3 Certificates, any Unpaid Realized Loss
Amount for such class;

               (v) to the Class M-4 Certificates, any Unpaid Realized Loss
Amount for such class;

               (vi) to the Class M-5 Certificates, any Unpaid Realized Loss
Amount for such class;

               (vii) to the Class M-6 Certificates, any Unpaid Realized Loss
Amount for such class;

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               (viii) to the Class B-1 Certificates, any Unpaid Realized Loss
Amount for such class;

               (ix) to the Class B-2 Certificates, any Unpaid Realized Loss
Amount for such class;

               (x) to the Class B-3 Certificates, any Unpaid Realized Loss
Amount for such class;

               (xi) to the Class B-4 Certificates, any Unpaid Realized Loss
Amount for such class;

               (xii) to the Class A, Class M and Class B Certificates, on a pro
rata basis, based upon outstanding Floating Rate Certificate Carryover for each
such Class, the Floating Rate Certificate Carryover for each such Class; and

               (xiii) the remainder pursuant to Section 4.04(g) hereof.

          (g) on each Distribution Date, the Trustee shall allocate the
remainders pursuant to Section 4.04(f)(xiii) as follows:

               (i) to the Supplemental Interest Trust, any Defaulted Swap
Termination Payment;

               (ii) to the Class C Certificates in the following order of
priority, (I) the Class C Current Interest, (II) the Class C Interest Carry
Forward Amount, (III) as principal on the Class C Certificate until the
Certificate Principal Balance of the Class C Certificates has been reduced to
zero and (IV) the Class C Unpaid Realized Loss Amount; and

               (iii) the remainder pursuant to Section 4.04(h) hereof.

          (h) On each Distribution Date, the Trustee shall allocate the
remainder pursuant to Section 4.04(g)(iii) hereof (i) to the Trustee to
reimburse amounts or pay indemnification amounts owing to the Trustee from the
Issuing Entity pursuant to Section 6.03, (ii) to the Class C Certificates, any
amounts remaining after distribution of the Optional Termination Amount, as
applicable, pursuant to this Section 4.04 and (iii) to the Class R Certificate
and such distributions shall be made only after all preceding distributions
shall have been made until such remainder shall have been fully distributed.

          (i) On each Distribution Date, after giving effect to distributions on
such Distribution Date, the Trustee shall allocate the Applied Realized Loss
Amount for the Certificates to reduce the Certificate Principal Balances of the
Class C Certificates and the Subordinate Certificates in the following order of
priority:

               (i) to the Class C Certificates, until the Class C Certificate
Principal Balance is reduced to zero;

               (ii) to the Class B-4 Certificates until the Class B-4
Certificate Principal Balance is reduced to zero;

               (iii) to the Class B-3 Certificates until the Class B-3
Certificate Principal Balance is reduced to zero;

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               (iv) to the Class B-2 Certificates until the Class B-2
Certificate Principal Balance is reduced to zero;

               (v) to the Class B-1 Certificates until the Class B-1 Certificate
Principal Balance is reduced to zero;

               (vi) to the Class M-6 Certificates until the Class M-6
Certificate Principal Balance is reduced to zero;

               (vii) to the Class M-5 Certificates until the Class M-5
Certificate Principal Balance is reduced to zero;

               (viii) to the Class M-4 Certificates until the Class M-4
Certificate Principal Balance is reduced to zero;

               (ix) to the Class M-3 Certificates until the Class M-3
Certificate Principal Balance is reduced to zero;

               (x) to the Class M-2 Certificates until the Class M-2 Certificate
Principal Balance is reduced to zero; and

               (xi) to the Class M-1 Certificates until the Class M-1
Certificate Principal Balance is reduced to zero.

          (j) Subject to Section 9.02 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 five (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 9.02 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.

     In accordance with this Agreement, the Servicer shall prepare and deliver
an electronic report (the "Remittance Report") to the Trustee (or by such other
means as the Servicer and the Trustee may agree from time to time) containing
such data and information as to permit the Trustee to prepare the Monthly
Statement to Certificateholders and make the required distributions for the
related Distribution Date. The Trustee will prepare the Monthly Report based
solely upon the information received from the Servicer.

     The Trustee shall promptly notify the NIMs Insurer of any proceeding or the
institution of any action, of which a Responsible Officer of the Trustee has
actual knowledge, seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership or similar law (a "Preference
Claim") of any distribution made with respect to the Class C Certificates or the
Class P Certificates. Each Holder of the Class C Certificates or the Class P
Certificates, by its purchase of such Certificates and the Trustee hereby agree
that the NIMs Insurer may at any time during the continuation of any proceeding
relating to a Preference Claim direct all matters relating to such Preference
Claim, including, without limitation, (i) the direction of any appeal of any
order relating to such Preference Claim and (ii) the posting of any surety,
supersedes or performance bond pending any such appeal. In addition and without
limitation of the foregoing, the NIMs Insurer shall be subrogated to the rights
of the Trustee and each Holder of the Class C Certificates and the Class P
Certificates in the conduct of any such Preference

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Claim, including, without limitation, all rights of any party to an adversary
proceeding action with respect to any court order issued in connection with any
such Preference Claim; provided, however, that the NIMs Insurer will not have
any rights with respect to any Preference Claim set forth in this paragraph
unless the indenture trustee with respect to the NIM Notes or the holder of any
NIMs Notes has been required to relinquish a distribution made on the Class C
Certificates, the Class P Certificates or the NIM Notes, as applicable, and the
NIMs Insurer made a payment in respect of such relinquished amount.

          (k) The Trustee is hereby directed by the Depositor to execute the Cap
Contracts on behalf of the Issuing Entity in the form presented to it by the
Depositor and shall have no responsibility for the contents of such Cap
Contract, including, without limitation, the representations and warranties
contained therein. Any funds payable by the Issuing Entity under the Cap
Contracts at closing shall be paid by the Depositor. Notwithstanding anything to
the contrary contained herein or in any Cap Contract, except as set forth in
Section 11 of each Cap Contract, the Issuing Entity shall not be required to
make any payments to the counterparty under any Cap Contract. Any payments
received under the terms of the related Cap Contract will be available to pay
the holders of the related Class A-1 Certificates, Class A-2 Certificates and
Floating Rate Subordinate Certificates up to the amount of any Floating Rate
Certificate Carryovers remaining after all other distributions required under
this Section 4.04 are made on such Distribution Date, other than Floating Rate
Certificate Carryovers attributable to the fact that Applied Realized Loss
Amounts are not allocated to the Class A Certificates. Any amounts received
under the terms of any Cap Contract on a Distribution Date that are not used to
pay such Floating Rate Certificate Carryovers will be distributed to the holders
of the Class C Certificates. Payments in respect of such Floating Rate
Certificate Carryovers from proceeds of a Cap Contract shall be paid to the
related Classes of Class A-1 Certificates, Class A-2 Certificates and Floating
Rate Subordinate Certificates, pro rata based upon such Floating Rate
Certificate Carryovers for each such class of Class A-1 Certificates, Class A-2
Certificates and Floating Rate Subordinate Certificates. Amounts received on the
Class A-1 Cap Contract will only be available to make payments on the Class A-1
Certificates, amounts received on the Class A-2 Cap Contract will only be
available to make payments on the Class A-2 Certificates, amounts received on
the Floating Rate Subordinate Certificates Cap Contract will only be available
to make payments on the Floating Rate Subordinate Certificates.

               (i) The Trustee shall establish and maintain, for the benefit of
the Issuing Entity and the Certificateholders, the Cap Contract Account. On or
prior to the related Cap Contract Termination Date, amounts, if any, received by
the Trustee for the benefit of the Trust Fund in respect of the related Cap
Contract shall be deposited by the Trustee into the Cap Contract Account and
will be used to pay Floating Rate Certificate Carryovers on the related Class
A-1 Certificates, Class A-2 Certificates and Floating Rate Subordinate
Certificates to the extent provided in the immediately preceding paragraph. With
respect to any Distribution Date on or prior to the related Cap Contract
Termination Date, the amount, if any, payable by the Cap Contract Counterparty
under the related Cap Contract will equal the product of (i) the excess of (x)
One-Month LIBOR (as determined by the Cap Contract Counterparty and subject to a
cap equal to the rate with respect to such Distribution Date as shown under the
heading "1ML Upper Collar" in the schedule to the related Cap Contract), over
(y) the rate with respect to such Distribution Date as shown under the heading
"1ML Strike Lower Collar" in the schedule to the related Cap Contract, (ii) an
amount equal to the lesser of (x) the related Cap Contract Notional Balance for
such Distribution Date and (y) the outstanding Certificate Principal Balance of
the related classes of Certificates and (iii) the number of days in such Accrual
Period, divided by 360. If a payment is made to the Issuing Entity under a Cap
Contract and the Trustee is required to distribute excess amounts to the holders
of the Class C Certificates as described above, information regarding such
distribution will be included in the monthly statement made available on the
Trustee's website pursuant to Section 4.05 hereof.

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               (ii) Amounts on deposit in the Cap Contract Account will remain
uninvested pending distribution to Certificateholders.

               (iii) Each Cap Contract is scheduled to remain in effect until
the related Cap Contract Termination Date and will be subject to early
termination only in limited circumstances. Such circumstances include certain
insolvency or bankruptcy events in relation to the Cap Contract Counterparty
(after a grace period of three Local Business Days, as defined in the related
Cap Contract, after notice of such failure is received by the Cap Contract
Counterparty) to make a payment due under the related Cap Contract, the failure
by the Cap Contract Counterparty (after a cure period of 20 days after notice of
such failure is received) to perform any other agreement made by it under the
related Cap Contract, the termination of the Trust Fund and the related Cap
Contract becoming illegal or subject to certain kinds of taxation.

          (l) On the Closing Date, the Supplemental Interest Trust shall be
established and maintained pursuant to this Agreement, as a separate trust, the
corpus of which shall be held by the Trustee for the benefit of the holders of
the Certificates as a segregated subtrust of the Trust Fund. The Supplemental
Interest Trust shall contain the Swap Account, which shall be an Eligible
Account, and funds deposited therein shall be held separate and apart from, and
shall not be commingled with, any other moneys, including, without limitation,
other moneys of the Trustee held pursuant to this Agreement. In no event shall
any funds deposited in the Swap Account be credited to or made available to any
other account of the Trust Fund. The records of the Trustee shall at all times
reflect that the Supplemental Interest Trust is a subtrust of the Trust Fund,
the assets of which are segregated from other assets of the Trust Fund.

     The Trustee shall enforce all of the rights of the Supplemental Interest
Trust and exercise any remedies under the Swap Agreement and, in the event the
Swap Agreement is terminated as a result of the designation by either party
thereto of an Early Termination Date (as defined in the Swap Agreement), find a
replacement counterparty to enter into a replacement swap agreement utilizing
the amounts of the net Swap Termination Payments received.

     For each Distribution Date, through and including the Distribution Date in
August 2010, the Trustee shall, based on the Significance Estimate (which shall
be provided to the Trustee by the Depositor within five Business Days prior to
the Distribution Date), calculate the Significance Percentage of the Swap
Agreement. If on any such Distribution Date, the Significance Percentage is
equal to or greater than 9%, the Trustee shall promptly notify the Depositor and
the Depositor, on behalf of the Trustee, shall obtain the financial information
required to be delivered by the Swap Counterparty pursuant to the terms of the
Swap Agreement. If, on any succeeding Distribution Date through and including
the Distribution Date in August 2010, the Significance Percentage is equal to or
greater than 10%, the Trustee shall promptly notify the Depositor and the
Depositor shall, within five Business Days of such Distribution Date, deliver to
the Trustee the financial information provided to it by the Swap Counterparty
for inclusion in the Form 10-D relating to such Distribution Date.

     Any Swap Termination Payment received by the Trustee shall be deposited in
the Swap Account and shall be used to make any upfront payment required under a
replacement swap agreement and any upfront payment received from the
counterparty to a replacement swap agreement shall be used to pay any Swap
Termination Payment owed to the Swap Counterparty.

     Notwithstanding anything contained herein, in the event that a replacement
swap agreement cannot be obtained within 30 days after receipt by the Trustee of
the Swap Termination Payment paid by the terminated Swap Counterparty, the
Trustee shall deposit such Swap Termination Payment into a separate, segregated
non-interest bearing subtrust established by the Trustee and the Trustee shall,
on each

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Distribution Date following receipt of such Swap Termination Payment, withdraw
from such subtrust, an amount equal to the Net Swap Payment, if any, that would
have been paid to the Supplemental Interest Trust by the original Swap
Counterparty (computed in accordance with the original Swap Agreement) and
distribute such amount in accordance with Section 4.04(l)(i)-(viii) of this
Agreement. Any such subtrust shall not be an asset of any REMIC. Any amounts
remaining in such subtrust shall be distributed to the holders of the Class C
Certificates on the Distribution Date following the earlier of (i) the
termination of the Trust Fund pursuant to Section 9.01 and (ii) August 25, 2010.

     On any Distribution Date, any Swap Termination Payments or Net Swap
Payments owed to the Swap Counterparty will be paid out of, or any Net Swap
Payments or Swap Termination Payments received from the Swap Counterparty will
be deposited into, the Swap Account. The Supplemental Interest Trust will not be
an asset of any REMIC. Funds in the Swap Account within the Supplemental
Interest Trust shall be distributed in the following order of priority by the
Trustee:

               (i) to the Swap Counterparty, all Net Swap Payments, if any, owed
to the Swap Counterparty for such Distribution Date;

               (ii) to the Swap Counterparty, any Swap Termination Payment,
other than a Defaulted Swap Termination Payment, if any, owed to the Swap
Counterparty;

               (iii) to each class of the Class A Certificates, on a pro rata
basis, any Current Interest and any Interest Carry Forward Amount with respect
to such class to the extent unpaid;

               (iv) sequentially, to the Class M-1 Certificates on a pro rata
basis, the Class M-2 Certificates on a pro rata basis, the Class M-3
Certificates on a pro rata basis, the Class M-4 Certificates on a pro rata
basis, the Class M-5 Certificates on a pro rata basis, the Class M-6
Certificates on a pro rata basis, the Class B-1 Certificates on a pro rata
basis, the Class B-2 Certificates on a pro rata basis, the Class B-3
Certificates on a pro rata basis and the Class B-4 Certificates on a pro rata
basis, in that order, any Current Interest for such class to the extent unpaid;

               (v) to the Class A, Class M and Class B Certificates, to pay
principal as described and in the same manner and order of priority as set forth
in Sections 4.04(d)(ii) through 4.04(d)(xii) in order to restore levels of the
Overcollateralization Amount, and after giving effect to distributions from
Principal Distribution Amount for each such Class;

               (vi) sequentially, to the Class M-1 Certificates on a pro rata
basis, the Class M-2 Certificates on a pro rata basis, the Class M-3
Certificates on a pro rata basis, the Class M-4 Certificates on a pro rata
basis, the Class M-5 Certificates on a pro rata basis, the Class M-6
Certificates on a pro rata basis, the Class B-1 Certificates on a pro rata
basis, the Class B-2 Certificates on a pro rata basis, the Class B-3
Certificates on a pro rata basis and the Class B-4 Certificates on a pro rata
basis, in that order, any Interest Carry Forward with respect to such class to
the extent unpaid;

               (vii) sequentially, to the Class M-1 Certificates on a pro rata
basis, the Class M-2 Certificates on a pro rata basis, the Class M-3
Certificates on a pro rata basis, the Class M-4 Certificates on a pro rata
basis, the Class M-5 Certificates on a pro rata basis, the Class M-6
Certificates on a pro rata basis, the Class B-1 Certificates on a pro rata
basis, the Class B-2 Certificates on a pro rata basis, the Class B-3
Certificates on a pro rata basis and the Class B-4 Certificates on a pro rata
basis, in that order, any Unpaid Realized Loss Amount for such class to the
extent unpaid;

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               (viii) to the Class A, Class M and Class B Certificates, on a pro
rata basis, any Floating Rate Certificate Carryover to the extent not paid based
on the amount of such unpaid Floating Rate Certificate Carryover;

               (ix) to the Swap Counterparty, any Defaulted Swap Termination
Payment owed to the Swap Counterparty to the extent not already paid; and

               (x) to the Class C Certificates any remaining amount.

     Notwithstanding the foregoing, however, after giving effect to proposed
distributions on any Distribution Date, the sum of the cumulative amounts
distributed pursuant to clause (v) above and the cumulative amounts distributed
pursuant to clause (vii) above shall be limited to the aggregate amount of
cumulative Realized Losses incurred from the Cut-off Date through the last day
of the related Prepayment Period.

     Upon termination of the Trust Fund, any amounts remaining in the Swap
Account within the Supplemental Interest Trust shall be distributed pursuant to
the priorities set forth in this Section 4.04(l).

     With respect to the failure of the Swap Counterparty to perform any of its
obligations under the Swap Agreement, the breach by the Swap Counterparty of any
of its representations and warranties made pursuant to the Swap Agreement, or
the termination of the Swap Agreement, the Trustee shall send any notices and
make any demands required hereunder.

     SECTION 4.05. Monthly Statements to Certificateholders.

          (a) Not later than each Distribution Date based solely on information
provided by the Servicer (which information is not required to include any
prediction of future performance as to which such report relates), the Trustee
shall prepare and make available on its website located at www.etrustee.net to
each Holder of a Class of Certificates of the Trust Fund, the Servicer, the NIMs
Insurer, the Rating Agencies 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, (C) the Extra Principal Distribution
Amount, if any, and (D) the aggregate amount of Prepayment Charges, if any;

               (ii) the amount of such distribution to Holders of each Class
allocable to interest, together with any Non-Supported Interest Shortfalls
allocated to each Class;

               (iii) the Certificate Principal Balance 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;

               (iv) the Pool Stated Principal Balance for such Distribution
Date;

               (v) the amount of the Servicing Fee Rate paid to or retained by
the Servicer, the amount of the Trustee Fee Rate paid to or retained by the
Trustee, and any amounts constituting reimbursement or indemnification of the
Servicer or Trustee;

               (vi) the Pass-Through Rate for each Class of Certificates for
such Distribution Date;

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               (vii) the amount of Advances included in the distribution on such
Distribution Date;

               (viii) the cumulative amount of (A) Realized Losses and (B)
Applied Realized Loss Amounts to date, in the aggregate and with respect to the
Group One Mortgage Loans and Group Two Mortgage Loans;

               (ix) the amount of (A) Realized Losses and (B) Applied Realized
Loss Amounts with respect to such Distribution Date, in the aggregate and with
respect to the Group One Mortgage Loans and Group Two Mortgage Loans;

               (x) the number and aggregate principal amounts of Mortgage Loans
(A) Delinquent (exclusive of Mortgage Loans in foreclosure) (1) 31 to 60 days,
(2) 61 to 90 days and (3) 91 or more days, and (B) in foreclosure and Delinquent
(1) 31 to 60 days, (2) 61 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, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

               (xi) with respect to any Mortgage Loan that became an REO
Property during the preceding calendar month, the loan number and Stated
Principal Balance of such Mortgage Loan as of the close of business on the last
day of the calendar month preceding such Distribution Date and the date of
acquisition thereof, in the aggregate and with respect to the Group One Mortgage
Loans and Group Two Mortgage Loans;

               (xii) the total number and principal balance of any REO
Properties as of the close of business on the last day of the calendar month
preceding such Distribution Date, in the aggregate and with respect to the Group
One Mortgage Loans and Group Two Mortgage Loans;

               (xiii) the aggregate Stated Principal Balance of all Liquidated
Loans as of the preceding Distribution Date, in the aggregate and with respect
to the Group One Mortgage Loans and Group Two Mortgage Loans;

               (xiv) whether a Stepdown Trigger Event has occurred and is in
effect;

               (xv) with respect to each Class of Certificates, any Interest
Carry Forward Amount with respect to such Distribution Date for each such Class,
any Interest Carry Forward Amount paid for each such Class and any remaining
Interest Carry Forward Amount for each such Class;

               (xvi) the number and Stated Principal Balance (as of the
preceding Distribution Date) of any Mortgage Loans which were purchased or
repurchased during the preceding Due Period and since the Cut-off Date;

               (xvii) the number of Mortgage Loans for which Prepayment Charges
were received during the related Prepayment Period and, for each such Mortgage
Loan, the amount of Prepayment Charges received during the related Prepayment
Period and in the aggregate of such amounts for all such Mortgage Loans since
the Cut-off Date;

               (xviii) the amount and purpose of any withdrawal from the
Collection Account pursuant to Section 3.08(a)(viii);

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               (xix) the amount of any payments to each Class of Certificates
that are treated as payments received in respect of a REMIC "regular interest"
or REMIC "residual interest" and the amount of any payments to each Class of
Certificates that are not treated as payments received in respect of a REMIC
"regular interest" or REMIC "residual interest";

               (xx) as of each Distribution Date, the amount, if any, to be
deposited in the Cap Contract Account pursuant to the related Cap Contract as
described in Section 4.04(k) and the amount thereof to be paid to the Class A-1
Certificates, the Class A-2 Certificates, the Floating Rate Subordinate
Certificates and the Class C Certificates described in Section 4.04(k) hereof;

               (xxi) as of each Distribution Date, the amount, if any, to be
deposited in the Swap Account within the Supplemental Interest Trust pursuant to
the Swap Agreement as described in Section 4.04(l) and the amount thereof to be
paid to the Certificates; and

               (xxii) any Floating Rate Certificate Carryover paid and all
Floating Rate Certificate Carryover remaining on each class of the Class A,
Class M and Class B Certificates on such Distribution Date;

               (xxiii) the number of Mortgage Loans with respect to which (i) a
reduction in the Mortgage Rate has occurred or (ii) the related borrower's
obligation to repay interest on a monthly basis has been suspended or reduced
pursuant to the Servicemembers Civil Relief Act or the California Military and
Veterans Code, as amended; and the amount of interest not required to be paid
with respect to any such Mortgage Loans during the related Due Period as a
result of such reductions in the aggregate and with respect to the Group One
Mortgage Loans and the Group Two Mortgage Loans.

          (b) The Trustee will make the Monthly Statement (and, at its option,
any additional files containing the same information in an alternative format)
available each month to Certificateholders, other parties to this Agreement and
any other interested parties via the Trustee's Internet website. The Trustee's
Internet website shall initially be located at "www.etrustee.net." 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 customer service desk and indicating such.
The Trustee shall have the right to change the way the monthly statements to
Certificateholders are distributed in order to make such distribution more
convenient and/or more accessible to the above parties and the Trustee shall
provide timely and adequate notification to all above parties regarding any such
changes.

     The foregoing information and reports shall be prepared and determined by
the Trustee based on Mortgage Loan data provided to the Trustee by the Servicer
and information received by the Trustee from third parties, including the Swap
Counterparty. In preparing or furnishing the foregoing information, the Trustee
shall be entitled to rely conclusively on the accuracy of the information or
data provided to the Trustee by the Servicer or any other party and the Trustee
shall be entitled to rely conclusively upon and shall have no liability for any
errors in any such information.

     As a condition to access the Trustee's Internet website, the Trustee may
require registration and the acceptance of a disclaimer. The Trustee will not be
liable for the dissemination of information in accordance with this Agreement.

          (c) The Servicer shall deliver to the NIMs Insurer a copy of any
report delivered by the Servicer to the Trustee.

          (d) If so requested in writing within a reasonable period of time
after the end of each calendar year, the Trustee shall make available on its
website or cause to be furnished to each

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Person who at any time during the calendar year was a Certificateholder of
record, a statement containing the information set forth in clauses (a)(i)
without regard to subclauses (A)-(D) thereof and (a)(ii) of this Section 4.05
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 are from time to time in effect.

          (e) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class R Certificate and the NIMs Insurer each Form
1066 and each Form 1066Q and shall respond promptly to written requests made not
more frequently than quarterly by any Holder of a Class R 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 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 losses realized with respect to the Mortgage
Loans or the regular interests created hereunder, including the timing and
amount of any cancellation of indebtedness income of the REMICs with respect to
such regular interests or bad debt deductions claimed with respect to the
Mortgage Loans;

               (vi) The amount and timing of any non-interest expenses of the
REMICs; and

               (vii) Any taxes (including penalties and interest) imposed on the
REMICs, 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 8.12.

                                   ARTICLE V

                                THE CERTIFICATES

     SECTION 5.01. The Certificates.

     The Certificates shall be substantially in the forms attached hereto as
exhibits. 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

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be in excess of the applicable minimum dollar denomination) and aggregate dollar
denominations as set forth in the following table:

<TABLE>
<CAPTION>
           Minimum     Integral Multiples in   Original Certificate
Class   Denomination     Excess of Minimum       Principal Balance
-----   ------------   ---------------------   --------------------
<S>     <C>            <C>                     <C>
A-1     $25,000.00            $1.00               $180,115,000
A-2A    $25,000.00            $1.00               $126,433,000
A-2B    $25,000.00            $1.00               $ 52,040,000
A-2C    $25,000.00            $1.00               $ 48,194,000
A-2D    $25,000.00            $1.00               $ 38,789,000
M-1     $25,000.00            $1.00               $ 20,998,000
M-2     $25,000.00            $1.00               $ 19,272,000
M-3     $25,000.00            $1.00               $ 11,218,000
M-4     $25,000.00            $1.00               $ 10,355,000
M-5     $25,000.00            $1.00               $  9,780,000
M-6     $25,000.00            $1.00               $  9,204,000
B-1     $25,000.00            $1.00               $ 10,355,000
B-2     $25,000.00            $1.00               $  8,917,000
B-3     $25,000.00            $1.00               $  5,465,000
B-4     $25,000.00            $1.00               $  5,753,000
C                 (1)              (1)                     100%
R       $   100.00              N/A               $     100.00
P                 (2)              (2)                        (2)
</TABLE>

----------
(1)  The Class C Certificates shall not have minimum dollar denominations or
     certificate notional amounts and shall be issued in a minimum percentage
     interest of 10%.

(2)  The Class P Certificates shall not have minimum dollar denominations or
     Certificate Principal Balances and shall be issued in a minimum percentage
     interest of 100%.

     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 Trust Fund, 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 a
certificate of authentication substantially in the form set forth as attached
hereto executed by the Authenticating Agent by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive evidence,
and the only evidence, that such Certificate has been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their
authentication. On the Closing Date, the Authenticating Agent shall authenticate
the Certificates to be issued at the written direction of the Depositor, or any
Affiliate thereof.

     The Certificates sold in offshore transactions in reliance on Regulation S
shall be issued initially in the form of one or more permanent global
certificates in definitive, fully registered form without interest coupons with
the applicable legends set forth in Exhibit A hereto added to the form of each
such Certificate (each, a "Regulation S Book-Entry Certificate"), which shall be
deposited on behalf of the Holders of such Certificates represented thereby with
the Trustee, as custodian for DTC and registered in the name of a nominee of
DTC, duly executed and authenticated by the Trustee and the Authenticating Agent
as hereinafter provided. The aggregate principal amounts of the Regulation S
Book-Entry Certificates may from time to time be increased or decreased by
adjustments made on the records of the Trustee or DTC or its nominee, as the
case may be, as hereinafter provided.

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<PAGE>

     The Certificates sold in reliance on Rule 144A shall be issued initially in
the form of one or more permanent global certificates in definitive, fully
registered form without interest coupons with the applicable legends set forth
in Exhibit A hereto added to the form of each such Certificate (each, a "Rule
144A Book-Entry Certificate"), which shall be deposited on behalf of the Holders
of such Certificates represented thereby with the Trustee, as custodian for DTC
and registered in the name of a nominee of DTC, duly executed and authenticated
by the Trustee and the Authenticating Agent as hereinafter provided. The
aggregate principal amounts of the Rule 144A Book-Entry Certificates may from
time to time be increased or decreased by adjustments made on the records of the
Trustee or DTC or its nominee, as the case may be, as hereinafter provided.

     SECTION 5.02. 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 5.09 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 Authenticating Agent 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 and the Authenticating
Agent shall 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 a Trustee in accordance with such
Trustee's customary procedures.

          (b) No Transfer of a Class C or Class P 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 (except
with respect to the initial transfer of a Class C or Class P Certificate by
Merrill Lynch & Co. or, in connection with a transfer of a Class C or Class P
Certificate to the indenture trustee under an Indenture pursuant to which NIM
Notes are issued, whether or not such notes are guaranteed by the NIMs Insurer)
each certify to the Trustee in writing the facts surrounding the Transfer in
substantially the form set forth in Exhibit F (the "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit G (the
"Investment Letter") or Exhibit H (the "Rule 144A Letter") or (ii) there shall
be delivered to the Trustee an Opinion of Counsel 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 or the Trustee. The Depositor shall provide
to any Holder of a Class C or Class P Certificate and any prospective transferee
designated by any such Holder, information regarding

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<PAGE>

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 shall cooperate with the Depositor in providing the Rule 144A
information referenced in the preceding sentence, including providing to the
Depositor such information in the possession of the Trustee 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 Class C or Class P Certificate desiring to
effect such Transfer shall, and does hereby agree to, indemnify the Depositor
and the Trustee against any liability that may result if the Transfer is not so
exempt or is not made in accordance with such federal and state laws.

     By acceptance of a Regulation S Global Security, whether upon original
issuance or subsequent transfer, each Holder of such a Certificate acknowledges
the restrictions on the transfer of such Certificate set forth thereon and
agrees that it will only transfer such a Certificate as provided herein. In
addition, each Holder of a Regulation S Global Security shall be deemed to have
represented and warranted to the Depositor, the Trustee and any of their
respective successors that: (i) such Person is not a "U.S. person" within the
meaning of Regulation S and was, at the time the buy order was originated,
outside the United States and (ii) such Person understands that such
Certificates have not been registered under the Securities Act and that (x)
until the expiration of the 40-day distribution compliance period (within the
meaning of Regulation S), no offer, sale, pledge or other transfer of such
Certificates or any interest therein shall be made in the United States or to or
for the account or benefit of a U.S. person (each as defined in Regulation S),
(y) if in the future it decides to offer, resell, pledge or otherwise transfer
such Certificates, such Certificates may be offered, resold, pledged or
otherwise transferred only (A) to a person which the seller reasonably believes
is a "qualified institutional buyer" as defined in Rule 144A under the
Securities Act, that is purchasing such Certificates for its own account or for
the account of a qualified institutional buyer to which notice is given that the
transfer is being made in reliance on Rule 144A or (B) in an offshore
transaction (as defined in Regulation S) in compliance with the provisions of
Regulation S, in each case in compliance with the requirements of this
Agreement; and it will notify such transferee of the transfer restrictions
specified in this Section.

     No transfer of a Certificate that is neither an ERISA Restricted
Certificate nor a Class R Certificate shall be registered unless the transferee
provides the Trustee with a representation that either (i) such transferee is
not, and is not acting for, on behalf of or with any assets of, an employee
benefit plan or other arrangement subject to Title I of ERISA or plan subject to
Section 4975 of the Code, or (ii) until the termination of the Swap Agreement,
the acquisition and holding of the Certificate are eligible for exemptive relief
under Prohibited Transaction Class Exemption ("PTCE") 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60 or PTCE 96-23.

     No transfer of an ERISA-Restricted Certificate or Class R Certificate shall
be made to any Person unless the Trustee has received (I) a representation that
such transferee is not an employee benefit plan subject to Title I of ERISA, a
plan subject to Section 4975 of the Code or a plan subject to any state, local,
federal, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code ("Similar Law") (collectively, a "Plan"), and is not
directly or indirectly acquiring such Certificate for, on behalf of, or with any
assets of any such Plan, or (II) solely in the case of an ERISA-Restricted
Certificate, (A) if the Certificate has been the subject of an ERISA-Qualifying
Underwriting, a representation that such Person is an insurance company that is
acquiring the Certificate with assets contained in an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60, or (B) solely in the case of
an ERISA Restricted Certificate that is a Definitive Certificate, an Opinion of
Counsel satisfactory to the Trustee, and upon which the Trustee and the NIMs
Insurer shall be entitled to rely, to the effect that the acquisition

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<PAGE>

and holding of such Certificate will not constitute or result in a nonexempt
prohibited transaction under Title I of ERISA or Section 4975 of the Code, or a
violation of Similar Law, and will not subject the Trustee, the Servicer, the
NIMs Insurer 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 Servicer, the NIMs Insurer or the Depositor.

     For purposes of the two immediately preceding paragraphs of this Subsection
5.02(b), other than clause (II)(B) in the immediately preceding paragraph, the
representations as set forth therein shall be deemed to have been made to the
Trustee by the transferee's acceptance of the Certificate (or the acceptance by
a Certificate Owner of the beneficial interest in the Certificate).

     Notwithstanding any other provision herein to the contrary, any purported
transfer of a Certificate to or on behalf of a Plan without the delivery to the
Trustee of a representation or an Opinion of Counsel satisfactory to the Trustee
as described above shall be void and of no effect. The Trustee shall not be
under any liability to any Person for any registration or transfer of any
Certificate that is in fact not permitted by this Section 5.02(b), nor shall the
Trustee be under any liability 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 by
the Trustee in accordance with the foregoing requirements. The Trustee shall be
entitled, but not obligated, to recover from any Holder of any Certificate that
was in fact a Plan and that held such Certificate in violation of this Section
5.02(b) all payments made on such Certificate at and after the time it commenced
such holding. Any such payments so recovered shall be paid and delivered to the
last preceding Holder of such Certificate that is not a Plan.

          (c) Each Person who has or who acquires any Ownership Interest in a
Class R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class R
Certificate are expressly subject to the following provisions:

               (i) Each Person holding or acquiring any Ownership Interest in a
Class R Certificate shall be a Permitted Transferee and shall promptly notify
the Trustee of any change or impending change in its status as a Permitted
Transferee.

               (ii) No Ownership Interest in a Class R Certificate may be
purchased, transferred or sold, directly or indirectly, except in accordance
with the provisions hereof. No Ownership Interest in a Class R Certificate may
be registered on the Closing Date or thereafter transferred, and the Trustee
shall not register the Transfer of any Class R 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 E-1 and an affidavit of the proposed transferor in the form
attached hereto as Exhibit E-2. In the absence of a contrary instruction from
the transferor of a Class R Certificate, declaration (11) in Appendix A of the
Transfer Affidavit may be left blank. If the transferor requests by written
notice to the Trustee prior to the date of the proposed transfer that one of the
two other forms of declaration (11) in Appendix A of the Transfer Affidavit be
used, then the requirements of this Section 5.02(c)(ii) shall not have been
satisfied unless the Transfer Affidavit includes such other form of declaration.

               (iii) Each Person holding or acquiring any Ownership Interest in
a Class R 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 Class R 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

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<PAGE>

Transfer of a Class R Certificate and (C) not to Transfer its Ownership Interest
in a Class R Certificate or to cause the Transfer of an Ownership Interest in a
Class R Certificate to any other Person if it has actual knowledge that such
Person is not a Permitted Transferee. Further, no transfer, sale or other
disposition of any Ownership Interest in a Class R Certificate may be made to a
person who is not a U.S. Person (within the meaning of Section 7701 of the Code)
unless such person furnishes the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI (or any successor
thereto) and the Trustee consents to such transfer, sale or other disposition in
writing.

               (iv) Any attempted or purported Transfer of any Ownership
Interest in a Class R Certificate in violation of the provisions of this Section
5.02(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
Class R Certificate in violation of the provisions of this Section 5.02(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 Class
R Certificate. The Trustee shall be under no liability to any Person for any
registration of Transfer of a Class R Certificate that is in fact not permitted
by Section 5.02(b) and this Section 5.02(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 Class R
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 Class R 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 Permitted Transferee of such
Certificate.

               (v) At the option of the Holder of the Class R Certificate, the
Class SWR Interest, the Class LTR Interest and the residual interest in the
Upper Tier REMIC may be severed and represented by separate certificates (with
the certificate that represents the Residual Interest also representing all
rights of the Class R Certificate to distributions attributable to an interest
rate on the Class R Certificate in excess of the REMIC Pass-Through Rate);
provided, however, that such separate certification may not occur until the
Trustee and the NIMs Insurer receive an Opinion of Counsel to the effect that
separate certification in the form and manner proposed would not result in the
imposition of federal tax upon the Trust Fund or any of the REMICs provided for
herein or cause any of the REMICs provided for herein to fail to qualify as a
REMIC; and provided further, that the provisions of Sections 5.02(b) and (c)
will apply to each such separate certificate as if the separate certificate were
a Class R Certificate. If, as evidenced by an Opinion of Counsel, it is
necessary to preserve the REMIC status of any of the REMICs provided for herein,
the Class SWR Interest, the Class LTR Interest and the residual interest in the
Upper Tier REMIC shall be severed and represented by separate Certificates (with
the certificate that represents the Residual Interest also representing all
rights of the Class R Certificate to distributions attributable to an interest
rate on the Class R Certificate in excess of the REMIC Pass-Through Rate).

     The restrictions on Transfers of a Class R Certificate set forth in this
Section 5.02(c) shall cease to apply (and the applicable portions of the legend
on a Class R Certificate may be deleted) with respect to Transfers occurring
after delivery to the Trustee and the NIMs Insurer of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, the NIMs
Insurer or the Depositor, to the effect that the elimination of such
restrictions will not cause any of the REMICs provided for herein 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, any REMIC provided for herein, a
Certificateholder or another Person. Each Person holding or acquiring any
Ownership Interest in a Class R Certificate hereby consents to any amendment of
this Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Class R

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<PAGE>

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 Class R Certificate that is held by a Person that is not a Permitted
Transferee to a Holder that is a Permitted Transferee.

          (d) The transferor of the Class R Certificate shall notify the Trustee
in writing upon the transfer of the Class R Certificate.

          (e) The Privately Offered Certificates may not be offered or sold
except to (i) QIBs in reliance on the exemption from the registration
requirements of the Securities Act provided by Rule 144A that are "United States
Persons" for purposes of the Code, (ii) Institutional Accredited Investors, that
are United States Persons (as defined by Regulation S) for purposes of the Code
or (iii) outside the United States, persons who are not U.S. persons (as defined
by Regulation S) in offshore transactions in compliance with Regulation S.

     To permit compliance with the foregoing in connection with any proposed
transfer of the Privately Offered Certificates, the Trustee shall cooperate with
the Depositor in furnishing, upon the request of any Certificateholder, to such
Certificateholder or Certificate Owner and a prospective transferee designated
by such Certificateholder, the information required to be delivered under Rule
144A(d)(4).

          Each Certificateholder, by its acceptance of a Privately Offered
Certificate, will be deemed to have represented and agreed as follows (terms
used in this section that are defined in Rule 144A are used herein as defined
therein):

               (1) It (A)(i) is a QIB, (ii) is aware that the sale of the Class
          B-1, Class B-2, Class B-3 or Class B-4 Certificates, as applicable, is
          being made in reliance on Rule 144A and (iii) is acquiring such
          Certificates for its own account or for the account of a QIB, as the
          case may be, (B)(i) is an Institutional Accredited Investor, (ii) is
          purchasing the Class B-1, Class B-2, Class B-3 or Class B-4
          Certificates being sold to it for its own account or for certain
          qualified institutional accounts and (iii) is not acquiring such Class
          B-1, Class B-2, Class B-3 or Class B-4 Certificates with a view to any
          resale or distribution thereof other than in accordance with the
          restrictions set forth below or (C) (i) is not a U.S. person (as
          defined by Regulation S), (ii) was at the time the buy order was
          originated outside the United States and (iii) until the expiration of
          the 40-day distribution compliance period (within the meaning of
          Regulation S), no offer, sale, pledge or other transfer of such
          Certificates or any interest thereon shall be made in the United
          States or to or for the account or benefit of a U.S. person (as
          defined by Regulation S).

               (2) It understands that the Privately Offered Certificates have
          not been and will not be registered under the Securities Act and may
          not be reoffered, resold, pledged or otherwise transferred except
          (A)(i) to a Person whom it reasonably believes is a QIB in a
          transaction meeting the requirements of Rule 144A, (ii) to an
          Institutional Accredited Investor in a transaction exempt from the
          registration requirements of the Securities Act, or (iii) outside the
          United States, to Persons who are not U.S. persons (as defined by
          Regulation S) in offshore transactions in compliance with Regulation S
          and (B) in accordance with all applicable securities laws of the
          states of the United States.

               (3) It understands that any Privately Offered Certificates
          acquired by it pursuant to clause (1)(B) above will be in the form of
          definitive physical certificates ("Certificates") bearing the legend
          set forth in paragraph (4) below.

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               (4) The Privately Offered Certificates will bear a legend to the
          following effect:

               THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
               OF 1933, AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF
               1940, AS AMENDED (THE "1940 ACT") OR ANY STATE SECURITIES OR
               "BLUE SKY" LAWS, AND MAY NOT, DIRECTLY OR INDIRECTLY, BE SOLD OR
               OTHERWISE TRANSFERRED, OR OFFERED FOR SALE, UNLESS SUCH TRANSFER
               IS NOT SUBJECT TO REGISTRATION UNDER THE ACT, THE 1940 ACT AND
               ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER ALSO
               COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING
               AND SERVICING AGREEMENT. IF THE CERTIFICATE IS A DEFINITIVE
               CERTIFICATE, NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS
               THE TRUSTEE SHALL HAVE RECEIVED, IN FORM AND SUBSTANCE
               SATISFACTORY TO THE TRUSTEE (A) AN INVESTMENT LETTER FROM THE
               PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS FROM THE TRANSFEROR
               REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

               THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO
               OFFER, SELL OR OTHERWISE TRANSFER SUCH CERTIFICATE ONLY (A)
               PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
               EFFECTIVE UNDER THE ACT, (B) TO A PERSON IT REASONABLY BELIEVES
               IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
               UNDER THE ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
               ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
               GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
               (C) TO AN INSTITUTIONAL ACCREDITED INVESTOR AS DEFINED IN RULE
               501(A)(1), (2), (3) OR (7) OF REGULATION D, OR (D) OUTSIDE THE
               UNITED STATES TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED BY
               REGULATION S OF THE ACT ("REGULATION S")) IN AN OFFSHORE
               TRANSACTION IN COMPLIANCE WITH REGULATION S, AND IN EACH CASE IN
               ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
               STATES AND SUBJECT TO THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH
               OFFER, SALE OR TRANSFER TO REQUIRE THE DELIVERY OF A CERTIFICATE
               OF TRANSFER IN THE FORM APPEARING IN THE POOLING AND SERVICING
               AGREEMENT.

               Any Privately Offered Certificate acquired pursuant to Regulation
          S will bear the following two legends in replacement of the legends
          above:

               THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT
               OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES LAWS.
               NEITHER THIS CERTIFICATE NOR ANY INTEREST OR PARTICIPATION HEREIN
               MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
               ENCUMBERED OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES (AS
               DEFINED IN RULES 901 THROUGH 905 OF THE ACT ("REGULATION S")) OR
               TO, OR FOR THE

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               ACCOUNT OR BENEFIT OF, A U.S. PERSON (AS DEFINED IN REGULATION
               S), IN THE ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION
               IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

               THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES
               (A) THAT, UNTIL THE EXPIRATION OF THE APPLICABLE "DISTRIBUTION
               COMPLIANCE PERIOD" WITHIN THE MEANING OF REGULATION S, ANY OFFER,
               SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE SHALL NOT BE
               MADE IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT
               OF, ANY U.S. PERSON (EACH AS DEFINED IN REGULATION S) AND (B) TO
               OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE WITHIN
               THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S.
               PERSON (EACH AS DEFINED IN REGULATION S) ONLY (1) PURSUANT TO A
               REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
               THE ACT, (2) TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
               INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE ACT THAT
               PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
               INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
               BEING MADE IN RELIANCE ON RULE 144A, (3) TO AN INSTITUTIONAL
               ACCREDITED INVESTOR AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7)
               OF REGULATION D, OR (4) OUTSIDE THE UNITED STATES TO A PERSON WHO
               IS NOT A U.S. PERSON (AS DEFINED BY REGULATION S OF THE ACT
               ("REGULATION S")) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
               REGULATION S, AND IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
               SECURITIES LAWS OF THE UNITED STATES AND SUBJECT TO THE TRUSTEE'S
               RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER TO REQUIRE THE
               DELIVERY OF A CERTIFICATE OF TRANSFER IN THE FORM APPEARING IN
               THE POOLING AND SERVICING AGREEMENT.

               (5) Any information the purchaser desires concerning the
          Privately Offered Certificates or any other matter relevant to its
          decision to purchase the Privately Offered Certificates is or has been
          made available to it.

     The transferor of a Privately Offered Certificate or a beneficial interest
in a Privately Offered Certificate (except in the case of the transfer of (i) a
beneficial interest in a Rule 144A Book-Entry Certificate for a beneficial
interest in a Rule 144A Book-Entry Certificate or (ii) a beneficial interest in
a Regulation S Book-Entry Certificate for a beneficial interest in a Regulation
S Book-Entry Certificate) shall be required to provide to the Trustee (i) in the
case of a transferor holding a Definitive Certificate or a beneficial interest
in a Regulation S Book-Entry Certificate and wishing to transfer to a Person in
the form of a beneficial interest in a Rule 144A Book-Entry Certificate, a
transferor letter substantially in the form attached as Exhibit H and a
transferee letter substantially in the form attached as Exhibit H or (ii) in the
case of a transferor holding a Definitive Certificate or a beneficial interest
in a Rule 144A Book-Entry Certificate and wishing to transfer to a Person in the
form of a beneficial interest in a Regulation S Book-Entry Certificate, a
transferor letter substantially in the form attached as Exhibit Q.

     No transfer of a Certificate to a transferee in the form of a Definitive
Certificate shall be registered unless such transfer is (i) to a QIB and a
transferor letter substantially in the form attached as

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Exhibit R and a transferee letter substantially in the form attached as Exhibit
H are delivered to the Trustee, (ii) outside the United States, to a person who
is not a U.S. person (as defined by Regulation S) in an offshore transaction in
compliance with Regulation S and a transferor letter substantially in the form
attached as Exhibit Q is delivered to the Trustee or (iii) to an "accredited
investor" under Rule 501(a)(1), (2), (3) or (7) under the Securities Act and a
transferor letter substantially in the form attached as Exhibit F and a
transferor letter substantially in the form attached as Exhibit G are delivered
to the Trustee.

     The Trustee may conclusively rely on any such transferor letter and
representation letter as sufficient to confirm that the proposed 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.

          (f) The preparation and delivery of all certificates, opinions and
other writings referred to above in this Section 5.02 shall not be an expense of
the Issuing Entity, the Depositor or the Trustee.

     SECTION 5.03. 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 5.03, 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 and their counsel) connected therewith. Any replacement Certificate
issued pursuant to this Section 5.03 shall constitute complete and indefeasible
evidence of ownership in the Issuing Entity, as if originally issued, whether or
not the lost, stolen or destroyed Certificate shall be found at any time. All
Certificates surrendered to the Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

     SECTION 5.04. Persons Deemed Owners.

     The NIMs Insurer, the Trustee and any agent of the NIMs Insurer or 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 NIMs
Insurer nor the Trustee, nor any agent of the NIMs Insurer or the Trustee, shall
be affected by any notice to the contrary.

     SECTION 5.05. 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 NIMs Insurer or the Depositor
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
NIMs Insurer or the Depositor 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

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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 5.06. Book-Entry Certificates.

     The Regular 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. The Class C, Class P and Class R Certificates shall be definitive
certificates. The Book-Entry Certificates shall initially be registered on the
Certificate Register in the name of the Depository or its nominee, and no
Certificate Owner of a Book-Entry Certificate will receive a definitive
certificate representing such Certificate Owner's interest in such Certificates,
except as provided in Section 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of the Book-Entry Certificates pursuant to Section 5.08:

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

          (b) the Depositor, the NIMs Insurer 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 the Book-Entry 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 the Book-Entry
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to those established by law and agreements
between the Owners of the Book-Entry Certificates and the Depository and/or the
Depository Participants. Pursuant to the Depository Agreement, unless and until
Definitive Certificates are issued pursuant to Section 5.08, 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.

     In the event that Definitive Certificates are issued pursuant to Section
5.08(b), clauses (a) through (g) of this Section 5.06 shall continue to apply
with respect to all remaining Book-Entry Certificates.

     SECTION 5.07. Notices to Depository.

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     Whenever any notice or other communication is required to be given to
Certificateholders of the 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 and the Trustee shall give all such
notices and communications to the Depository.

     SECTION 5.08. Definitive Certificates.

          (a) If, after Book-Entry Certificates have been issued with respect to
any Certificates, (i) the Depository or the Depositor advises the Trustee that
the Depository is no longer willing, qualified or able to discharge properly its
responsibilities under the Depository Agreement with respect to such
Certificates and the Trustee or the Depositor is unable to locate a qualified
successor, (ii) the Depositor notifies the Trustee of its intent to terminate
the book-entry system through the Depository and, upon receipt of notice of such
intent from the Depository, the Certificate Owners of the Book-Entry
Certificates agree to initiate such termination or (iii) after the occurrence
and continuation of an Event of Default, Certificate Owners of such Book-Entry
Certificates having not less than 51% of the Voting Rights evidenced by any
Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Book-Entry Certificates and the NIMs Insurer, through the
Depository, of the occurrence of any such event and of the availability of
Definitive Certificates to Certificate Owners of such Class 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 Authenticating Agent shall authenticate 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. Upon the issuance of such
Definitive Certificates, all references herein to obligations imposed upon or to
be performed by the Depository shall be deemed to be imposed upon and performed
by the Trustee, to the extent applicable with respect to such Definitive
Certificates and the Trustee shall recognize the Holders of such Definitive
Certificates as Certificateholders hereunder.

          (b) Any Privately Offered Certificate sold to an "accredited investor"
(as defined under Rule 501(a)(1), (2), (3) or (7) under the Securities Act)
shall be issued in the form of one or more Definitive Certificates. The Trustee
will effect such transfer in accordance with its customary procedures.

     SECTION 5.09. 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 where Certificates may be surrendered
for registration of transfer or exchange. The Trustee initially designates its
offices at 135 South LaSalle Street, Chicago, Illinois 60603, Attention: Ownit
2006-3 as offices 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.

     SECTION 5.10. Authenticating Agents.

          (a) One or more Authenticating Agents (each, an "Authenticating
Agent") may be appointed hereunder each of which shall be authorized to act on
behalf of the Trustee in authenticating the Certificates. Wherever reference is
made in this Agreement to the authentication of Certificates by the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication on behalf of the Trustee by an Authenticating Agent and a
certificate of authentication executed on behalf

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of the Trustee by an Authenticating Agent. Each Authenticating Agent must be an
entity organized and doing business under the laws of the United States of
America or any state thereof, having a combined capital and surplus of at least
$15,000,000, authorized under such laws to operate a trust business and subject
to supervision or examination by federal or state authorities. If the
Authenticating Agent is a party other than the Trustee, the Trustee shall have
no liability in connection with the performance or failure of performance of the
Authenticating Agent. LaSalle Bank National Association is hereby appointed as
the initial Authenticating Agent. The Trustee shall be the Authenticating Agent
during any such time as no other Authenticating Agent has been appointed and has
not resigned.

          (b) Any Person into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which any Authenticating Agent shall be a
party, or any Person succeeding to the corporate agency business of any
Authenticating Agent, shall continue to be the Authenticating Agent without the
execution or filing of any paper or any further act on the part of the Trustee
or the Authenticating Agent.

          (c) Any Authenticating Agent may at any time resign by giving at least
30 days' advance written notice of resignation to the Trustee and the Depositor.
Except with respect to the initial Authenticating Agent, LaSalle Bank National
Association, which shall be the Authenticating Agent for so long as it is the
Trustee may at any time terminate the agency of any Authenticating Agent by
giving written notice of termination to such Authenticating Agent and the
Depositor. Upon receiving a notice of resignation or upon such a termination, or
in case at any time any Authenticating Agent shall cease to be eligible in
accordance within the provisions of this Section 5.10, the Trustee may appoint a
successor Authenticating Agent, shall give written notice of such appointment to
the Depositor and shall mail notice of such appointment to all Holders of
Certificates. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers, duties
and responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent. No successor Authenticating Agent
shall be appointed unless eligible under the provisions of this Section 5.10. No
Authenticating Agent shall have responsibility or liability for any action taken
by it as such at the direction of the Trustee.

                                   ARTICLE VI

                         THE DEPOSITOR AND THE SERVICER

     SECTION 6.01. Respective Liabilities of the Depositor and the Servicer.

     The Depositor and the Servicer shall each be liable in accordance herewith
only to the extent of the obligations specifically and respectively imposed upon
and undertaken by them herein.

     SECTION 6.02. Merger or Consolidation of the Depositor or the Servicer.

     Except as provided in the next paragraph, the Depositor and the Servicer
will each keep in full effect its existence, rights and franchises as a
corporation, a limited liability company, a limited partnership or banking
association under the laws of the United States or under the laws of one of the
States thereof and will each 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, or any of the Mortgage Loans and to perform
its respective duties under this Agreement.

     Any Person into which the Depositor or the Servicer may be merged or
consolidated, or any Person resulting from any merger or consolidation to which
the Depositor or the Servicer shall be a party,

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or any Person succeeding to the business of the Depositor or the Servicer, shall
be the successor of the Depositor or the Servicer, as the case may be,
hereunder, without the execution or filing of any paper or any further act on
the part of any of the parties hereto, anything herein to the contrary
notwithstanding (except for the execution of an assumption agreement where such
succession is not effected by operation of law); provided, however, that the
successor or surviving Person to the Servicer shall be qualified to sell
mortgage loans to, and to service mortgage loans on behalf of, Fannie Mae or
Freddie Mac.

     SECTION 6.03. Limitation on Liability of the Depositor, the Servicer and
Others.

     None of the Depositor, the Servicer, nor any of the directors, officers,
employees or agents of the Depositor or the Servicer shall be under any
liability to the Issuing Entity or the Certificateholders for any action taken
or for refraining from the taking of any action in good faith pursuant to this
Agreement, or for errors in judgment; provided, however, that this provision
shall not protect the Depositor, the Servicer or any such Person against any
breach of representations or warranties made by it herein or protect the
Depositor, the Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or negligence
in the performance of duties or by reason of reckless disregard of obligations
and duties hereunder. The Depositor or the Servicer and any director, officer,
employee or agent of the Depositor or the Servicer may rely in good faith on any
document of any kind prima facie properly executed and submitted by any Person
respecting any matters arising hereunder. The Depositor, the Servicer and any
director, officer, employee or agent of the Depositor or the Servicer shall be
indemnified by the Issuing Entity and held harmless against any loss, liability
or expense, incurred in connection with the performance of their duties under
this Agreement or incurred in connection with any audit, controversy or judicial
proceeding relating to a governmental taxing authority or any legal action
relating to this Agreement or the Certificates, other than any loss, liability
or expense (i) incurred by reason of willful misfeasance, bad faith or
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder or (ii) which does not constitute
an "unanticipated expense" within the meaning of Treasury Regulation Section
1.860G-1(b)(3)(ii). Neither the Depositor nor the Servicer shall be under any
obligation to appear in, prosecute or defend any legal action that is not
incidental to its respective duties hereunder and that in its opinion may
involve it in any expense or liability; provided, however, that either of the
Depositor or the Servicer in its discretion may undertake any such action that
it may deem necessary or desirable in respect of this Agreement and the rights
and duties of the parties hereto and the interests of the Trustee and the
Certificateholders hereunder. In such event, the legal expenses and costs of
such action and any liability resulting therefrom shall be expenses, costs and
liabilities of the Issuing Entity, and the Depositor and the Servicer shall be
entitled to be reimbursed therefor out of the Collection Account as provided by
Section 3.08 hereof.

     SECTION 6.04. Limitation on Resignation of Servicer.

     Subject to the provisions of Section 7.01, the second paragraph of Section
7.02, the second paragraph of Section 6.02 and the following paragraph of this
Section 6.04, the Servicer shall not resign from the obligations and duties
hereby imposed on it except upon determination that its duties hereunder are no
longer permissible under applicable law. Any such determination permitting the
resignation of the Servicer shall be evidenced by an Opinion of Counsel to such
effect delivered to the Trustee and the NIMs Insurer. No such resignation shall
become effective until the Trustee or a successor servicer reasonably acceptable
to the NIMs Insurer and the Trustee is appointed and has assumed the Servicer's
responsibilities, duties, liabilities and obligations hereunder. Any such
resignation shall not relieve the Servicer of any of the obligations specified
in Section 7.01 and 7.02 as obligations that survive the resignation or
termination of the Servicer.

     Notwithstanding anything to the contrary in the previous paragraph of this
Section 6.04, the Trustee, the Depositor and the NIMs Insurer hereby
specifically (i) consent to the pledge and assignment

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by the Servicer of all the Servicer's right, title and interest in, to and under
this Agreement to the Servicing Rights Pledgee, if any, for the benefit of
certain lenders, and (ii) agree that upon delivery to the Trustee by the
Servicing Rights Pledgee of a letter signed by the Servicer whereby the Servicer
shall resign as Servicer under this Agreement, notwithstanding anything to the
contrary which may be set forth in Section 3.04 above, the Trustee shall appoint
the Servicing Rights Pledgee or its designee as successor servicer, provided
that the Servicer's resignation will not be effective unless, at the time of
such appointment, the Servicing Rights Pledgee or its designee (i) meets the
requirements of a successor servicer under Section 7.03 of this Agreement
(including being acceptable to the Rating Agencies), provided, that the consent
and approval of the Trustee, the Depositor and the NIMS Insurer shall be deemed
to have been given to the Servicing Rights Pledgee or its designee, and the
Servicing Rights Pledgee and its designee are hereby agreed to be acceptable to
the Trustee, the Depositor and the NIMS Insurer and (ii) agrees to be subject to
the terms of this Agreement. If, pursuant to any provision hereof, the duties of
the Servicer are transferred to a successor servicer, the entire amount of the
Servicing Fee and other compensation payable to the Servicer pursuant hereto
shall thereafter be payable to such successor servicer.

     SECTION 6.05. Errors and Omissions Insurance; Fidelity Bonds.

     The Servicer shall, for so long as it acts as servicer under this
Agreement, obtain and maintain in force (a) a policy or policies of insurance
covering errors and omissions in the performance of its obligations as servicer
hereunder, and (b) a fidelity bond in respect of its officers, employees and
agents. Each such policy or policies and bond shall, together, comply with the
requirements from time to time of Fannie Mae or Freddie Mac for Persons
performing servicing for mortgage loans purchased by Fannie Mae or Freddie Mac
unless the Servicer has obtained a waiver of such requirements from the Sponsor.
The Servicer shall provide the Trustee and the NIMs Insurer, upon request and
reasonable notice, with copies of such policies and fidelity bond or a
certification from the insurance provider evidencing such policies and fidelity
bond. The Servicer may be deemed to have complied with this provision if an
Affiliate of the Servicer has such errors and omissions and fidelity bond
coverage and, by the terms of such insurance policy or fidelity bond, the
coverage afforded thereunder extends to the Servicer. In the event that any such
policy or bond ceases to be in effect, the Servicer shall use its reasonable
best efforts to obtain a comparable replacement policy or bond from an insurer
or issuer meeting the requirements set forth above as of the date of such
replacement. Each year, together with the Annual Statement as to Compliance
delivered pursuant to Section 3.17, the Servicer shall cause to be delivered to
the Trustee proof of coverage of the fidelity bond and errors and omissions
insurance policy and a statement from the surety and the insurer that the surety
and the insurer shall endeavor to notify the Trustee within thirty (30) days
prior to such fidelity bond's errors and omissions insurance policy's
termination or material modification.

                                   ARTICLE VII

                        DEFAULT; TERMINATION OF SERVICER

     SECTION 7.01. Events of Default.

     "Event of Default," wherever used herein, means any one of the following
events:

               (i) any failure by the Servicer to make any Advance, to deposit
in the Collection Account or the Certificate Account or remit to the Trustee any
payment (excluding a payment required to be made under Section 4.01 hereof)
required to be made under the terms of this Agreement, which failure shall
continue unremedied for three Business Days and, with respect to a payment
required

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to be made under Section 4.01 hereof, for one Business Day, after the date on
which written notice of such failure shall have been given to the Servicer by
the Trustee or the Depositor; or

               (ii) any failure by the Servicer to observe or perform in any
material respect any other of the covenants or agreements on the part of the
Servicer contained in this Agreement or any representation or warranty shall
prove to be untrue, 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 the Servicer by the Trustee or the Depositor, or to the
Trustee and the Depositor by the NIMs Insurer or the Holders of Certificates
evidencing not less than 25% of the Voting Rights evidenced by the Certificates;
or

               (iii) a decree or order of a court or agency or supervisory
authority having jurisdiction for the appointment of a receiver or liquidator in
any insolvency, readjustment of debt, marshaling of assets and liabilities or
similar proceedings, or for the winding-up or liquidation of its affairs, shall
have been entered against the Servicer and such decree or order shall have
remained in force undischarged or unstayed for a period of 60 consecutive days;
or

               (iv) consent by the Servicer to the appointment of a receiver or
liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to the Servicer or all or
substantially all of the property of the Servicer; or

               (v) admission by a Servicer in writing of 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; or

               (vi) any failure by the Servicer to duly perform, within the
required time period, its obligations under Sections 3.17, 3.18 and 3.27 of this
Agreement, which failure continues unremedied for a period of ten (10) days
after the date on which written notice of such failure, requiring the same to be
remedied, shall have been given to the Servicer by any other party to this
Agreement; or

               (vii) the aggregate amount of cumulative Realized Losses incurred
since the Cut-off Date through the last day of the related Accrual Period
divided by the Pool Stated Principal Balance as of the Cut-off Date exceeds the
applicable percentages set forth below with respect to such Distribution Date:

<TABLE>
<CAPTION>
DISTRIBUTION DATE OCCURRING IN   PERCENTAGE
------------------------------   ----------
<S>                              <C>
April 2009 through March 2010       4.00%
April 2010 through March 2011       6.25%
April 2011 through March 2012       8.00%
April 2012 and thereafter           9.00%
</TABLE>

     If an Event of Default shall occur with respect to the Servicer, then, and
in each and every such case, so long as such Event of Default shall not have
been remedied within the applicable grace period, or solely with respect to
clause (i) above by 5:00 p.m. on the Servicer Remittance Date, the Trustee may,
or at the direction of the NIMs Insurer or the Holders of Certificates
evidencing not less than 25% of the Voting Rights evidenced by the Certificates
(with the written consent of the NIMs Insurer, except after a NIMs Insurer
Default), shall, by notice in writing to the Servicer and the Servicing Rights
Pledgee, if any (with a copy to each Rating Agency), terminate all of the rights
and obligations of the Servicer under this

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<PAGE>

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
Servicer of such written notice, all authority and power of the Servicer
hereunder, whether with respect to the Mortgage Loans or otherwise, shall pass
to and be vested in the Trustee. To the extent the Event of Default resulted
from the failure of the Servicer to make a required Advance, the Trustee shall
thereupon make any Advance described in Section 4.01 hereof subject to Section
3.04 hereof. The Trustee is hereby authorized and empowered to execute and
deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement or assignment of
the Mortgage Loans and related documents, or otherwise. Unless expressly
provided in such written notice, no such termination shall affect any obligation
of the Servicer to pay amounts owed pursuant to Article VIII. The Servicer
agrees to cooperate with the Trustee in effecting the termination of the
Servicer's responsibilities and rights hereunder, including, without limitation,
the transfer to the Trustee of all cash amounts which shall at the time be
credited to the Collection Account, or thereafter be received with respect to
the Mortgage Loans. The Servicer and the Trustee shall promptly notify the
Rating Agencies of the occurrence of an Event of Default or an event that, with
notice, passage of time, other action or any combination of the foregoing would
be an Event of Default, such notice to be provided in any event within two
Business Days of such occurrence.

     Notwithstanding any termination of the activities of the Servicer
hereunder, the 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 Servicer's rights and obligations as Servicer hereunder and
received after such notice, that portion thereof to which the Servicer would
have been entitled pursuant to Section 3.08(a), and any other amounts payable to
the Servicer hereunder the entitlement to which arose prior to the termination
of its activities hereunder. Notwithstanding anything herein to the contrary,
upon termination of the Servicer hereunder, any liabilities of the Servicer
which accrued prior to such termination shall survive such termination.

     SECTION 7.02. Trustee to Act; Appointment of Successor.

     On and after the time the Servicer receives a notice of termination
pursuant to Section 7.01 hereof, the Trustee shall, to the extent provided in
Section 3.04, be the successor to the Servicer in its capacity as servicer under
this Agreement and the transactions set forth or provided for herein and shall
be subject to all the responsibilities, duties and liabilities relating thereto
placed on the Servicer by the terms and provisions hereof and applicable law
including the obligation to make advances pursuant to Section 4.01. As
compensation therefor, subject to the last paragraph of Section 7.01, the
Trustee shall be entitled to all fees, compensation and reimbursement for costs
and expenses relating to the Mortgage Loans that the Servicer would have been
entitled to hereunder if the Servicer had continued to act hereunder.
Notwithstanding the foregoing, if the Trustee has become the successor to the
Servicer in accordance with Section 7.01 hereof, 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 Section 4.01 hereof 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
successor shall be approved by the NIMs Insurer and which does not adversely
affect the then current rating of the Certificates by each Rating Agency as the
successor to the Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Servicer hereunder. Any successor
Servicer shall be an institution that is acceptable to the NIMs Insurer and is a
Fannie Mae and Freddie Mac approved seller/servicer in good standing, that has a
net worth of at least $15,000,000, and that is willing to service the Mortgage
Loans and executes and delivers 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 Servicer (other than liabilities of the Servicer under

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<PAGE>

Section 6.03 hereof incurred prior to termination of the Servicer under Section
7.01), with like effect as if originally named as a party to this Agreement; and
provided further that each Rating Agency acknowledges 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. No
appointment of a successor to the Servicer hereunder shall be effective until
the Trustee shall have consented thereto, prior written consent of the NIMs
Insurer is obtained (provided, that such prior written consent shall not be
required in the event that the Servicing Rights Pledgee or its designee is so
appointed as successor servicer) and written notice of such proposed appointment
shall have been provided by the Trustee to each Certificateholder. The Trustee
shall not resign as servicer until a successor servicer has been appointed and
has accepted such appointment. Pending appointment of a successor to the
Servicer hereunder, the Trustee, unless the Trustee is prohibited by law from so
acting, shall, subject to Section 3.04 hereof, act in such capacity as
hereinabove provided. In connection with such appointment and assumption, the
Trustee may make such arrangements for the compensation of such successor out of
payments on Mortgage Loans as it and such successor shall agree; provided,
however, that no such compensation shall be in excess of that permitted the
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 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 Servicer to deliver or provide, or
any delay in delivering or providing, any cash, information, documents or
records to it.

     Any successor to the Servicer as servicer shall give notice to the
Mortgagors of such change of servicer and shall, during the term of its service
as servicer maintain in force the policy or policies that the Servicer is
required to maintain pursuant to Section 6.05.

     In the event that the Servicer shall for any reason no longer be the
Servicer hereunder (including by reason of any Event of Default),
notwithstanding anything to the contrary above or anything to the contrary which
may be set forth in Section 3.04, the Trustee, the Depositor and the NIMS
Insurer hereby agree that within ten Business Days of delivery to the Trustee by
the Servicing Rights Pledgee of a letter signed by the Servicer whereby the
Servicer shall resign as Servicer under this Agreement, or within ten days of
Trustee's termination of the Servicer pursuant to Section 7.01 or 7.02, the
Servicing Rights Pledgee or its designee shall be appointed as successor
servicer; provided that at the time of such appointment (i) the Servicing Rights
Pledgee or such designee meets the requirements of a successor servicer set
forth above in this Section 7.03 (provided that the consent and approval of the
Trustee, the Depositor and the NIMs Insurer shall be deemed to have been given
to the Servicing Rights Pledgee or its designee, and the Servicing Rights
Pledgee and its designee are hereby agreed to be acceptable to the Trustee, the
Depositor and the NIMs Insurer) and (ii) the Servicing Rights Pledgee or such
designee agrees to be subject to the terms of this Agreement.

     SECTION 7.03. Notification to Certificateholders.

          (a) Upon any termination of or appointment of a successor to the
Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders, the Depositor 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 and the NIMs Insurer
notice of each such Event of Default hereunder known to the Trustee, unless such
Event of Default shall have been cured or waived.

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<PAGE>

                                  ARTICLE VIII

                             CONCERNING THE TRUSTEE

     SECTION 8.01. Duties of the Trustee.

     The Trustee, prior to the occurrence of an Event of Default and after the
curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement and use the same degree of care and skill in its exercise as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs. In case an Event of Default or other default by the
Servicer or the Depositor hereunder shall occur and be continuing, the Trustee
shall, at the written direction of the majority of the Certificateholders or the
NIMs Insurer, or may, proceed to protect and enforce its rights and the rights
of the Certificateholders or the NIMs Insurer under this Agreement by a suit,
action or proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this Agreement or in aid
of the execution of any power granted in this Agreement or for the enforcement
of any other legal, equitable or other remedy, as the Trustee, being advised by
counsel and subject to the foregoing, shall deem most effectual to protect and
enforce any of the rights of the Trustee, the NIMs Insurer and the
Certificateholders.

     The Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Trustee that are specifically required to be furnished pursuant to any provision
of this Agreement, shall examine them to determine whether they conform on their
face to the requirements of this Agreement. If any such instrument is found not
to conform on its face to the requirements of this Agreement in a material
manner, the Trustee shall notify the person providing such instrument of such
non-conformance and if the instrument is not corrected to its satisfaction, the
Trustee will provide notice thereof to the Certificateholders and the NIMs
Insurer and take such further action as directed by the Certificateholders and
the NIMs Insurer.

     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 misconduct, its negligent failure to perform its obligations in
compliance with this Agreement, or any liability that would be imposed by reason
of its willful misfeasance or bad faith; provided, however, that:

               (i) prior to the occurrence of an Event of Default, and after the
curing of all such Events of Default that 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, individually or as Trustee,
except for the performance of such duties and obligations as are specifically
set forth in this Agreement, no implied covenants or obligations shall be read
into this Agreement against the Trustee and 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 that it reasonably believed in
good faith to be genuine and to have been duly executed by the proper
authorities respecting any matters arising hereunder;

               (ii) the Trustee shall not, individually or as Trustee, be liable
for an error of judgment made in good faith by a Responsible Officer or
Responsible Officers of the Trustee unless the Trustee was negligent or acted in
bad faith or with willful misfeasance; and

               (iii) the Trustee shall not be liable, individually or as
Trustee, with respect to any action taken, suffered or omitted to be taken by it
in good faith in accordance with the direction of the

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<PAGE>

NIMs Insurer or the Holders in accordance with this Agreement relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee under
this Agreement.

     SECTION 8.02. Certain Matters Affecting the Trustee.

          (a) Except as otherwise provided in Section 8.01:

               (i) the Trustee may request and conclusively rely upon and shall
be fully protected in acting or refraining from acting upon any resolution,
Officer's Certificate, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, consent, order,
appraisal, bond or other paper or document believed by it to be genuine and to
have been signed or presented by the proper party or parties;

               (ii) the Trustee may consult with counsel of its choice and any
advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it hereunder
in good faith and in accordance with such Opinion of Counsel;

               (iii) the Trustee shall not be liable for any action taken,
suffered or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Agreement;

               (iv) prior to the occurrence of an Event of Default hereunder and
after the curing of all Events of Default that may have occurred, the Trustee
shall not be bound to make any investigation into the facts or matters stated in
any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless
requested in writing so to do by the NIMs Insurer or the Holders of each Class
of Certificates evidencing not less than 25% of the Voting Rights of such Class;

               (v) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents,
custodians, accountants or attorneys or independent contractors and the Trustee
will not be responsible for any misconduct or negligence on the part of any
agent, custodian, accountant, attorney or independent contractor appointed with
due care by it hereunder;

               (vi) the Trustee shall not be required to expend its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such liability is not assured to it;

               (vii) the Trustee shall not be liable, individually or as
Trustee, for any loss on any investment of funds pursuant to this Agreement
(other than as issuer of the investment security);

               (viii) the Trustee shall not be deemed to have knowledge of an
Event of Default until a Responsible Officer of the Trustee shall have received
written notice thereof;

               (ix) the Trustee shall be under no obligation to exercise any of
the trusts or powers vested in it by this Agreement or to make any investigation
of matters arising hereunder or to institute, conduct or defend any litigation
hereunder or in relation hereto at the request, order or direction of any of the
NIMs Insurer or the Certificateholders, pursuant to the provisions of this
Agreement, unless the NIMs Insurer or such Certificateholders shall have offered
to the Trustee reasonable security or

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<PAGE>

indemnity satisfactory to it against the costs, expenses and liabilities that
may be incurred therein or thereby; and

               (x) if requested by the Servicer, the Trustee may appoint the
Servicer as the Trustee's attorney-in-fact in order to carry out and perform
certain activities that are necessary or appropriate for the servicing and
administration of the Mortgage Loans pursuant to this Agreement. Such
appointment shall be evidenced by a power of attorney in such form as may be
agreed to by the Trustee and the Servicer. The Trustee shall have no liability
for any action or inaction of the Servicer in connection with such power of
attorney and the Trustee shall be indemnified by the Servicer for all
liabilities, costs, expenses incurred by the Trustee in connection with the
Servicer's use or misuse of such powers of attorney.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement. The Trustee shall have no duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to herein or
any financing statement or continuation statement evidencing a security
interest, or to see to the maintenance of any rerecording, refiling or
redepositing, as applicable, thereof, (B) to see to any insurance or (C) to see
to the payment or discharge of any tax, assessment, or other governmental charge
or any lien or encumbrance of any kind owing with respect to, assessed or levied
against, any part of the Trust Fund.

     SECTION 8.03. Trustee Not Liable for Certificates or Mortgage Loans.

     The recitals contained herein shall be taken as the statements of the
Depositor or the Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representation as to
the validity or sufficiency of this Agreement, of any Mortgage Loan, or any
related document other than with respect to the execution and authentication of
the Certificates, if it so executed or authorized the Certificates. The Trustee
shall not be accountable for the use or application by the Depositor or the
Servicer of any funds paid to the Depositor or the Servicer in respect of the
Mortgage Loans or deposited in or withdrawn from the Collection Account or the
Certificate Account by the Depositor or the Servicer.

     SECTION 8.04. Trustee May Own Certificates.

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Certificates with the same rights as it would have if it was not the
Trustee.

     SECTION 8.05. Trustee's Fees and Expenses.

     The Trustee shall be entitled to receive on each Distribution Date the
Trustee Fee. The Trustee shall be entitled to compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust) for all services rendered by it in the execution of the trusts
hereby created and in the exercise and performance of any of the powers and
duties hereunder of the Trustee.

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<PAGE>

     SECTION 8.06. Indemnification and Expenses of Trustee.

          (a) LaSalle (as Trustee and in its individual capacity) and its
respective directors, officers, employees and agents shall be entitled to
indemnification from the Issuing Entity for any loss, liability or expense
incurred in connection with any audit, controversy or judicial proceeding
relating to a governmental authority or any legal proceeding or incurred without
negligence or willful misconduct on their part, arising out of, or in connection
with the acceptance or administration of the trusts created hereunder or in
connection with the performance of its respective duties hereunder, including
any applicable fees and expenses payable hereunder, and the costs and expenses
of defending themselves against any claim in connection with the exercise or
performance of any of their powers or duties hereunder, provided that:

               (i) with respect to any such claim, the Trustee shall have given
the Depositor and the Holders written notice thereof promptly after the Trustee
shall have knowledge thereof; provided that failure to so notify shall not
relieve the Issuing Entity of the obligation to indemnify the Trustee; however,
any reasonable delay by the Trustee to provide written notice to the Depositor
and the Holders promptly after the Trustee shall have obtained knowledge of a
claim shall not relieve the Issuing Entity of the obligation to indemnify the
Trustee under this Section 8.06;

               (ii) while maintaining control over its own defense, the Trustee
shall cooperate and consult fully with the Depositor in preparing such defense;

               (iii) notwithstanding anything to the contrary in this Section
8.06, the Issuing Entity shall not be liable for settlement of any such claim by
the Trustee entered into without the prior consent of the Depositor, which
consent shall not be unreasonably withheld; and

               (iv) any such loss, liability or expense to be indemnified by the
Issuing Entity must constitute an "unanticipated expense" of the Trust Fund
within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

     The provisions of this Section 8.06 shall survive any termination of this
Agreement and the resignation or removal of the Trustee and shall be construed
to include, but not be limited to any loss, liability or expense under any
environmental law.

          (b) The Trustee shall be entitled to reimbursement by the Trust Fund
of all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with this Agreement (including fees and expenses of its
counsel and all persons not regularly in its employment), except any such
expenses, disbursements and advances that either (i) arise from its negligence,
bad faith or willful misconduct or (ii) do not constitute "unanticipated
expenses" within the meaning of Treasury Regulations Section 1.860G-1(b)(3)(ii).

          (c) The Trustee's right to indemnification and reimbursement shall be
subject to a cap of $400,000 in the aggregate in any calendar year, excluding
(i) any Servicing Transfer Costs and (ii) any costs, damages or expenses
incurred by the Trustee in connection with any "high cost" home loans or any
predatory or abusive lending laws, which amounts shall in no case be subject to
any such limitation; provided, however, that such cap shall apply only if NIM
Notes have been issued and shall cease to apply after the date on which any NIM
Notes are paid in full; provided further, however, that amounts incurred by the
Trustee in excess of such annual limit in any calendar year shall be payable to
the Trustee in succeeding calendar years, subject to such annual limit for each
applicable calendar year. Any amounts reimbursable hereunder and all amounts
which the NIMs Insurer is entitled to be paid or

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<PAGE>

reimbursed shall have been paid or reimbursed. Any amounts not in excess of this
cap may be withdrawn by the Trustee from the Certificate Account at any time.

          (d) The Custodian shall be entitled to indemnification and
reimbursement of expenses to the same extent as the Trustee is entitled to such
amounts pursuant to subsection (a) and (b) of this Section 8.06, without regard
to subsection (c) of this Section 8.06.

     SECTION 8.07. Eligibility Requirements for Trustee.

     The Trustee hereunder shall, at all times, be a corporation or 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 of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating that would
not cause any of the Rating Agencies to reduce their respective ratings of any
Class of Certificates below the ratings issued on the Closing Date (or having
provided such security from time to time as is sufficient to avoid such
reduction) and reasonably acceptable to the NIMs Insurer. If such corporation or
association publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 8.07 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.07, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.08 hereof. The corporation or
national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the NIMs Insurer and their respective
Affiliates; provided, however, that such corporation cannot be an Affiliate of
the Servicer other than the Trustee in its role as successor to the Servicer.

     SECTION 8.08. Resignation and Removal of Trustee.

     The Trustee may at any time resign and be discharged from the trusts hereby
created by (1) giving written notice of resignation to the Depositor, the
Servicer and the NIMs Insurer by mailing notice of resignation by first class
mail, postage prepaid, to the Certificateholders at their addresses appearing on
the Certificate Register and each Rating Agency, not less than 60 days before
the date specified in such notice when, subject to Section 8.09, such
resignation is to take effect, and (2) acceptance of appointment by a successor
trustee acceptable to the NIMs Insurer in accordance with Section 8.09 and
meeting the qualifications set forth in Section 8.07. If no successor trustee
shall have been so appointed and have accepted appointment within 30 days after
the giving of such notice or 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 8.07 hereof and shall fail to resign after
written request thereto by the Depositor or the NIMs Insurer or (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 reimburse the Trust Fund against such tax, then the Depositor or the NIMs
Insurer may remove the Trustee and the Depositor with the consent of the NIMS
insurer shall promptly appoint a successor trustee by written instrument, in
duplicate, one copy of which instrument shall be delivered to the Trustee and
one copy of which shall be delivered to the successor trustee.

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<PAGE>

     The Holders evidencing at least 51% of the Voting Rights of all Classes of
Certificates, with the consent of the NIMs Insurer, or the NIMs Insurer upon
failure of the Trustee to perform its obligations hereunder may at any time
remove the Trustee and the Depositor shall appoint a successor trustee by
written instrument or instruments, in triplicate, signed by such Holders or
their attorneys-in-fact duly authorized (or by the NIMs Insurer), one complete
set of which instruments shall be delivered by the successor trustee to the
Servicer, one complete set to the Trustee so removed and one complete set to the
successor so appointed. Notice of any removal of the Trustee shall be given to
the NIMs Insurer and each Rating Agency by the successor trustee.

     Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.08 shall become
effective upon acceptance of appointment by the successor trustee as provided in
Section 8.09 hereof.

     SECTION 8.09. Successor Trustee.

     Any successor trustee appointed as provided in Section 8.08 hereof shall
execute, acknowledge and deliver to the Depositor and to its predecessor
trustee, the NIMs Insurer and the 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, 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
8.09 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of Section 8.07 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 8.09, the Depositor shall mail notice of the succession of such trustee
hereunder to all Holders of Certificates. If the Depositor fails to mail such
notice within ten days after acceptance of appointment by the successor trustee,
the successor trustee shall cause such notice to be mailed at the expense of the
Depositor.

     SECTION 8.10. Merger or Consolidation of Trustee.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or 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
8.07 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 (except for the execution of an assumption agreement where such
succession is not effected by operation of law).

     SECTION 8.11. 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 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 and the NIMs Insurer 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,

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<PAGE>

whichever is applicable, and, subject to the other provisions of this Section
8.11, such powers, duties, obligations, rights and trusts as the Servicer and
the Trustee may consider necessary or desirable. Any such co-trustee or separate
trustee shall be subject to the written approval of the Servicer and the NIMs
Insurer. The Trustee shall not be liable for the actions of any co-trustee;
provided the appointment of a co-trustee shall not relieve the Trustee of its
obligations hereunder. If the Servicer and the NIMs Insurer 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 8.07 and no notice to
Certificateholders of the appointment of any co-trustee or separate trustee
shall be required under Section 8.09.

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

               (i) All rights, powers, duties and obligations conferred or
imposed upon the Trustee shall be conferred or imposed upon and exercised or
performed by the Trustee and such separate trustee or co-trustee jointly (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 as Trustee hereunder or as successor to the 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, with the consent of the NIMs Insurer, 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 VIII. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Servicer, the NIMs Insurer 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 8.12. Tax Matters.

          (a) It is intended that each of the REMICs provided for herein shall
constitute, and that the affairs of the Trust Fund shall be conducted so as to
allow each such REMIC to qualify as, a

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"real estate mortgage investment conduit" as defined in and in accordance with
the REMIC Provisions. It is also intended that each of the grantor trusts
provided for in Section 2.07 hereof shall constitute, and that the affairs of
the Trust Fund shall be conducted so as to allow each such grantor trust to
qualify as, a grantor trust under the provisions of Subpart E, Part I of
Subchapter J of the Code. 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 each of the REMICs provided for herein
and that in such capacity it shall: (a) prepare and file, or cause to be
prepared and filed, in a timely manner, a U.S. Real Estate Mortgage Investment
Conduit Income Tax Return (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 of
the REMICs and grantor trusts provided for herein, 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) 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 each of the REMICs provided for
herein; (c) make or cause to be made elections, on behalf of each of the REMICs
provided for herein to be treated as a REMIC on the federal tax return of such
REMICs for their first taxable years (and, if necessary, under applicable state
law); (d) 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 or other applicable
law, including without limitation, the calculation of any original issue
discount using the Prepayment Assumption; (e) provide information necessary for
the computation of tax imposed on the transfer of a Class R 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) to the
extent that they are under its control conduct the affairs of each of the REMICs
and grantor trusts provided for herein at all times that any Certificates are
outstanding so as to maintain the status of each of the REMICs provided for
herein as a REMIC under the REMIC Provisions and the status of each of the
grantor trusts provided for herein as a grantor trust under Subpart E, Part I of
Subchapter J of the Code; (g) not knowingly or intentionally take any action or
omit to take any action that would cause the termination of the REMIC status of
any of the REMICs provided for herein or result in the imposition of tax upon
any such REMIC; (h) not knowingly or intentionally take any action or omit to
take any action that would cause the termination of the grantor trust status
under Subpart E, Part I of Subchapter J of the Code of any of the grantor trusts
provided for herein or result in the imposition of tax upon any such grantor
trust; (i) pay, from the sources specified in the last paragraph of this Section
8.12, the amount of any federal, state and local taxes, including prohibited
transaction taxes as described below, imposed on each of the REMICs provided for
herein 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); (j) sign or cause to be signed
federal, state or local income tax or information returns; (k) maintain records
relating to each of the REMICs provided for herein, including but not limited to
the income, expenses, assets and liabilities of each of the REMICs and grantor
trusts provided for herein; and (l) as and when necessary and appropriate,
represent each of the REMICs provided for herein in any administrative or
judicial proceedings relating to an examination or audit by any governmental
taxing authority, request an administrative adjustment as to

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any taxable year of any of the REMICs provided for herein, enter into settlement
agreements with any governmental taxing agency, extend any statute of
limitations relating to any tax item of any of the REMICs provided for herein,
and otherwise act on behalf of each of the REMICs provided for herein in
relation to any tax matter involving any of such REMICs or any controversy
involving the Trust Fund.

     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 agrees to
indemnify 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
the REMICs provided for herein as defined in Section 860F(a)(2) of the Code, on
the "net income from foreclosure property" of any of such REMICs as defined in
Section 860G(c) of the Code, on any contribution to the Trust Fund after the
Startup Day pursuant to Section 860G(d) of the Code, or any other tax is
imposed, if 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 or as a result of the
location of the Trustee, (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 as a result of the
location of such other party or (iii) in all other cases, or in the event that
any liable party here fails to honor its obligations under the preceding clauses
(i) or (ii), any such tax will be paid first with amounts (other than amounts
derived by the Trust Fund from a payment on the Cap Contracts or amounts
received by the Supplemental Interest Trust as payments on the Swap Agreement)
otherwise to be distributed to the Class R Certificateholders (pro rata)
pursuant to Section 4.04, and second with amounts (other than amounts derived by
the Trust Fund from a payment on the Cap Contracts or amounts received by the
Supplemental Interest Trust as payments on the Swap Agreement) otherwise to be
distributed to all other Certificateholders in the following order of priority:
first, to the Class C Certificates (pro rata), second to the Class B-4
Certificates (pro rata), third to the Class B-3 Certificates (pro rata), fourth
to the Class B-2 Certificates (pro rata), fifth to the Class B-1 Certificates
(pro rata), sixth to the Class M-6 Certificates (pro rata), seventh to the Class
M-5 Certificates (pro rata), eighth to the Class M-4 Certificates (pro rata),
ninth to the Class M-3 Certificates (pro rata), tenth to the Class M-2
Certificates (pro rata), eleventh to the Class M-1 Certificates (pro rata) and
twelfth to the Class A Certificates (pro rata). Notwithstanding anything to the
contrary contained herein, to the extent that such tax is payable by the Class R
Certificate, the Trustee is hereby authorized pursuant to such instruction to
retain on any Distribution Date, from the Holders of the Class R Certificate
(and, if necessary, from the Holders of all 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 agrees to notify
promptly in writing the party liable for any such tax of the amount thereof and
the due date for the payment thereof.

          (b) Each of the Depositor, the Servicer and the Trustee agrees not to
take or omit to take knowingly or intentionally, any action or omit to take any
action that would cause the termination of the REMIC status of any of the REMICs
provided for herein or result in the imposition of a tax upon any of the REMICs
provided for herein.

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                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01. Termination upon Liquidation or Auction of all Mortgage
Loans.

          (a) Subject to Section 9.03, the obligations and responsibilities of
the Depositor, the Servicer and the Trustee created hereby with respect to the
Issuing Entity shall terminate upon the earlier of (a) an Optional Termination
and (b) the later of (i) the maturity or other liquidation 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's,
living on the date hereof and (ii) the Latest Possible Maturity Date.

          (b) On or before the Determination Date following the Initial Optional
Termination Date, the Trustee shall attempt to terminate the Trust Fund by
conducting an auction of all of the Mortgage Loans and REO Properties via a
solicitation of bids from at least three (3) bidders, each of which shall be a
nationally recognized participant in mortgage finance (the "Auction"). In
addition, the Trustee will also solicit a bid from each Holder of a Class C
Certificate. The Depositor and the Trustee agree to work in good faith to
develop bid procedures in advance of the Initial Optional Termination Date to
govern the operation of the Auction. The Trustee shall be entitled to retain an
investment banking firm and/or other agents in connection with the Auction, the
cost of which shall be included in the Optional Termination Price (unless an
Optional Termination does not occur in which case such costs shall be an expense
of the Trust Fund). The Trustee shall accept the highest bid received at the
Auction; provided that the amount of such bid equals or exceeds the Optional
Termination Price. The Trustee shall determine the Optional Termination Price
based upon information provided by (i) the Servicer with respect to the amounts
described in clauses (A) and (B) of the definition of "Optional Termination
Price", (ii) the Depositor with respect to the information described in clause
(C) of the definition of "Optional Termination Price." The Trustee may
conclusively rely upon the information provided to it in accordance with the
immediately preceding sentence and shall not have any liability for the failure
of any party to provide such information.

     If an Optional Termination does not occur as a result of the Auction's
failure to achieve the Optional Termination Price, the NIMs Insurer, if any, may
purchase all of the Mortgage Loans and REO Properties, which would result in an
early retirement of the Certificates and the termination of the Trust Fund. If
the Auction fails to achieve the Optional Termination Price and the NIMs
Insurer, if any, fails to exercise its option to purchase all of the Mortgage
Loans and REO Properties, the Servicer may purchase all of the Mortgage Loans
and REO Properties at the Optional Termination Price, which similarly would
result in an early retirement of the Certificates and the termination of the
Trust Fund. In connection with such termination, the Optional Termination Price
shall be delivered to the Trustee no later than two Business Days immediately
preceding the related Distribution Date. Notwithstanding anything to the
contrary herein, the Optional Termination Amount paid to the Trustee by the
winning bidder at the Auction or by the NIMs Insurer, if any, or by the
Servicer, as applicable, shall be deposited by the Trustee directly into the
Certificate Account immediately upon receipt. Upon any termination as a result
of an Auction, the Trustee shall, out of the Optional Termination Amount
deposited into the Certificate Account, (x) reimburse the Trustee for its costs
and expenses necessary to conduct the Auction and any other unreimbursed amounts
owing to it and (y) pay to the Servicer, the aggregate amount of any
unreimbursed out-of-pocket costs and expenses owed to the Servicer and any
unpaid or unreimbursed Servicing Fees, Advances and Servicing Advances.

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          (c) Notwithstanding anything to the contrary in clause (b) above, in
the event that the Trustee receives the written opinion of a nationally
recognized participant in mortgage finance acceptable to the Sponsor that the
Mortgage Loans and REO Properties to be included in the Auction will not be
saleable at a price sufficient to achieve the Optional Termination Price, the
Trustee need not conduct the Auction. In such event, the Servicer shall have the
option to purchase the Mortgage Loans and REO Properties at the Optional
Termination Price as of the Initial Optional Termination Date.

     SECTION 9.02. Final Distribution on the Certificates.

     If on any Determination Date, (i) the Trustee determines that there are no
Outstanding Mortgage Loans and no other funds or assets in the Trust Fund other
than the funds in the Collection Account, the Trustee shall send a final
distribution notice promptly to each Certificateholder and the NIMs Insurer or
(ii) the Trustee determines that a Class of Certificates shall be retired after
a final distribution on such Class, the Trustee shall notify the
Certificateholders as soon as practicable 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 Certificates at the office of the Trustee
specified in such notice.

     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 no later than the last calendar day of
the month immediately preceding 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 location of the office or agency at which
such presentation and surrender must be made, and (c) 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 the NIMs Insurer
and each Rating Agency at the time such notice is given to Certificateholders.

     In the event such notice is given, the Servicer shall remit all funds in
the Collection Account to the Trustee for deposit in the Certificate Account on
the Servicer Remittance Date in an amount equal to the final distribution in
respect of the Certificates. Upon such final deposit with respect to the Trust
Fund, certification to the Trustee that such required amount has been deposited
in the Trust Fund and the receipt by the Trustee of a Request for Release
therefor, the Trustee shall promptly release the Mortgage Files for the Mortgage
Loans.

     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 Certificate Account in the order and
priority set forth in Section 4.04 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 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

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unclaimed funds and other assets of the Trust Fund that remain subject hereto.
Upon payment to the Class R Certificateholders of such funds and assets, the
Trustee shall not have any further duties or obligations with respect thereto.

     SECTION 9.03. Additional Termination Requirements.

          (a) In the event the Trustee completes an Optional Termination as
provided in Section 9.01, the Trust Fund shall be terminated in accordance with
the following additional requirements, unless the Trustee has been supplied with
an Opinion of Counsel, at the expense of the NIMs Insurer or Servicer, as
applicable to the effect that the failure of the Trust Fund to comply with the
requirements of this Section 9.03 will not (i) result in the imposition of taxes
on "prohibited transactions" of any of the REMICs provided for herein as defined
in Section 860F of the Code, or (ii) cause any of the REMICs provided for herein
to fail to qualify as a REMIC at any time that any Certificates are outstanding:

               (i) The Depositor 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 final tax returns of each of the
REMICs provided for herein pursuant to Treasury Regulation Section 1.860F-1. The
Depositor 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 Servicer;

               (ii) During such 90-day liquidation period, and at or prior to
the time of making the final payment on the Certificates, the Depositor as agent
of the Trustee shall sell all of the assets of the Trust Fund for cash; and

               (iii) 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 Class R Certificateholders all cash on hand (other than cash
retained to meet outstanding claims), and the Trust Fund shall terminate at that
time, whereupon the Trustee shall have no further duties or obligations with
respect to sums distributed or credited to the Class R Certificateholders.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Depositor to specify the 90-day liquidation period for the
Trust Fund, which authorization shall be binding upon all successor
Certificateholders.

          (c) Upon the written request of the Depositor, the Trustee as agent
for each REMIC hereby agrees to adopt and sign a plan of complete liquidation as
provided to it by the Depositor. The Trustee's obligation to adopt and sign such
plan of complete liquidation is subject to the Trustee's receipt of the Opinion
of Counsel referred to in Section 9.03(a)(i). In addition, the Trustee shall
take such other action in connection therewith as may be reasonably requested by
the Depositor.

                                   ARTICLE X

                            MISCELLANEOUS PROVISIONS

     SECTION 10.01. Amendment.

     This Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee, with the consent of the NIMs Insurer and without the
consent of any of the Certificateholders to,

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               (i) to cure any ambiguity or correct any mistake,

               (ii) to correct, modify or supplement any provision herein which
may be inconsistent with the Prospectus Supplement or any other provision
herein,

               (iii) to add any other provisions with respect to matters or
questions arising under this Agreement, or

               (iv) to modify, alter, amend, add to or rescind any of the terms
or provisions contained in this Agreement, provided, however, that, in the case
of clauses (iii) and (iv), such amendment will not, as evidenced by an Opinion
of Counsel addressed to the Trustee to such effect, adversely affect in any
material respect the interests of any Holder; provided, further, however, that
such amendment will be deemed to not adversely affect in any material respect
the interest of any Holder if the Person requesting such amendment obtains a
letter from each Rating Agency stating that such amendment will not result in a
reduction or withdrawal of its rating of any Class of the Certificates, it being
understood and agreed that any such letter in and of itself will not represent a
determination as to the materiality of any such amendment and will represent a
determination only as to the credit issues affecting any such rating. In
addition, this Agreement may be amended from time to time by the Depositor, the
Servicer and the Trustee without the consent of any of the Certificateholders to
comply with the provisions of Regulation AB.

     Notwithstanding the foregoing, without the consent of the
Certificateholders, the Depositor, the Servicer and the Trustee 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 the REMICs provided for herein as REMICs under the
Code or to avoid or minimize the risk of the imposition of any tax on the Trust
Fund or any of the REMICs provided for herein pursuant to the Code that would be
a claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee and the NIMs Insurer shall have been
provided 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 or the NIMs Insurer, 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 Depositor, the
Servicer and the Trustee and the Holders of the Certificates affected thereby
evidencing not less than 66 2/3% of the Voting Rights, with the consent of the
NIMs Insurer, for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Holders of Certificates; provided, however, 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) adversely affect in any material respect
the interests of the Holders of any Class of Certificates in a manner other than
as described in (i), without the consent of the Holders of Certificates of such
Class evidencing 66 2/3% or more of the Voting Rights of such Class or (iii)
reduce the aforesaid percentages of Certificates the Holders of which are
required to consent to any such amendment without the consent of the Holders of
all such Certificates then outstanding.

     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 is permitted
hereunder and will not cause the imposition of any tax on the Trust Fund, any of
the REMICs provided for herein or the

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Certificateholders or cause any of the REMICs provided for herein to fail to
qualify as a REMIC at any time that any Certificates are outstanding. A copy of
such Opinion of Counsel shall be provided to the NIMs Insurer.

     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.

     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 have been complied with; and
(ii) either (A) the amendment does not adversely affect in any material respect
the interests of any Certificateholder or (B) the conclusion set forth in the
immediately preceding clause (A) is not required to be reached pursuant to this
Section 10.01.

     The Trustee may, but shall not be obligated to, enter into any supplement,
modification or waiver which affects its rights, duties or obligations
hereunder.

     The Trustee shall not enter into any amendment to this Agreement that would
have a materially adverse effect on the Swap Counterparty without first
obtaining the consent of the Swap Counterparty.

     Notwithstanding anything to the contrary in this Section 10.01, the Trustee
and the Servicer shall reasonably cooperate with the Depositor and its counsel
to enter into such amendments or modifications to this Agreement as may be
necessary to comply with Regulation AB and any interpretation thereof by the
Securities and Exchange Commission.

     SECTION 10.02. Counterparts.

     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 10.03. 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.

     SECTION 10.04. 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

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assumption agreements and private mortgage insurance policies relating to the
Mortgage Loans by the Depositor to the Trustee be, and be construed as, an
absolute sale thereof to the Trustee. It is, further, not the intention of the
parties that such conveyance be deemed a pledge thereof 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 Depositor, or if for any other
reason this Agreement is held or deemed to create a security interest in such
assets, then (i) this Agreement shall 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 this Agreement shall be deemed to be an
assignment and a grant by the Depositor to the Trustee, 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. The Depositor shall
arrange for filing any Uniform Commercial Code continuation statements in
connection with any security interest granted or assigned to the Trustee for the
benefit of the Certificateholders.

     SECTION 10.05. Notices.

          (a) The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency and the NIMs Insurer with respect to each of the following
of which it 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;

               (iii) The resignation or termination of the Trustee or the
Servicer and the appointment of any successor;

               (iv) The repurchase or substitution of Mortgage Loans pursuant to
Sections 2.02, 2.03 and 3.12;

               (v) The final payment to Certificateholders; and

               (vi) Any change in the location of the Certificate Account.

          (b) The Trustee shall promptly furnish or make available to each
Rating Agency copies of the following:

               (i) Each report to Certificateholders described in Section 4.05;

               (ii) Each annual statement as to compliance described in Section
3.17; and

               (iii) Each annual independent public accountant's servicing
report described in Section 3.18.

All directions, demands and notices hereunder shall be in writing and shall be
deemed to have been duly given when delivered to (a) in the case of the
Depositor, Merrill Lynch Mortgage Investors, Inc. 250 Vesey Street, 4 World
Financial Center, 10th Floor, New York, New York 10080, Attention: Asset-

                                      152

<PAGE>

Backed Finance; (b) in the case of the Rating Agencies, (i) Standard & Poor's
Ratings Services, a division of The McGraw-Hill Companies, Inc., 55 Water
Street, New York, New York 10041; and (ii) Moody's Investors Service, Inc., 99
Church Street, 4th Floor, New York, New York 10007; (c) in the case of the
Servicer, Litton Loan Servicing LP, 4828 Loop Central Drive, Houston, Texas
77081 Attention: Janice McClure; and (d) in the case of the Trustee, LaSalle
Bank National Association, 135 South LaSalle Street, Suite 1625, Chicago,
Illinois 60603, Attention: Global Securities and Trust Services - Ownit 2006-3;
and in the case of any of the foregoing persons, such other addresses as may
hereafter be furnished by any such persons to the other parties to this
Agreement. Notices to Certificateholders shall be deemed given when mailed,
first class postage prepaid, to their respective addresses appearing in the
Certificate Register.

     SECTION 10.06. 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 10.07. Assignment.

     Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Servicer without the prior written consent of the Trustee and Depositor.

     SECTION 10.08. 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 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 indemnity satisfactory to it 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

                                      153

<PAGE>

any provisions of this Agreement to affect, disturb or prejudice the rights of
the Holders of any other of the Certificates and/or the NIMs Insurer, or to
obtain or seek to obtain priority over or preference to any other such Holder
and/or the NIMs Insurer 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 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

     SECTION 10.09. Inspection and Audit Rights.

     The Servicer agrees that, on reasonable prior notice, it will permit any
representative of the Depositor or the Trustee during the Servicer's normal
business hours, to examine all the books of account, records, reports and other
papers of the 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 or the Trustee and to discuss its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees, agents, counsel and independent public accountants (and by this
provision the 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 10.09 shall be borne by the party requesting such inspection (except in
the case of the Trustee, in which case such expenses shall be borne by the
requesting Certificateholder); all other such expenses shall be borne by the
Servicer.

     SECTION 10.10. 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
Authenticating Agent pursuant to this Agreement, are and shall be deemed fully
paid.

     SECTION 10.11. Third Party Rights.

     The NIMs Insurer shall be deemed a third-party beneficiary of this
Agreement to the same extent as if it were a party hereto, and shall have the
right to enforce the provisions of this Agreement.

     SECTION 10.12. Additional Rights of the NIMs Insurer.

          (a) Each party to this Agreement, any agent thereof and any successor
thereto shall furnish to the NIMs Insurer a copy of any notice, direction,
demand, opinion, schedule, list, certificate, report, statement, filing,
information, data or other communication provided by it or on its behalf to any
other Person pursuant to this Agreement at the same time, in the same form and
in the same manner as such communication is so provided and shall address or
cause such communication to be addressed to the NIMs Insurer in addition to any
other addressee thereof. The Servicer shall cause the NIMs Insurer to be an
addressee of any report furnished pursuant to this Agreement. With respect to
the Trustee, such obligation shall be satisfied with the provision of access to
the NIMs Insurer to the Trustee's website.

          (b) Wherever in this Agreement there shall be a requirement that there
be no downgrade, reduction, withdrawal or qualification of or other effect on
the rating of any Class of Certificates by any Rating Agency as of any date,
there also shall be deemed to be a requirement that there be no such effect on
any class of notes issued pursuant to the Indenture and guaranteed by the NIMs
Insurer as of such date. In addition, unless there exists a continuance of any
failure by the NIMs Insurer to make a required payment under the policy insuring
the NIM Notes (such event, a "NIMs

                                      154

<PAGE>

Insurer Default"), wherever in this Agreement there shall be a requirement that
any Person or any communication, object or other matter be acceptable or
satisfactory to or otherwise receive the consent or other approval of any other
Person (whether as a condition to the eligibility of such Person to act in any
capacity, as a condition to any circumstance or state of affairs related to such
matter, or otherwise), there also shall be deemed to be a requirement that such
Person or matter be approved in writing by the NIMs Insurer, which approval
shall not be unreasonably withheld or delayed.

     SECTION 10.13. Assignment; Sales; Advance Facilities.

          (a) The Servicer is hereby authorized to enter into a financing or
other facility (any such arrangement, an "Advance Facility"), the documentation
for which complies with Section 10.13(e) below, under which (1) the Servicer
assigns or pledges its rights under this Agreement to be reimbursed for any or
all Advances and/or Servicing Advances to (i) a Person, which may be a
special-purpose bankruptcy-remote entity (an "SPV"), (ii) a Person, which may
simultaneously assign or pledge such rights to an SPV or (iii) a lender (a
"Lender"), which, in the case of any Person or SPV of the type described in
either of the preceding clauses (i) or (ii), may directly or through other
assignees and/or pledgees, assign or pledge such rights to a Person, which may
include a trustee acting on behalf of holders of debt instruments (any such
Person or any such Lender, an "Advance Financing Person"), and/or (2) an Advance
Financing Person agrees to fund all of the Advances and/or Servicing Advances
required to be made by the Servicer pursuant to this Agreement. No consent of
the NIMs Insurer, Trustee, Certificateholders or any other party shall be
required before the Servicer may enter into an Advance Facility nor shall the
NIMs Insurer, the Trustee or the Certificateholders be a third party beneficiary
of any obligation of an Advance Financing Person to the Servicer.
Notwithstanding the existence of any Advance Facility under which an Advance
Financing Person agrees to fund Advances and/or Servicing Advances, (A) the
Servicer (i) shall remain obligated pursuant to this Agreement to make Advances
and/or Servicing Advances pursuant to and as required by this Agreement and (ii)
shall not be relieved of such obligations by virtue of such Advance Facility and
(B) neither the Advance Financing Person nor any Servicer's Assignee (as
hereinafter defined) shall have any right to proceed against or otherwise
contact any Mortgagor for the purpose of collecting any payment that may be due
with respect to any related Mortgage Loan or enforcing any covenant of such
Mortgagor under the related Mortgage Loan documents.

          (b) If the Servicer enters into an Advance Facility, the Servicer and
the related Advance Financing Person shall deliver to the Trustee at the address
set forth in Section 10.05 hereof a written notice (an "Advance Facility
Notice"), stating (a) the identity of the Advance Financing Person, (b) the
identity of the Person (the "Servicer's Assignee") that will, subject to Section
10.13(c) hereof, have the right to make withdrawals from the Collection Account
pursuant to Section 3.08 hereof to reimburse previously unreimbursed Advances
and/or Servicing Advances ("Advance Reimbursement Amounts") and (c) that the
Servicer's Assignee shall agree to be bound by the provisions of this Section
10.13. The Advance Facility Notice shall be executed by the Servicer, the
Advance Financing Person and the Servicer's Assignee. Advance Reimbursement
Amounts (i) shall consist solely of amounts in respect of Advances and/or
Servicing Advances for which the Servicer would be permitted to reimburse itself
in accordance with Section 3.08 hereof, assuming the Servicer had made the
related Advance(s) and/or Servicing Advance(s) and (ii) shall not consist of
amounts payable to a successor Servicer in accordance with Section 3.08 hereof
to the extent permitted under Section 10.13(e) below.

          (c) Notwithstanding the existence of an Advance Facility, the
Servicer, on behalf of the Advance Financing Person, shall be entitled to
receive reimbursements of Advances and/or Servicing Advances in accordance with
Section 3.08 hereof, which entitlement may be terminated by the Advance
Financing Person pursuant to a written notice to the Trustee in the manner set
forth in Section 10.05 hereof. Upon receipt of such written notice, the Servicer
shall no longer be entitled to receive

                                      155

<PAGE>

reimbursement for any Advance Reimbursement Amounts and the Servicer's Assignee
shall immediately have the right to receive from the Collection Account all
Advance Reimbursement Amounts. Notwithstanding the foregoing, and for the
avoidance of doubt, (i) the Servicer and/or the Servicer's Assignee shall only
be entitled to reimbursement of Advance Reimbursement Amounts hereunder pursuant
to Section 3.08 of this Agreement and shall not otherwise be entitled to make
withdrawals of, or receive, Advance Reimbursement Amounts that shall be
deposited in the Collection Account pursuant to Section 3.05 hereof, and (ii)
none of the Trustee or the Certificateholders shall have any right to, or
otherwise be entitled to, receive any Advance Reimbursement Amounts to which the
Servicer or Servicer's Assignee, as applicable, shall be entitled pursuant to
Section 3.08 hereof. Without limiting the foregoing, none of the Trustee, the
NIMs Insurer or the Certificateholders shall have any right of set-off against
Advance Reimbursement Amounts hereunder. An Advance Facility may be terminated
by the joint written direction of the Servicer and the related Advance Financing
Person. Written notice of such termination shall be delivered to the Trustee in
the manner set forth in Section 10.05 hereof. Upon an Event of Default or if the
Trustee otherwise shall reasonably request, the Servicer shall maintain and
provide to any successor servicer or the Trustee as successor servicer a
detailed accounting on a loan-by-loan basis as to amounts advanced by, pledged
or assigned to, and reimbursed to any Advance Financing Person (and such
successor servicer or Trustee may rely on such information).

          (d) [RESERVED]

          (e) As between a predecessor Servicer and its Advance Financing
Person, on the one hand, and a successor Servicer and its Advance Financing
Person, if any, on the other hand, Advance Reimbursement Amounts on a
loan-by-loan basis with respect to each Mortgage Loan as to which an Advance
and/or Servicing Advance shall have been made and be outstanding shall be
allocated on a "first-in, first out" basis. In the event the Servicer's Assignee
shall have received some or all of an Advance Reimbursement Amount related to
Advances and/or Servicing Advances that were made by a Person other than such
predecessor Servicer or its related Advance Financing Person in error, then such
Servicer's Assignee shall be required to remit any portion of such Advance
Reimbursement Amount to each Person entitled to such portion of such Advance
Reimbursement Amount. Without limiting the generality of the foregoing, the
Servicer shall remain entitled to be reimbursed by the Advance Financing Person
for all Advances and/or Servicing Advances funded by the Servicer to the extent
the related Advance Reimbursement Amounts have not been assigned or pledged to
such Advance Financing Person or Servicer's Assignee.

          (f) For purposes of any certification of a Servicing Officer of the
Servicer made pursuant to Section 4.01, any Nonrecoverable Advance or
Nonrecoverable Servicing Advance referred to therein may have been made by such
Servicer or any predecessor Servicer. In making its determination that any
Advance or Servicing Advance theretofore made has become a Nonrecoverable
Advance or Nonrecoverable Servicing Advance, the Servicer shall apply the same
criteria in making such determination regardless of whether such Advance or
Servicing Advance shall have been made by the Servicer or any predecessor
Servicer.

          (g) The Trustee shall not, as a result of the existence of any Advance
Facility, have any additional duty or liability with respect to the payment of
any Advance Reimbursement Amount, have any additional responsibility to track or
monitor Advance Reimbursement Amounts or any Advance Facility, and, is not and
shall not be obligated to make any payment with respect to any Advance
Reimbursement Amount.

          (h) Neither the Depositor nor the Trustee shall, as a result of the
existence of any Advance Facility, have any additional duty or liability with
respect to the calculation or payment of any

                                      156

<PAGE>

Advance Reimbursement Amount, nor, as a result of the existence of any Advance
Facility, shall the Depositor or the Trustee have any additional responsibility
to track or monitor the administration of the Advance Facility or the payment of
Advance Reimbursement Amounts to the Servicer's Assignee. The Servicer shall
indemnify the Depositor, the Trustee, any successor servicer and the Issuing
Entity for any claim, loss, liability or damage resulting from any claim by the
related Advance Financing Person, except to the extent that such claim, loss,
liability or damage resulted from or arose out of negligence, recklessness or
willful misconduct on the part of the Depositor, the Trustee or any successor
servicer, as the case may be, or failure by the successor servicer or the
Trustee, as the case may be, to remit funds as required by this Agreement or the
commission of an act or omission to act by the successor servicer or the
Trustee, as the case may be, and the passage of any applicable cure or grace
period, such that an Event of Default under this Agreement occurs or such entity
is subject to termination for cause under this Agreement.

     SECTION 10.14. Compliance with Regulation AB.

          Each of the parties hereto acknowledges and agrees that the purpose of
Sections 3.17, 3.18 and 3.27 of this Agreement is to facilitate compliance by
the Depositor with the provisions of Regulation AB, as such may be amended or
clarified from time to time. Therefore, each of the parties agrees that (a) the
obligations of the parties hereunder shall be interpreted in such a manner as to
accomplish compliance with Regulation AB, (b) the parties' obligations hereunder
will be supplemented and modified as necessary to be consistent with any such
amendments, interpretive advice or guidance, or convention or consensus among
active participants in the asset-backed securities markets in respect of the
requirements of Regulation AB and (c) the parties shall comply with reasonable
requests made by the Depositor for delivery of that or different information as
is necessary to comply with the provisions of Regulation AB.

                                      157

<PAGE>

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

                                        MERRILL LYNCH MORTGAGE INVESTORS, INC.,
                                        as Depositor

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        LITTON LOAN SERVICING LP,
                                        as Servicer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                                    EXHIBIT A

                              FORMS OF CERTIFICATES

                             [INTENTIONALLY OMITTED]

                                      A-1

<PAGE>

                                   EXHIBIT B-1

                     MORTGAGE LOAN SCHEDULE - MORTGAGE POOL

                             [INTENTIONALLY OMITTED]

                                      B-1-1

<PAGE>

                                   EXHIBIT B-2

                MORTGAGE LOAN SCHEDULE - GROUP ONE MORTGAGE LOANS

                             [INTENTIONALLY OMITTED]

                                      B-2-1

<PAGE>

                                   EXHIBIT B-3

                MORTGAGE LOAN SCHEDULE - GROUP TWO MORTGAGE LOANS

                             [INTENTIONALLY OMITTED]

                                      B-3-1

<PAGE>

                                    EXHIBIT C

                                   [RESERVED]

                                       C-1

<PAGE>

                                    EXHIBIT D

                          FORM OF TRUSTEE CERTIFICATION

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Litton Loan Servicing LP
4828 Loop Central Drive
Houston, Texas 77081

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Re: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
    Series 2006-3

Ladies and Gentlemen:

     In accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of March 1, 2006 among Merrill Lynch Mortgage Investors, Inc., as
depositor, LaSalle Bank National Association, as trustee and Litton Loan
Servicing LP, as servicer (the "Pooling and Servicing Agreement"), the
undersigned, as custodian, hereby certifies that [, except as set forth in
Schedule A hereto,] as to each Mortgage Loan listed in the Mortgage Loan
Schedule attached hereto (other than any Mortgage Loan paid in full or listed on
the attachment hereto) it has reviewed the Mortgage File and the Mortgage Loan
Schedule and has determined that:

     (i) All documents in the Mortgage File required to be delivered to the
Trustee pursuant to Section 2.01 of the Pooling and Servicing Agreement are in
its possession;

     (ii) In connection with each Mortgage Loan or Assignment thereof as to
which documentary evidence of recording was not received on the Closing Date, it
has received evidence of such recording; and

     (iii) Such documents have been reviewed by it and appear regular on their
face and relate to such Mortgage Loan.

     The custodian has made no independent examination of any documents
contained in each Mortgage File beyond confirming (i) that the Mortgage Loan
number, the name of the Mortgagor, the street address (excluding zip code), the
mortgage interest rate at origination, the gross margin (if applicable), the
lifetime rate cap (if applicable), the periodic rate cap (if applicable), the
original principal balance, the first payment due date and the original maturity
date in each Mortgage File conform to the respective Mortgage Loan number and
name listed on the Mortgage Loan Schedule and (ii) the existence in each
Mortgage File of each of the documents listed in subparagraphs (i)(A) through
(F), inclusive, or (ii)(A) through (K), inclusive, as applicable, of Section
2.01 in the Agreement. The custodian makes no

                                       D-1

<PAGE>

representations or warranties as to the validity, legality, recordability,
sufficiency, enforceability, due authorization or genuineness of any of the
documents contained in each Mortgage Loan or the collectability, insurability,
effectiveness, priority, perfection or suitability of any such Mortgage Loan.

     Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-referenced Pooling and Servicing
Agreement.

                                        LASALLE BANK NATIONAL ASSOCIATION,
                                        AS CUSTODIAN ON BEHALF OF LASALLE BANK
                                        NATIONAL ASSOCIATION AS TRUSTEE

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      D-2

<PAGE>

                                   EXHIBIT E-1

                    FORM OF TRANSFEREE'S LETTER AND AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Ownit 2006-3

Ladies and Gentlemen:

     We propose to purchase Ownit Mortgage Loan Trust, Mortgage Loan
Asset-Backed Certificates, Series 2006-3, Class R, described in the Prospectus
Supplement, dated April [__], 2006, and the Prospectus, dated March 31, 2006.
Capitalized terms used but not defined herein shall have the meanings assigned
to them in the Pooling and Servicing Agreement dated March 1, 2006 relating to
this issuance of the Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2006-3 (the "Pooling and servicing Agreement").

     1. We certify that (a) we are not a disqualified organization and (b) we
are not purchasing such Class R Certificate on behalf of a disqualified
organization; for this purpose the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code. We
understand that any breach by us of this certification may cause us to be liable
for an excise tax imposed upon transfers to disqualified organizations.

     2. We certify that (a) we have historically paid our debts as they became
due, (b) we intend, and believe that we will be able, to continue to pay our
debts as they become due in the future, (c) we understand that, as beneficial
owner of the Class R Certificate, we may incur tax liabilities in excess of any
cash flows generated by the Class R Certificate, and (d) we intend to pay any
taxes associated with holding the Class R Certificate as they become due and (e)
we will not cause income from the Class R Certificate to be attributable to a
foreign permanent establishment or fixed base (within the meaning of an
applicable income tax treaty) of ours or another U.S. taxpayer.

     3. We acknowledge that we will be the beneficial owner of the Class R
Certificate and:(1)

          _____________ The Class R Certificate will be registered in our name.

          _____________ The Class R Certificate will be held in the name of our
                        nominee, _________________, which is not a disqualified
                        organization.

----------
(1)  Check appropriate box and if necessary fill in the name of the Transferee's
     nominee.

                                      E-1-1

<PAGE>

     4. We certify that we are not an employee benefit plan subject to Title I
of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), a
plan subject to Section 4975 of the Code or a plan subject to federal, state,
local, non-U.S. or other law substantively similar to the foregoing provisions
of ERISA or the Code (each, a "Plan"), and are not directly or indirectly
acquiring the Class R Certificate on behalf of or with any assets of a Plan.

     5. We certify that (i) we are a U.S. person or (ii) we will hold the Class
R Certificate in connection with the conduct of a trade or business within the
United States and have furnished the transferor and the Trustee with a duly
completed and effective Internal Revenue Service Form W-8ECI or successor form
at the time and in the manner required by the Code; for this purpose the term
"U.S. person" means a citizen or resident of the United States, a corporation,
or partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any State thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to United States federal income tax regardless
of the source of its income, 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 such U.S. persons have the authority to control all substantial
decisions of the trust (or, to the extent provided in applicable Treasury
regulations, certain trusts in existence on August 20, 1996 which are eligible
to elect to be treated as U.S. Persons. We agree that any breach by us of this
certification shall render the transfer of any interest in the Class R
Certificate to us absolutely null and void and shall cause no rights in the
Class R Certificate to vest in us.

     6. We agree that in the event that at some future time we wish to transfer
any interest in the Class R Certificate, we will transfer such interest in the
Class R Certificate only (a) to a transferee that (i) is not a disqualified
organization and is not purchasing such interest in the Class R Certificate on
behalf of a disqualified organization, (ii) is a U.S. person or will hold the
Class R Certificate in connection with the conduct of a trade or business within
the United States and will furnish us and the Trustee with a duly completed and
effective Internal Revenue Service Form W-8ECI or successor form at the time and
in the manner required by the Code and (iii) has delivered to the Trustee a
letter in the form of this letter (including the affidavit appended hereto) and,
we will provide the Trustee a written statement substantially in the form of
Exhibit E-2 to the Pooling and Servicing Agreement.

     7. We hereby designate _______________________ as our fiduciary to act as
the tax matters person for each of the REMICs provided for in the Pooling and
Servicing Agreement in which the Class R Certificate represents the residual
interest.

                                      E-1-2

<PAGE>

                                        Very truly yours,

                                        [PURCHASER]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Accepted as of __________ __, 200__

MERRILL LYNCH MORTGAGE INVESTORS, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                      E-1-3

<PAGE>

                                   APPENDIX A

                                        Affidavit pursuant to (i) Section
                                        860E(e)(4) of the Internal Revenue Code
                                        of 1986, as amended, and (ii) certain
                                        provisions of the Pooling and Servicing
                                        Agreement

Under penalties of perjury, the undersigned declares that the following is true:

          1.   He or she is an officer of _________________________ (the
               "Transferee"),

          2.   the Transferee's Employer Identification number is __________,

          3.   the Transferee is not a "disqualified organization" (as defined
               below), has no plan or intention of becoming a disqualified
               organization, and is not acquiring any of its interest in the
               Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
               Certificates, Series 2006-3, Class R Certificate on behalf of a
               disqualified organization or any other entity,

          4.   unless Merrill Lynch Mortgage Investors, Inc.("MLMI") has
               consented to the transfer to the Transferee by executing the form
               of Consent affixed as Appendix B to the Transferee's Letter to
               which this Certificate is affixed as Appendix A, the Transferee
               is a "U.S. person" (as defined below),

          5.   that no purpose of the transfer is to avoid or impede the
               assessment or collection of tax,

          6.   the Transferee has historically paid its debts as they became
               due,

          7.   the Transferee intends, and believes that it will be able, to
               continue to pay its debts as they become due in the future,

          8.   the Transferee understands that, as beneficial owner of the Class
               R Certificate, it may incur tax liabilities in excess of any cash
               flows generated by the Class R Certificate,

          9.   the Transferee intends to pay any taxes associated with holding
               the Class R Certificate as they become due,

          10.  the Transferee consents to any amendment of the Pooling and
               Servicing Agreement that shall be deemed necessary by MLMI (upon
               advice of counsel) to constitute a reasonable arrangement to
               ensure that the Class R Certificate will not be owned directly or
               indirectly by a disqualified organization, and

          11.  IF BRACKETED, THE FOLLOWING CERTIFICATIONS ARE INAPPLICABLE [the
               transfer is not a direct or indirect transfer of the Class R
               Certificate to a foreign permanent establishment or fixed base
               (within the meaning of an applicable income tax treaty) of the
               Transferee, and as to each of the residual interests represented
               by the Class R Certificate, the present value

                                      E-1-4

<PAGE>

               of the anticipated tax liabilities associated with holding such
               residual interest does not exceed the sum of:

               A.   the present value of any consideration given to the
                    Transferee to acquire such residual interest;

               B.   the present value of the expected future distributions on
                    such residual interest; and

               C.   the present value of the anticipated tax savings associated
                    with holding such residual interest as the related REMIC
                    generates losses.

     For purposes of this declaration, (i) the Transferee is assumed to pay tax
     at a rate equal to the highest rate of tax specified in Section 11(b)(1) of
     the Code, but the tax rate specified in Section 55(b)(1)(B) of the Code may
     be used in lieu of the highest rate specified in Section 11(b)(1) of the
     Code if the Transferee has been subject to the alternative minimum tax
     under Section 55 of the Code in the preceding two years and will compute
     its taxable income in the current taxable year using the alternative
     minimum tax rate, and (ii) present values are computed using a discount
     rate equal to the Federal short-term rate prescribed by Section 1274(d) of
     the Code for the month of the transfer and the compounding period used by
     the Transferee;]

[(11)(A)  at the time of the transfer, and at the close of each of the
          Transferee's two fiscal years preceding the Transferee's fiscal year
          of transfer, the Transferee's gross assets for financial reporting
          purposes exceed $100 million and its net assets for financial
          reporting purposes exceed $10 million; and

     (B)  the Transferee is an eligible corporation as defined in Treasury
          regulations Section 1.860E-1(c)(6)(i) and has agreed in writing that
          any subsequent transfer of the Class R Certificate will be to another
          eligible corporation in a transaction that satisfies Treasury
          regulation Sections 1.860E-1(c)(4)(i), 1.860E-1(c)(4)(ii),
          1.860E-1(c)(4)(iii) and 1.860E-1(c)(5) and such transfer will not be a
          direct or indirect transfer to a foreign permanent establishment
          (within the meaning of an applicable income tax treaty) of a domestic
          corporation.

For purposes of this declaration, the gross and net assets of the Transferee do
not include any obligation of any related person as defined in Treasury
regulation Section 1.860E-1(c)(6)(ii) or any other asset if a principal purpose
for holding or acquiring the other asset is to permit the Transferee to make
this declaration or to satisfy the requirements of Treasury regulation Section
1.860E-1(c)(5)(i).]

(12) The Transferee will not cause income from the Class R Certificate to be
attributable to a foreign permanent establishment or fixed base (within the
meaning of an applicable income tax treaty) of the Transferee or another U.S.
taxpayer.

                                      E-1-5

<PAGE>

For purpose of this affidavit, the term "disqualified organization" means the
United States, any state or political subdivision thereof, any foreign
government, any international organization, any agency or instrumentality of any
of the foregoing (except any entity treated as other than an instrumentality of
the foregoing for purposes of Section 168(h)(2)(D) of the Internal Revenue Code
of 1986, as amended (the "Code")), any organization (other than a cooperative
described in Section 521 of the Code) that is exempt from taxation under the
Code (unless such organization is subject to tax on excess inclusions) and any
organization that is described in Section 1381(a)(2)(C) of the Code and the term
"U.S. Person" means a citizen or resident of the United States, a corporation or
partnership (unless, in the case of a partnership, Treasury regulations are
adopted that provide otherwise) created or organized in or under the laws of the
United States, any state thereof or the District of Columbia, including an
entity treated as a corporation or partnership for federal income tax purposes,
an estate whose income is subject to Unites States federal income tax regardless
of its source, or a trust if a court within the United States is able to
exercise primary supervision over the administration of such trust, and one or
more such U.S. Persons have the authority to control all substantial decisions
of such trust, (or, to the extent provided in applicable Treasury regulations,
certain trusts in existence on August 20, 1996 which are eligible to elect to be
treated as U.S. Persons).

----------------------------------------

By:
    ------------------------------------

    ------------------------------------

     Address of Investor for receipt of distribution:

     Address of Investor for receipt of tax information:

     (Corporate Seal)

     Attest:

     -----------------------------------
                                        , Secretary
     -----------------------------------

                                      E-1-6

<PAGE>

Personally appeared before me the above-named ______________, known or proved to
me to be the same person who executed the foregoing instrument and to be the
_______ of the Investor, and acknowledged to me that he executed the same as his
free act and deed and the free act and deed of the Investor.

Subscribed and sworn before me this _____ day of _______, 200__.

-----------------------------------------------------
Notary Public

County of ______________________________

State of _______________________________

My commission expires the ________ day of ______________

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

Dated:
       ---------------------

                                      E-1-7

<PAGE>

                                   EXHIBIT E-2

                         FORM OF TRANSFEROR'S AFFIDAVIT

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Ownit Series 2006-3

Re: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
    Series 2006-3

     _______________________ (the "Transferor") has reviewed the attached
affidavit of _____________________________ (the "Transferee"), and has no actual
knowledge that such affidavit is not true, and has no reason to believe that the
Transferee has the intention to impede the assessment or collection of any
federal, state or local taxes legally required to be paid with respect to the
Class R Certificate referred to in the attached affidavit. In addition, the
Transferor has conducted a reasonable investigation at the time of the transfer
and found that the Transferee had historically paid its debts as they came due
and found no significant evidence to indicate that the Transferee will not
continue to pay its debts as they become due.

                                        Very truly yours,

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      E-2-1

<PAGE>

                                    EXHIBIT F

                         FORM OF TRANSFEROR CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Ownit Series 2006-3

RE: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
    Series 2006-3

Ladies and Gentlemen:

     In connection with our disposition of the Class [____] Certificate, we
certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act and (b) we have not offered or sold any Certificates to, or solicited offers
to buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action that would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement dated as of March 1,
2006, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as trustee and Litton Loan Servicing LP, as servicer.

                                        Very truly yours,

                                        ----------------------------------------
                                        Name of Transferor

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       F-1

<PAGE>

                                    EXHIBIT G

                            FORM OF INVESTMENT LETTER
                              (ACCREDITED INVESTOR)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Ownit Series 2006-3

Re: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
    Series 2006-3

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2006-3, Class [____] (the "Certificates"), issued pursuant
to a Pooling and Servicing Agreement, dated as of March 1, 2006 (the "Pooling
and Servicing Agreement"), among Merrill Lynch Mortgage Investors, Inc., as
depositor (the "Depositor"), LaSalle Bank National Association, as trustee (the
"Trustee") and Litton Loan Servicing LP, as servicer (the "Servicer"). [THE
PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR _________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

     1. The Purchaser understands that (a) the Certificates have not been
registered or qualified under the Securities Act of 1933, as amended (the
"Securities Act"), or the securities laws of any state, (b) neither the
Depositor nor the Trustee is required, and neither of them intends, to so
register or qualify the Certificates, (c) the Certificates cannot be resold
unless (i) they are registered and qualified under the Securities Act and the
applicable state securities laws or (ii) an exemption from registration and
qualification is available and (d) the Pooling and Servicing Agreement contains
restrictions regarding the transfer of the Certificates.

     2. The Certificates will bear a legend to the following effect:

     THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
     AS AMENDED (THE "ACT"), THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE
     "1940 ACT") OR ANY STATE SECURITIES OR "BLUE SKY" LAWS, AND MAY NOT,
     DIRECTLY OR INDIRECTLY, BE SOLD OR OTHERWISE TRANSFERRED, OR OFFERED FOR
     SALE, UNLESS SUCH TRANSFER IS NOT SUBJECT TO REGISTRATION UNDER THE ACT,
     THE 1940 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND SUCH TRANSFER
     ALSO COMPLIES WITH THE OTHER PROVISIONS OF SECTION 5.02 OF THE POOLING AND
     SERVICING AGREEMENT. NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS
     THE TRUSTEE SHALL

                                       G-1

<PAGE>

     HAVE RECEIVED, IN FORM AND SUBSTANCE SATISFACTORY TO THE TRUSTEE (A) AN
     INVESTMENT LETTER FROM THE PROSPECTIVE INVESTOR; AND (B) REPRESENTATIONS
     FROM THE TRANSFEROR REGARDING THE OFFERING AND SALE OF THE CERTIFICATES.

     3. All Certificates other than ERISA Restricted Certificates and Class R
Certificates will be a legend to the following effect:

     UNTIL THE TERMINATION OF THE SWAP AGREEMENT, EACH TRANSFEREE OF THIS
     CERTIFICATE SHALL BE DEEMED TO REPRESENT (OR IN THE CASE OF A DEFINITIVE
     CERTIFICATE, SHALL REPRESENT) TO THE TRUSTEE THAT (A) SUCH TRANSFEREE IS
     NOT, AND IS NOT ACTING FOR, ON BEHALF OF OR WITH ANY ASSETS OF, ANY
     EMPLOYEE BENEFIT PLAN OR OTHER ARRANGEMENT SUBJECT TO TITLE I OF THE
     EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
     ANY PLAN SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS
     AMENDED (THE "CODE"), OR (B) THE TRANSFEREE'S ACQUISITION AND HOLDING OF
     THIS CERTIFICATE IS COVERED BY AND EXEMPT UNDER ANY OF PROHIBITED
     TRANSACTION CLASS EXEMPTION ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE
     95-60, PTCE 96-23, EACH AS AMENDED.

     4. The ERISA Restricted Certificates will bear a legend to the following
effect:

     NO TRANSFER OF THIS CERTIFICATE SHALL BE MADE UNLESS THE TRUSTEE HAS
     RECEIVED (A) A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE
     BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY
     ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975 OF THE
     INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE") OR A PLAN SUBJECT TO
     STATE, LOCAL, FEDERAL, NON-U.S. OR OTHER LAW SUBSTANTIVELY SIMILAR TO THE
     FOREGOING PROVISIONS OF ERISA OR THE CODE ("SIMILAR LAW"), AND IS NOT
     DIRECTLY OR INDIRECTLY ACQUIRING THIS CERTIFICATE BY, ON BEHALF OF, OR WITH
     ANY ASSETS OF ANY SUCH PLAN, (B) IF THE CERTIFICATE HAS BEEN THE SUBJECT OF
     AN ERISA-QUALIFYING UNDERWRITING, A REPRESENTATION THAT SUCH TRANSFEREE IS
     AN INSURANCE COMPANY THAT IS ACQUIRING THE CERTIFICATE WITH ASSETS OF AN
     "INSURANCE COMPANY GENERAL ACCOUNT" AS DEFINED IN SECTION V(E) OF
     PROHIBITED TRANSACTION CLASS EXEMPTION ("PTCE") 95-60 AND THE ACQUISITION
     AND HOLDING OF THE CERTIFICATE ARE COVERED AND EXEMPT UNDER SECTIONS I AND
     III OF PTCE 95-60 (IN THE CASE OF ANY ERISA RESTRICTED CERTIFICATE OTHER
     THAN CLASS C CERTIFICATES OR CLASS P CERTIFICATES, AFTER THE TERMINATION OF
     THE SWAP AGREEMENT), OR (C) SOLELY IN THE CASE OF A DEFINITIVE CERTIFICATE,
     AN OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE, AND UPON WHICH THE
     TRUSTEE SHALL BE ENTITLED TO RELY, TO THE EFFECT THAT THE ACQUISITION AND
     HOLDING OF SUCH CERTIFICATE BY THE PROSPECTIVE TRANSFEREE WILL NOT
     CONSTITUTE OR RESULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF
     ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF SIMILAR LAW AND WILL
     NOT SUBJECT THE TRUSTEE, THE NIMS INSURER, THE SERVICER OR THE DEPOSITOR TO
     ANY OBLIGATION IN ADDITION TO THOSE UNDERTAKEN BY SUCH ENTITIES IN THE
     POOLING AND SERVICING AGREEMENT, WHICH OPINION OF COUNSEL SHALL NOT BE AN
     EXPENSE OF THE TRUSTEE, THE NIMS INSURER, THE SERVICER OR THE DEPOSITOR. IF
     THE CERTIFICATE IS NOT A DEFINITIVE

                                      G-2

<PAGE>

     CERTIFICATE, THE TRANSFEREE IS DEEMED TO HAVE MADE THE REPRESENTATION IN
     (A) OR (B) ABOVE.

     5. The Class R Certificates will bear a legend to the following effect:

     NO TRANSFER OF THIS CERTIFICATE SHALL BE REGISTERED UNLESS THE PROSPECTIVE
     TRANSFEREE PROVIDES WITH A REPRESENTATION THAT SUCH TRANSFEREE IS NOT AN
     EMPLOYEE BENEFIT PLAN SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
     SECURITY ACT OF 1974, AS AMENDED ("ERISA"), A PLAN SUBJECT TO SECTION 4975
     OF THE CODE OR A PLAN SUBJECT TO STATE, LOCAL, FEDERAL, NON-U.S. OR OTHER
     LAW SUBSTANTIVELY SIMILAR TO THE FOREGOING PROVISIONS OF ERISA OR THE CODE
     ("SIMILAR LAW"), AND IS NOT DIRECTLY OR INDIRECTLY ACQUIRING THIS
     CERTIFICATE BY, ON BEHALF OF, OR WITH ANY ASSETS OF ANY SUCH PLAN.

     6. The Purchaser is acquiring the Transferred Certificates for its own
account [FOR INVESTMENT ONLY]* and not with a view to or for sale or other
transfer in connection with any distribution of the Transferred Certificates in
any manner that would violate the Securities Act or any applicable state
securities laws, subject, nevertheless, to the understanding that disposition of
the Purchaser's property shall at all times be and remain within its control.

     7. The Purchaser (a) is a substantial, sophisticated institutional investor
having such knowledge and experience in financial and business matters, and in
particular in such matters related to securities similar to the Certificates,
such that it is capable of evaluating the merits and risks of investment in the
Certificates, (b) is able to bear the economic risks of such an investment and
(c) is an "accredited investor" within the meaning of Rule 501(a) promulgated
pursuant to the Securities Act.

     8. The Purchaser will not nor has it authorized nor will it authorize any
person to (a) offer, pledge, sell, dispose of or otherwise transfer any
Certificate, any interest in any Certificate or any other similar security to
any person in any manner, (b) solicit any offer to buy or to accept a pledge,
disposition or other transfer of any Certificate, any interest in any
Certificate or any other similar security from any person in any manner, (c)
otherwise approach or negotiate with respect to any Certificate, any interest in
any Certificate or any other similar security with any person in any manner, (d)
make any general solicitation by means of general advertising or in any other
manner, or (e) take any other action, that would constitute a distribution of
any Certificate under the Securities Act or the Investment Company Act of 1940,
as amended (the "1940 Act"), that would render the disposition of any
Certificate a violation of Section 5 of the Securities Act or any state
securities law, or that would require registration or qualification pursuant
thereto. Neither the Purchaser nor anyone acting on its behalf has offered the
Certificates for sale or made any general solicitation by means of general
advertising or in any other manner with respect to the Certificates. The
Purchaser will not sell or otherwise transfer any of the Certificates, except in
compliance with the provisions of the Pooling and Servicing Agreement.

     9. Either (i) the Purchaser of a Certificate that is neither an ERISA
Restricted Certificate nor a Class R Certificate is not, and is not acting for,
on behalf of or with any assets of, an employee benefit plan or other
arrangement subject to Title I of ERISA or plan subject to Section 4975 of the
Code, or (ii) until the termination of the Swap Agreement, such Purchaser's
acquisition and holding of such Certificates are

----------
*    Not required of a broker/dealer purchaser.

                                       G-3

<PAGE>

eligible for exemptive relief under Prohibited Transaction Class Exemption
("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23

     10. The Purchaser of an ERISA Restricted Certificate (A) is not an employee
benefit plan subject to Title I of ERISA, a plan subject to Section 4975 of the
Code, a plan subject to any state, local, federal, non-U.S. or other law
substantively similar to the foregoing provisions of ERISA or the Code ("Similar
Law") and is not directly or indirectly acquiring such Certificates by, on
behalf of, or with any assets of any such plan, or (B) if the Certificate has
been the subject of an ERISA-Qualifying Underwriting, is an insurance company
that is acquiring the Certificate with assets of an "insurance company general
account," as defined in Section V(e) of Prohibited Transaction Class Exemption
("PTCE") 95-60, and the acquisition and holding of the Certificate are covered
and exempt under Sections I and III of PTCE 95-60 (in the case of any ERISA
Restricted Certificate other than Class C Certificates or Class P Certificates,
after the termination of the Swap Agreement), or (C) solely in the event the
Certificate is a Definitive Certificate, herewith delivers an Opinion of Counsel
satisfactory to the Trustee, and upon which the Trustee shall be entitled to
rely, to the effect that the acquisition and holding of the Certificate will not
constitute or result in a nonexempt prohibited transaction under Title I of
ERISA or Section 4975 of the Code, or a violation of Similar Law, and will not
subject the Trustee, the NIMs Insurer, the Servicer or the Depositor to any
obligation in addition to those expressly undertaken in the Pooling and
Servicing Agreement, which Opinion of Counsel shall not be an expense of the
Trustee, the NIMs Insurer, the Servicer or the Depositor.

     11. The Purchaser of a Class R Certificate is not an employee benefit plan
subject to Title I of ERISA, a plan subject to Section 4975 of the Code, a plan
subject to any state, local, federal, non-U.S. or other law substantively
similar to the foregoing provisions of ERISA or the Code ("Similar Law"), or a
Person directly or indirectly acquiring such Certificate by, on behalf of, or
with any assets of any such plan.

     12. Prior to the sale or transfer by the Purchaser of any of the
Certificates, the Purchaser will obtain from any subsequent purchaser
substantially the same certifications, representations, warranties and covenants
contained in the foregoing paragraphs and in this letter or a letter
substantially in the form of Exhibit H to the Pooling and Servicing Agreement.

     13. The Purchaser agrees to indemnify the Trustee, the Servicer and the
Depositor against any liability that may result from any misrepresentation made
herein.

                                        Very truly yours,

                                        [PURCHASER]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       G-4

<PAGE>

                                    EXHIBIT H

                       FORM OF RULE 144A INVESTMENT LETTER

                         (QUALIFIED INSTITUTIONAL BUYER)

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603

Attention: Global Securities and Trust Services - Ownit Series 2006-3

Re: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
    Series 2006-3

Ladies and Gentlemen:

     ______________ (the "Purchaser") intends to purchase from ________________
(the "Transferor") $_______ by original principal balance (the "Transferred
Certificates") of Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
Certificates, Series 2006-3, Class [____] (the "Certificates"), issued pursuant
to a Pooling and Servicing Agreement, dated as of March 1, 2006 (the "Pooling
and Servicing Agreement"), among Merrill Lynch Mortgage Investors, Inc., as
depositor (the "Depositor"), LaSalle Bank National Association, as trustee (the
"Trustee"), and Litton Loan Servicing LP, as servicer (the "Servicer"). [THE
PURCHASER INTENDS TO REGISTER THE TRANSFERRED CERTIFICATE IN THE NAME OF
____________________, AS NOMINEE FOR _________________.] All terms used and not
otherwise defined herein shall have the meanings set forth in the Pooling and
Servicing Agreement.

     For good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Purchaser certifies, represents and warrants to, and
covenants with, the Depositor and the Trustee that:

In connection with our acquisition of the above Transferred Certificates we
certify that (a) we understand that the Certificates 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 have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Transferred Certificates and all
matters relating thereto or any additional information deemed necessary to our
decision to purchase the Transferred Certificates, (d) solely in the case of a
Certificate other than an ERISA Restricted Certificate or Class R Certificate,
either (i) we are not, and are not acquiring the Certificate for, on behalf of
or with any assets of, any employee benefit plan or other arrangement subject to
Title I of ERISA or any plan subject to Section 4975 of the Code, or (ii) until
the termination of the Swap Agreement, our acquisition and holding of the
Certificate is covered by and exempt under any of Prohibited Transaction Class
Exemption ("PTCE") 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, or PTCE 96-23, (e)
solely with respect to ERISA Restricted Certificates, (A) we are not an employee
benefit plan subject to Title I of the Employee Retirement Income Security Act
of 1974, as amended ("ERISA"), a plan subject to Section 4975 of the Internal
Revenue Code of 1986, as amended (the "Code"), a plan subject to any state,
local, federal, non-U.S. or other law substantively similar to the foregoing
provisions of ERISA or the Code ("Similar Law"), or Persons directly or
indirectly acting on behalf of or using any assets of any such plan, or (B) if
the Certificate has been the subject of an ERISA-

                                       H-1

<PAGE>

Qualifying Underwriting, we are an insurance company that is acquiring the
Certificate with assets of an "insurance company general account," as defined in
Section V(e) of Prohibited Transaction Class Exemption ("PTCE") 95-60, and the
acquisition and holding of the Certificate are covered and exempt under Sections
I and III of PTCE 95-60 (in the case of any ERISA Restricted Certificate other
than Class C Certificates or Class P Certificates, after the termination of the
Swap Agreement), or (C) solely in the event the Certificate is a Definitive
Certificate, we will herewith deliver an Opinion of Counsel satisfactory to the
Trustee, and upon which the Trustee shall be entitled to rely, to the effect
that the acquisition and holding of the Certificate will not constitute or
result in a nonexempt prohibited transaction under Title I of ERISA or Section
4975 of the Code, or a violation of Similar Law, and will not subject the
Trustee, the NIMs Insurer, the Servicer or the Depositor to any obligation in
addition to those expressly undertaken in the Pooling and Servicing Agreement,
which Opinion of Counsel shall not be an expense of the Trustee, the NIMs
Insurer, the Servicer or the Depositor, (f) we have not, nor has anyone acting
on our behalf offered, transferred, pledged, sold or otherwise disposed of the
Certificates, any interest in the Certificates or any other similar security to,
or solicited any offer to buy or accept a transfer, pledge or other disposition
of the Certificates, any interest in the Certificates or any other similar
security from, or otherwise approached or negotiated with respect to the
Certificates, any interest in the Certificates 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 Certificates under the Securities Act or
that would render the disposition of the Certificates a violation of Section 5
of the Securities Act or require registration pursuant thereto, nor will act,
nor has authorized or will authorize any person to act, in such manner with
respect to the Certificates, and (g) we are a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act and have completed
one of the forms of certification to that effect attached hereto as Annex 1 or
Annex 2. We are aware that the sale of the Transferred Certificates to us is
being made in reliance on Rule 144A. We are acquiring the Transferred
Certificates for our own account or for resale pursuant to Rule 144A and further
understand that such Certificates may be resold, pledged or transferred only (i)
to a person reasonably believed by us, based upon certifications of such
purchaser or information we have in our possession, 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 Securities Act.

     We agree to indemnify the Trustee, the Servicer and the Depositor against
any liability that may result from any misrepresentation made herein.

                                        Very truly yours,

                                        [PURCHASER]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       H-2
<PAGE>

                                                                         ANNEX 1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [FOR TRANSFEREES OTHER THAN REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     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 the 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, as amended ("Rule 144A") because (i) the Buyer owned and/or
invested on a discretionary basis $____________* in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

          ________   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 of 1986, as amended.

          ________   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 Federal, 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 such institution 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, a
                     copy of which is attached hereto.

          ________   Broker-dealer. The Buyer is a dealer registered pursuant to
                     Section 15 of the Securities Exchange Act of 1934, as
                     amended.

----------
*    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.

                                      H-3

<PAGE>

          ________   Insurance Company. The Buyer is an insurance company whose
                     primary and predominant business activity is the writing of
                     insurance or the reinsuring of risks underwritten by
                     insurance companies and which is subject to supervision by
                     the insurance commissioner or a similar official or agency
                     of the State, 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 subject
                     to Title I of the Employee Retirement Income Security Act
                     of 1974, as amended.

          ________   Investment Advisor. The Buyer is an investment advisor
                     registered under the Investment Advisors Act of 1940, as
                     amended.

          ________   Small Business Investment Company. 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, as amended.

          ________   Business Development Company. Buyer is a business
                     development company as defined in Section 202(a)(22) of the
                     Investment Advisors Act of 1940, as amended.

     3. The term "securities" as used for purposes of the calculation of the
dollar amount in paragraph 2 excludes: (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) securities
issued or guaranteed by the U.S. or any instrumentality thereof, (iv) bank
deposit notes and certificates of deposit, (v) loan participations, (vi)
repurchase agreements, (vii) securities owned but subject to a repurchase
agreement and (viii) 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, except (i) where the Buyer reports its
securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market. 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, as
amended.

                                      H-4

<PAGE>

     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.

     6. Until the date of purchase of the Rule 144A Securities, 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 the Certificates will constitute a reaffirmation of this
certification as of the date of such purchase. In addition, if the Buyer is a
bank or savings and loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------
                                         Date:
                                               -------------

                                      H-5

<PAGE>

                                                                         ANNEX 2

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

           [FOR TRANSFEREES THAT ARE REGISTERED INVESTMENT COMPANIES]

     The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

     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, as amended ("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 Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended 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, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

          ________   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) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (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.

     5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates are relying and will continue to rely on the statements made herein
because one or more sales to the Buyer will be in reliance on Rule 144A. In
addition, the Buyer will only purchase for the Buyer's own account.

                                      H-6

<PAGE>

     6. Until the date of purchase of the Certificates, the undersigned will
notify the parties listed in the Rule 144A Transferee Certificate to which this
certification relates of any changes in the information and conclusions herein.
Until such notice is given, the Buyer's purchase of the Certificates will
constitute a reaffirmation of this certification by the undersigned as of the
date of such purchase.

                                         By:
                                             -----------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                                --------------------------------

                                         IF AN ADVISER:

                                         ---------------------------------------
                                         Print Name of Buyer

                                         Date:
                                               -------------

                                      H-7

<PAGE>

                                    EXHIBIT I

                           FORM OF REQUEST FOR RELEASE

                                     [DATE]

To:  LaSalle Bank National Association
     135 South LaSalle Street, Suite 1625
     Chicago, Illinois 60603

Re:  Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
     Series 2006-3

     In connection with the administration of the Mortgage Loans held by you, as
Trustee, pursuant to the Pooling and Servicing Agreement dated as of March 1,
2006 among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle Bank
National Association, as trustee and Litton Loan Servicing LP, as servicer (the
"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

________   2.   Foreclosure

________   3.   Substitution

________   4.   Other Liquidation (Repurchases, etc.)

________   5.   Nonliquidation

Address to which the Trustee should deliver the Mortgage File:

                                         By:
                                             -----------------------------------
                                                    (authorized signer)
                                         Address:
                                                  ------------------------------
                                         Date:
                                               ---------------------------------

                                       I-1

<PAGE>

If box 1 or 2 above is checked, and if all or part of the Mortgage File was
previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the
above specified Mortgage Loan.

If box 3, 4, 5 or 6 above is checked, upon our return of all of the above
documents to you as Trustee, please acknowledge your receipt by signing in the
space indicated below, and returning this form.

Please acknowledge the execution of the above request by your signature and date
below:

LASALLE BANK NATIONAL ASSOCIATION,
as Custodian

By:
    ----------------------------------   -------------
    Signature                            Date

Documents returned to Custodian:

By:
    ----------------------------------   -------------
    Signature                            Date

                                      I-2

<PAGE>

                                    EXHIBIT J

                                   [RESERVED]

                                       J-1

<PAGE>

                                    EXHIBIT K

                                   [RESERVED]

                                       K-1

<PAGE>

                                    EXHIBIT L

                                   [RESERVED]

                                       L-1

<PAGE>

                                   EXHIBIT M-1

                                   [RESERVED]

                                      M-1-1

<PAGE>

                                   EXHIBIT M-2

                                   [RESERVED]

                                      M-2-1

<PAGE>

                                   EXHIBIT M-3

                                   [RESERVED]

                                      M-3-1
<PAGE>

                                   EXHIBIT N-1

                         FORM OF CLASS A-1 CAP CONTRACT

                                                           Dated: March __, 2006

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 37611

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("BNY"), a
trust company duly organized and existing under the laws of the State of New
York, and the Ownit Mortgage Loan Asset-Backed Certificates Series 2006-3 (the
"COUNTERPARTY"), as represented by LaSalle Bank National Association, not in its
individual capacity, but solely as Trustee under the Pooling and Servicing
Agreement, dated and effective March 1, 2006, among Merrill Lynch Mortgage
Investors, Inc., as Depositor, Litton Loan Servicing LP, as Servicer, and
LaSalle Bank National Association, as Trustee (the "POOLING AND SERVICING
AGREEMENT"). This Agreement, which evidences a complete and binding agreement
between you and us to enter into the Transaction on the terms set forth below,
constitutes a "CONFIRMATION" as referred to in the "ISDA FORM MASTER AGREEMENT"
(as defined below), as well as a "Schedule" as referred to in the ISDA Form
Master Agreement.

1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA Definitions
(the "DEFINITIONS"), as published by the International Swaps and Derivatives
Association, Inc. ("ISDA"). You and we have agreed to enter into this Agreement
in lieu of negotiating a Schedule to the 1992 ISDA Master Agreement
(Multicurrency--Cross Border) form (the "ISDA FORM MASTER AGREEMENT"). An ISDA
Form Master Agreement, as modified by the Schedule terms in Paragraph 4 of this
Confirmation (the "MASTER AGREEMENT"), shall be deemed to have been executed by
you and us on the date we entered into the Transaction. Except as otherwise
specified, references herein to Sections shall be to Sections of the ISDA Form
Master Agreement and the Master Agreement, and references to Paragraphs shall be
to paragraphs of this Agreement. Each party hereto agrees that the Master
Agreement deemed to have been executed by the parties hereto shall be the same
Master Agreement referred to in the agreement setting forth the terms of
transaction reference numbers 37610, 37612 and 37613. In the event of any
inconsistency between the provisions of this Agreement and the Definitions or
the ISDA Form Master Agreement, this Agreement shall prevail for purposes of the
Transaction. Capitalized terms not otherwise defined herein or in the
Definitions or the Master Agreement shall have the meaning defined for such term
in the Pooling and Servicing Agreement.

2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

     Type of Transaction:        Rate Cap

     Notional Amount:            With respect to any Calculation Period the
                                 amount set forth for such period on Schedule I
                                 attached hereto.

                                      N-1

<PAGE>

     Trade Date:                 March 30, 2006

     Effective Date:             April 13, 2006

     Termination Date:           September 25, 2006, subject to adjustment in
                                 accordance with the Modified Following Business
                                 Day Convention.

FLOATING AMOUNTS

     Floating Rate Payer:        BNY

     Cap Rate:                   For each Calculation Period, as set forth for
                                 such period on Schedule I attached hereto.

     Floating Rate for initial
     Calculation Period:         To be determined

     Floating Rate Day Count
     Fraction:                   Actual/360

     Floating Rate Option:       USD-LIBOR-BBA, provided, however, if the
                                 Floating Rate Option for a Calculation Period
                                 is greater than 10.32% (as set forth for such
                                 period on Schedule I attached hereto) then the
                                 Floating Rate Option for such Calculation
                                 Period shall be deemed equal to 10.32%.

     Designated Maturity:        One month

     Spread:                     Inapplicable

     Floating Rate Payer
     Period End Dates:           The 25th day of each month, beginning on April
                                 25, 2006 and ending on the Termination Date,
                                 subject to adjustment in accordance with the
                                 Modified Following Business Day Convention.

     Floating Rate Payer
     Payment Dates:              Early Payment shall be applicable. The Floating
                                 Rate Payer Payment Date shall be two (2)
                                 Business Days preceding each Floating Rate
                                 Payer Period End Date.

     Reset Dates:                The first day of each Calculation Period or
                                 Compounding Period, if Compounding is
                                 applicable.

     Compounding:                Inapplicable

     Business Days for
     Payments By both parties:   New York

     Calculation Agent:          BNY

3. ADDITIONAL PROVISIONS:

                                      N-2

<PAGE>

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
     other party has engaged in (or refrained from engaging in) substantial
     financial transactions and has taken (or refrained from taking) other
     material actions in reliance upon the entry by the parties into the
     Transaction being entered into on the terms and conditions set forth
     herein.

     2) TRANSFER, AMENDMENT AND ASSIGNMENT. No transfer, amendment, waiver,
     supplement, assignment or other modification of this Transaction shall be
     permitted by either party unless each of Standard & Poor's Ratings Service,
     a division of The McGraw-Hill Companies, Inc ("S&P") and Moody's Investors
     Service, Inc. ("MOODY'S"), has been provided notice of the same and
     confirms in writing (including by facsimile transmission) that it will not
     downgrade, qualify, withdraw or otherwise modify its then-current ratings
     on the Certificates issued under the Pooling and Servicing Agreement (the
     "CERTIFICATES").

4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

     1)   NO NETTING BETWEEN TRANSACTIONS. The parties agree that subparagraph
          (ii) of Section 2(c) will apply to any Transaction.

     2)   TERMINATION PROVISIONS. Subject to the provisions of Paragraph 4(10)
          below, for purposes of the Master Agreement:

          (a)  "SPECIFIED ENTITY" is not applicable to BNY or the Counterparty
               for any purpose.

          (b)  The "BREACH OF AGREEMENT" provision of Section 5(a)(ii) will not
               apply to BNY or the Counterparty.

          (c)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will
               not apply to BNY (except with respect to credit support furnished
               pursuant to Paragraph 4 9) below or the Counterparty.

          (d)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) will not
               apply to BNY or the Counterparty.

          (e)  "DEFAULT UNDER SPECIFIED TRANSACTION" is not applicable to BNY or
               the Counterparty for any purpose, and, accordingly, Section
               5(a)(v) shall not apply to BNY or the Counterparty.

          (f)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) will not apply
               to BNY or to the Counterparty.

          (g)  The "BANKRUPTCY" provisions of Section 5(a)(vii)(2) will not
               apply to the Counterparty; the words "trustee" and "custodian" in
               Section 5(a)(vii)(6) will not include the Trustee; and the words
               "specifically authorized " are inserted before the word "action"
               in Section 5(a)(vii)(9).

          (h)  The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv)
               will not apply to BNY or the Counterparty.

          (i)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will
               not apply to BNY or to the Counterparty.

                                      N-3

<PAGE>

          (j)  PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e):

               (i)  Market Quotation will apply.

               (ii) The Second Method will apply.

          (k)  "TERMINATION CURRENCY" means United States Dollars.

          (l)  NO ADDITIONAL AMOUNTS PAYABLE BY COUNTERPARTY. The Counterparty
               shall not be required to pay any additional amounts pursuant to
               Section 2(d)(i)(4) or 2(d)(ii).

     3)   TAX REPRESENTATIONS.

          (a)  PAYER REPRESENTATIONS. For the purpose of Section 3(e), BNY and
               the Counterparty make the following representations:

                    It is not required by any applicable law, as modified by the
               practice of any relevant governmental revenue authority, of any
               Relevant Jurisdiction to make any deduction or withholding for or
               on account of any Tax from any payment (other than interest under
               Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
               party under this Agreement. In making this representation, it may
               rely on:

               (i)  the accuracy of any representations made by the other party
                    pursuant to Section 3(f);

               (ii) the satisfaction of the agreement contained in Section 4
                    (a)(i) or 4(a)(iii) and the accuracy and effectiveness of
                    any document provided by the other party pursuant to Section
                    4 (a)(i) or 4(a)(iii); and

               (iii) the satisfaction of the agreement of the other party
                    contained in Section 4(d), provided that it shall not be a
                    breach of this representation where reliance is placed on
                    clause (ii) and the other party does not deliver a form or
                    document under Section 4(a)(iii) by reason of material
                    prejudice of its legal or commercial position.

          (b)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f), BNY and
               the Counterparty make the following representations.

               (i)  The following representation will apply to BNY:

                    (x) It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of the United States Treasury
                    Regulations) for United States federal income tax purposes,
                    (y) it is a trust company duly organized and existing under
                    the laws of the State of New York, and (y) its U.S. taxpayer
                    identification number is 135160382.

               (ii) The following representation will apply to the Counterparty:

                                      N-4

<PAGE>

                    It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of United States Treasury Regulations)
                    for United States federal income tax purposes.

     4)   DOCUMENTS TO BE DELIVERED. FOR THE PURPOSE OF SECTION 4(A):

          (a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                             DATE BY WHICH TO BE     COVERED BY SECTION 3(D)
DELIVER DOCUMENT                  FORM/DOCUMENT/ CERTIFICATE                       DELIVERED              REPRESENTATION
-----------------                 --------------------------                  -------------------     -----------------------
<S>                   <C>                                                 <C>                         <C>
BNY and Counterparty  Any document required or reasonably requested to    Upon the execution and      Yes
                      allow the other party to make payments under this   delivery of this Agreement
                      Agreement without any deduction or withholding for
                      or on the account of any tax.
</TABLE>

          (b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                             DATE BY WHICH TO BE     COVERED BY SECTION 3(D)
DELIVER DOCUMENT                  FORM/DOCUMENT/ CERTIFICATE                       DELIVERED              REPRESENTATION
-----------------                 --------------------------                  -------------------     -----------------------
<S>                   <C>                                                 <C>                         <C>
BNY                   A certificate of an authorized officer of the       Upon the execution and      Yes
                      party, as to the incumbency and authority of the    delivery of this Agreement
                      respective officers of the party signing this
                      Agreement, any relevant Credit Support Document,
                      or any Confirmation, as the case may be.

Counterparty          (i) a copy of the executed Pooling and Servicing    Upon the execution and      Yes
                      Agreement, and (ii) an incumbency certificate       delivery of this Agreement
                      verifying the true signatures and authority of the
                      person or persons signing this letter agreement on
                      behalf of the Counterparty.

BNY                   A copy of the most recent publicly available        Promptly after request by   Yes
                      regulatory call report.                             the other party

BNY                   Legal Opinion as to enforceability of the Swap      Upon the execution and      Yes
                      Agreement.                                          delivery of this Agreement.

Counterparty          Certified copy of the Board of Directors            Upon the execution and      Yes
                      resolution (or equivalent authorizing forth the     delivery of this
                      documentation) which sets authority of each         Agreement.
                      signatory to the Confirmation signing on its
                      behalf and the authority of such party to enter
                      into Transactions contemplated and performance
                      of its obligations hereunder.
</TABLE>

                                      N-5

<PAGE>

     5)   MISCELLANEOUS.

          (a)  ADDRESS FOR NOTICES: For the purposes of Section 12(a):

               Address for notices or communications to BNY:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    Global Market Division
                    32 Old Slip 15th Floor
                    New York, New York 10286
                    Attention: Steve Lawler

                    with a copy to:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    32 Old Slip 16th Floor
                    New York, New York 10286
                    Attention: Andrew Schwartz
                    Tele: 212-804-5103
                    Fax: 212-804-5818/5837

                    (For all purposes)

               Address for notices or communications to the Counterparty:

                    LaSalle Bank National Association
                    135 South LaSalle Street
                    Suite 1625
                    Chicago, Illinois 60603
                    Attention: OWNIT 2006-3
                    Tele: 312-904-7992
                    Fax: 312-904-1368

                    (For all purposes)

          (b)  PROCESS AGENT. For the purpose of Section 13(c):

               BNY appoints as its Process Agent: Not Applicable

               The Counterparty appoints as its Process Agent: Not Applicable

          (c)  OFFICES. The provisions of Section 10(a) will not apply to this
               Agreement; neither BNY nor the Counterparty have any Offices
               other than as set forth in the Notices Section and BNY agrees
               that, for purposes of Section 6(b), it shall not in future have
               any Office other than one in the United States.

          (d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

                                      N-6

<PAGE>

               BNY is not a Multibranch Party.

               The Counterparty is not a Multibranch Party.

          (e)  CALCULATION AGENT. The Calculation Agent is BNY.

          (f)  CREDIT SUPPORT DOCUMENT. Not applicable for either BNY (except
               with respect to credit support furnished pursuant to Paragraph 9)
               or the Counterparty.

          (g)  CREDIT SUPPORT PROVIDER.

               BNY:          Not Applicable (except with respect to credit
                             support furnished pursuant to Paragraph 9)

               Counterparty: Not Applicable

          (h)  GOVERNING LAW. The parties to this Agreement hereby agree that
               the law of the State of New York shall govern their rights and
               duties in whole, without regard to conflict of law provisions
               thereof other than New York General Obligations Law Sections
               5-1401 and 5-1402.

          (i)  SEVERABILITY. If any term, provision, covenant, or condition of
               this Agreement, or the application thereof to any party or
               circumstance, shall be held to be invalid or unenforceable (in
               whole or in part) for any reason, the remaining terms,
               provisions, covenants, and conditions hereof shall continue in
               full force and effect as if this Agreement had been executed with
               the invalid or unenforceable portion eliminated, so long as this
               Agreement as so modified continues to express, without material
               change, the original intentions of the parties as to the subject
               matter of this Agreement and the deletion of such portion of this
               Agreement will not substantially impair the respective benefits
               or expectations of the parties.

               The parties shall endeavor to engage in good faith negotiations
               to replace any invalid or unenforceable term, provision, covenant
               or condition with a valid or enforceable term, provision,
               covenant or condition, the economic effect of which comes as
               close as possible to that of the invalid or unenforceable term,
               provision, covenant or condition.

          (j)  RECORDING OF CONVERSATIONS. Each party (i) consents to the
               recording of telephone conversations between the trading,
               marketing and other relevant personnel of the parties in
               connection with this Agreement or any potential Transaction, (ii)
               agrees to obtain any necessary consent of, and give any necessary
               notice of such recording to, its relevant personnel and (iii)
               agrees, to the extent permitted by applicable law, that
               recordings may be submitted in evidence in any Proceedings.

                                      N-7

<PAGE>

          (k)  WAIVER OF JURY TRIAL. Each party waives any right it may have to
               a trial by jury in respect of any Proceedings relating to this
               Agreement or any Credit Support Document.

          (l)  NON-RECOURSE. Notwithstanding any provision herein or in the ISDA
               Form Master Agreement to the contrary, the obligations of the
               Counterparty hereunder are limited recourse obligations of the
               Counterparty, payable solely from the Trust Fund and the proceeds
               thereof to satisfy the Counterparty's obligations hereunder. In
               the event that the Trust Fund and proceeds thereof should be
               insufficient to satisfy all claims outstanding and following the
               realization of the Trust Fund and the distribution of the
               proceeds thereof in accordance with the Pooling and Servicing
               Agreement, any claims against or obligations of the Counterparty
               under the ISDA Form Master Agreement or any other confirmation
               thereunder, still outstanding shall be extinguished and
               thereafter not revive. This provision shall survive the
               expiration of this Agreement.

          (m)  LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. BNY shall
               not institute against or cause any other person to institute
               against, or join any other person in instituting against the
               Counterparty, any bankruptcy, reorganization, arrangement,
               insolvency or liquidation proceedings, under any of the laws of
               the United States or any other jurisdiction, for a period of one
               year and one day (or, if longer, the applicable preference
               period) following indefeasible payment in full of the
               Certificates. This provision shall survive the expiration of this
               Agreement.

          (n)  REMEDY OF FAILURE TO PAY OR DELIVER. The ISDA Form Master
               Agreement is hereby amended by replacing the word "third" in the
               third line of Section 5(a)(i) by the word "second".

          (o)  "AFFILIATE" will have the meaning specified in Section 14 of the
               ISDA Form Master Agreement, provided that the Counterparty shall
               not be deemed to have any Affiliates for purposes of this
               Agreement, including for purposes of Section 6(b)(ii).

          (p)  TRUSTEE'S CAPACITY. It is expressly understood and agreed by the
               parties hereto that insofar as this Confirmation is executed by
               the Trustee (i) this Confirmation is executed and delivered by
               LaSalle Bank National Association, not in its individual capacity
               but solely as Trustee pursuant to the Pooling and Servicing
               Agreement in the exercise of the powers and authority conferred
               and vested in it thereunder and pursuant to instruction set forth
               therein (ii) each of the representations, undertakings and
               agreements herein made on behalf of the trust is made and
               intended not as a personal representation, undertaking or
               agreement of the Trustee but is made and intended for the purpose
               of binding only the Counterparty, and (iii) under no
               circumstances will LaSalle Bank National Association, in its
               individual capacity be personally liable for the payment of any
               indebtedness or expenses or be personally liable for the breach
               or failure of any obligation, representation, warranty or
               covenant made or undertaken under this Confirmation.

                                      N-8

<PAGE>

          (q)  TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as
               Trustee, represents and warrants that:

               It has been directed under the Pooling and Servicing Agreement to
               enter into this letter agreement as Trustee on behalf of the
               Counterparty.

          (r)  AMENDMENT TO POOLING AND SERVICING AGREEMENT. Notwithstanding any
               provisions to the contrary in the Pooling and Servicing
               Agreement, none of the Depositor, the Servicer or the Trustee
               shall enter into any amendment thereto which could have a
               material adverse affect on BNY without the prior written consent
               of BNY.

     6)   ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding,
          before the close parenthesis in the introductory sentence thereof, the
          words ", and, in the case of the representations in Section 3(i), at
          all times", and, at the end thereof, the following Sections 3(g), 3(h)
          and 3(i):

          "(g) RELATIONSHIP BETWEEN PARTIES.

               (1)  NONRELIANCE. It is not relying on any statement or
                    representation of the other party regarding the Transaction
                    (whether written or oral), other than the representations
                    expressly made in this Agreement or the Confirmation in
                    respect of that Transaction.

               (2)  EVALUATION AND UNDERSTANDING.

                    (i)  Each Party acknowledges that LaSalle Bank National
                         Association, has been directed under the Pooling and
                         Servicing Agreement to enter into this Transaction as
                         Trustee on behalf of the Counterparty.

                    (ii) It is acting for its own account and has the capacity
                         to evaluate (internally or through independent
                         professional advice) the Transaction and has made its
                         own decision to enter into the Transaction; it is not
                         relying on any communication (written or oral) of the
                         other party as investment advice or as a recommendation
                         to enter into such transaction; it being understood
                         that information and explanations related to the terms
                         and conditions of such transaction shall not be
                         considered investment advice or a recommendation to
                         enter into such transaction. No communication (written
                         or oral) received from the other party shall be deemed
                         to be an assurance or guarantee as to the expected
                         results of the transaction; and

                    (iii) It understands the terms, conditions and risks of the
                         Transaction and is willing and able to accept those
                         terms and conditions and to assume (and does, in fact
                         assume) those risks, financially and otherwise.

               (3)  PRINCIPAL. The other party is not acting as a fiduciary or
                    an advisor for it in respect of this Transaction.

                                      N-9

<PAGE>

          (h)  EXCLUSION FROM COMMODITIES EXCHANGE ACT. (A) It is an "eligible
               contract participant" within the meaning of Section 1a(12) of the
               Commodity Exchange Act, as amended; (B) this Agreement and each
               Transaction is subject to individual negotiation by such party;
               and (C) neither this Agreement nor any Transaction will be
               executed or traded on a "trading facility" within the meaning of
               Section 1a(33) of the Commodity Exchange Act, as amended.

          (i)  ERISA (PENSION PLANS). It is not a pension plan or employee
               benefits plan and it is not using assets of any such plan or
               assets deemed to be assets of such a plan in connection with this
               Transaction.

     7)   SET-OFF. Notwithstanding any provision of this Agreement or any other
          existing or future agreement (but without limiting the provisions of
          Section 2(c) and Section 6, except as provided in the next sentence),
          each party irrevocably waives any and all rights it may have to set
          off, net, recoup or otherwise withhold or suspend or condition payment
          or performance of any obligation between it and the other party
          hereunder against any obligation between it and the other party under
          any other agreements. The last sentence of the first paragraph of
          Section 6(e) shall not apply for purposes of this Transaction.

     8)   ADDITIONAL TERMINATION EVENTS. The following Additional Termination
          Events will apply, in each case with respect to BNY as the sole
          Affected Party (unless otherwise provided below):

          (i)  REMEDY OF RATINGS EVENTS. BNY fails to comply with the provisions
               of Paragraph 9.

          (ii) AMENDMENT OF POOLING AND SERVICING AGREEMENT WITHOUT CONSENT OF
               BNY. If the Trustee permits the Pooling and Servicing Agreement
               to be amended in a manner which could have a material adverse
               affect on BNY without first obtaining the prior written consent
               of BNY. The Counterparty shall be the sole Affected Party with
               respect to the occurrence of a Termination Event described in
               this Paragraph 8(ii).

          (iii) FAILURE TO PROVIDE INFORMATION REQUIRED BY REGULATION AB. If the
               Depositor under the Pooling and Servicing Agreement still has a
               reporting obligation with respect to this Transaction pursuant to
               Regulation AB under the Securities Act of 1933, as amended, and
               the Securities Exchange Act of 1934, as amended ("REGULATION AB")
               and BNY has not, within 30 days after receipt of a Swap
               Disclosure Request complied with the provisions set forth below
               in this Paragraph 4(8)(iii) (provided that if the significance
               percentage reaches 10% after a Swap Disclosure Request has been
               made to BNY, BNY must comply with the provisions set forth below
               in this Section 4(8)(iii) within 10 days of BNY being informed of
               the significance percentage reaching 10%), then an Additional
               Termination Event shall have occurred with respect to BNY and BNY
               shall be the sole Affected Party with respect to such Additional
               Termination Event.

               BNY acknowledges that for so long as there are reporting
               obligations with respect to this Transaction under Regulation AB,
               the Depositor is required under Regulation AB to disclose certain
               information set forth in Regulation AB regarding BNY or its group
               of affiliated entities, if applicable, depending on the

                                      N-10

<PAGE>

               aggregate "significance percentage" of this Agreement and any
               other derivative contracts between BNY or its group of affiliated
               entities, if applicable, and the Counterparty, as calculated from
               time to time in accordance with Item 1115 of Regulation AB.

               If the Depositor determines, reasonably and in good faith, that
               the significance percentage of this Agreement has increased to
               nine (9) percent, then the Depositor may request on a Business
               Day after the date of such determination from BNY the same
               information set forth in Item 1115(b) of Regulation AB that would
               have been required if the significance percentage had in fact
               increased to ten (10) percent (such request, a "SWAP DISCLOSURE
               REQUEST" and such requested information, subject to the last
               sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE").
               The Counterparty or the Depositor shall provide BNY with the
               calculations and any other information reasonably requested by
               BNY with respect to the Depositor's determination that led to the
               Swap Disclosure Request. The parties hereto further agree that
               the Swap Financial Disclosure provided to meet the Swap
               Disclosure Request may be, solely at BNY's option, either the
               information set forth in Item 1115(b)(1) or Item 1115(b)(2) of
               Regulation AB.

               Upon the occurrence of a Swap Disclosure Request, BNY, at its own
               expense, shall (x) provide the Depositor with the Swap Financial
               Disclosure, or (y) subject to Rating Agency Confirmation, secure
               another entity to replace BNY as party to this Agreement on terms
               substantially similar to this Agreement which entity is able to
               provide the Swap Financial Disclosure. If permitted by Regulation
               AB, any required Swap Financial Disclosure may be provided by
               incorporation by reference from reports filed pursuant to the
               Securities Exchange Act.

     9)   PROVISIONS RELATING TO DOWNGRADE OF BNY DEBT RATINGS .

          (i)  For purposes of this Transaction:

               (a)  A "COLLATERALIZATION RATINGS EVENT" shall occur with respect
                    to BNY (or any applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is reduced to "P-1 on watch for downgrade" or below,
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A1 on watch for downgrade" or below (or, if
                         it has no short-term unsecured and unsubordinated debt
                         rating, its long term rating is reduced to "Aa3 on
                         watch for downgrade" or below) by Moody's, or

                    (y)  its short-term unsecured and unsubordinated debt rating
                         is reduced below "A-1" by S&P.

                    Such ratings are referred to herein as the "QUALIFYING
                    RATINGS."

               (b)  A "RATINGS EVENT" shall occur with respect to BNY (or any
                    applicable credit support provider) if:

                                      N-11

<PAGE>

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced to "P-2" or below by Moody's
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A3" or below (or, if it has no short-term
                         unsecured and unsubordinated debt rating, its long term
                         rating is reduced to "A2" or below) by Moody's, or

                    (y)  its long-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced below "BBB-" by S&P.

                    For purposes of (a) and (b) above, such events include those
                    occurring in connection with a merger, consolidation or
                    other similar transaction by BNY or any applicable credit
                    support provider, but they shall be deemed not to occur if,
                    within 30 days thereafter, each of Moody's and S&P has
                    reconfirmed the ratings of the Certificates, as applicable,
                    which were in effect immediately prior thereto. For the
                    avoidance of doubt, a downgrade of the rating on the
                    Certificates could occur in the event that BNY does not post
                    sufficient collateral.

               (c)  "RATING AGENCY CONDITION" means, with respect to any
                    particular proposed act or omission to act hereunder, that
                    the Trustee shall have received prior written confirmation
                    from each of Moody's and S&P, and shall have provided
                    notice thereof to BNY, that the proposed action or inaction
                    would not cause a downgrade or withdrawal of their
                    then-current ratings of the Certificates.

          (ii) Subject, in each case set forth in (a) and (b) below, to
               satisfaction of the Rating Agency Condition:

               (a)  COLLATERALIZATION RATINGS EVENT. If a Collateralization
                    Ratings Event occurs with respect to BNY (or any applicable
                    credit support provider), then BNY shall, at its own
                    expense, and subject to rating agency confirmation within
                    thirty (30) days of such Collateralization Ratings Event:

                    (w)  post collateral under agreements and other instruments
                         approved by the Counterparty and the NIMS Insurer, such
                         approval not to be unreasonably withheld, and
                         satisfactory to Moody's and S&P, which will be
                         sufficient to restore the immediately prior ratings of
                         the Certificates,

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the

                                      N-12

<PAGE>

                              Qualifying Ratings, to honor BNY's obligations
                              under this Agreement, provided that such other
                              person is approved by the Counterparty and the
                              NIMS Insurer, such approval not to be unreasonably
                              withheld, or

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

               (b)  RATINGS EVENT. If a Ratings Event occurs with respect to BNY
                    (or any applicable credit support provider), then BNY shall,
                    at its own expense, and subject to rating agency
                    confirmation within ten (10) Business Days of such Ratings
                    Event:

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

     10)  ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6
          of the ISDA Form Master Agreement, if the Counterparty has satisfied
          its payment obligations under Section 2(a)(i) of the ISDA Form Master
          Agreement, and shall, at the time, have no future payment or delivery
          obligation, whether absolute or contingent, then unless BNY is
          required pursuant to appropriate proceedings to return to the
          Counterparty or otherwise returns to the Counterparty upon demand of
          the Counterparty any portion of such payment, (a) the occurrence of an
          event described in Section 5(a) of the ISDA Form Master Agreement with
          respect to the Counterparty shall not constitute an Event of Default
          or Potential Event of Default with respect to the Counterparty as the
          Defaulting Party and (b) BNY shall be entitled to designate an Early
          Termination Date pursuant to Section 6 of the ISDA Form Master
          Agreement only as a result of a Termination Event set forth in either
          Section 5(b)(i) or Section 5(b)(ii) of the ISDA Form Master Agreement
          with respect to BNY as the Affected Party or Section 5(b)(iii) of the
          ISDA Form Master Agreement with respect to BNY as the Burdened Party.

                                      N-13

<PAGE>

     11)  RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
          Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts
          paid hereunder are not intended to benefit the holder of any class of
          certificates rated by any rating agency if such holder is MLML or any
          of its affiliates. If MLML or any of its affiliates receives any such
          amounts, it will promptly remit (or, if such amounts are received by
          an affiliate of MLML, MLML hereby agrees that it will cause such
          affiliate to promptly remit) such amounts to the Trustee, whereupon
          such Trustee will promptly remit such amounts to BNY. MLML further
          agrees to provide notice to BNY upon any remittance to the trustee.

     12)  BNY PAYMENTS TO BE MADE TO TRUSTEE. BNY will, unless otherwise
          directed by the Trustee, make all payments hereunder to the Trustee.
          Payment made to the Trustee at the account specified herein or to
          another account specified in writing by the Trustee shall satisfy the
          payment obligations of BNY hereunder to the extent of such payment.

5. ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     Payments to BNY:

          The Bank of New York
          Derivative Products Support Department
          32 Old Slip, 16th Floor
          New York, New York 10286
          Attention: Renee Etheart
          ABA # _____________
          Account # _____________
          Reference: Interest Rate Swap

     Payments to Counterparty:

          LaSalle Bank N.A.
          ABA # _____________
          Acct #: _____________
          Ref: Ownit 2006-3 Cap Account

6. COUNTERPARTS. This Agreement may be executed in several counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                      N-14

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

     Very truly yours,

THE BANK OF NEW YORK

BY:
    ----------------------------------
Name:
      --------------------------------
Title:
       -------------------------------

     The Counterparty, acting through its duly authorized signatory, hereby
agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY: LASALLE BANK, NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
ON BEHALF OF OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY:
    ----------------------------------
Name:
      --------------------------------
Title:
       -------------------------------

Solely with respect to Paragraph 4(11)
MERRILL LYNCH MORTGAGE LENDING, INC.

By:
    ----------------------------------
Name:
      --------------------------------
Title:
       -------------------------------

                                      N-15

<PAGE>

                                   SCHEDULE I

    All dates subject to adjustment in accordance with the Modified Following
                            Business Day Convention.

                                      N-16

<PAGE>

                                   EXHIBIT N-2

                         FORM OF CLASS A-2 CAP CONTRACT

                                                           Dated: March __, 2006

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 37612

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("BNY"), a
trust company duly organized and existing under the laws of the State of New
York, and the Ownit Mortgage Loan Asset-Backed Certificates Series 2006-3 (the
"COUNTERPARTY"), as represented by LaSalle Bank National Association, not in its
individual capacity, but solely as Trustee under the Pooling and Servicing
Agreement, dated and effective March 1, 2006, among Merrill Lynch Mortgage
Investors, Inc., as Depositor, Litton Loan Servicing LP, as Servicer, and
LaSalle Bank National Association, as Trustee (the "POOLING AND SERVICING
AGREEMENT"). This Agreement, which evidences a complete and binding agreement
between you and us to enter into the Transaction on the terms set forth below,
constitutes a "CONFIRMATION" as referred to in the "ISDA FORM MASTER AGREEMENT"
(as defined below), as well as a "Schedule" as referred to in the ISDA Form
Master Agreement.

1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA Definitions
(the "DEFINITIONS"), as published by the International Swaps and Derivatives
Association, Inc. ("ISDA"). You and we have agreed to enter into this Agreement
in lieu of negotiating a Schedule to the 1992 ISDA Master Agreement
(Multicurrency--Cross Border) form (the "ISDA FORM MASTER AGREEMENT"). An ISDA
Form Master Agreement, as modified by the Schedule terms in Paragraph 4 of this
Confirmation (the "MASTER AGREEMENT"), shall be deemed to have been executed by
you and us on the date we entered into the Transaction. Except as otherwise
specified, references herein to Sections shall be to Sections of the ISDA Form
Master Agreement and the Master Agreement, and references to Paragraphs shall be
to paragraphs of this Agreement. Each party hereto agrees that the Master
Agreement deemed to have been executed by the parties hereto shall be the same
Master Agreement referred to in the agreement setting forth the terms of
transaction reference numbers 37610, 37611 and 37613. In the event of any
inconsistency between the provisions of this Agreement and the Definitions or
the ISDA Form Master Agreement, this Agreement shall prevail for purposes of the
Transaction. Capitalized terms not otherwise defined herein or in the
Definitions or the Master Agreement shall have the meaning defined for such term
in the Pooling and Servicing Agreement.

2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

     Type of Transaction:        Rate Cap

     Notional Amount:            With respect to any Calculation Period the
                                 amount set forth for such period on Schedule I
                                 attached hereto.

     Trade Date:                 March 30, 2006

                                       N-2

<PAGE>

     Effective Date:             April 13, 2006

     Termination Date:           September 25, 2006, subject to adjustment in
                                 accordance with the Modified Following Business
                                 Day Convention.

FLOATING AMOUNTS

     Floating Rate Payer:        BNY

     Cap Rate:                   For each Calculation Period, as set forth for
                                 such period on Schedule I attached hereto.

     Floating Rate for initial
     Calculation Period:         To be determined

     Floating Rate Day Count
     Fraction:                   Actual/360

     Floating Rate Option:       USD-LIBOR-BBA, provided, however, if the
                                 Floating Rate Option for a Calculation Period
                                 is greater than 10.28% (as set forth for such
                                 period on Schedule I attached hereto) then the
                                 Floating Rate Option for such Calculation
                                 Period shall be deemed equal to 10.28%.

     Designated Maturity:        One month

     Spread:                     Inapplicable

     Floating Rate Payer
     Period End Dates:           The 25th day of each month, beginning on April
                                 25, 2006 and ending on the Termination Date,
                                 subject to adjustment in accordance with the
                                 Modified Following Business Day Convention.

     Floating Rate Payer
     Payment Dates:              Early Payment shall be applicable. The Floating
                                 Rate Payer Payment Date shall be two (2)
                                 Business Days preceding each Floating Rate
                                 Payer Period End Date.

     Reset Dates:                The first day of each Calculation Period or
                                 Compounding Period, if Compounding is
                                 applicable.

     Compounding:                Inapplicable

     Business Days for
     Payments By both parties:   New York

     Calculation Agent:          BNY

3. ADDITIONAL PROVISIONS:

                                      N-2
<PAGE>

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
     other party has engaged in (or refrained from engaging in) substantial
     financial transactions and has taken (or refrained from taking) other
     material actions in reliance upon the entry by the parties into the
     Transaction being entered into on the terms and conditions set forth
     herein.

     2) TRANSFER, AMENDMENT AND ASSIGNMENT. No transfer, amendment, waiver,
     supplement, assignment or other modification of this Transaction shall be
     permitted by either party unless each of Standard & Poor's Ratings Service,
     a division of The McGraw-Hill Companies, Inc ("S&P") and Moody's Investors
     Service, Inc. ("MOODY'S"), has been provided notice of the same and
     confirms in writing (including by facsimile transmission) that it will not
     downgrade, qualify, withdraw or otherwise modify its then-current ratings
     on the Certificates issued under the Pooling and Servicing Agreement (the
     "CERTIFICATES").

4. PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

     2)   NO NETTING BETWEEN TRANSACTIONS. The parties agree that subparagraph
          (ii) of Section 2(c) will apply to any Transaction.

     2)   TERMINATION PROVISIONS. Subject to the provisions of Paragraph 4(10)
          below, for purposes of the Master Agreement:

          (a)  "SPECIFIED ENTITY" is not applicable to BNY or the Counterparty
               for any purpose.

          (b)  The "BREACH OF AGREEMENT" provision of Section 5(a)(ii) will not
               apply to BNY or the Counterparty.

          (c)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will
               not apply to BNY (except with respect to credit support furnished
               pursuant to Paragraph 4 9) below or the Counterparty.

          (d)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) will not
               apply to BNY or the Counterparty.

          (e)  "DEFAULT UNDER SPECIFIED TRANSACTION" is not applicable to BNY or
               the Counterparty for any purpose, and, accordingly, Section
               5(a)(v) shall not apply to BNY or the Counterparty.

          (f)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) will not apply
               to BNY or to the Counterparty.

          (g)  The "BANKRUPTCY" provisions of Section 5(a)(vii)(2) will not
               apply to the Counterparty; the words "trustee" and "custodian" in
               Section 5(a)(vii)(6) will not include the Trustee; and the words
               "specifically authorized " are inserted before the word "action"
               in Section 5(a)(vii)(9).

          (h)  The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv)
               will not apply to BNY or the Counterparty.

          (i)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will
               not apply to BNY or to the Counterparty.

                                       N-2

<PAGE>

          (j)  PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e):

               (i)  Market Quotation will apply.

               (ii) The Second Method will apply.

          (k)  "TERMINATION CURRENCY" means United States Dollars.

          (l)  NO ADDITIONAL AMOUNTS PAYABLE BY COUNTERPARTY. The Counterparty
               shall not be required to pay any additional amounts pursuant to
               Section 2(d)(i)(4) or 2(d)(ii).

     3)   TAX REPRESENTATIONS.

          (a)  PAYER REPRESENTATIONS. For the purpose of Section 3(e), BNY and
               the Counterparty make the following representations:

                    It is not required by any applicable law, as modified by the
               practice of any relevant governmental revenue authority, of any
               Relevant Jurisdiction to make any deduction or withholding for or
               on account of any Tax from any payment (other than interest under
               Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
               party under this Agreement. In making this representation, it may
               rely on:

               (i)  the accuracy of any representations made by the other party
                    pursuant to Section 3(f);

               (ii) the satisfaction of the agreement contained in Section 4
                    (a)(i) or 4(a)(iii) and the accuracy and effectiveness of
                    any document provided by the other party pursuant to Section
                    4 (a)(i) or 4(a)(iii); and

               (iii) the satisfaction of the agreement of the other party
                    contained in Section 4(d), provided that it shall not be a
                    breach of this representation where reliance is placed on
                    clause (ii) and the other party does not deliver a form or
                    document under Section 4(a)(iii) by reason of material
                    prejudice of its legal or commercial position.

          (b)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f), BNY and
               the Counterparty make the following representations.

               (i)  The following representation will apply to BNY:

                    (x) It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of the United States Treasury
                    Regulations) for United States federal income tax purposes,
                    (y) it is a trust company duly organized and existing under
                    the laws of the State of New York, and (y) its U.S. taxpayer
                    identification number is 135160382.

               (ii) The following representation will apply to the Counterparty:

                                       N-2

<PAGE>

                    It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of United States Treasury Regulations)
                    for United States federal income tax purposes.

     4)   DOCUMENTS TO BE DELIVERED. FOR THE PURPOSE OF SECTION 4(A):

          (a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER                                                              DATE BY WHICH         COVERED BY SECTION 3(D)
DOCUMENT                                FORM/DOCUMENT/ CERTIFICATE                    TO BE DELIVERED             REPRESENTATION
-------------------------               --------------------------                    ---------------        -----------------------
<S>                         <C>                                                  <C>                         <C>
BNY and Counterparty        Any document required or reasonably requested to     Upon the execution and      Yes
                            allow the other party to make payments under this    delivery of this
                            Agreement without any deduction or withholding for   Agreement
                            or on the account of any tax.
</TABLE>

          (b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO DELIVER                                                              DATE BY WHICH         COVERED BY SECTION 3(D)
DOCUMENT                                FORM/DOCUMENT/ CERTIFICATE                    TO BE DELIVERED             REPRESENTATION
-------------------------               --------------------------                    ---------------        -----------------------
<S>                         <C>                                                  <C>                         <C>
BNY                         A certificate of an authorized officer of the        Upon the execution and      Yes
                            party, as to the incumbency and authority of the     delivery of this
                            respective officers of the party signing this        Agreement
                            Agreement, any relevant Credit Support Document,
                            or any Confirmation, as the case may be.

Counterparty                (i) a copy of the executed Pooling and Servicing     Upon the execution and      Yes
                            Agreement, and (ii) an incumbency certificate        delivery of this
                            verifying the true signatures and authority of the   Agreement
                            person or persons signing this letter agreement on
                            behalf of the Counterparty.

BNY                         A copy of the most recent publicly available         Promptly after request by   Yes
                            regulatory call report.                              the other party

BNY                         Legal Opinion as to enforceability of the Swap       Upon the execution and      Yes
                            Agreement.                                           delivery of this
                                                                                 Agreement.

Counterparty                Certified copy of the Board of Directors             Upon the execution and      Yes
                            resolution (or equivalent authorizing                delivery of this
                            documentation) which sets forth the authority of     Agreement.
                            each signatory to the Confirmation signing on its
                            behalf and the authority of such party to enter
                            into Transactions contemplated and performance of
                            its obligations hereunder.
</TABLE>

                                       N-2

<PAGE>

     5)   MISCELLANEOUS.

          (a)  ADDRESS FOR NOTICES: For the purposes of Section 12(a):

               Address for notices or communications to BNY:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    Global Market Division
                    32 Old Slip 15th Floor
                    New York, New York 10286
                    Attention: Steve Lawler

                    with a copy to:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    32 Old Slip 16th Floor
                    New York, New York 10286
                    Attention: Andrew Schwartz
                    Tele: 212-804-5103
                    Fax: 212-804-5818/5837

                    (For all purposes)

               Address for notices or communications to the Counterparty:

                    LaSalle Bank National Association
                    135 South LaSalle Street
                    Suite 1625
                    Chicago, Illinois 60603
                    Attention: OWNIT 2006-3
                    Tele: 312-904-7992
                    Fax: 312-904-1368

                    (For all purposes)

          (b)  PROCESS AGENT. For the purpose of Section 13(c):

               BNY appoints as its Process Agent: Not Applicable

               The Counterparty appoints as its Process Agent: Not Applicable

          (c)  OFFICES. The provisions of Section 10(a) will not apply to this
               Agreement; neither BNY nor the Counterparty have any Offices
               other than as set forth in the Notices Section and BNY agrees
               that, for purposes of Section 6(b), it shall not in future have
               any Office other than one in the United States.

          (d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

                    BNY is not a Multibranch Party.

                                       N-2
<PAGE>

               The Counterparty is not a Multibranch Party.

          (e)  CALCULATION AGENT. The Calculation Agent is BNY.

          (f)  CREDIT SUPPORT DOCUMENT. Not applicable for either BNY (except
               with respect to credit support furnished pursuant to Paragraph 9)
               or the Counterparty.

          (g)  CREDIT SUPPORT PROVIDER.

               BNY: Not Applicable (except with respect to credit support
                    furnished pursuant to Paragraph 9)

               Counterparty: Not Applicable

          (h)  GOVERNING LAW. The parties to this Agreement hereby agree that
               the law of the State of New York shall govern their rights and
               duties in whole, without regard to conflict of law provisions
               thereof other than New York General Obligations Law Sections
               5-1401 and 5-1402.

          (i)  SEVERABILITY. If any term, provision, covenant, or condition of
               this Agreement, or the application thereof to any party or
               circumstance, shall be held to be invalid or unenforceable (in
               whole or in part) for any reason, the remaining terms,
               provisions, covenants, and conditions hereof shall continue in
               full force and effect as if this Agreement had been executed with
               the invalid or unenforceable portion eliminated, so long as this
               Agreement as so modified continues to express, without material
               change, the original intentions of the parties as to the subject
               matter of this Agreement and the deletion of such portion of this
               Agreement will not substantially impair the respective benefits
               or expectations of the parties.

               The parties shall endeavor to engage in good faith negotiations
               to replace any invalid or unenforceable term, provision, covenant
               or condition with a valid or enforceable term, provision,
               covenant or condition, the economic effect of which comes as
               close as possible to that of the invalid or unenforceable term,
               provision, covenant or condition.

          (j)  RECORDING OF CONVERSATIONS. Each party (i) consents to the
               recording of telephone conversations between the trading,
               marketing and other relevant personnel of the parties in
               connection with this Agreement or any potential Transaction, (ii)
               agrees to obtain any necessary consent of, and give any necessary
               notice of such recording to, its relevant personnel and (iii)
               agrees, to the extent permitted by applicable law, that
               recordings may be submitted in evidence in any Proceedings.

          (k)  WAIVER OF JURY TRIAL. Each party waives any right it may have to
               a trial by jury in respect of any Proceedings relating to this
               Agreement or any Credit Support Document.

                                       N-2

<PAGE>

          (l)  NON-RECOURSE. Notwithstanding any provision herein or in the ISDA
               Form Master Agreement to the contrary, the obligations of the
               Counterparty hereunder are limited recourse obligations of the
               Counterparty, payable solely from the Trust Fund and the proceeds
               thereof to satisfy the Counterparty's obligations hereunder. In
               the event that the Trust Fund and proceeds thereof should be
               insufficient to satisfy all claims outstanding and following the
               realization of the Trust Fund and the distribution of the
               proceeds thereof in accordance with the Pooling and Servicing
               Agreement, any claims against or obligations of the Counterparty
               under the ISDA Form Master Agreement or any other confirmation
               thereunder, still outstanding shall be extinguished and
               thereafter not revive. This provision shall survive the
               expiration of this Agreement.

          (m)  LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. BNY shall
               not institute against or cause any other person to institute
               against, or join any other person in instituting against the
               Counterparty, any bankruptcy, reorganization, arrangement,
               insolvency or liquidation proceedings, under any of the laws of
               the United States or any other jurisdiction, for a period of one
               year and one day (or, if longer, the applicable preference
               period) following indefeasible payment in full of the
               Certificates. This provision shall survive the expiration of this
               Agreement.

          (n)  REMEDY OF FAILURE TO PAY OR DELIVER. The ISDA Form Master
               Agreement is hereby amended by replacing the word "third" in the
               third line of Section 5(a)(i) by the word "second".

          (o)  "AFFILIATE" will have the meaning specified in Section 14 of the
               ISDA Form Master Agreement, provided that the Counterparty shall
               not be deemed to have any Affiliates for purposes of this
               Agreement, including for purposes of Section 6(b)(ii).

          (p)  TRUSTEE'S CAPACITY. It is expressly understood and agreed by the
               parties hereto that insofar as this Confirmation is executed by
               the Trustee (i) this Confirmation is executed and delivered by
               LaSalle Bank National Association, not in its individual capacity
               but solely as Trustee pursuant to the Pooling and Servicing
               Agreement in the exercise of the powers and authority conferred
               and vested in it thereunder and pursuant to instruction set forth
               therein (ii) each of the representations, undertakings and
               agreements herein made on behalf of the trust is made and
               intended not as a personal representation, undertaking or
               agreement of the Trustee but is made and intended for the purpose
               of binding only the Counterparty, and (iii) under no
               circumstances will LaSalle Bank National Association, in its
               individual capacity be personally liable for the payment of any
               indebtedness or expenses or be personally liable for the breach
               or failure of any obligation, representation, warranty or
               covenant made or undertaken under this Confirmation.

          (q)  TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as
               Trustee, represents and warrants that:

               It has been directed under the Pooling and Servicing Agreement to
               enter into this letter agreement as Trustee on behalf of the
               Counterparty.

                                       N-2

<PAGE>

          (r)  AMENDMENT TO POOLING AND SERVICING AGREEMENT. Notwithstanding any
               provisions to the contrary in the Pooling and Servicing
               Agreement, none of the Depositor, the Servicer or the Trustee
               shall enter into any amendment thereto which could have a
               material adverse affect on BNY without the prior written consent
               of BNY.

     6)   ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding,
          before the close parenthesis in the introductory sentence thereof, the
          words ", and, in the case of the representations in Section 3(i), at
          all times", and, at the end thereof, the following Sections 3(g), 3(h)
          and 3(i):

          "(g) RELATIONSHIP BETWEEN PARTIES.

               (1)  NONRELIANCE. It is not relying on any statement or
                    representation of the other party regarding the Transaction
                    (whether written or oral), other than the representations
                    expressly made in this Agreement or the Confirmation in
                    respect of that Transaction.

               (2)  EVALUATION AND UNDERSTANDING.

                    (ii) Each Party acknowledges that LaSalle Bank National
                         Association, has been directed under the Pooling and
                         Servicing Agreement to enter into this Transaction as
                         Trustee on behalf of the Counterparty.

                    (ii) It is acting for its own account and has the capacity
                         to evaluate (internally or through independent
                         professional advice) the Transaction and has made its
                         own decision to enter into the Transaction; it is not
                         relying on any communication (written or oral) of the
                         other party as investment advice or as a recommendation
                         to enter into such transaction; it being understood
                         that information and explanations related to the terms
                         and conditions of such transaction shall not be
                         considered investment advice or a recommendation to
                         enter into such transaction. No communication (written
                         or oral) received from the other party shall be deemed
                         to be an assurance or guarantee as to the expected
                         results of the transaction; and

                    (iii) It understands the terms, conditions and risks of the
                         Transaction and is willing and able to accept those
                         terms and conditions and to assume (and does, in fact
                         assume) those risks, financially and otherwise.

               (3)  PRINCIPAL. The other party is not acting as a fiduciary or
                    an advisor for it in respect of this Transaction.

          (h)  EXCLUSION FROM COMMODITIES EXCHANGE ACT. (A) It is an "eligible
               contract participant" within the meaning of Section 1a(12) of the
               Commodity Exchange Act, as amended; (B) this Agreement and each
               Transaction is subject to individual negotiation by such party;
               and (C) neither this Agreement nor any Transaction will

                                       N-2

<PAGE>

               be executed or traded on a "trading facility" within the meaning
               of Section 1a(33) of the Commodity Exchange Act, as amended.

          (i)  ERISA (PENSION PLANS). It is not a pension plan or employee
               benefits plan and it is not using assets of any such plan or
               assets deemed to be assets of such a plan in connection with this
               Transaction.

     7)   SET-OFF. Notwithstanding any provision of this Agreement or any other
          existing or future agreement (but without limiting the provisions of
          Section 2(c) and Section 6, except as provided in the next sentence),
          each party irrevocably waives any and all rights it may have to set
          off, net, recoup or otherwise withhold or suspend or condition payment
          or performance of any obligation between it and the other party
          hereunder against any obligation between it and the other party under
          any other agreements. The last sentence of the first paragraph of
          Section 6(e) shall not apply for purposes of this Transaction.

     8)   ADDITIONAL TERMINATION EVENTS. The following Additional Termination
          Events will apply, in each case with respect to BNY as the sole
          Affected Party (unless otherwise provided below):

          (i)  REMEDY OF RATINGS EVENTS. BNY fails to comply with the provisions
               of Paragraph 9.

          (ii) AMENDMENT OF POOLING AND SERVICING AGREEMENT WITHOUT CONSENT OF
               BNY. If the Trustee permits the Pooling and Servicing Agreement
               to be amended in a manner which could have a material adverse
               affect on BNY without first obtaining the prior written consent
               of BNY. The Counterparty shall be the sole Affected Party with
               respect to the occurrence of a Termination Event described in
               this Paragraph 8(ii).

          (iii) FAILURE TO PROVIDE INFORMATION REQUIRED BY REGULATION AB. If the
               Depositor under the Pooling and Servicing Agreement still has a
               reporting obligation with respect to this Transaction pursuant to
               Regulation AB under the Securities Act of 1933, as amended, and
               the Securities Exchange Act of 1934, as amended ("REGULATION AB")
               and BNY has not, within 30 days after receipt of a Swap
               Disclosure Request complied with the provisions set forth below
               in this Paragraph 4(8)(iii) (provided that if the significance
               percentage reaches 10% after a Swap Disclosure Request has been
               made to BNY, BNY must comply with the provisions set forth below
               in this Section 4(8)(iii) within 10 days of BNY being informed of
               the significance percentage reaching 10%), then an Additional
               Termination Event shall have occurred with respect to BNY and BNY
               shall be the sole Affected Party with respect to such Additional
               Termination Event.

               BNY acknowledges that for so long as there are reporting
               obligations with respect to this Transaction under Regulation AB,
               the Depositor is required under Regulation AB to disclose certain
               information set forth in Regulation AB regarding BNY or its group
               of affiliated entities, if applicable, depending on the aggregate
               "significance percentage" of this Agreement and any other
               derivative contracts between BNY or its group of affiliated
               entities, if applicable, and the Counterparty, as calculated from
               time to time in accordance with Item 1115 of Regulation AB.

                                       N-2

<PAGE>

               If the Depositor determines, reasonably and in good faith, that
               the significance percentage of this Agreement has increased to
               nine (9) percent, then the Depositor may request on a Business
               Day after the date of such determination from BNY the same
               information set forth in Item 1115(b) of Regulation AB that would
               have been required if the significance percentage had in fact
               increased to ten (10) percent (such request, a "SWAP DISCLOSURE
               REQUEST" and such requested information, subject to the last
               sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE").
               The Counterparty or the Depositor shall provide BNY with the
               calculations and any other information reasonably requested by
               BNY with respect to the Depositor's determination that led to the
               Swap Disclosure Request. The parties hereto further agree that
               the Swap Financial Disclosure provided to meet the Swap
               Disclosure Request may be, solely at BNY's option, either the
               information set forth in Item 1115(b)(1) or Item 1115(b)(2) of
               Regulation AB.

               Upon the occurrence of a Swap Disclosure Request, BNY, at its own
               expense, shall (x) provide the Depositor with the Swap Financial
               Disclosure, or (y) subject to Rating Agency Confirmation, secure
               another entity to replace BNY as party to this Agreement on terms
               substantially similar to this Agreement which entity is able to
               provide the Swap Financial Disclosure. If permitted by Regulation
               AB, any required Swap Financial Disclosure may be provided by
               incorporation by reference from reports filed pursuant to the
               Securities Exchange Act.

     9)   PROVISIONS RELATING TO DOWNGRADE OF BNY DEBT RATINGS.

          (i)  For purposes of this Transaction:

               (a)  A "COLLATERALIZATION RATINGS EVENT" shall occur with respect
                    to BNY (or any applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is reduced to "P-1 on watch for downgrade" or below,
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A1 on watch for downgrade" or below (or, if
                         it has no short-term unsecured and unsubordinated debt
                         rating, its long term rating is reduced to "Aa3 on
                         watch for downgrade" or below) by Moody's, or

                    (y)  its short-term unsecured and unsubordinated debt rating
                         is reduced below "A-1" by S&P.

                    Such ratings are referred to herein as the "QUALIFYING
                    RATINGS."

               (b)  A "RATINGS EVENT" shall occur with respect to BNY (or any
                    applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced to "P-2" or below by Moody's
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A3" or below (or, if it has no short-term
                         unsecured and

                                       N-2

<PAGE>

                         unsubordinated debt rating, its long term rating is
                         reduced to "A2" or below) by Moody's, or

                    (y)  its long-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced below "BBB-" by S&P.

                    For purposes of (a) and (b) above, such events include those
                    occurring in connection with a merger, consolidation or
                    other similar transaction by BNY or any applicable credit
                    support provider, but they shall be deemed not to occur if,
                    within 30 days thereafter, each of Moody's and S&P has
                    reconfirmed the ratings of the Certificates, as applicable,
                    which were in effect immediately prior thereto. For the
                    avoidance of doubt, a downgrade of the rating on the
                    Certificates could occur in the event that BNY does not post
                    sufficient collateral.

               (c)  "RATING AGENCY CONDITION" means, with respect to any
                    particular proposed act or omission to act hereunder, that
                    the Trustee shall have received prior written confirmation
                    from each of Moody's and S&P, and shall have provided
                    notice thereof to BNY, that the proposed action or inaction
                    would not cause a downgrade or withdrawal of their
                    then-current ratings of the Certificates.

          (ii) Subject, in each case set forth in (a) and (b) below, to
               satisfaction of the Rating Agency Condition:

               (a)  COLLATERALIZATION RATINGS EVENT. If a Collateralization
                    Ratings Event occurs with respect to BNY (or any applicable
                    credit support provider), then BNY shall, at its own
                    expense, and subject to rating agency confirmation within
                    thirty (30) days of such Collateralization Ratings Event:

                    (w)  post collateral under agreements and other instruments
                         approved by the Counterparty and the NIMS Insurer, such
                         approval not to be unreasonably withheld, and
                         satisfactory to Moody's and S&P, which will be
                         sufficient to restore the immediately prior ratings of
                         the Certificates,

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                                       N-2

<PAGE>

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

               (b)  RATINGS EVENT. If a Ratings Event occurs with respect to BNY
                    (or any applicable credit support provider), then BNY shall,
                    at its own expense, and subject to rating agency
                    confirmation within ten (10) Business Days of such Ratings
                    Event:

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

     10)  ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6
          of the ISDA Form Master Agreement, if the Counterparty has satisfied
          its payment obligations under Section 2(a)(i) of the ISDA Form Master
          Agreement, and shall, at the time, have no future payment or delivery
          obligation, whether absolute or contingent, then unless BNY is
          required pursuant to appropriate proceedings to return to the
          Counterparty or otherwise returns to the Counterparty upon demand of
          the Counterparty any portion of such payment, (a) the occurrence of an
          event described in Section 5(a) of the ISDA Form Master Agreement with
          respect to the Counterparty shall not constitute an Event of Default
          or Potential Event of Default with respect to the Counterparty as the
          Defaulting Party and (b) BNY shall be entitled to designate an Early
          Termination Date pursuant to Section 6 of the ISDA Form Master
          Agreement only as a result of a Termination Event set forth in either
          Section 5(b)(i) or Section 5(b)(ii) of the ISDA Form Master Agreement
          with respect to BNY as the Affected Party or Section 5(b)(iii) of the
          ISDA Form Master Agreement with respect to BNY as the Burdened Party.

     11)  RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
          Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts
          paid hereunder are not intended to benefit the holder of any class of
          certificates rated by any rating agency if such holder is MLML or any
          of its affiliates. If MLML or any of its affiliates receives

                                       N-2

<PAGE>

          any such amounts, it will promptly remit (or, if such amounts are
          received by an affiliate of MLML, MLML hereby agrees that it will
          cause such affiliate to promptly remit) such amounts to the Trustee,
          whereupon such Trustee will promptly remit such amounts to BNY. MLML
          further agrees to provide notice to BNY upon any remittance to the
          trustee.

     12)  BNY PAYMENTS TO BE MADE TO TRUSTEE. BNY will, unless otherwise
          directed by the Trustee, make all payments hereunder to the Trustee.
          Payment made to the Trustee at the account specified herein or to
          another account specified in writing by the Trustee shall satisfy the
          payment obligations of BNY hereunder to the extent of such payment.

5. ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     Payments to BNY:

          The Bank of New York
          Derivative Products Support Department
          32 Old Slip, 16th Floor
          New York, New York 10286
          Attention: Renee Etheart
          ABA # ____________________
          Account # ________________
          Reference: Interest Rate Swap

     Payments to Counterparty:

          LaSalle Bank N.A.
          ABA # __________________
          Acct #: ________________
          Ref: Ownit 2006-3 Cap Account

6. COUNTERPARTS. This Agreement may be executed in several counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                       N-2

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

     Very truly yours,

THE BANK OF NEW YORK

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

     The Counterparty, acting through its duly authorized signatory, hereby
agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY: LASALLE BANK, NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
ON BEHALF OF OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

Solely with respect to Paragraph 4(11)
MERRILL LYNCH MORTGAGE LENDING, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                       N-2

<PAGE>

                                   SCHEDULE I

    All dates subject to adjustment in accordance with the Modified Following
                            Business Day Convention.

                                       N-2

<PAGE>

                                   EXHIBIT N-3

           FORM OF FLOATING RATE SUBORDINATE CERTIFICATES CAP CONTRACT

                                                           Dated: March __, 2006

                              RATE CAP TRANSACTION

                           RE: BNY REFERENCE NO. 37613

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Cap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("BNY"), a
trust company duly organized and existing under the laws of the State of New
York, and the Ownit Mortgage Loan Asset-Backed Certificates Series 2006-3 (the
"COUNTERPARTY"), as represented by LaSalle Bank National Association, not in its
individual capacity, but solely as Trustee under the Pooling and Servicing
Agreement, dated and effective March 1, 2006, among Merrill Lynch Mortgage
Investors, Inc., as Depositor, Litton Loan Servicing LP, as Servicer and LaSalle
Bank National Association, as Trustee (the "POOLING AND SERVICING AGREEMENT").
This Agreement, which evidences a complete and binding agreement between you and
us to enter into the Transaction on the terms set forth below, constitutes a
"CONFIRMATION" as referred to in the "ISDA FORM MASTER AGREEMENT" (as defined
below), as well as a "Schedule" as referred to in the ISDA Form Master
Agreement.

1. FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA Definitions
(the "DEFINITIONS"), as published by the International Swaps and Derivatives
Association, Inc. ("ISDA"). You and we have agreed to enter into this Agreement
in lieu of negotiating a Schedule to the 1992 ISDA Master Agreement
(Multicurrency--Cross Border) form (the "ISDA FORM MASTER AGREEMENT"). An ISDA
Form Master Agreement, as modified by the Schedule terms in Paragraph 4 of this
Confirmation (the "MASTER AGREEMENT"), shall be deemed to have been executed by
you and us on the date we entered into the Transaction. Except as otherwise
specified, references herein to Sections shall be to Sections of the ISDA Form
Master Agreement and the Master Agreement, and references to Paragraphs shall be
to paragraphs of this Agreement. Each party hereto agrees that the Master
Agreement deemed to have been executed by the parties hereto shall be the same
Master Agreement referred to in the agreement setting forth the terms of
transaction reference numbers 37610, 37611 and 37612. In the event of any
inconsistency between the provisions of this Agreement and the Definitions or
the ISDA Form Master Agreement, this Agreement shall prevail for purposes of the
Transaction. Capitalized terms not otherwise defined herein or in the
Definitions or the Master Agreement shall have the meaning defined for such term
in the Pooling and Servicing Agreement.

2. CERTAIN TERMS. The terms of the particular Transaction to which this
Confirmation relates are as follows:

     Type of Transaction:         Rate Cap

     Notional Amount:             USD 86,580,000.00

                                       N-3

<PAGE>

     Trade Date:                  March 30, 2006

     Effective Date:              April 13, 2006

     Termination Date:            September 25, 2006, subject to adjustment in
                                  accordance with the Modified Following
                                  Business Day Convention.

FLOATING AMOUNTS

     Floating Rate Payer:         BNY

     Cap Rate:                    For each Calculation Period, as set forth for
                                  such period on Schedule I attached hereto.

     Floating Rate for initial
     Calculation Period:          To be determined

     Floating Rate Day Count
     Fraction:                    Actual/360

     Floating Rate Option:        USD-LIBOR-BBA, provided, however, if the
                                  Floating Rate Option for a Calculation Period
                                  is greater than 8.94% (as set forth for such
                                  period on Schedule I attached hereto) then the
                                  Floating Rate Option for such Calculation
                                  Period shall be deemed equal to 8.94%.

     Designated Maturity:         One month

     Spread:                      Inapplicable

     Floating Rate Payer
     Period End Dates:            The 25th day of each month, beginning on April
                                  25, 2006 and ending on the Termination Date,
                                  subject to adjustment in accordance with the
                                  Modified Following Business Day Convention.

     Floating Rate Payer
     Payment Dates:               Early Payment shall be applicable. The
                                  Floating Rate Payer Payment Date shall be two
                                  (2) Business Days preceding each Floating Rate
                                  Payer Period End Date.

     Reset Dates:                 The first day of each Calculation Period or
                                  Compounding Period, if Compounding is
                                  applicable.

     Compounding:                  Inapplicable

     Business Days for Payments
     By both parties:             New York

     Calculation Agent:           BNY

3.   ADDITIONAL PROVISIONS:

                                       N-3

<PAGE>

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
     other party has engaged in (or refrained from engaging in) substantial
     financial transactions and has taken (or refrained from taking) other
     material actions in reliance upon the entry by the parties into the
     Transaction being entered into on the terms and conditions set forth
     herein.

     2) TRANSFER, AMENDMENT AND ASSIGNMENT. No transfer, amendment, waiver,
     supplement, assignment or other modification of this Transaction shall be
     permitted by either party unless each of Standard & Poor's Ratings Service,
     a division of The McGraw-Hill Companies, Inc ("S&P") and Moody's Investors
     Service, Inc. ("MOODY'S"), has been provided notice of the same and
     confirms in writing (including by facsimile transmission) that it will not
     downgrade, qualify, withdraw or otherwise modify its then-current ratings
     on the Certificates issued under the Pooling and Servicing Agreement (the
     "CERTIFICATES").

4.   PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

     3)   NO NETTING BETWEEN TRANSACTIONS. The parties agree that subparagraph
          (ii) of Section 2(c) will apply to any Transaction.

     2)   TERMINATION PROVISIONS. Subject to the provisions of Paragraph 4(10)
          below, for purposes of the Master Agreement:

          (a)  "SPECIFIED ENTITY" is not applicable to BNY or the Counterparty
               for any purpose.

          (b)  The "BREACH OF AGREEMENT" provision of Section 5(a)(ii) will not
               apply to BNY or the Counterparty.

          (c)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will
               not apply to BNY (except with respect to credit support furnished
               pursuant to Paragraph 4 9) below or the Counterparty.

          (d)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) will not
               apply to BNY or the Counterparty.

          (e)  "DEFAULT UNDER SPECIFIED TRANSACTION" is not applicable to BNY or
               the Counterparty for any purpose, and, accordingly, Section
               5(a)(v) shall not apply to BNY or the Counterparty.

          (f)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) will not apply
               to BNY or to the Counterparty.

          (g)  The "BANKRUPTCY" provisions of Section 5(a)(vii)(2) will not
               apply to the Counterparty; the words "trustee" and "custodian" in
               Section 5(a)(vii)(6) will not include the Trustee; and the words
               "specifically authorized " are inserted before the word "action"
               in Section 5(a)(vii)(9).

          (h)  The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv)
               will not apply to BNY or the Counterparty.

          (i)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will
               not apply to BNY or to the Counterparty.

                                       N-3

<PAGE>

          (j)  PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e):

               (i)  Market Quotation will apply.

               (ii) The Second Method will apply.

          (k)  "TERMINATION CURRENCY" means United States Dollars.

          (l)  NO ADDITIONAL AMOUNTS PAYABLE BY COUNTERPARTY. The Counterparty
               shall not be required to pay any additional amounts pursuant to
               Section 2(d)(i)(4) or 2(d)(ii).

     3)   TAX REPRESENTATIONS.

          (a)  PAYER REPRESENTATIONS. For the purpose of Section 3(e), BNY and
               the Counterparty make the following representations:

                    It is not required by any applicable law, as modified by the
               practice of any relevant governmental revenue authority, of any
               Relevant Jurisdiction to make any deduction or withholding for or
               on account of any Tax from any payment (other than interest under
               Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
               party under this Agreement. In making this representation, it may
               rely on:

               (i)  the accuracy of any representations made by the other party
                    pursuant to Section 3(f);

               (ii) the satisfaction of the agreement contained in Section 4
                    (a)(i) or 4(a)(iii) and the accuracy and effectiveness of
                    any document provided by the other party pursuant to Section
                    4 (a)(i) or 4(a)(iii); and

               (iii) the satisfaction of the agreement of the other party
                    contained in Section 4(d), provided that it shall not be a
                    breach of this representation where reliance is placed on
                    clause (ii) and the other party does not deliver a form or
                    document under Section 4(a)(iii) by reason of material
                    prejudice of its legal or commercial position.

          (b)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f), BNY and
               the Counterparty make the following representations.

               (i)  The following representation will apply to BNY:

                    (x) It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of the United States Treasury
                    Regulations) for United States federal income tax purposes,
                    (y) it is a trust company duly organized and existing under
                    the laws of the State of New York, and (y) its U.S. taxpayer
                    identification number is 135160382.

               (ii) The following representation will apply to the Counterparty:

                                       N-3
<PAGE>

                    It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of United States Treasury Regulations)
                    for United States federal income tax purposes.

     4)   DOCUMENTS TO BE DELIVERED. FOR THE PURPOSE OF SECTION 4(A):

          (a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                             DATE BY WHICH TO BE       COVERED BY SECTION 3(D)
DELIVER DOCUMENT          FORM/DOCUMENT/ CERTIFICATE               DELIVERED                 REPRESENTATION
-----------------      --------------------------------   ---------------------------   -----------------------
<S>                    <C>                                <C>                           <C>
BNY and Counterparty   Any document required or           Upon the execution and                  Yes
                       reasonably requested to allow      delivery of this Agreement
                       the other party to make payments
                       under this Agreement without any
                       deduction or withholding for or
                       on the account of any tax.
</TABLE>

          (b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                             DATE BY WHICH TO BE       COVERED BY SECTION 3(D)
DELIVER DOCUMENT          FORM/DOCUMENT/ CERTIFICATE               DELIVERED                 REPRESENTATION
-----------------      --------------------------------   ---------------------------   -----------------------
<S>                    <C>                                <C>                           <C>
BNY                    A certificate of an authorized     Upon the execution and                  Yes
                       officer of the party, as to the    delivery of this Agreement
                       incumbency and authority of the
                       respective officers of the party
                       signing this Agreement, any
                       relevant Credit Support
                       Document, or any Confirmation,
                       as the case may be.

Counterparty           (i) a copy of the executed         Upon the execution and                  Yes
                       Pooling and Servicing Agreement,   delivery of this Agreement
                       and (ii) an incumbency
                       certificate verifying the true
                       signatures and authority of the
                       person or persons signing this
                       letter agreement on behalf of
                       the Counterparty.

BNY                    A copy of the most recent          Promptly after request by               Yes
                       publicly available regulatory      the other party
                       call report.

BNY                    Legal Opinion as to                Upon the execution and                  Yes
                       enforceability of the Swap         delivery of this Agreement.
                       Agreement.

Counterparty           Certified copy of the Board of     Upon the execution and                  Yes
                       Directors resolution (or           delivery of this Agreement.
                       equivalent authorizing
                       documentation) which sets forth
                       the authority of each signatory
                       to the Confirmation signing on
                       its behalf and the authority of
                       such party to enter into
                       Transactions contemplated and
                       performance of its obligations
                       hereunder.
</TABLE>

                                       N-3

<PAGE>

     5)   MISCELLANEOUS.

          (a)  ADDRESS FOR NOTICES: For the purposes of Section 12(a):

               Address for notices or communications to BNY:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    Global Market Division
                    32 Old Slip 15th Floor
                    New York, New York 10286
                    Attention: Steve Lawler

                    with a copy to:

                    The Bank of New York
                    Swaps and Derivative Products Group
                    32 Old Slip 16th Floor
                    New York, New York 10286
                    Attention: Andrew Schwartz
                    Tele: 212-804-5103
                    Fax: 212-804-5818/5837

                    (For all purposes)

               Address for notices or communications to the Counterparty:

                    LaSalle Bank National Association
                    135 South LaSalle Street
                    Suite 1625
                    Chicago, Illinois 60603
                    Attention: OWNIT 2006-3
                    Tele: 312-904-7992
                    Fax: 312-904-1368

                    (For all purposes)

          (b)  PROCESS AGENT. For the purpose of Section 13(c):

               BNY appoints as its Process Agent:  Not Applicable

               The Counterparty appoints as its Process Agent: Not Applicable

          (c)  OFFICES. The provisions of Section 10(a) will not apply to this
               Agreement; neither BNY nor the Counterparty have any Offices
               other than as set forth in the Notices Section and BNY agrees
               that, for purposes of Section 6(b), it shall not in future have
               any Office other than one in the United States.

          (d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

                    BNY is not a Multibranch Party.

                                       N-3

<PAGE>

                    The Counterparty is not a Multibranch Party.

          (e)  CALCULATION AGENT. The Calculation Agent is BNY.

          (f)  CREDIT SUPPORT DOCUMENT. Not applicable for either BNY (except
                                        with respect to credit support furnished
                                        pursuant to Paragraph 9) or the
                                        Counterparty.

          (g)  CREDIT SUPPORT PROVIDER.

                    BNY:          Not Applicable (except with respect to credit
                                  support furnished pursuant to Paragraph 9)

                    Counterparty: Not Applicable

          (h)  GOVERNING LAW. The parties to this Agreement hereby agree that
               the law of the State of New York shall govern their rights and
               duties in whole, without regard to conflict of law provisions
               thereof other than New York General Obligations Law Sections
               5-1401 and 5-1402.

          (i)  SEVERABILITY. If any term, provision, covenant, or condition of
               this Agreement, or the application thereof to any party or
               circumstance, shall be held to be invalid or unenforceable (in
               whole or in part) for any reason, the remaining terms,
               provisions, covenants, and conditions hereof shall continue in
               full force and effect as if this Agreement had been executed with
               the invalid or unenforceable portion eliminated, so long as this
               Agreement as so modified continues to express, without material
               change, the original intentions of the parties as to the subject
               matter of this Agreement and the deletion of such portion of this
               Agreement will not substantially impair the respective benefits
               or expectations of the parties.

               The parties shall endeavor to engage in good faith negotiations
               to replace any invalid or unenforceable term, provision, covenant
               or condition with a valid or enforceable term, provision,
               covenant or condition, the economic effect of which comes as
               close as possible to that of the invalid or unenforceable term,
               provision, covenant or condition.

          (j)  RECORDING OF CONVERSATIONS. Each party (i) consents to the
               recording of telephone conversations between the trading,
               marketing and other relevant personnel of the parties in
               connection with this Agreement or any potential Transaction, (ii)
               agrees to obtain any necessary consent of, and give any necessary
               notice of such recording to, its relevant personnel and (iii)
               agrees, to the extent permitted by applicable law, that
               recordings may be submitted in evidence in any Proceedings.

          (k)  WAIVER OF JURY TRIAL. Each party waives any right it may have to
               a trial by jury in respect of any Proceedings relating to this
               Agreement or any Credit Support Document.

                                       N-3

<PAGE>

          (l)  NON-RECOURSE. Notwithstanding any provision herein or in the ISDA
               Form Master Agreement to the contrary, the obligations of the
               Counterparty hereunder are limited recourse obligations of the
               Counterparty, payable solely from the Trust Fund and the proceeds
               thereof to satisfy the Counterparty's obligations hereunder. In
               the event that the Trust Fund and proceeds thereof should be
               insufficient to satisfy all claims outstanding and following the
               realization of the Trust Fund and the distribution of the
               proceeds thereof in accordance with the Pooling and Servicing
               Agreement, any claims against or obligations of the Counterparty
               under the ISDA Form Master Agreement or any other confirmation
               thereunder, still outstanding shall be extinguished and
               thereafter not revive. This provision shall survive the
               expiration of this Agreement.

          (m)  LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. BNY shall
               not institute against or cause any other person to institute
               against, or join any other person in instituting against the
               Counterparty, any bankruptcy, reorganization, arrangement,
               insolvency or liquidation proceedings, under any of the laws of
               the United States or any other jurisdiction, for a period of one
               year and one day (or, if longer, the applicable preference
               period) following indefeasible payment in full of the
               Certificates. This provision shall survive the expiration of this
               Agreement.

          (n)  REMEDY OF FAILURE TO PAY OR DELIVER. The ISDA Form Master
               Agreement is hereby amended by replacing the word "third" in the
               third line of Section 5(a)(i) by the word "second".

          (o)  "AFFILIATE" will have the meaning specified in Section 14 of the
               ISDA Form Master Agreement, provided that the Counterparty shall
               not be deemed to have any Affiliates for purposes of this
               Agreement, including for purposes of Section 6(b)(ii).

          (p)  TRUSTEE'S CAPACITY. It is expressly understood and agreed by the
               parties hereto that insofar as this Confirmation is executed by
               the Trustee (i) this Confirmation is executed and delivered by
               LaSalle Bank National Association, not in its individual capacity
               but solely as Trustee pursuant to the Pooling and Servicing
               Agreement in the exercise of the powers and authority conferred
               and vested in it thereunder and pursuant to instruction set forth
               therein (ii) each of the representations, undertakings and
               agreements herein made on behalf of the trust is made and
               intended not as a personal representation, undertaking or
               agreement of the Trustee but is made and intended for the purpose
               of binding only the Counterparty, and (iii) under no
               circumstances will LaSalle Bank National Association, in its
               individual capacity be personally liable for the payment of any
               indebtedness or expenses or be personally liable for the breach
               or failure of any obligation, representation, warranty or
               covenant made or undertaken under this Confirmation.

          (q)  TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as
               Trustee, represents and warrants that:

               It has been directed under the Pooling and Servicing Agreement to
               enter into this letter agreement as Trustee on behalf of the
               Counterparty.

                                       N-3

<PAGE>

          (r)  AMENDMENT TO POOLING AND SERVICING AGREEMENT. Notwithstanding any
               provisions to the contrary in the Pooling and Servicing
               Agreement, none of the Depositor, the Servicer or the Trustee
               shall enter into any amendment thereto which could have a
               material adverse affect on BNY without the prior written consent
               of BNY.

     6)   ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding,
          before the close parenthesis in the introductory sentence thereof, the
          words ", and, in the case of the representations in Section 3(i), at
          all times", and, at the end thereof, the following Sections 3(g), 3(h)
          and 3(i):

          "(g) RELATIONSHIP BETWEEN PARTIES.

               (1)  NONRELIANCE. It is not relying on any statement or
                    representation of the other party regarding the Transaction
                    (whether written or oral), other than the representations
                    expressly made in this Agreement or the Confirmation in
                    respect of that Transaction.

               (2)  EVALUATION AND UNDERSTANDING.

                    (i)  Each Party acknowledges that LaSalle Bank National
                         Association, has been directed under the Pooling and
                         Servicing Agreement to enter into this Transaction as
                         Trustee on behalf of the Counterparty.

                    (ii) It is acting for its own account and has the capacity
                         to evaluate (internally or through independent
                         professional advice) the Transaction and has made its
                         own decision to enter into the Transaction; it is not
                         relying on any communication (written or oral) of the
                         other party as investment advice or as a recommendation
                         to enter into such transaction; it being understood
                         that information and explanations related to the terms
                         and conditions of such transaction shall not be
                         considered investment advice or a recommendation to
                         enter into such transaction. No communication (written
                         or oral) received from the other party shall be deemed
                         to be an assurance or guarantee as to the expected
                         results of the transaction; and

                    (iii) It understands the terms, conditions and risks of the
                         Transaction and is willing and able to accept those
                         terms and conditions and to assume (and does, in fact
                         assume) those risks, financially and otherwise.

               (3)  PRINCIPAL. The other party is not acting as a fiduciary or
                    an advisor for it in respect of this Transaction.

          (h)  EXCLUSION FROM COMMODITIES EXCHANGE ACT. (A) It is an "eligible
               contract participant" within the meaning of Section 1a(12) of the
               Commodity Exchange Act, as amended; (B) this Agreement and each
               Transaction is subject to individual negotiation by such party;
               and (C) neither this Agreement nor any Transaction will

                                       N-3

<PAGE>

               be executed or traded on a "trading facility" within the meaning
               of Section 1a(33) of the Commodity Exchange Act, as amended.

          (i)  ERISA (PENSION PLANS). It is not a pension plan or employee
               benefits plan and it is not using assets of any such plan or
               assets deemed to be assets of such a plan in connection with this
               Transaction.

     7)   SET-OFF. Notwithstanding any provision of this Agreement or any other
          existing or future agreement (but without limiting the provisions of
          Section 2(c) and Section 6, except as provided in the next sentence),
          each party irrevocably waives any and all rights it may have to set
          off, net, recoup or otherwise withhold or suspend or condition payment
          or performance of any obligation between it and the other party
          hereunder against any obligation between it and the other party under
          any other agreements. The last sentence of the first paragraph of
          Section 6(e) shall not apply for purposes of this Transaction.

     8)   ADDITIONAL TERMINATION EVENTS. The following Additional Termination
          Events will apply, in each case with respect to BNY as the sole
          Affected Party (unless otherwise provided below):

          (i)  REMEDY OF RATINGS EVENTS. BNY fails to comply with the provisions
               of Paragraph 9.

          (ii) AMENDMENT OF POOLING AND SERVICING AGREEMENT WITHOUT CONSENT OF
               BNY. If the Trustee permits the Pooling and Servicing Agreement
               to be amended in a manner which could have a material adverse
               affect on BNY without first obtaining the prior written consent
               of BNY. The Counterparty shall be the sole Affected Party with
               respect to the occurrence of a Termination Event described in
               this Paragraph 8(ii).

          (iii) FAILURE TO PROVIDE INFORMATION REQUIRED BY REGULATION AB. If the
               Depositor under the Pooling and Servicing Agreement still has a
               reporting obligation with respect to this Transaction pursuant to
               Regulation AB under the Securities Act of 1933, as amended, and
               the Securities Exchange Act of 1934, as amended ("REGULATION AB")
               and BNY has not, within 30 days after receipt of a Swap
               Disclosure Request complied with the provisions set forth below
               in this Paragraph 4(8)(iii) (provided that if the significance
               percentage reaches 10% after a Swap Disclosure Request has been
               made to BNY, BNY must comply with the provisions set forth below
               in this Section 4(8)(iii) within 10 days of BNY being informed of
               the significance percentage reaching 10%), then an Additional
               Termination Event shall have occurred with respect to BNY and BNY
               shall be the sole Affected Party with respect to such Additional
               Termination Event.

               BNY acknowledges that for so long as there are reporting
               obligations with respect to this Transaction under Regulation AB,
               the Depositor is required under Regulation AB to disclose certain
               information set forth in Regulation AB regarding BNY or its group
               of affiliated entities, if applicable, depending on the aggregate
               "significance percentage" of this Agreement and any other
               derivative contracts between BNY or its group of affiliated
               entities, if applicable, and the Counterparty, as calculated from
               time to time in accordance with Item 1115 of Regulation AB.

                                       N-3

<PAGE>

               If the Depositor determines, reasonably and in good faith, that
               the significance percentage of this Agreement has increased to
               nine (9) percent, then the Depositor may request on a Business
               Day after the date of such determination from BNY the same
               information set forth in Item 1115(b) of Regulation AB that would
               have been required if the significance percentage had in fact
               increased to ten (10) percent (such request, a "SWAP DISCLOSURE
               REQUEST" and such requested information, subject to the last
               sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE").
               The Counterparty or the Depositor shall provide BNY with the
               calculations and any other information reasonably requested by
               BNY with respect to the Depositor's determination that led to the
               Swap Disclosure Request. The parties hereto further agree that
               the Swap Financial Disclosure provided to meet the Swap
               Disclosure Request may be, solely at BNY's option, either the
               information set forth in Item 1115(b)(1) or Item 1115(b)(2) of
               Regulation AB.

               Upon the occurrence of a Swap Disclosure Request, BNY, at its own
               expense, shall (x) provide the Depositor with the Swap Financial
               Disclosure, or (y) subject to Rating Agency Confirmation, secure
               another entity to replace BNY as party to this Agreement on terms
               substantially similar to this Agreement which entity is able to
               provide the Swap Financial Disclosure. If permitted by Regulation
               AB, any required Swap Financial Disclosure may be provided by
               incorporation by reference from reports filed pursuant to the
               Securities Exchange Act.

     9)   PROVISIONS RELATING TO DOWNGRADE OF BNY DEBT RATINGS .

          (i)  For purposes of this Transaction:

               (a)  A "COLLATERALIZATION RATINGS EVENT" shall occur with respect
                    to BNY (or any applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is reduced to "P-1 on watch for downgrade" or below,
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A1 on watch for downgrade" or below (or, if
                         it has no short-term unsecured and unsubordinated debt
                         rating, its long term rating is reduced to "Aa3 on
                         watch for downgrade" or below) by Moody's, or

                    (y)  its short-term unsecured and unsubordinated debt rating
                         is reduced below "A-1" by S&P.

                    Such ratings are referred to herein as the "QUALIFYING
                    RATINGS."

               (b)  A "RATINGS EVENT" shall occur with respect to BNY (or any
                    applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced to "P-2" or below by Moody's
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A3" or below (or, if it has no short-term
                         unsecured and

                                       N-3

<PAGE>

                         unsubordinated debt rating, its long term rating is
                         reduced to "A2" or below) by Moody's, or

                    (y)  its long-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced below "BBB-" by S&P.

                    For purposes of (a) and (b) above, such events include those
                    occurring in connection with a merger, consolidation or
                    other similar transaction by BNY or any applicable credit
                    support provider, but they shall be deemed not to occur if,
                    within 30 days thereafter, each of Moody's and S&P has
                    reconfirmed the ratings of the Certificates, as applicable,
                    which were in effect immediately prior thereto. For the
                    avoidance of doubt, a downgrade of the rating on the
                    Certificates could occur in the event that BNY does not post
                    sufficient collateral.

               (c)  "RATING AGENCY CONDITION" means, with respect to any
                    particular proposed act or omission to act hereunder, that
                    the Trustee shall have received prior written confirmation
                    from each of Moody's and S&P, and shall have provided
                    notice thereof to BNY, that the proposed action or inaction
                    would not cause a downgrade or withdrawal of their
                    then-current ratings of the Certificates.

          (ii) Subject, in each case set forth in (a) and (b) below, to
               satisfaction of the Rating Agency Condition:

               (a)  COLLATERALIZATION RATINGS EVENT. If a Collateralization
                    Ratings Event occurs with respect to BNY (or any applicable
                    credit support provider), then BNY shall, at its own
                    expense, and subject to rating agency confirmation within
                    thirty (30) days of such Collateralization Ratings Event:

                    (w)  post collateral under agreements and other instruments
                         approved by the Counterparty and the NIMS Insurer, such
                         approval not to be unreasonably withheld, and
                         satisfactory to Moody's and S&P, which will be
                         sufficient to restore the immediately prior ratings of
                         the Certificates,

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                                       N-3

<PAGE>

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

               (b)  RATINGS EVENT. If a Ratings Event occurs with respect to BNY
                    (or any applicable credit support provider), then BNY shall,
                    at its own expense, and subject to rating agency
                    confirmation within ten (10) Business Days of such Ratings
                    Event:

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

               (z)  establish any other arrangement approved by the Counterparty
                    and the NIMS Insurer, such approval not to be unreasonably
                    withheld and satisfactory to Moody's and S&P which will be
                    sufficient to restore the immediately prior ratings of their
                    Certificates.

     10)  ADDITIONAL PROVISIONS. Notwithstanding the terms of Sections 5 and 6
          of the ISDA Form Master Agreement, if the Counterparty has satisfied
          its payment obligations under Section 2(a)(i) of the ISDA Form Master
          Agreement, and shall, at the time, have no future payment or delivery
          obligation, whether absolute or contingent, then unless BNY is
          required pursuant to appropriate proceedings to return to the
          Counterparty or otherwise returns to the Counterparty upon demand of
          the Counterparty any portion of such payment, (a) the occurrence of an
          event described in Section 5(a) of the ISDA Form Master Agreement with
          respect to the Counterparty shall not constitute an Event of Default
          or Potential Event of Default with respect to the Counterparty as the
          Defaulting Party and (b) BNY shall be entitled to designate an Early
          Termination Date pursuant to Section 6 of the ISDA Form Master
          Agreement only as a result of a Termination Event set forth in either
          Section 5(b)(i) or Section 5(b)(ii) of the ISDA Form Master Agreement
          with respect to BNY as the Affected Party or Section 5(b)(iii) of the
          ISDA Form Master Agreement with respect to BNY as the Burdened Party.

     11)  RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
          Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts
          paid hereunder are not intended to benefit the holder of any class of
          certificates rated by any rating agency if such holder is MLML or any
          of its affiliates. If MLML or any of its affiliates receives

                                       N-3

<PAGE>

          any such amounts, it will promptly remit (or, if such amounts are
          received by an affiliate of MLML, MLML hereby agrees that it will
          cause such affiliate to promptly remit) such amounts to the Trustee,
          whereupon such Trustee will promptly remit such amounts to BNY. MLML
          further agrees to provide notice to BNY upon any remittance to the
          trustee.

     12)  BNY PAYMENTS TO BE MADE TO TRUSTEE. BNY will, unless otherwise
          directed by the Trustee, make all payments hereunder to the Trustee.
          Payment made to the Trustee at the account specified herein or to
          another account specified in writing by the Trustee shall satisfy the
          payment obligations of BNY hereunder to the extent of such payment.

5.   ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     Payments to BNY:

          The Bank of New York
          Derivative Products Support Department
          32 Old Slip, 16th Floor
          New York, New York 10286
          Attention: Renee Etheart
          ABA # __________________
          Account # ______________
          Reference: Interest Rate Swap

     Payments to Counterparty:

     LaSalle Bank N.A.
     ABA # _______________
     Acct #: _____________
     Ref: Ownit 2006-3 Cap Account

6. COUNTERPARTS. This Agreement may be executed in several counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                       N-3

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

     Very truly yours,

THE BANK OF NEW YORK

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

     The Counterparty, acting through its duly authorized signatory, hereby
agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY: LASALLE BANK, NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
ON BEHALF OF OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

Solely with respect to Paragraph 4(11)
MERRILL LYNCH MORTGAGE LENDING, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                       N-3

<PAGE>

                                   SCHEDULE I

   All dates subject to adjustment in accordance with the Modified Following
                            Business Day Convention.

                                       N-3

<PAGE>

                                   EXHIBIT O-1

                     CLASS A-1 ONE-MONTH LIBOR CAP TABLE (1)

<TABLE>
<CAPTION>
         BEGINNING    ENDING      NOTIONAL       1ML STRIKE         1ML STRIKE
PERIOD    ACCRUAL     ACCRUAL   BALANCE ($)   LOWER COLLAR (%)   UPPER COLLAR (%)
------   ---------   --------   -----------   ----------------   ----------------
<S>      <C>         <C>        <C>           <C>                <C>
   1      04/13/06   04/25/06   180,115,000        10.320             10.3200
   2      04/25/06   05/25/06   179,125,757         7.135             10.3200
   3      05/25/06   06/25/06   177,647,963         6.899             10.3200
   4      06/25/06   07/25/06   175,678,834         7.135             10.3200
   5      07/25/06   08/25/06   173,219,160         6.899             10.3200
   6      08/25/06   09/25/06   170,269,942         6.899             10.3200
</TABLE>

(1)  With respect to any Distribution Date, if One-Month LIBOR (as determined by
     the Cap Contract Counterparty and subject to a cap equal to 10.3200%)
     exceeds the Lower Collar, the Issuing Entity will receive payments pursuant
     to the Class A-1 Cap Contract.

                                      O-1-1

<PAGE>

                                   EXHIBIT O-2

                     CLASS A-2 ONE-MONTH LIBOR CAP TABLE (1)

<TABLE>
<CAPTION>
         BEGINNING    ENDING      NOTIONAL       1ML STRIKE         1ML STRIKE
PERIOD    ACCRUAL     ACCRUAL   BALANCE ($)   LOWER COLLAR (%)   UPPER COLLAR (%)
------   ---------   --------   -----------   ----------------   ----------------
<S>      <C>         <C>        <C>           <C>                <C>
   1      04/13/06   04/25/06   265,456,000        10.280             10.2800
   2      04/25/06   05/25/06   264,044,881         6.864             10.2800
   3      05/25/06   06/25/06   261,910,151         6.638             10.2800
   4      06/25/06   07/25/06   259,046,944         6.865             10.2800
   5      07/25/06   08/25/06   255,456,313         6.638             10.2800
   6      08/25/06   09/25/06   251,139,121         6.638             10.2800
</TABLE>

(1)  With respect to any Distribution Date, if One-Month LIBOR (as determined by
     the Cap Contract Counterparty and subject to a cap equal to 10.2800%)
     exceeds the Lower Collar, the Issuing Entity will receive payments pursuant
     to the Class A-2 Cap Contract.

                                      O-2-1
<PAGE>

                                   EXHIBIT O-3

           FLOATING RATE SUBORDINATE CERTIFICATES LIBOR CAP TABLE (1)

<TABLE>
<CAPTION>
         BEGINNING    ENDING      NOTIONAL       1ML STRIKE         1ML STRIKE
PERIOD    ACCRUAL     ACCRUAL   BALANCE ($)   LOWER COLLAR (%)   UPPER COLLAR (%)
------   ---------   --------   -----------   ----------------   ----------------
<S>      <C>         <C>        <C>           <C>                <C>
   1      04/13/06   04/25/06    86,580,000         8.940             8.9400
   2      04/25/06   05/25/06    86,580,000         6.588             8.9400
   3      05/25/06   06/25/06    86,580,000         6.357             8.9400
   4      06/25/06   07/25/06    86,580,000         6.588             8.9400
   5      07/25/06   08/25/06    86,580,000         6.357             8.9400
   6      08/25/06   09/25/06    86,580,000         6.357             8.9400
</TABLE>

(1)  With respect to any Distribution Date, if One-Month LIBOR (as determined by
     the Cap Contract Counterparty and subject to a cap equal to 8.9400%)
     exceeds the Lower Collar, the Issuing Entity will receive payments pursuant
     to the Floating Rate Subordinate Certificates Cap Contract.

                                      O-3-1

<PAGE>

                                    EXHIBIT P

                            FORM OF POWER OF ATTORNEY

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
LITTON LOAN SERVICING LP
4828 Loop Central Drive
Houston, Texas 77081

Attn: _________________________________

                            LIMITED POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that ___________________, having its principal
place of business at _______________, as Trustee (the "Trustee") pursuant to
that Pooling and Servicing Agreement among ____________________ (the
"Depositor"), Litton Loan Servicing LP (the "Servicer") and the Trustee, dated
as of_____________ 1, 200__ (the "Pooling and Servicing Agreement"), hereby
constitutes and appoints the Servicer, by and through the Servicer's officers,
the Trustee's true and lawful Attorney-in-Fact, in the Trustee's name, place and
stead and for the Trustee's benefit, in connection with all mortgage loans
serviced by the Servicer pursuant to the Pooling and Servicing Agreement for the
purpose of performing all acts and executing all documents in the name of the
Trustee as may be customarily and reasonably necessary and appropriate to
effectuate the following enumerated transactions in respect of any of the
mortgages or deeds of trust (the "Mortgages" and the "Deeds of Trust,"
respectively) and promissory notes secured thereby (the "Mortgage Notes") for
which the undersigned is acting as Trustee for various certificateholders
(whether the undersigned is named therein as mortgagee or beneficiary or has
become mortgagee by virtue of endorsement of the Mortgage Note secured by any
such Mortgage or Deed of Trust) and for which the Servicer is acting as
servicer, all subject to the terms of the Pooling and Servicing Agreement.

This appointment shall apply to the following enumerated transactions only:

1.   The modification or re-recording of a Mortgage or Deed of Trust, where said
     modification or re-recordings is for the purpose of correcting the Mortgage
     or Deed of Trust to conform same to the original intent of the parties
     thereto or to correct title errors discovered after such title insurance
     was issued and said modification or re-recording, in either instance, does
     not adversely affect the lien of the Mortgage or Deed of Trust as insured.

2.   The subordination of the lien of a Mortgage or Deed of Trust to an easement
     in favor of a public utility company of a government agency or unit with
     powers of eminent domain; this section shall include, without limitation,
     the execution of partial satisfactions/releases, partial reconveyances or
     the execution or requests to trustees to accomplish same.

3.   The conveyance of the properties to the mortgage insurer, or the closing of
     the title to the property to be acquired as real estate owned, or
     conveyance of title to real estate owned.

4.   The completion of loan assumption agreements.

                                      P-1

<PAGE>

5.   The full satisfaction/release of a Mortgage or Deed of Trust or full
     conveyance upon payment and discharge of all sums secured thereby,
     including, without limitation, cancellation of the related Mortgage Note.

6.   The assignment of any Mortgage or Deed of Trust and the related Mortgage
     Note, in connection with the repurchase of the mortgage loan secured and
     evidenced thereby.

7.   The full assignment of a Mortgage or Deed of Trust upon payment and
     discharge of all sums secured thereby in conjunction with the refinancing
     thereof, including, without limitation, the assignment of the related
     Mortgage Note.

8.   With respect to a Mortgage or Deed of Trust, the foreclosure, the taking of
     a deed in lieu of foreclosure, or the completion of judicial or
     non-judicial foreclosure or termination, cancellation or rescission of any
     such foreclosure, including, without limitation, any and all of the
     following acts:

     a.   the substitution of trustee(s) serving under a Deed of Trust, in
          accordance with state law and the Deed of Trust;

     b.   the preparation and issuance of statements of breach or
          non-performance;

     c.   the preparation and filing of notices of default and/or notices of
          sale;

     d.   the cancellation/rescission of notices of default and/or notices of
          sale;

     e.   the taking of a deed in lieu of foreclosure; and

     f.   the preparation and execution of such other documents and performance
          of such other actions as may be necessary under the terms of the
          Mortgage, Deed of Trust or state law to expeditiously complete said
          transactions in paragraphs 8.a. through 8.e., above.

The undersigned gives said Attorney-in-Fact full power and authority to execute
such instruments and to do and perform all and every act and thing necessary and
proper to carry into effect the power or powers granted by or under this Limited
Power of Attorney as fully as the undersigned might or could do, and hereby does
ratify and confirm to all that said Attorney-in-Fact shall lawfully do or cause
to be done by authority hereof; provided, that the Servicer shall not without
the Trustee's written consent, (A) initiate any action in the Trustee's name
without indicating the Servicer's representative capacity or (B) cause the
Trustee to be registered to do business in any state; and provided further that
the Trustee shall not be liable for any misuse of, or negligence, willful
misfeasance or bad faith of the Servicer in connection with, the Servicer's use
of this power of attorney.

Third parties without actual notice may rely upon the exercise of the power
granted under this Limited Power of attorney; and may be satisfied that this
Limited Power of Attorney shall continue in full force and effect and has not
been revoked unless an instrument of revocation has been made in writing by the
undersigned.

                                      P-2

<PAGE>

IN WITNESS WHEREOF, _____________________ as Trustee pursuant to that Pooling
and Servicing Agreement among the Depositor, the Servicer, and the Trustee,
dated as of ____________ 1, 200__ (_______________ Mortgage Loan Asset Backed
Certificates, Series 200__-___), has caused its corporate seal to be hereto
affixed and these presents to be signed and acknowledged in its name and behalf
by _______________ its duly elected and authorized Vice President this ________
day of ______________, 200__.

                                        ----------------------------------------
                                        as Trustee for _____ Mortgage Loan Asset
                                        Backed Certificates, Series 200__-___

                                        By
                                           -------------------------------------

STATE OF _______________

COUNTY OF ______________

On ____________ ______, 200__, before me, the undersigned, a Notary Public in
and for said state, personally appeared ________________, Vice President of
______________________ as Trustee for _____________ Mortgage Loan Asset Backed
Certificates, Series 200__-___, personally known to me to be the person whose
name is subscribed to the within instrument and acknowledged to me that he/she
executed that same in his/her authorized capacity, and that by his/her signature
on the instrument the entity upon behalf of which the person acted and executed
the instrument.

WITNESS my hand and official seal.
     (SEAL)

                                        ----------------------------------------
                                                                   Notary Public

                                        My Commission Expires __________________

                                      P-3

<PAGE>

                                    EXHIBIT Q
                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER TO REGULATION S BOOK-ENTRY CERTIFICATE
        FROM A HOLDER OF A RULE 144A BOOK-ENTRY CERTIFICATE OR DEFINITIVE
                                   CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Ownit 2006-3

RE:  Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates, Series
     2006-3

Ladies and Gentlemen:

          In connection with our disposition of the Class ___ Certificates which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Rule 144A Book-Entry Certificate, and to effect the transfer
pursuant to Regulation S under the Securities Act of 1933, as amended
("Regulation S") of the above Certificates in exchange for an equivalent
beneficial interest in a Regulation S Book-Entry Certificate, we hereby certify
that such transfer has been effected in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of March
1, 2006, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle
Bank National Association, as trustee, and Litton Loan Servicing LP, as servicer
and in the Certificates and (ii) in accordance with Regulation S, and that:

          a. the offer of the Certificates was not made to a person in the
United States;

          b. at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf reasonably
believed that the transferee was outside the United States;

          c. no directed selling efforts have been made in contravention of the
requirements of Rule 903 or 904 of Regulation S, as applicable;

          d. the transaction is not part of a plan or scheme to evade the
registration requirements of the United States Securities Act of 1933, as
amended; and

          e. the transferee is not a U.S. Person (as defined by Regulation S).

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S.

                                        Very truly yours,

                                        ----------------------------------------

                                       Q-1

<PAGE>

                                        Print Name of Transferor

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                       Q-2

<PAGE>

                                    EXHIBIT R
                    FORM OF TRANSFEROR REPRESENTATION LETTER
               FOR TRANSFER PURSUANT TO RULE 144A FROM A HOLDER OF
         A REGULATION S BOOK-ENTRY CERTIFICATE OR DEFINITIVE CERTIFICATE

                                     [DATE]

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Ownit Series 2006-3

RE:  Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates, Series
     2006-3

Ladies and Gentlemen:

          In connection with our disposition of the Class __ Certificates, which
are held in the form of Definitive Certificates or in the form of a beneficial
interest in a Regulation S Book-Entry Certificate, and to effect the transfer
pursuant to Rule 144A under the Securities Act of 1933, as amended ("Rule 144A")
of the above Certificates in exchange for an equivalent beneficial interest in a
Rule 144A Book-Entry Certificate or a Definitive Note, we hereby certify that
such Certificates are being transferred in accordance with (i) the transfer
restrictions set forth in the Pooling and Servicing Agreement, dated as of March
1, 2006, among Merrill Lynch Mortgage Investors, Inc., as depositor, LaSalle
Bank National Association, as trustee, and Litton Loan Servicing LP, as servicer
and in the Certificates and (ii) Rule 144A under the Securities Act of 1933, as
amended, to a transferee that we reasonably believe is purchasing the
Certificates for its own account or an account with respect to which the
transferee exercises sole investment discretion, the transferee and any such
account is a "qualified institutional buyer" within the meaning of Rule 144A, in
a transaction meeting the requirements of Rule 144A and in accordance with any
applicable securities laws of any state of the United States or any other
jurisdiction.

          You are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal Proceedings or official inquiry with respect to the
matters covered hereby.

                                        Very truly yours,

                                        ----------------------------------------
                                        Print Name of Transferor

                                        By:
                                            ------------------------------------
                                            Authorized Officer

                                       R-1

<PAGE>

                                    EXHIBIT S

                             FORM OF SWAP AGREEMENT

                                                           Dated: March __, 2006

                              RATE SWAP TRANSACTION

                           RE: BNY REFERENCE NO. 37610

Ladies and Gentlemen:

     The purpose of this letter agreement ("AGREEMENT") is to confirm the terms
and conditions of the rate Swap Transaction entered into on the Trade Date
specified below (the "TRANSACTION") between The Bank of New York ("BNY"), a
trust company duly organized and existing under the laws of the State of New
York, and the Ownit Mortgage Loan Asset-Backed Certificates Series 2006-3 (the
"COUNTERPARTY"), as represented by LaSalle Bank National Association, not in its
individual capacity, but solely as Trustee under the Pooling and Servicing
Agreement, dated and effective March 1, 2006, among Merrill Lynch Mortgage
Investors, Inc., as Depositor, Litton Loan Servicing LP, as Servicer and LaSalle
Bank National Association, as Trustee (the "POOLING AND SERVICING AGREEMENT").
This Agreement, which evidences a complete and binding agreement between you and
us to enter into the Transaction on the terms set forth below, constitutes a
"CONFIRMATION" as referred to in the "ISDA FORM MASTER AGREEMENT" (as defined
below), as well as a "Schedule" as referred to in the ISDA Form Master
Agreement.

1.   FORM OF AGREEMENT. This Agreement is subject to the 2000 ISDA Definitions
     (the "DEFINITIONS"), as published by the International Swaps and
     Derivatives Association, Inc. ("ISDA"). You and we have agreed to enter
     into this Agreement in lieu of negotiating a Schedule to the 1992 ISDA
     Master Agreement (Multicurrency--Cross Border) form (the "ISDA FORM MASTER
     AGREEMENT"). An ISDA Form Master Agreement, as modified by the Schedule
     terms in Paragraph 4 of this Confirmation (the "MASTER AGREEMENT"), shall
     be deemed to have been executed by you and us on the date we entered into
     the Transaction. Except as otherwise specified, references herein to
     Sections shall be to Sections of the ISDA Form Master Agreement and the
     Master Agreement, and references to Paragraphs shall be to paragraphs of
     this Agreement. Each party hereto agrees that the Master Agreement deemed
     to have been executed by the parties hereto shall be the same Master
     Agreement referred to in the agreement setting forth the terms of
     transaction reference numbers 37611, 37612 and 37613. In the event of any
     inconsistency between the provisions of this Agreement and the Definitions
     or the ISDA Form Master Agreement, this Agreement shall prevail for
     purposes of the Transaction. Capitalized terms not otherwise defined herein
     or in the Definitions or the Master Agreement shall have the meaning
     defined for such term in the Pooling and Servicing Agreement.

2.   CERTAIN TERMS. The terms of the particular Transaction to which this
     Confirmation relates are as follows:

     Type of Transaction:         Rate Swap

     Notional Amount:             With respect to any Calculation Period the
                                  amount set forth for such period on Schedule I
                                  attached hereto.

     Trade Date:                  March 30, 2006

                                       S-1

<PAGE>

     Effective Date:              September 25, 2006

     Termination Date:            August 25, 2010, subject to adjustment in
                                  accordance with the Following Business Day
                                  Convention.

FIXED AMOUNTS

     Fixed Rate Payer:            Counterparty

     Fixed Rate:                  _______%

     Fixed Rate Day Count
     Fraction:                    30/360

     Fixed Rate Payer Period
     End Dates:                   The 25th day of each month, beginning on
                                  October 25, 2006 and ending on the Termination
                                  Date, subject to adjustment in accordance with
                                  the Following Business Day Convention with No
                                  Adjustment.

     Fixed Rate Payer Payment
     Dates:                       Early Payment shall be applicable. The Fixed
                                  Rate Payer Payment Date shall be two (2)
                                  Business Days preceding each Fixed Rate Payer
                                  Period End Date.

FLOATING AMOUNTS

     Floating Rate Payer:         BNY

     Floating Rate for initial
     Calculation Period:          To be determined

     Floating Rate Day Count
     Fraction:                    Actual/360

     Floating Rate Option:        USD-LIBOR-BBA

     Designated Maturity:         One month

     Spread:                      Inapplicable

     Floating Rate Payer Period
     End Dates:                   The 25th day of each month, beginning on
                                  October 25, 2006 and ending on the Termination
                                  Date, subject to adjustment in accordance with
                                  the Following Business Day Convention.

     Floating Rate Payer
     Payment Dates:               Early Payment shall be applicable. The
                                  Floating Rate Payer Payment Date shall be two
                                  (2) Business Days preceding each Floating Rate
                                  Payer Period End Date.

                                      S-2
<PAGE>

     Reset Dates:                 The first day of each Calculation Period or
                                  Compounding Period, if Compounding is
                                  applicable.

     Compounding:                 Inapplicable

     Business Days for Payments
     By both parties:             New York

     Calculation Agent:           BNY

     Additional Fees:             The Counterparty shall pay BNY
                                  USD ___________ on April 13, 2006.

3.   ADDITIONAL PROVISIONS:

     1) RELIANCE. Each party hereto is hereby advised and acknowledges that the
     other party has engaged in (or refrained from engaging in) substantial
     financial transactions and has taken (or refrained from taking) other
     material actions in reliance upon the entry by the parties into the
     Transaction being entered into on the terms and conditions set forth
     herein.

     2) TRANSFER, AMENDMENT AND ASSIGNMENT. No transfer, amendment, waiver,
     supplement, assignment or other modification of this Transaction shall be
     permitted by either party unless each of Standard & Poor's Ratings Service,
     a division of The McGraw-Hill Companies, Inc ("S&P") and Moody's Investors
     Service, Inc. ("MOODY'S"), has been provided notice of the same and
     confirms in writing (including by facsimile transmission) that it will not
     downgrade, qualify, withdraw or otherwise modify its then-current ratings
     on the Certificates issued under the Pooling and Servicing Agreement (the
     "CERTIFICATES").

4.   PROVISIONS DEEMED INCORPORATED IN A SCHEDULE TO THE MASTER AGREEMENT:

     4)   NO NETTING BETWEEN TRANSACTIONS. The parties agree that subparagraph
          (ii) of Section 2(c) will apply to any Transaction.

     2)   TERMINATION PROVISIONS. For purposes of the Master Agreement:

          (a)  "SPECIFIED ENTITY" is not applicable to BNY or the Counterparty
               for any purpose.

          (b)  The "BREACH OF AGREEMENT" provisions of Section 5(a)(ii) will not
               apply to BNY or the Counterparty.

          (c)  The "CREDIT SUPPORT DEFAULT" provisions of Section 5(a)(iii) will
               not apply to BNY (except with respect to credit support furnished
               pursuant to Paragraph 4(9) below or the Counterparty.

          (d)  The "MISREPRESENTATION" provisions of Section 5(a)(iv) will not
               apply to BNY or the Counterparty.

          (e)  "DEFAULT UNDER SPECIFIED TRANSACTION" is not applicable to BNY or
               the Counterparty for any purpose, and, accordingly, Section
               5(a)(v) shall not apply to BNY or the Counterparty.

                                      S-3

<PAGE>

          (f)  The "CROSS DEFAULT" provisions of Section 5(a)(vi) will not apply
               to BNY or to the Counterparty.

          (g)  The "BANKRUPTCY" provisions of Section 5(a)(vii)(2) will not
               apply to the Counterparty; the words "trustee" and "custodian" in
               Section 5(a)(vii)(6) will not include the Trustee; and the words
               "specifically authorized " are inserted before the word "action"
               in Section 5(a)(vii)(9)

          (h)  The "CREDIT EVENT UPON MERGER" provisions of Section 5(b)(iv)
               will not apply to BNY or the Counterparty.

          (i)  The "AUTOMATIC EARLY TERMINATION" provision of Section 6(a) will
               not apply to BNY or to the Counterparty.

          (j)  PAYMENTS ON EARLY TERMINATION. For the purpose of Section 6(e):

               (i)  Market Quotation will apply.

               (ii) The Second Method will apply.

          (k)  "TERMINATION CURRENCY" means United States Dollars.

          (l)  NO ADDITIONAL AMOUNTS PAYABLE BY COUNTERPARTY. The Counterparty
               shall not be required to pay any additional amounts pursuant to
               Section 2(d)(i)(4) or 2(d)(ii).

     3)   TAX REPRESENTATIONS.

          (a)  PAYER REPRESENTATIONS. For the purpose of Section 3(e), BNY and
               the Counterparty make the following representations:

                    It is not required by any applicable law, as modified by the
               practice of any relevant governmental revenue authority, of any
               Relevant Jurisdiction to make any deduction or withholding for or
               on account of any Tax from any payment (other than interest under
               Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
               party under this Agreement. In making this representation, it may
               rely on:

               (i)  the accuracy of any representations made by the other party
                    pursuant to Section 3(f);

               (ii) the satisfaction of the agreement contained in Section 4
                    (a)(i) or 4(a)(iii) and the accuracy and effectiveness of
                    any document provided by the other party pursuant to Section
                    4 (a)(i) or 4(a)(iii); and

               (iii) the satisfaction of the agreement of the other party
                    contained in Section 4(d), provided that it shall not be a
                    breach of this representation where reliance is placed on
                    clause (ii) and the other party does not deliver a form or
                    document under Section 4(a)(iii) by reason of material
                    prejudice of its legal or commercial position.

                                      S-4

<PAGE>

          (b)  PAYEE REPRESENTATIONS. For the purpose of Section 3(f), BNY and
               the Counterparty make the following representations.

               (i)  The following representation will apply to BNY:

                    (x) It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of the United States Treasury
                    Regulations) for United States federal income tax purposes,
                    (y) it is a trust company duly organized and existing under
                    the laws of the State of New York, and (y) its U.S. taxpayer
                    identification number is 135160382.

               (ii) The following representation will apply to the Counterparty:

                    It is a "U.S. person" (as that term is used in section
                    1.1441-4(a)(3)(ii) of United States Treasury Regulations)
                    for United States federal income tax purposes.

     4)   DOCUMENTS TO BE DELIVERED. FOR THE PURPOSE OF SECTION 4(A):

          (a)  Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                DATE BY WHICH        COVERED BY SECTION
DELIVER DOCUMENT          FORM/DOCUMENT/ CERTIFICATE            TO BE DELIVERED      3(D) REPRESENTATION
----------------          --------------------------            ---------------      -------------------
<S>                 <C>                                     <C>                      <C>
BNY and             Any document required or reasonably     Upon the execution and           Yes
Counterparty        requested to allow the other party to   delivery of this
                    make payments under this Agreement      Agreement
                    without any deduction or withholding
                    for or on the account of any tax.
</TABLE>

          (b)  Other documents to be delivered are:

<TABLE>
<CAPTION>
PARTY REQUIRED TO                                                DATE BY WHICH        COVERED BY SECTION
DELIVER DOCUMENT          FORM/DOCUMENT/ CERTIFICATE            TO BE DELIVERED      3(D) REPRESENTATION
----------------          --------------------------            ---------------      -------------------
<S>                 <C>                                     <C>                      <C>
BNY                 A certificate of an authorized          Upon the execution and           Yes
                    officer of the party, as to the         delivery of this
                    incumbency and authority of the         Agreement
                    respective officers of the party
                    signing this Agreement, any relevant
                    Credit Support Document, or any
                    Confirmation, as the case may be.

Counterparty        (i) a copy of the executed Pooling      Upon the execution and           Yes
                    and Servicing Agreement, and (ii) an    delivery of this
                    incumbency certificate verifying the    Agreement
                    true signatures and authority of the
                    person or persons signing this letter
                    agreement on behalf of the
                    Counterparty.

BNY                 A copy of the most recent publicly      Promptly after request           Yes
                    available regulatory call report.       by the other party
</TABLE>

                                       S-5

<PAGE>

<TABLE>
<S>                 <C>                                     <C>                      <C>
BNY                 Legal Opinion as to enforceability of   Upon the execution and           Yes
                    the Swap Agreement.                     delivery of this
                                                            Agreement.

Counterparty        Certified copy of the Board of          Upon the execution and           Yes
                    Directors resolution (or equivalent     delivery of this
                    authorizing documentation) which sets   Agreement.
                    forth the authority of each signatory
                    to the Confirmation signing on its
                    behalf and the authority of such
                    party to enter into Transactions
                    contemplated and performance of its
                    obligations hereunder.
</TABLE>

          5)   MISCELLANEOUS.

               (a)  ADDRESS FOR NOTICES: For the purposes of Section 12(a):

                    Address for notices or communications to BNY:

                         The Bank of New York
                         Swaps and Derivative Products Group
                         Global Market Division
                         32 Old Slip 15th Floor
                         New York, New York 10286
                         Attention: Steve Lawler

                         with a copy to:

                         The Bank of New York
                         Swaps and Derivative Products Group
                         32 Old Slip 16th Floor
                         New York, New York 10286
                         Attention: Andrew Schwartz
                         Tele: 212-804-5103
                         Fax: 212-804-5818/5837

                         (For all purposes)

                    Address for notices or communications to the Counterparty:

                         LaSalle Bank National Association
                         135 South LaSalle Street
                         Suite 1625
                         Chicago, Illinois 60603
                         Attention: OWNIT 2006-3
                         Tele: 312-904-7992
                         Fax: 312-904-1368

                         (For all purposes)

               (b)  PROCESS AGENT. For the purpose of Section 13(c):

                                      S-6
<PAGE>

               BNY appoints as its Process Agent: Not Applicable

               The Counterparty appoints as its Process Agent: Not Applicable

          (c)  OFFICES. The provisions of Section 10(a) will not apply to this
               Agreement; neither BNY nor the Counterparty have any Offices
               other than as set forth in the Notices Section and BNY agrees
               that, for purposes of Section 6(b), it shall not in future have
               any Office other than one in the United States.

          (d)  MULTIBRANCH PARTY. For the purpose of Section 10(c):

               BNY is not a Multibranch Party.

               The Counterparty is not a Multibranch Party.

          (e)  CALCULATION AGENT. The Calculation Agent is BNY.

          (f)  CREDIT SUPPORT DOCUMENT. Not applicable for either BNY (except
               with respect to credit support furnished pursuant to Paragraph 9)
               or the Counterparty.

          (g)  CREDIT SUPPORT PROVIDER.

               BNY: Not Applicable (except with respect to credit support
                    furnished pursuant to Paragraph 9)

               Counterparty: Not Applicable

          (h)  GOVERNING LAW. The parties to this Agreement hereby agree that
               the law of the State of New York shall govern their rights and
               duties in whole, without regard to conflict of law provisions
               thereof other than New York General Obligations Law Sections
               5-1401 and 5-1402.

          (i)  SEVERABILITY. If any term, provision, covenant, or condition of
               this Agreement, or the application thereof to any party or
               circumstance, shall be held to be invalid or unenforceable (in
               whole or in part) for any reason, the remaining terms,
               provisions, covenants, and conditions hereof shall continue in
               full force and effect as if this Agreement had been executed with
               the invalid or unenforceable portion eliminated, so long as this
               Agreement as so modified continues to express, without material
               change, the original intentions of the parties as to the subject
               matter of this Agreement and the deletion of such portion of this
               Agreement will not substantially impair the respective benefits
               or expectations of the parties.

               The parties shall endeavor to engage in good faith negotiations
               to replace any invalid or unenforceable term, provision, covenant
               or condition with a valid or enforceable term, provision,
               covenant or condition, the economic effect of which comes as
               close as possible to that of the invalid or unenforceable term,
               provision, covenant or condition.

                                       S-7

<PAGE>

          (j)  RECORDING OF CONVERSATIONS. Each party (i) consents to the
               recording of telephone conversations between the trading,
               marketing and other relevant personnel of the parties in
               connection with this Agreement or any potential Transaction, (ii)
               agrees to obtain any necessary consent of, and give any necessary
               notice of such recording to, its relevant personnel and (iii)
               agrees, to the extent permitted by applicable law, that
               recordings may be submitted in evidence in any Proceedings.

          (k)  WAIVER OF JURY TRIAL. Each party waives any right it may have to
               a trial by jury in respect of any Proceedings relating to this
               Agreement or any Credit Support Document.

          (l)  NON-RECOURSE. Notwithstanding any provision herein or in the ISDA
               Form Master Agreement to the contrary, the obligations of the
               Counterparty hereunder are limited recourse obligations of the
               Counterparty, payable solely from the Trust Fund and the proceeds
               thereof to satisfy the Counterparty's obligations hereunder. In
               the event that the Trust Fund and proceeds thereof should be
               insufficient to satisfy all claims outstanding, and following the
               realization of the Trust Fund and the distribution of the
               proceeds thereof in accordance with the Pooling and Servicing
               Agreement, any claims against or obligations of the Counterparty
               under the ISDA Form Master Agreement, or any other confirmation
               thereunder, still outstanding shall be extinguished and
               thereafter not revive. This provision shall survive the
               expiration of this Agreement.

          (m)  LIMITATION ON INSTITUTION OF BANKRUPTCY PROCEEDINGS. BNY shall
               not institute against or cause any other person to institute
               against, or join any other person in instituting against the
               Counterparty, any bankruptcy, reorganization, arrangement,
               insolvency or liquidation proceedings, under any of the laws of
               the United States or any other jurisdiction, for a period of one
               year and one day (or, if longer, the applicable preference
               period) following indefeasible payment in full of the
               Certificates. This provision shall survive the expiration of this
               Agreement.

          (n)  REMEDY OF FAILURE TO PAY OR DELIVER. The ISDA Form Master
               Agreement is hereby amended by replacing the word "third" in the
               third line of Section 5(a)(i) by the word "second".

          (o)  "AFFILIATE" will have the meaning specified in Section 14 of the
               ISDA Form Master Agreement, provided that the Counterparty shall
               not be deemed to have any Affiliates for purposes of this
               Agreement, including for purposes of Section 6(b)(ii).

          (p)  TRUSTEE'S CAPACITY. It is expressly understood and agreed by the
               parties hereto that insofar as this Confirmation is executed by
               the Trustee (i) this Confirmation is executed and delivered by
               LaSalle Bank National Association, not in its individual capacity
               but solely as Trustee pursuant to the Pooling and Servicing
               Agreement in the exercise of the powers and authority conferred
               and vested in it thereunder and pursuant to instruction set forth
               therein (ii) each of the representations, undertakings and
               agreements herein made on behalf of the trust is made and
               intended not as a personal representation, undertaking or
               agreement of the Trustee but is made and intended for the purpose
               of binding only the Counterparty, and (iii) under no
               circumstances will LaSalle Bank National

                                       S-8

<PAGE>

               Association, in its individual capacity be personally liable for
               the payment of any indebtedness or expenses or be personally
               liable for the breach or failure of any obligation,
               representation, warranty or covenant made or undertaken under
               this Confirmation.

          (q)  TRUSTEE'S REPRESENTATION. LaSalle Bank National Association, as
               Trustee, represents and warrants that:

               It has been directed under the Pooling and Servicing Agreement to
               enter into this letter agreement as Trustee on behalf of the
               Counterparty.

          (r)  AMENDMENT TO POOLING AND SERVICING AGREEMENT. Notwithstanding any
               provisions to the contrary in the Pooling and Servicing
               Agreement, none of the Depositor, the Servicer or the Trustee
               shall enter into any amendment thereto which could have a
               material adverse affect on BNY without the prior written consent
               of BNY.

     6)   ADDITIONAL REPRESENTATIONS. Section 3 is hereby amended by adding,
          before the close parenthesis in the introductory sentence thereof, the
          words ", and, in the case of the representations in Section 3(i), at
          all times", and, at the end thereof, the following Sections 3(g), 3(h)
          and 3(i):

          "(g) RELATIONSHIP BETWEEN PARTIES.

               (1) NONRELIANCE. It is not relying on any statement or
               representation of the other party regarding the Transaction
               (whether written or oral), other than the representations
               expressly made in this Agreement or the Confirmation in respect
               of that Transaction.

               (2) EVALUATION AND UNDERSTANDING.

                    (i) Each party acknowledges that LaSalle Bank National
                    Association, has been directed under the Pooling and
                    Servicing Agreement to enter into this Transaction as
                    Trustee on behalf of the Counterparty.

                    (ii) It is acting for its own account and has the capacity
                    to evaluate (internally or through independent professional
                    advice) the Transaction and has made its own decision to
                    enter into the Transaction; it is not relying on any
                    communication (written or oral) of the other party as
                    investment advice or as a recommendation to enter into such
                    transaction; it being understood that information and
                    explanations related to the terms and conditions of such
                    transaction shall not be considered investment advice or a
                    recommendation to enter into such transaction. No
                    communication (written or oral) received from the other
                    party shall be deemed to be an assurance or guarantee as to
                    the expected results of the transaction; and

                    (iii) It understands the terms, conditions and risks of the
                    Transaction and is willing and able to accept those terms
                    and conditions and to assume (and does, in fact assume)
                    those risks, financially and otherwise.

                                       S-9

<PAGE>

               (3) PRINCIPAL. The other party is not acting as a fiduciary or an
               advisor for it in respect of this Transaction.

          (h)  EXCLUSION FROM COMMODITIES EXCHANGE ACT. (A) It is an "eligible
               contract participant" within the meaning of Section 1a(12) of the
               Commodity Exchange Act, as amended; (B) this Agreement and each
               Transaction is subject to individual negotiation by such party;
               and (C) neither this Agreement nor any Transaction will be
               executed or traded on a "trading facility" within the meaning of
               Section 1a(33) of the Commodity Exchange Act, as amended.

          (i)  ERISA (PENSION PLANS). It is not a pension plan or employee
               benefits plan and it is not using assets of any such plan or
               assets deemed to be assets of such a plan in connection with this
               Transaction.

     7)   SET-OFF. Notwithstanding any provision of this Agreement or any other
          existing or future agreement (but without limiting the provisions of
          Section 2(c) and Section 6, except as provided in the next sentence),
          each party irrevocably waives any and all rights it may have to set
          off, net, recoup or otherwise withhold or suspend or condition payment
          or performance of any obligation between it and the other party
          hereunder against any obligation between it and the other party under
          any other agreements. The last sentence of the first paragraph of
          Section 6(e) shall not apply for purposes of this Transaction.

     8)   ADDITIONAL TERMINATION EVENTS. The following Additional Termination
          Events will apply, in each case with respect to the Counterparty as
          the sole Affected Party (unless otherwise provided below):

          (i)  REMEDY OF RATINGS EVENTS. BNY fails to comply with the provisions
               of Paragraph 9. For all purposes of this Agreement, BNY shall be
               the sole Affected Party with respect to the occurrence of a
               Termination Event described in this Paragraph 8(i).

          (ii) TERMINATION OF TRUST FUND. The Trust Fund shall be terminated
               pursuant to any provision of the Pooling and Servicing Agreement.
               The Early Termination Date with respect to such Additional
               Termination Event shall be the Distribution Date upon which the
               Trust is terminated and final payment is made in respect of the
               Certificates.

          (iii) AMENDMENT OF POOLING AND SERVICING AGREEMENT WITHOUT CONSENT OF
               BNY. If the Trustee permits the Pooling and Servicing Agreement
               to be amended in a manner which could have a material adverse
               affect on BNY without first obtaining the prior written consent
               of BNY.

                                      S-10

<PAGE>

          (iv) FAILURE TO PROVIDE INFORMATION REQUIRED BY REGULATION AB. If the
               Depositor under the Pooling and Servicing Agreement still has a
               reporting obligation with respect to this Transaction pursuant to
               Regulation AB under the Securities Act of 1933, as amended, and
               the Securities Exchange Act of 1934, as amended ("REGULATION AB")
               and BNY has not, within 30 days after receipt of a Swap
               Disclosure Request complied with the provisions set forth below
               in this Paragraph 4(8)(iv) (provided that if the significance
               percentage reaches 10% after a Swap Disclosure Request has been
               made to BNY, BNY must comply with the provisions set forth below
               in this Section 4(8)(iv) within 10 days of BNY being informed of
               the significance percentage reaching 10%), then an Additional
               Termination Event shall have occurred with respect to BNY and BNY
               shall be the sole Affected Party with respect to such Additional
               Termination Event.

               BNY acknowledges that for so long as there are reporting
               obligations with respect to this Transaction under Regulation AB,
               the Depositor is required under Regulation AB to disclose certain
               information set forth in Regulation AB regarding BNY or its group
               of affiliated entities, if applicable, depending on the aggregate
               "significance percentage" of this Agreement and any other
               derivative contracts between BNY or its group of affiliated
               entities, if applicable, and the Counterparty, as calculated from
               time to time in accordance with Item 1115 of Regulation AB.

               If the Depositor determines, reasonably and in good faith, that
               the significance percentage of this Agreement has increased to
               nine (9) percent, then the Depositor may request on a Business
               Day after the date of such determination from BNY the same
               information set forth in Item 1115(b) of Regulation AB that would
               have been required if the significance percentage had in fact
               increased to ten (10) percent (such request, a "SWAP DISCLOSURE
               REQUEST" and such requested information, subject to the last
               sentence of this paragraph, is the "SWAP FINANCIAL DISCLOSURE").
               The Counterparty or the Depositor shall provide BNY with the
               calculations and any other information reasonably requested by
               BNY with respect to the Depositor's determination that led to the
               Swap Disclosure Request. The parties hereto further agree that
               the Swap Financial Disclosure provided to meet the Swap
               Disclosure Request may be, solely at BNY's option, either the
               information set forth in Item 1115(b)(1) or Item 1115(b)(2) of
               Regulation AB.

               Upon the occurrence of a Swap Disclosure Request, BNY, at its own
               expense, shall (x) provide the Depositor with the Swap Financial
               Disclosure, or (y) subject to Rating Agency Confirmation, secure
               another entity to replace BNY as party to this Agreement on terms
               substantially similar to this Agreement which entity is able to
               provide the Swap Financial Disclosure. If permitted by Regulation
               AB, any required Swap Financial Disclosure may be provided by
               incorporation by reference from reports filed pursuant to the
               Securities Exchange Act.

     9)   PROVISIONS RELATING TO DOWNGRADE OF BNY DEBT RATINGS .

          (i)  For purposes of this Transaction:

               (a)  A "COLLATERALIZATION RATINGS EVENT" shall occur with respect
                    to BNY (or any applicable credit support provider) if:

                                      S-11

<PAGE>

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is reduced to "P-1 on watch for downgrade" or below,
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A1 on watch for downgrade" or below (or, if
                         it has no short-term unsecured and unsubordinated debt
                         rating, its long term rating is reduced to "Aa3 on
                         watch for downgrade" or below) by Moody's, or

                    (y)  its short-term unsecured and unsubordinated debt rating
                         is reduced below "A-1" by S&P.

                    Such ratings are referred to herein as the "QUALIFYING
                    RATINGS."

               (b)  A "RATINGS EVENT" shall occur with respect to BNY (or any
                    applicable credit support provider) if:

                    (x)  its short-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced to "P-2" or below by Moody's
                         and its long-term unsecured and unsubordinated debt is
                         reduced to "A3" or below (or, if it has no short-term
                         unsecured and unsubordinated debt rating, its long term
                         rating is reduced to "A2" or below) by Moody's, or

                    (y)  its long-term unsecured and unsubordinated debt rating
                         is withdrawn or reduced below "BBB-" by S&P.

                    For purposes of (a) and (b) above, such events include those
                    occurring in connection with a merger, consolidation or
                    other similar transaction by BNY or any applicable credit
                    support provider, but they shall be deemed not to occur if,
                    within 30 days thereafter, each of Moody's and S&P has
                    reconfirmed the ratings of the Certificates, as applicable,
                    which were in effect immediately prior thereto. For the
                    avoidance of doubt, a downgrade of the rating on the
                    Certificates could occur in the event that BNY does not post
                    sufficient collateral.

               (c)  "RATING AGENCY CONDITION" means, with respect to any
                    particular proposed act or omission to act hereunder, that
                    the Trustee shall have received prior written confirmation
                    from each of Moody's and S&P, and shall have provided notice
                    thereof to BNY, that the proposed action or inaction would
                    not cause a downgrade or withdrawal of their then-current
                    ratings of the Certificates.

          (ii) Subject, in each case set forth in (a) and (b) below, to
               satisfaction of the Rating Agency Condition:

               (a)  COLLATERALIZATION RATINGS EVENT. If a Collateralization
                    Ratings Event occurs with respect to BNY (or any applicable
                    credit support provider), then BNY shall, at its own
                    expense, and subject to rating agency confirmation, within
                    thirty (30) days of such Collateralization Ratings Event:

                                      S-12

<PAGE>

                    (w)  post collateral under agreements and other instruments
                         approved by the Counterparty and the NIMS Insurer, such
                         approval not to be unreasonably withheld, and
                         satisfactory to Moody's and S&P, which will be
                         sufficient to restore the immediately prior ratings of
                         the Certificates,

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be sufficient to restore the
                         immediately prior ratings of their Certificates.

               (b)  RATINGS EVENT. If a Ratings Event occurs with respect to BNY
                    (or any applicable credit support provider), then BNY shall,
                    at its own expense, and subject to rating agency
                    confirmation within ten (10) Business Days of such Ratings
                    Event:

                    (x)  assign this Transaction to a third party, the ratings
                         of the debt of which (or the ratings of the debt of the
                         credit support provider of which) meet or exceed the
                         Qualifying Ratings, on terms substantially similar to
                         this Confirmation, which party is approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld,

                    (y)  obtain a guaranty of, or a contingent agreement of,
                         another person, the ratings of the debt of which (or
                         the ratings of the debt of the credit support provider
                         of which) meet or exceed the Qualifying Ratings, to
                         honor BNY's obligations under this Agreement, provided
                         that such other person is approved by the Counterparty
                         and the NIMS Insurer, such approval not to be
                         unreasonably withheld, or

                    (z)  establish any other arrangement approved by the
                         Counterparty and the NIMS Insurer, such approval not to
                         be unreasonably withheld and satisfactory to Moody's
                         and S&P which will be

                                      S-13

<PAGE>

                         sufficient to restore the immediately prior ratings of
                         their Certificates.

     10)  BNY PAYMENTS TO BE MADE TO TRUSTEE. BNY will, unless otherwise
          directed by the Trustee, make all payments hereunder to the Trustee.
          Payment made to the Trustee at the account specified herein or to
          another account specified in writing by the Trustee shall satisfy the
          payment obligations of BNY hereunder to the extent of such payment.

     11)  RETURN OF AMOUNTS RECEIVED BY MLML OR ITS AFFILIATES. Merrill Lynch
          Mortgage Lending, Inc. ("MLML") agrees and acknowledges that amounts
          paid hereunder are not intended to benefit the holder of any class of
          certificates rated by any rating agency if such holder is MLML or any
          of its affiliates. If MLML or any of its affiliates receives any such
          amounts, it will promptly remit (or, if such amounts are received by
          an affiliate of MLML, MLML hereby agrees that it will cause such
          affiliate to promptly remit) such amounts to the Trustee, whereupon
          such Trustee will promptly remit such amounts to BNY. MLML further
          agrees to provide notice to BNY upon any remittance to the trustee.

5.   ACCOUNT DETAILS AND SETTLEMENT INFORMATION:

     Payments to BNY:

          The Bank of New York
          Derivative Products Support Department
          32 Old Slip, 16th Floor
          New York, New York 10286
          Attention: Renee Etheart
          ABA # __________________
          Account # ______________
          Reference: Interest Rate Swap

     Payments to Counterparty:

          LaSalle Bank N.A.
          ABA # __________________
          Acct #: ________________
          Ref: Ownit 2006-3 Swap Account

6. COUNTERPARTS. This Agreement may be executed in several counterparts, each of
which shall be deemed an original but all of which together shall constitute one
and the same instrument.

     Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing this agreement and returning it via facsimile to
Derivative Products Support Dept., Attn: Kenny Au-Yeung at 212-804-5818/5837.
Once we receive this we will send you two original confirmations for execution.

                                      S-14

<PAGE>

     We are very pleased to have executed this Transaction with you and we look
forward to completing other transactions with you in the near future.

     Very truly yours,

THE BANK OF NEW YORK

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

     The Counterparty, acting through its duly authorized signatory, hereby
agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY: LASALLE BANK NATIONAL ASSOCIATION, NOT INDIVIDUALLY, BUT SOLELY AS TRUSTEE
ON BEHALF OF OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATE, SERIES 2006-3

BY:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

Solely with respect to Paragraph 4(11)
MERRILL LYNCH MORTGAGE LENDING, INC.

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------

                                      S-15

<PAGE>

                                   SCHEDULE I

All dates subject to adjustment in accordance with the Following Business Day
Convention.

<TABLE>
<CAPTION>
  ACCRUAL      ACCRUAL      NOTIONAL
START DATE    END DATES   AMOUNT (USD)
----------   ----------   ------------
<S>          <C>          <C>
  09/25/06   10/25/2006    480,877,791
  10/25/06   11/25/2006    467,063,081
  11/25/06   12/25/2006    450,862,938
12/25/2006    1/25/2007    432,819,346
 1/25/2007    2/25/2007    412,975,748
 2/25/2007    3/25/2007    391,452,091
 3/25/2007    4/25/2007    368,806,702
 4/25/2007    5/25/2007    346,229,902
 5/25/2007    6/25/2007    324,831,809
 6/25/2007    7/25/2007    304,714,465
 7/25/2007    8/25/2007    285,784,232
 8/25/2007    9/25/2007    267,973,505
 9/25/2007   10/25/2007    251,284,499
10/25/2007   11/25/2007    235,618,378
11/25/2007   12/25/2007    220,925,605
12/25/2007    1/25/2008    206,946,149
 1/25/2008    2/25/2008    193,007,517
 2/25/2008    3/25/2008    178,326,079
 3/25/2008    4/25/2008    162,741,812
 4/25/2008    5/25/2008    147,961,289
 5/25/2008    6/25/2008    135,238,308
 6/25/2008    7/25/2008    124,226,793
 7/25/2008    8/25/2008    114,531,076
 8/25/2008    9/25/2008    105,888,285
 9/25/2008   10/25/2008     98,032,161
10/25/2008   11/25/2008     90,785,533
11/25/2008   12/25/2008     86,592,000
12/25/2008    1/25/2009     86,592,000
 1/25/2009    2/25/2009     86,592,000
 2/25/2009    3/25/2009     83,809,433
 3/25/2009    4/25/2009     83,645,736
 4/25/2009    5/25/2009     76,044,599
</TABLE>

                                      S-16

<PAGE>

<TABLE>
<S>          <C>          <C>
 5/25/2009    6/25/2009     69,095,103
 6/25/2009    7/25/2009     63,441,574
 7/25/2009    8/25/2009     58,761,628
 8/25/2009    9/25/2009     54,702,363
 9/25/2009   10/25/2009     51,100,199
10/25/2009   11/25/2009     47,884,605
11/25/2009   12/25/2009     45,003,063
12/25/2009    1/25/2010     42,411,426
 1/25/2010    2/25/2010     40,064,736
 2/25/2010    3/25/2010     37,925,001
 3/25/2010    4/25/2010     35,961,820
 4/25/2010    5/25/2010     34,150,358
 5/25/2010    6/25/2010     32,472,165
 6/25/2010    7/25/2010     30,912,146
 7/25/2010    8/25/2010     29,457,812
</TABLE>

                                      S-17
<PAGE>

                                   EXHIBIT T-1

                        FORM OF ASSESSMENT OF COMPLIANCE

                                     [DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Ownit Series 2006-3

Litton Loan Servicing LP
4828 Loop Central Drive
Houston, Texas 77081

Moody's Investors Service, Inc.
99 Church Street, 4th Floor
New York, New York 10007

Standard & Poor's, a division of
The McGraw-Hill Companies, Inc.
25 Broadway, 12th Floor
New York, New York 10004

     Re: Pooling and Servicing Agreement (the "Agreement"), dated as of March 1,
         2006, among Merrill Lynch Mortgage Investors, Inc., as depositor,
         Litton Loan Servicing LP, as servicer, and LaSalle Bank National
         Association, as trustee, relating to the Ownit Mortgage Loan Trust,
         Mortgage Loan Asset-Backed Certificates, Series 2006-3 (the "Trust")

     For the calendar year ending December 31, [2006] or portion thereof,
[Litton Loan Servicing LP, as Servicer] [LaSalle Bank National Association, as
Trustee] for the Trust has complied in all material respects with the relevant
Servicing Criteria in Exhibit T-2 of the Agreement.

     All capitalized terms used herein but not defined herein shall have the
meanings assigned to them in the Agreement.

Date:
      ---------------------------

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      T-1-1

<PAGE>

                                   EXHIBIT T-2

                               SERVICING CRITERIA
                 (EXHIBIT A TO FORM OF ASSESSMENT OF COMPLIANCE)
                          (RMBS UNLESS OTHERWISE NOTED)

DEFINITIONS
PRIMARY SERVICER - transaction party having borrower contact
CUSTODIAN - safe keeper of pool assets
TRUSTEE - fiduciary of the transaction

<TABLE>
<CAPTION>
                                                                                                      LASALLE BANK
                                                              LITTON LOAN                               NATIONAL
                                                              SERVICING LP                            ASSOCIATION
REG AB REFERENCE             SERVICING CRITERIA                (SERVICER)         (CUSTODIAN)          (TRUSTEE)
----------------   -------------------------------------   -----------------   -----------------   -----------------
<S>                <C>                                     <C>                 <C>                 <C>
                   GENERAL SERVICING CONSIDERATIONS

1122(d)(1)(i)      Policies and procedures are                     X                                       X
                   instituted to monitor any performance
                   or other triggers and events of
                   default in accordance with the
                   transaction agreements.

1122(d)(1)(ii)     If any material servicing activities    If applicable for   If applicable for   If applicable for
                   are outsourced to third parties,          a transaction       a transaction       a transaction
                   policies and procedures are                participant         participant         participant
                   instituted to monitor the third
                   party's performance and compliance
                   with such servicing activities.

1122(d)(1)(iii)    Any requirements in the transaction
                   agreements to maintain a back-up
                   servicer for the Pool Assets are
                   maintained.

1122(d)(1)(iv)     A fidelity bond and errors and                  X
                   omissions policy is in effect on the
                   party participating in the servicing
                   function throughout the reporting
                   period in the amount of coverage
                   required by and otherwise in
                   accordance with the terms of the
                   transaction agreements.

                   CASH COLLECTION AND ADMINISTRATION

1122(d)(2)(i)      Payments on pool assets are deposited           X                                       X
                   into the appropriate custodial bank
                   accounts and related bank clearing
                   accounts no more than two business
                   days following receipt, or such other
                   number of days specified in the
                   transaction agreements.

1122(d)(2)(ii)     Disbursements made via wire transfer            X                                       X
                   on behalf of an obligor or to an
                   investor are made only by authorized
                   personnel.

1122(d)(2)(iii)    Advances of funds or guarantees                 X
                   regarding collections, cash flows or
                   distributions, and any interest or
                   other fees charged for such advances,
                   are made, reviewed and approved as
                   specified in the transaction
                   agreements.

1122(d)(2)(iv)     The related accounts for the                    X*                                      X
                   transaction, such as cash reserve
                   accounts or accounts established as a
                   form of over collateralization, are
                   separately maintained
</TABLE>

                                      T-2-1

<PAGE>

<TABLE>
<CAPTION>
                                                                                                      LASALLE BANK
                                                              LITTON LOAN                               NATIONAL
                                                              SERVICING LP                            ASSOCIATION
REG AB REFERENCE             SERVICING CRITERIA                (SERVICER)         (CUSTODIAN)          (TRUSTEE)
----------------   -------------------------------------   -----------------   -----------------   -----------------
<S>                <C>                                     <C>                 <C>                 <C>
                   (e.g., with respect to commingling of
                   cash) as set forth in the transaction
                   agreements.

1122(d)(2)(v)      Each custodial account is maintained            X                                       X*
                   at a federally insured depository
                   institution as set forth in the
                   transaction agreements. For purposes
                   of this criterion, "federally insured
                   depository institution" with respect
                   to a foreign financial institution
                   means a foreign financial institution
                   that meets the requirements of Rule
                   13k-1(b)(1) of the Securities
                   Exchange Act.

1122(d)(2)(vi)     Unissued checks are safeguarded so as     If applicable                           If applicable
                   to prevent unauthorized access.

1122(d)(2)(vii)    Reconciliations are prepared on a               X                                       X
                   monthly basis for all asset-backed
                   securities related bank accounts,
                   including custodial accounts and
                   related bank clearing accounts.
                   These reconciliations are (A)
                   mathematically accurate; (B) prepared
                   within 30 calendar days after the
                   bank statement cutoff date, or such
                   other number of days specified in the
                   transaction agreements; (C) reviewed
                   and approved by someone other than
                   the person who prepared the
                   reconciliation; and (D) contain
                   explanations for reconciling items.
                   These reconciling items are resolved
                   within 90 calendar days of their
                   original identification, or such
                   other number of days specified in the
                   transaction agreements.

                   INVESTOR REMITTANCES AND REPORTING

1122(d)(3)(i)      Reports to investors, including those           X                                       X
                   to be filed with the Securities and
                   Exchange Commission, are maintained
                   in accordance with the transaction
                   agreements and applicable Securities
                   and Exchange Commission
                   requirements. Specifically, such
                   reports (A) are prepared in
                   accordance with timeframes and other
                   terms set forth in the transaction
                   agreements; (B) provide information
                   calculated in accordance with the
                   terms specified in the transaction
                   agreements; (C) are filed with the
                   Securities and Exchange Commission as
                   required by its rules and
                   regulations; and (D) agree with
                   investors' or the trustee's records
                   as to the total unpaid principal
                   balance and number of Pool Assets
                   serviced by the Servicer.

1122(d)(3)(ii)     Amounts due to investors are                    X                                       X
                   allocated and remitted in accordance
                   with timeframes, distribution
                   priority and other terms set forth in
                   the transaction agreements.

1122(d)(3)(iii)    Disbursements made to an investor are           X                                       X
                   posted within two business days to
                   the
</TABLE>

                                      T-3-2

<PAGE>

<TABLE>
<CAPTION>
                                                                                                      LASALLE BANK
                                                              LITTON LOAN                               NATIONAL
                                                              SERVICING LP                            ASSOCIATION
REG AB REFERENCE             SERVICING CRITERIA                (SERVICER)         (CUSTODIAN)          (TRUSTEE)
----------------   -------------------------------------   -----------------   -----------------   -----------------
<S>                <C>                                     <C>                 <C>                 <C>
                   Servicer's investor records, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(3)(iv)     Amounts remitted to investors per the           X                                       X
                   investor reports agree with cancelled
                   checks, or other form of payment, or
                   custodial bank statements.

                   POOL ASSET ADMINISTRATION

1122(d)(4)(i)      Collateral or security on pool assets                               X                   X*
                   is maintained as required by the
                   transaction agreements or related
                   pool asset documents.

1122(d)(4)(ii)     Pool assets  and related documents                                  X
                   are safeguarded as required by the
                   transaction agreements

1122(d)(4)(iii)    Any additions, removals or                      X                                       X
                   substitutions to the asset pool are
                   made, reviewed and approved in
                   accordance with any conditions or
                   requirements in the transaction
                   agreements.

1122(d)(4)(iv)     Payments on pool assets, including              X
                   any payoffs, made in accordance with
                   the related pool asset documents are
                   posted to the Servicer's obligor
                   records maintained no more than two
                   business days after receipt, or such
                   other number of days specified in the
                   transaction agreements, and allocated
                   to principal, interest or other items
                   (e.g., escrow) in accordance with the
                   related pool asset documents.

1122(d)(4)(v)      The Servicer's records regarding the            X
                   pool assets agree with the Servicer's
                   records with respect to an obligor's
                   unpaid principal balance.

1122(d)(4)(vi)     Changes with respect to the terms or            X
                   status of an obligor's pool assets
                   (e.g., loan modifications or
                   re-agings) are made, reviewed and
                   approved by authorized personnel in
                   accordance with the transaction
                   agreements and related pool asset
                   documents.

1122(d)(4)(vii)    Loss mitigation or recovery actions             X
                   (e.g., forbearance plans,
                   modifications and deeds in lieu of
                   foreclosure, foreclosures and
                   repossessions, as applicable) are
                   initiated, conducted and concluded in
                   accordance with the timeframes or
                   other requirements established by the
                   transaction agreements.

1122(d)(4)(viii)   Records documenting collection                  X
                   efforts are maintained during the
                   period a pool asset is delinquent in
                   accordance with the transaction
                   agreements. Such records are
                   maintained on at least a monthly
                   basis, or such other period specified
                   in the transaction agreements, and
                   describe the
</TABLE>

                                      T-3-3

<PAGE>

<TABLE>
<CAPTION>
                                                                                                      LASALLE BANK
                                                              LITTON LOAN                               NATIONAL
                                                              SERVICING LP                            ASSOCIATION
REG AB REFERENCE             SERVICING CRITERIA                (SERVICER)         (CUSTODIAN)          (TRUSTEE)
----------------   -------------------------------------   -----------------   -----------------   -----------------
<S>                <C>                                     <C>                 <C>                 <C>
                   entity's activities in monitoring
                   delinquent pool assets including, for
                   example, phone calls, letters and
                   payment rescheduling plans in cases
                   where delinquency is deemed temporary
                   (e.g., illness or unemployment).

1122(d)(4)(ix)     Adjustments to interest rates or                X
                   rates of return for pool assets with
                   variable rates are computed based on
                   the related pool asset documents.

1122(d)(4)(x)      Regarding any funds held in trust for           X
                   an obligor (such as escrow accounts):
                   (A) such funds are analyzed, in
                   accordance with the obligor's pool
                   asset documents, on at least an
                   annual basis, or such other period
                   specified in the transaction
                   agreements; (B) interest on such
                   funds is paid, or credited, to
                   obligors in accordance with
                   applicable pool asset documents and
                   state laws; and (C) such funds are
                   returned to the obligor within 30
                   calendar days of full repayment of
                   the related pool assets, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(4)(xi)     Payments made on behalf of an obligor           X
                   (such as tax or insurance payments)
                   are made on or before the related
                   penalty or expiration dates, as
                   indicated on the appropriate bills or
                   notices for such payments, provided
                   that such support has been received
                   by the servicer at least 30 calendar
                   days prior to these dates, or such
                   other number of days specified in the
                   transaction agreements.

1122(d)(4)(xii)    Any late payment penalties in                   X
                   connection with any payment to be
                   made on behalf of an obligor are paid
                   from the Servicer's funds and not
                   charged to the obligor, unless the
                   late payment was due to the obligor's
                   error or omission.

1122(d)(4)(xiii)   Disbursements made on behalf of an              X
                   obligor are posted within two
                   business days to the obligor's
                   records maintained by the servicer,
                   or such other number of days
                   specified in the transaction
                   agreements.

1122(d)(4)(xiv)    Delinquencies, charge-offs and                  X
                   uncollectible accounts are recognized
                   and recorded in accordance with the
                   transaction agreements.

1122(d)(4)(xv)     Any external enhancement or other                                                       X
                   support, identified in Item
                   1114(a)(1) through (3) or Item 1115
                   of Regulation AB, is maintained as
                   set forth in the transaction
                   agreements.
</TABLE>

                                      T-3-4
<PAGE>

*    For d(2)(iv) Servicer needs to provide only if it is deemed that the
     Collection Account is subject to this criteria.

*    For d(2)(i) and (v) Trustee needs to provide only if it is deemed that any
     account maintained by the Trustee is a custodial account for purposes of
     the servicing criteria. Subject to further clarification from the
     Securities and Exchange Commission.

*    For d(4)(i) Trustee needs to provide only if it is deemed that the final
     certification required to be delivered by the Trustee pursuant to Section
     2.02 of the Agreement, "Acceptance by the Trustee of the Mortgage Loans",
     is not covered in the (d)(4)(iii) servicing criteria.

                                      T-3-5

<PAGE>

                                   EXHIBIT T-3

                      FORM OF SARBANES-OXLEY CERTIFICATION

                                  2006-3 TRUST,
          OWNIT MORTGAGE LOAN ASSET-BACKED CERTIFICATES, SERIES 2006-3

     Re: Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed Certificates,
         Series 2006-3

     I, [identify the certifying individual], certify that:

     1. I have reviewed the report on Form 10-K and all reports on Form 10-D
required to be filed in respect of the period covered by this report on Form
10-K of [identify the issuing entity] (the "Exchange Act Periodic Reports");

     2. Based on my knowledge, the Exchange Act Periodic Reports, taken as a
whole, do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by this report;

     3. Based on my knowledge, all of the distribution, servicing and other
information required to be provided under Form 10-D for the period covered by
this report is included in the Exchange Act Periodic Reports;

     4. [I am responsible for reviewing the activities performed by the
servicer(s) and based on my knowledge and the compliance review(s) conducted in
preparing the servicer compliance statement(s) required in this report under
Item 1123 of Regulation AB, and except as disclosed in the Exchange Act Periodic
Reports, the servicer(s) [has/have] fulfilled [its/their] obligations under the
servicing agreement(s); and]

     5. All of the reports on assessment of compliance with servicing criteria
for ABS and their related attestation reports on assessment of compliance with
servicing criteria for asset-backed securities required to be included in this
report in accordance with Item 1122 of Regulation AB and Exchange Act Rules
13a-18 and 15d-18 have been included as an exhibit to this report, except as
otherwise disclosed in this report. Any material instances of noncompliance
described in such reports have been disclosed in this report on Form 10-K.

     [In giving the certifications above, I have reasonably relied on
information provided to me by the following unaffiliated parties [name of
servicer, sub-servicer, co-servicer, depositor, custodian or trustee].]

Date:
      ---------------

                                        ----------------------------------------
                                        [Signature]

                                        ----------------------------------------
                                        [Title]

                                      T-3-1

<PAGE>

                                   EXHIBIT T-4

                         FORM OF ITEM 1123 CERTIFICATION

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attention: Global Securities and Trust Services - Ownit Series 2006-3

Re: Pooling and Servicing Agreement (the "Agreement") dated as of March 1, 2006,
    among Merrill Lynch Mortgage Investors, Inc., as depositor, Litton Loan
    Servicing LP, as servicer, and LaSalle Bank National Association, as
    trustee, relating to Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2006-3.

I, [identify name of certifying individual], [title of certifying individual] of
Litton Loan Servicing LP (the "Servicer"), hereby certify that:

     (1) A review of the activities of the Servicer during the preceding
calendar year and of the performance of the Servicer under the Agreement has
been made under my supervision; and

     (2) To the best of my knowledge, based on such review, the Servicer has
fulfilled all its obligations under the Agreement in all material respects
throughout such year or a portion thereof[, or, if there has been a failure to
fulfill any such obligation in any material respect, I have specified below each
such failure known to me and the nature and status thereof].

Date:
      -----------------

                                        Litton Loan Servicing LP,
                                        as Servicer

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      T-4-1

<PAGE>

                                  EXHIBIT T-5

                    FORM OF OFFICER'S CERTIFICATE (TRUSTEE)

                                    [[DATE]

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

Litton Loan Servicing LP
4828 Loop Central Drive
Houston, Texas 77081

Re: Pooling and Servicing Agreement (the "Agreement"), dated as of March 1,
    2006, among Merrill Lynch Mortgage Investors, Inc., as depositor, Litton
    Loan Servicing LP, as servicer, and LaSalle Bank National Association, as
    trustee, relating to Ownit Mortgage Loan Trust, Mortgage Loan Asset-Backed
    Certificates, Series 2006-3

     The Trustee hereby certifies to the Depositor, the Servicer and their
officers, directors and affiliates, and with the knowledge and intent that they
will rely upon this certification, that:

     (1) I have reviewed the annual report on Form 10-K for the fiscal year
[2006] (the "Annual Report"), and all reports on Form 8-K (if any) and on Form
10-D required to be filed in respect of the period covered by the Annual Report
(collectively with the Annual Report, the "Reports"), of the Trust;

     (2) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the information in the Reports relating to the trustee, taken as
a whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with respect
to the period covered by the Annual Report;

     (3) To the best of my knowledge, and assuming the accuracy of the
statements required to be made or data required to be delivered by the Servicer
and Depositor (to the extent that such statements or data were received by the
Trustee and are relevant to the statements made by the Trustee in this Back-Up
Certification), the distribution and any other information required to be
provided by the Trustee (other than information provided by or on behalf of the
Servicer or the Depositor) to the Depositor and each Servicer under the Pooling
and Servicing Agreement for inclusion in the Reports is included in the Reports
and does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading; and

     (4) The report on assessment of compliance with servicing criteria for
asset-backed securities of the Trustee and its related attestation report on
assessment of compliance with servicing criteria required to be included in the
Annual Report in accordance with Item 1122 of Regulation AB and Exchange Act
Rules 13a-18 and 15d-18 has been included as an exhibit to the Annual Report.
Any material instances of non-compliance are described in such report and have
been disclosed in the Annual Report.

                                     T-5-1

<PAGE>

                                        LaSalle Bank National Association,
                                        as Trustee

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                      T-5-2

<PAGE>

                                    EXHIBIT U

                                   [RESERVED]

                                      U-1

<PAGE>

                                    EXHIBIT V

                                   [RESERVED]

                                       V-1

<PAGE>

                                    EXHIBIT W

                                   [RESERVED]

                                       W-1

<PAGE>

                                    EXHIBIT X

                               FORM 8-K DISCLOSURE

<TABLE>
<CAPTION>
                      Item on Form 8-K                              Party Responsible
-----------------------------------------------------------   ----------------------------
<S>                                                           <C>
Item 1.01- Entry into a Material Definitive Agreement         Depositor, Trustee, Servicer

Item 1.02- Termination of a Material Definitive Agreement     Depositor, Trustee, Servicer

Item 1.03- Bankruptcy or Receivership                         Depositor

Item 2.04- Triggering Events that Accelerate or Increase a    Depositor
Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement

Item 3.03- Material Modification to Rights of Security        Depositor, Trustee
Holders

Item 5.03- Amendments of Articles of Incorporation or         Depositor
Bylaws; Change of Fiscal Year

Item 6.01- ABS Informational and Computational Material       Depositor

Item 6.02- Change of Servicer or Trustee                      Depositor, Trustee, Servicer

Item 6.03- Change in Credit Enhancement or External Support   Depositor, Trustee

Item 6.04- Failure to Make a Required Distribution            Depositor, Trustee

Item 6.05- Securities Act Updating Disclosure                 Depositor

Item 7.01- Reg FD Disclosure                                  Depositor

Item 8.01                                                     Depositor

Item 9.01                                                     Depositor
</TABLE>

To the extent no notice is provided to the Trustee of the events or information
as described above in this Exhibit X, the Trustee shall without further notice
conclude that there is no event or information to be reported.

                                       X-1

<PAGE>

                                    EXHIBIT Y

                             FORM OF 10-D DISCLOSURE

<TABLE>
<CAPTION>
ITEM                       DESCRIPTION                             RESPONSIBLE PARTY
----   ---------------------------------------------------   -----------------------------
<S>    <C>                                                   <C>
1      DISTRIBUTION AND POOL PERFORMANCE INFORMATION

       Item 1121(a) - Distribution and Pool Performance
       Information

       (1) Any applicable record dates, accrual dates,       4.05 statement*
       determination dates for calculating distributions
       and actual distribution dates for the distribution
       period.

       (2) Cash flows received and the sources thereof for   4.05 statement
       distributions, fees and expenses.

       (3) Calculated amounts and distribution of the flow   4.05 statement
       of funds for the period itemized by type and
       priority of payment, including:

            (i) Fees or expenses accrued and paid, with an   4.05 statement
       identification of the general purpose of such fees
       and the party receiving such fees or expenses.

            (ii) Payments accrued or paid with respect to    4.05 statement
       enhancement or other support identified in Item
       1114 of Regulation AB (such as insurance premiums
       or other enhancement maintenance fees), with an
       identification of the general purpose of such
       payments and the party receiving such payments.

            (iii) Principal, interest and other              4.05 statement
       distributions accrued and paid on the asset-backed
       securities by type and by class or series and any
       principal or interest shortfalls or carryovers.

            (iv) The amount of excess cashflow or excess     4.05 statement
       spread and the disposition of excess cashflow.

       (4) Beginning and ending principal balances of the    4.05 statement
       asset-backed securities.

       (5) Interest rates applicable to the pool assets      4.05 statement
       and the asset-backed securities, as applicable.
       Interest rate information for pool assets in
       appropriate distributional groups and incremental
       ranges.

       (6) Beginning and ending balances of transaction      4.05 statement
       accounts, such as reserve accounts, and material
       account activity during the period.

       (7) Any amounts drawn on any credit enhancement or    4.05 statement
       other support identified in Item 1114 of Regulation
       AB, as applicable, and the amount of coverage
       remaining under any such enhancement, if known and
       applicable.

       (8) Number and amount of pool assets at the           4.05 statement
       beginning and ending of each period, and updated
       pool composition information, including weighted      Pool composition
       average coupon, weighted average life, weighted       information fields may be
       average remaining term, pool factors and prepayment   updated as specified by
       amounts.                                              Depositor from time to time.

       (9) Delinquency and loss information for the          4.05 statement
       period.

       In addition, describe any material changes to the     Form 10-D report: Servicer
       information specified in Item 1100(b)(5) of
       Regulation AB regarding the pool assets.

       (10) Information on the amount, terms and general     4.05 statement
       purpose of any advances made or reimbursed during
       the period, including the general use of funds
</TABLE>

                                       Y-1

<PAGE>

<TABLE>
<S>    <C>                                                   <C>
       advanced and the general source of funds for
       reimbursements.

       (11) Any material modifications, extensions or        4.05 statement
       waivers to pool asset terms, fees, penalties or
       payments during the distribution period or that
       have cumulatively become material over time.

       (12) Material breaches of pool asset                  Form 10-D report: Servicer
       representations or warranties or transaction
       covenants

       (13) Information on ratio, coverage or other tests    4.05 statement
       used for determining any early amortization,
       liquidation or other performance trigger and
       whether the trigger was met.

       (14) Information regarding any new issuance of        Form 10-D report: Depositor
       asset-backed securities backed by the same asset
       pool, information regarding any pool asset changes
       (other than in connection with a pool asset
       converting into cash in accordance with its terms),
       such as additions or removals in connection with a
       prefunding or revolving period and pool asset
       substitutions and repurchases (and purchase rates,
       if applicable), and cash flows available for future
       purchases, such as the balances of any prefunding
       or revolving accounts, if applicable. Disclose any
       material changes in the solicitation,
       credit-granting, underwriting, origination,
       acquisition or pool selection criteria or
       procedures, as applicable, used to originate,
       acquire or select the new pool assets.

       Item 1121(b) - Pre-Funding or Revolving Period
       Information

       Updated pool information as required under Item       N/A
       1121(b).

2      LEGAL PROCEEDINGS

       Item 1117 - Legal proceedings pending against the     (i) all parties to the
       following entities, or their respective property,     Pooling Agreement as to
       that is material to Certificateholders, including     themselves, (ii) the
       proceedings known to be contemplated by               Depositor, the Trustee and
       governmental authorities:                             the Servicer as to the
       Sponsor                                               Issuing Entity (in each
       Depositor                                             case, to the extent any
       Trustee                                               such party has actual
       Issuing Entity                                        knowledge of the
       Originator                                            proceedings), and (iii) the
       Custodian                                             Depositor as to the
                                                             Sponsor, any 1110(b)
                                                             originator and any
                                                             1110(d)(1) party.

3      SALES OF SECURITIES AND USE OF PROCEEDS

       Information from Item 2(a) of Part II of Form 10-Q:

       With respect to any sale of securities by the         Depositor
       Sponsor, Depositor or Issuing Entity that are
       backed by the same asset pool or are otherwise
       issued by the Issuing Entity, whether or not
       registered, provide the sales and use of proceeds
       information in Item 701 of Regulation S-K. Pricing
       information may be omitted if securities were not
       registered.

4      DEFAULT UPON SENIOR SECURITIES

       Information from Item 3 of Part II Of Form 10-Q:
</TABLE>

                                       Y-2

<PAGE>

<TABLE>
<S>    <C>                                                   <C>
       Report the occurrence of any Event of Default         Trustee
       (after expiration of any grace period and provision
       of any required notice).

5      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       Information from Item 4 of Part II of Form 10-Q       Trustee

6      SIGNIFICANT OBLIGORS OF POOL ASSETS

       Item 1112(b) - Significant Obligor Financial          N/A
       Information*

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

7      SIGNIFICANT ENHANCEMENT PROVIDER INFORMATION

       Item 1114(b)(2) - Credit Enhancement Provider
       Financial Information*

       Determining applicable disclosure threshold.          Depositor
       Obtaining required financial information or           Depositor
       effecting incorporation by reference.

       Item 1115(b) - Derivative Counterparty Financial
       Information*

       Determining current maximum probable exposure.        Depositor
       Determining current significance percentage.          Depositor
       Obtaining required financial information or           Depositor
       effecting incorporation by reference.

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

8      OTHER INFORMATION

       Disclose any information required to be reported on   The Responsible Party for
       Form 8-K during the period covered by the Form 10-D   the applicable Form 8-K
       but not reported.                                     item.

9      EXHIBITS

       Distribution Report                                   Trustee

       Exhibits required by Item 601 of Regulation S-K,      Depositor
       such as material agreements.
</TABLE>

*    "4.05 statement" refers to the Statements to be prepared by the Trustee as
     described in Section 4.05 of the Pooling Agreement.

To the extent no notice is provided to the Trustee of the events or information
as described above in this Exhibit Y, the Trustee shall without further notice
conclude that there is no event or information to be reported.

                                       Y-3
<PAGE>

                                    EXHIBIT Z

                              FORM 10-K DISCLOSURE

<TABLE>
<CAPTION>
          Item on Form 10-K                         Party Responsible
          -----------------                         -----------------
<S>                                     <C>
Item 1B: Unresolved Staff Comments      Depositor

Item 9B: Other Information              Any party responsible for disclosure
                                        items on Form 8-K

Item 15: Exhibits, Financial            Depositor, Trustee
Statement Schedules

Additional Item:                        (i) All parties to the Pooling and
Disclosure per Item 1117 of Reg AB      Servicing Agreement (as to themselves),
                                        (ii) the Depositor, the Trustee and the
                                        Servicer as to the issuing entity (in
                                        each case, to the extent such party has
                                        actual knowledge), and (iii) the
                                        Depositor as to the sponsor, any 1110(b)
                                        originator and any 1100(d)(1) party

Additional Item:                        All parties to the Pooling and Servicing
Disclosure per Item 1119 of Reg AB      Agreement as to themselves, (ii) the
                                        Depositor as to the sponsor, originator,
                                        significant obligor, enhancement or
                                        support provider

Additional Item:                        N/A
Disclosure per Item 1112(b) of Reg AB

Additional Item:                        Depositor/Sponsor
Disclosure per Items 1114(b) and
1115(b) of Reg AB
</TABLE>

To the extent no notice is provided to the Trustee of the events or information
as described above in this Exhibit Z, the Trustee shall without further notice
conclude that there is no event or information to be reported.

                                      Z-1

<PAGE>

                                   EXHIBIT Z-1

                       ADDITIONAL DISCLOSURE NOTIFICATION

**SEND VIA FAX [FAX NO.] AND VIA EMAIL TO [EMAIL ADDRESS] AND VIA OVERNIGHT MAIL
TO THE ADDRESS IMMEDIATELY BELOW**

Merrill Lynch Mortgage Investors, Inc.
250 Vesey Street
4 World Financial Center, 10th Floor
New York, New York 10080

LaSalle Bank National Association, as Trustee
135 South LaSalle Street, Suite 1625
Chicago, Illinois 60603
Attn: Global Securities and Trust Services- [DEAL NAME]--SEC REPORT PROCESSING

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

Ladies and Gentlemen:

     In accordance with Section [______] of the Pooling and Servicing Agreement,
dated as of March 1, 2006, among Litton Servicing LP, as Servicer, Merrill Lynch
Mortgage Investors, Inc., as Depositor, and LaSalle Bank National Association,
as Trustee, the undersigned, as [_____], hereby notifies you that certain events
have come to our attention that [will] [may] need to be disclosed on Form
[10-D][10-K][8-K].

     Description of Additional Form [10-D][10-K][8-K] Disclosure:

     List of any Attachments hereto to be included in the Additional Form
[10-D][10-K][8-K] Disclosure:

     Any inquiries related to this notification should be directed to [_______],
phone number: [__________]; email address: [____________________].

                                        [NAME OF PARTY],
                                        as [role]

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                     Z-1-1exv4wa

 

Exhibit
4(a)

FORM OF INDENTURE

GE Equipment Midticket, LLC, Series [_____]

Issuer

and

[_________],

as Indenture Trustee.

 

INDENTURE

Dated as of [_____]

 

$[_____] in aggregate principal amount of Notes, consisting of:

$[_____] of [_____]% Class A Notes

$[_____]of One-Month LIBOR + [_____]%Class B Notes

$[_____]of One-Month LIBOR + [_____]%Class C Notes

 

 

GE Equipment Midticket, LLC, Series [_____]

Reconciliation and Tie between this Indenture

dated as of [_____] and the

TIA of 1939, as amended

	 	 	 	 	 
	TIA Section	 	 	 	Indenture Section
	310(a)(1)
	 	 	 	6.11
	(a)(2)
	 	 	 	6.11
	(a)(3)
	 	 	 	6.10(b)
	(a)(4)
	 	 	 	Not Applicable
	(b)
	 	 	 	6.11
	(c)
	 	 	 	Not Applicable
	311(a)
	 	 	 	6.13
	(b)
	 	 	 	6.13
	312(a)
	 	 	 	7.1
	(b)
	 	 	 	7.2(b)
	(c)
	 	 	 	7.2(c)
	313(a)
	 	 	 	6.14
	(b)(1)
	 	 	 	6.14
	(b)(2)
	 	 	 	6.14
	(c)
	 	 	 	6.14; 7.3(a)(ii)
	(d)
	 	 	 	6.14
	314(a)
	 	 	 	7.3
	(b)
	 	 	 	3.6; 8.8
	(c)(1)
	 	 	 	8.7
	(c)(2)
	 	 	 	8.7
	(c)(3)
	 	 	 	8.7
	(d)
	 	 	 	8.7
	(e)
	 	 	 	11.1
	(f)
	 	 	 	Not Applicable
	315(a)
	 	 	 	6.1
	(b)
	 	 	 	6.5
	(c)
	 	 	 	6.1
	(d)
	 	 	 	6.7
	(e)
	 	 	 	5.10
	316(a) (last sentence)
	 	 	 	2.12
	(a)(1)(A)
	 	 	 	5.8
	(a)(1)(B)
	 	 	 	5.9
	(a)(2)
	 	 	 	Not Applicable
	317(a)(1)
	 	 	 	5.2
	(a)(2)
	 	 	 	5.2
	(b)
	 	 	 	6.16
	318(a)
	 	 	 	11.19
	(c)
	 	 	 	11.19

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I            Definitions and Incorporation by Reference	 	 	2	 
	 
	 	SECTION 1.1.	 	Definitions	 	 	2	 
	 
	 	SECTION 1.2.	 	Other Interpretive Matters	 	 	18	 
	 
	 	SECTION 1.3.	 	Incorporation by Reference of TIA	 	 	19	 
	ARTICLE II       The Notes	 	 	19	 
	 
	 	SECTION 2.1.	 	Form	 	 	19	 
	 
	 	SECTION 2.2.	 	Execution, Authentication and Delivery	 	 	20	 
	 
	 	SECTION 2.3.	 	Temporary Notes	 	 	20	 
	 
	 	SECTION 2.4.	 	Registration; Registration of Transfer and Exchange	 	 	21	 
	 
	 	SECTION 2.5.	 	Mutilated, Destroyed, Lost or Stolen Notes	 	 	22	 
	 
	 	SECTION 2.6.	 	Persons Deemed Owner	 	 	23	 
	 
	 	SECTION 2.7.	 	Payment of Principal and Interest; Defaulted Interest	 	 	23	 
	 
	 	SECTION 2.8.	 	Cancellation	 	 	25	 
	 
	 	SECTION 2.9.	 	Book-Entry Notes	 	 	25	 
	 
	 	SECTION 2.10.	 	Notices to Clearing Agency	 	 	26	 
	 
	 	SECTION 2.11.	 	Definitive Notes	 	 	26	 
	 
	 	SECTION 2.12.	 	Notes owned by the Issuer or its Affiliates	 	 	26	 
	 
	 	SECTION 2.13.	 	CUSIP Numbers	 	 	27	 
	 
	 	SECTION 2.14.	 	Perfection Representations and Warranties	 	 	27	 
	 
	 	SECTION 2.15.	 	Notes to Constitute Indebtedness	 	 	27	 
	 
	 	SECTION 2.16.	 	Determination of LIBOR	 	 	27	 
	ARTICLE III       Covenants	 	 	28	 
	 
	 	SECTION 3.1.	 	Payments	 	 	28	 
	 
	 	SECTION 3.2.	 	Maintenance of Office or Agency	 	 	28	 
	 
	 	SECTION 3.3.	 	Paying Agent’s Obligations	 	 	28	 
	 
	 	SECTION 3.4.	 	Existence	 	 	28	 
	 
	 	SECTION 3.5.	 	Protection of the Collateral; Further Assurances	 	 	29	 
	 
	 	SECTION 3.6.	 	Opinions as to the Collateral	 	 	29	 
	 
	 	SECTION 3.7.	 	Performance of Obligations; Servicing of Loans	 	 	30	 
	 
	 	SECTION 3.8.	 	Taxes	 	 	31	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 3.9.	 	Annual Statement as to Compliance	 	 	31	 
	 
	 	SECTION 3.10.	 	Annual Reports on Assessment of Compliance with Servicing Criteria	 	 	32	 
	 
	 	SECTION 3.11.	 	Negative Covenants	 	 	32	 
	 
	 	SECTION 3.12.	 	Successor or Transferee	 	 	34	 
	 
	 	SECTION 3.13.	 	Notice of Events of Default	 	 	34	 
	 
	 	SECTION 3.14.	 	Further Instruments and Acts	 	 	35	 
	ARTICLE IV       Satisfaction and Discharge	 	 	35	 
	 
	 	SECTION 4.1.	 	Satisfaction and Discharge of Indenture	 	 	35	 
	 
	 	SECTION 4.2.	 	Application of Trust Funds	 	 	35	 
	ARTICLE V       Remedies	 	 	36	 
	 
	 	SECTION 5.1.	 	Events of Default	 	 	36	 
	 
	 	SECTION 5.2.	 	Remedies	 	 	36	 
	 
	 	SECTION 5.3.	 	[Reserved]	 	 	39	 
	 
	 	SECTION 5.4.	 	Unconditional Rights of Noteholders To Receive Principal and Interest	 	 	40	 
	 
	 	SECTION 5.5.	 	Restoration of Rights and Remedies	 	 	40	 
	 
	 	SECTION 5.6.	 	Rights and Remedies Cumulative	 	 	40	 
	 
	 	SECTION 5.7.	 	Delay or Omission Not a Waiver	 	 	40	 
	 
	 	SECTION 5.8.	 	Control by Noteholders	 	 	40	 
	 
	 	SECTION 5.9.	 	Waiver of Past Defaults	 	 	42	 
	 
	 	SECTION 5.10.	 	Undertaking for Costs	 	 	42	 
	 
	 	SECTION 5.11.	 	Waiver of Stay or Extension Laws	 	 	42	 
	 
	 	SECTION 5.12.	 	Action on Notes	 	 	42	 
	 
	 	SECTION 5.13.	 	[Reserved]	 	 	43	 
	 
	 	SECTION 5.14.	 	Sale of Collateral	 	 	43	 
	ARTICLE VI       The Indenture Trustee	 	 	44	 
	 
	 	SECTION 6.1.	 	Duties of the Indenture Trustee	 	 	44	 
	 
	 	SECTION 6.2.	 	Rights of Indenture Trustee	 	 	46	 
	 
	 	SECTION 6.3.	 	Individual Rights of the Indenture Trustee	 	 	48	 
	 
	 	SECTION 6.4.	 	Funds Held in Trust	 	 	48	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 6.5.	 	Notice of Defaults	 	 	48	 
	 
	 	SECTION 6.6.	 	[Reserved]	 	 	48	 
	 
	 	SECTION 6.7.	 	Compensation and Indemnity	 	 	48	 
	 
	 	SECTION 6.8.	 	Resignation and Removal; Appointment of Successor	 	 	49	 
	 
	 	SECTION 6.9.	 	Successor Indenture Trustee by Merger	 	 	50	 
	 
	 	SECTION 6.10.	 	Appointment of Co-Trustee or Separate Trustee	 	 	50	 
	 
	 	SECTION 6.11.	 	Eligibility; Disqualification	 	 	52	 
	 
	 	SECTION 6.12.	 	Acceptance by Indenture Trustee	 	 	53	 
	 
	 	SECTION 6.13.	 	Preferential Collection of Claims Against the Issuer	 	 	53	 
	 
	 	SECTION 6.14.	 	Reports by Indenture Trustee to Noteholders	 	 	53	 
	 
	 	SECTION 6.15.	 	Representations and Warranties	 	 	53	 
	 
	 	SECTION 6.16.	 	The Paying Agent	 	 	54	 
	 
	 	SECTION 6.17.	 	Repayment of Amounts Held by Paying Agent	 	 	56	 
	 
	 	SECTION 6.18.	 	Provisions of Swap Agreement	 	 	56	 
	ARTICLE VII       Noteholders’ Lists and Reports	 	 	56	 
	 
	 	SECTION 7.1.	 	Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders	 	 	56	 
	 
	 	SECTION 7.2.	 	Preservation of Information; Communications to Noteholders	 	 	57	 
	 
	 	SECTION 7.3.	 	Reports by Issuer	 	 	57	 
	 
	 	SECTION 7.4.	 	De-Listing of Definitive Notes	 	 	57	 
	ARTICLE VIII       Accounts, Disbursements and Releases	 	 	58	 
	 
	 	SECTION 8.1.	 	Collection of Amounts Due	 	 	58	 
	 
	 	SECTION 8.2.	 	Trust Accounts	 	 	58	 
	 
	 	SECTION 8.3.	 	Priority of Payments	 	 	59	 
	 
	 	SECTION 8.4.	 	Reserve Account	 	 	62	 
	 
	 	SECTION 8.5.	 	Reports	 	 	63	 
	 
	 	SECTION 8.6.	 	General Provisions Regarding Accounts	 	 	64	 
	 
	 	SECTION 8.7.	 	Release of Collateral	 	 	65	 
	 
	 	SECTION 8.8.	 	Opinion of Counsel	 	 	65	 
	ARTICLE IX       Supplemental Indentures	 	 	66	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 9.1.	 	Supplemental Indentures Without Consent of Noteholders and Swap Counterparty	 	 	66	 
	 
	 	SECTION 9.2.	 	Supplemental Indentures With Consent of Noteholders	 	 	66	 
	 
	 	SECTION 9.3.	 	Execution of Supplemental Indentures	 	 	68	 
	 
	 	SECTION 9.4.	 	Effect of Supplemental Indenture	 	 	68	 
	 
	 	SECTION 9.5.	 	Reference in Notes to Supplemental Indentures	 	 	68	 
	 
	 	SECTION 9.6.	 	Conformity with Trust Indenture Act	 	 	68	 
	ARTICLE X       Redemption of Notes	 	 	69	 
	 
	 	SECTION 10.1.	 	Redemption	 	 	69	 
	 
	 	SECTION 10.2.	 	Form of Redemption Notice	 	 	69	 
	 
	 	SECTION 10.3.	 	Notes Payable on Redemption Date	 	 	69	 
	ARTICLE XI       Miscellaneous	 	 	69	 
	 
	 	SECTION 11.1.	 	Compliance Certificates and Opinions, etc.	 	 	69	 
	 
	 	SECTION 11.2.	 	Form of Documents Delivered to Indenture Trustee	 	 	71	 
	 
	 	SECTION 11.3.	 	Acts of Noteholders	 	 	72	 
	 
	 	SECTION 11.4.	 	Notices, etc., to the Indenture Trustee, Issuer and Rating Agencies	 	 	73	 
	 
	 	SECTION 11.5.	 	Notices to Noteholders; Waiver	 	 	74	 
	 
	 	SECTION 11.6.	 	Alternate Payment and Notice Provisions	 	 	74	 
	 
	 	SECTION 11.7.	 	Successors and Assigns	 	 	74	 
	 
	 	SECTION 11.8.	 	Severability	 	 	75	 
	 
	 	SECTION 11.9.	 	Benefits of Indenture	 	 	75	 
	 
	 	SECTION 11.10.	 	Legal Holidays	 	 	75	 
	 
	 	SECTION 11.11.	 	Governing Law	 	 	75	 
	 
	 	SECTION 11.12.	 	Counterparts	 	 	76	 
	 
	 	SECTION 11.13.	 	Recording of Indenture	 	 	76	 
	 
	 	SECTION 11.14.	 	Trust Obligation	 	 	76	 
	 
	 	SECTION 11.15.	 	Communication by Noteholders with Other Noteholders	 	 	77	 
	 
	 	SECTION 11.16.	 	Inspection	 	 	77	 
	 
	 	SECTION 11.17.	 	Agents of Issuer	 	 	77	 
	 
	 	SECTION 11.18.	 	Survival of Representations and Warranties	 	 	78	 

-iv-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	SECTION 11.19.	 	Conflict with Trust Indenture Act	 	 	78	 
	 
	 	SECTION 11.20	 	Subordination	 	 	78	 

-v-

 

EXHIBITS

EXHIBIT A-1 Form of Class A Notes

EXHIBIT A-2 Form of Class B Notes

EXHIBIT A-3 Form of Class C Notes

EXHIBIT B            Form of Section 3.9 Officers’ Certificate

EXHIBIT C            Form of Noteholder’s Statement Pursuant to Section 8.5

SCHEDULE 1 Perfection Representations, Warranties and Covenants

-vi-

 

     INDENTURE, dated as of [___], between GE Equipment Midticket, LLC, Series [___], a
Delaware limited liability company (the “Issuer”), and [___], as trustee and not in its
individual capacity (the “Indenture Trustee”).

     The Issuer has duly authorized the issuance of $[___] in aggregate principal amount of its
Notes, consisting of $[___] aggregate principal amount of [___]% Class A Notes (the “Class A
Notes”), $[___]aggregate principal amount of One-Month LIBOR + [___]% Class B Notes (the “Class
B Notes”) and $[___]aggregate principal amount of One-Month LIBOR + [___]% Class C Notes (the
“Class C Notes”, and together with the Class A Notes and the Class B Notes, the “Notes”), and to
provide therefor the Issuer has duly authorized the execution and delivery of this Indenture. The
Notes shall be entitled to payments of interest and principal as set forth herein.

     All things necessary to make the Notes, when executed by the Issuer and authenticated and
delivered hereunder, the valid obligations of the Issuer, and to make this Indenture a valid
agreement of the Issuer, in accordance with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Notes by the holders thereof,
it is mutually covenanted and agreed, for the benefit of all Noteholders, as follows:

GRANTING CLAUSE

     The Issuer, as security for the Issuer’s obligations under the Notes and this Indenture,
hereby Grants to the Indenture Trustee at the Closing Date, for the benefit of the Noteholders and
the Swap Counterparty, a security interest in all of the Issuer’s right, title and interest in, to
and under the following, whether now existing or hereafter arising or acquired (collectively, the
“Collateral”):

     (a) the Loans, including the Loan Files, and all obligations of the Obligors
thereunder, including the right to payment of any interest accrued and to accrue from and
after [_], 20[_] or finance charges and other obligations of such Obligor with respect
thereto due or to become due on or after the Cutoff Date;

     (b) the Related Security and Collections with respect thereto;

     (c) all property now or hereafter in the possession or custody of, or in transit to,
the Issuer, the Servicer, any Sub-Servicer or the Sellers relating to any of the foregoing;

     (d) all Records with respect to any of the foregoing;

     (e) the Sale Agreement;

     (f) the Trust Accounts and all funds, Financial Assets, Investment Property or other
property on deposit from time to time in or credited to the Trust Accounts, including all
investments and Proceeds thereof and all income thereon;

 

 

     (g) the Purchase and Sale Agreement;

     (h) the Servicing Agreement;

     (i) all rights, title and interest of the Issuer in and to the Swap Agreement;

     (j) all General Intangibles relating to or arising out of any of the property described
in the foregoing clauses (a) through (i);

     (k) all present and future claims, demands, causes and choses in action in respect of
any or all of the property described in the foregoing clauses (a) through
(j) and all payments on or under in respect of any or all of the foregoing,
including all proceeds of the conversion, voluntary or involuntary, into cash or other
liquid property, all cash proceeds, Accounts, Promissory Notes, drafts, acceptances, Chattel
Paper, checks, Deposit Accounts, insurance proceeds, condemnation awards, rights to payment
of any and every kind and other forms of obligations and receivables, instruments and other
property that at any time constitute all or part of or are included in the Proceeds of any
and all of the foregoing;

     (l) all Proceeds of the foregoing clauses (a) through (k); and

     (m) all other personal property of the Issuer, of whatever kind or nature and wherever
located.

     Such Grant is made in trust to secure (w) the payment of principal of and interest on, and any
other amounts owing in respect of, the Class A Notes, equally and ratably without prejudice,
priority or distinction, (x) the payment of principal of and interest on, and any other amounts
owing in respect of, the Class B Notes, equally and ratably without prejudice, priority or
distinction, (y) the payment of principal of and interest on, and any other amounts owing in
respect of, the Class C Notes, equally and ratably without prejudice, priority or distinction, and
(z) the obligations owed by the Issuer to the Swap Counterparty under the Swap Agreement, in each
case, in the priority and to the extent set forth herein and to secure compliance with this
Indenture.

     The Indenture Trustee, on behalf of the Noteholders and the Swap Counterparty, (1)
acknowledges such Grant, and (2) accepts the trusts under this Indenture in accordance with this
Indenture and agrees to perform its duties required in this Indenture to the best of its ability to
the end that the interests of the Noteholders and the Swap Counterparty may be adequately and
effectively protected.

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.1. Definitions. Except as otherwise specified or as the context may
otherwise require, the following terms have the meanings set forth below for all purposes of this
Indenture.

     “Account” is defined in Section 9-102(a)(2) of the UCC.

2

 

     “Act” is defined in Section 11.3 of this Indenture.

     “Administration Agreement” means the Administration Agreement, dated as of [___] between the
Administrator and the Issuer.

     “Administration Fee” means the fee payable to the Administrator pursuant to Section 3 of the
Administration Agreement.

     “Administrator” means General Electric Capital Corporation in its capacity as administrator, a
Delaware corporation, or any successor Administrator under the Administration Agreement.

     “Affiliate” means, with respect to any Person, (a) each Person that, directly or indirectly,
owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary, five percent
(5%) or more of the stock having ordinary voting power in the election of directors of such Person,
(b) each Person that controls, is controlled by, or is under common control with such Person, or
(c) each of such Person’s officers, directors, joint venturers and partners. For the purposes of
this definition, “control” of a Person means the possession, directly or indirectly, of the power
to direct or cause the direction of its management or policies, whether through the ownership of
voting securities, by contract or otherwise.

     “Annual Percentage Rate” or “APR” of a Loan means, the interest rate or annual rate of finance
charges stated in, or if not explicitly stated, the implicit finance charges used by the finance
company to determine periodic payments with respect to the related Loan.

     “Authorized Officer” means, with respect to any corporation, trust or limited liability
company, as appropriate, the Chairman or Vice-Chairman of the Board, the President, any Vice
President, the Secretary, the Treasurer, any Assistant Secretary, any Assistant Treasurer, the
Managing Member, and each other officer, employee or member of such corporation, trust or limited
liability company, as appropriate, specifically or similar governing body of such limited liability
company or trust to sign agreements, instruments or other documents on behalf of such corporation
authorized in resolutions of the board of directors of such corporation or similar governing body
of such limited liability company or trust, as appropriate.

     “Available Amounts” means

     (i) All payments made by or on behalf of the Obligors (excluding any late fees,
prepayment charges, assumption fees, modifications and other administrative fees or
similar charges allowed by applicable law with respect to the Loans that constitute
part of the servicing fees) received during the related Collection Period;

     (ii) any Recoveries received during the related Collection Period;

     (iii) all Swap Payments Incoming and all Swap Termination Payments received
pursuant to the Swap Agreement with respect to such Payment Date;

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     (iv) any proceeds from insurance policies covering the Equipment or related
Obligor received during the related Collection Period;

     (v) Liquidation Proceeds received with respect to the related Collection
Period;

     (vi) the Purchase Amount of each Loan that became a Purchased Loan during the
related Collection Period (to the extent deposited into the Collection Account);

     (vii) Investment Earnings for such Payment Date;

     (viii) Servicing Advances received during the related Collection Period; and

     (ix) payments made by a lessee pursuant to its obligation (if any) to pay the
Termination Value pursuant to the related Loan received during the related
Collection Period;

provided that Available Amounts shall not include all payments or proceeds (including
Liquidation Proceeds) of any Loans the Purchase Amount of which has been included in the Available
Amounts in a prior Collection Period; and provided further, that with respect to
the first Payment Date, Available Amounts will exclude payments and proceeds of interest on the
Loans from the Cut-off Date through [_], 20[_].

     “Available Reserve Account Amount” means, for any Payment Date, an amount equal to the amount
on deposit in the Reserve Account on such date (exclusive of Investment Earnings on such date and
after giving effect to any withdrawals therefrom on the related Transfer Date but before giving
effect to any deposit to the Reserve Account to be made on such date).

     “Bankruptcy Code” means the provisions of Title 11 of the United States Code, §§ 101 et
seq., as amended from time to time.

     “Benefit Plan” is defined in Section 2.4(a) of this Indenture.

     “Book-Entry Notes” means a beneficial interest in the Notes of a particular Class, ownership
and transfers of which shall be made through book entries by a Clearing Agency as described in
Section 2.9 of this Indenture.

     “Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are
required or permitted to be closed in the State of New York or the State of Connecticut.

     “CEF Limited Liability Company Agreement” means the Second Amended and Restated Limited
Liability Company Agreement of CEF Equipment Holding, L.L.C., dated as of September 25, 2003, as
the same may be amended or supplemented from time to time.

     “Certificated Security” is defined in Section 8-102(a)(4) of the UCC.

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     “Chattel Paper” is defined in Section 9-102(a)(11) of the UCC.

     “Class” means any class of Notes.

     “Class A Noteholder” means any holder of record of a Class A Note.

     “Class A Notes” means the $[___] aggregate principal amount of Notes, Class A, issued
pursuant to this Indenture.

     “Class A Interest Rate” means [___]% per annum, computed on the basis of the actual number
of days in the related Interest Accrual Period and a year of 360 days.

     “Class A Maturity Date” means [_], 20[_] (or, if such day is not a Business Day, the next
succeeding Business Day thereafter).

     “Class B Interest Rate” means LIBOR + [___]% per annum, computed on the basis of the actual
number of days in the related Interest Accrual Period and a year of 360 days.

     “Class B Maturity Date” means [_], 20[_] (or, if such day is not a Business Day, the next
succeeding Business Day thereafter).

     “Class B Noteholder” means any holder of record of a Class B Note.

     “Class B Notes” means the $[___]aggregate principal amount of Notes, Class B, issued
pursuant to the Indenture.

     “Class C Interest Rate” means LIBOR + [___]% per annum, computed on the basis of the actual
number of days in the related Interest Accrual Period and a year of 360 days.

     “Class C Maturity Date” means [_], 20[_] (or, if such day is not a Business Day, the next
succeeding Business Day thereafter).

     “Class C Noteholder” means any holder of record of a Class C Note.

     “Class C Notes” means the $[___]aggregate principal amount of Notes, Class C, issued
pursuant to this Indenture.

     “Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section
17A of the Securities Exchange Act that has been designated as the “Clearing Agency” for purposes
of this Indenture.

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

     “Closing Date” means [___].

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and Treasury
Regulations promulgated thereunder.

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     “Collateral” is defined in the Granting Clause of this Indenture.

     “Collection Account” means the account designated as such, established and owned by the Issuer
and maintained in accordance with Section 8.2 of this Indenture.

     “Collection Period” means, with respect to any Payment Date, the calendar month preceding the
month in which the Payment Date occurs (or, if for the first Payment Date, the period from and
including the day after the Cutoff Date to and including the last day of the calendar month
preceding the calendar month in which the first Payment Date occurs).

     “Collections” means, with respect to any Payment Date all payments made by or on behalf of the
Obligors received during the related Collection Period, any Recoveries received during the related
Collection Period, any proceeds from insurance policies covering the Equipment or related Obligor
received during the related Collection Period, Liquidation Proceeds received during the related
Collection Period, and payments made by a lessee pursuant to its obligation (if any) to pay the
Termination Value pursuant to the related Loan received during the related Collection Period;
provided that “Collections” for the first Collection Period shall exclude interest accrued
before [_], 20[_].

     “Commission” means the Securities and Exchange Commission.

     “Corporate Trust Office” means, with respect to the Indenture Trustee, the principal office of
the Indenture Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of this Indenture is located at [___]; or at such other
address as the Indenture Trustee may designate from time to time by notice to the Noteholders and
the Issuer, or the principal corporate trust office of any successor Indenture Trustee (the address
of which the successor Indenture Trustee will notify the Noteholders and the Sellers).

     “Credit and Collection Policies” or “Credit and Collection Policy” means the policies,
practices and procedures adopted by the Issuer for providing equipment loans secured by
transportation equipment, industrial equipment, furniture and fixtures, construction equipment,
maritime assets, technology and telecommunications equipment or other equipment (including medical
and dental equipment and IT equipment), including the policies and procedures for determining the
creditworthiness of Obligors and the extension of credit to Obligors, or relating to the
maintenance of such types of loans and collections on such types of loans.

     “Custody and Control Agreement” means an agreement that provides the Indenture Trustee with a
perfected security interest with respect to the collateral described therein.

     “Cut-off Date” means, with respect to Loans secured by medical and dental Equipment, [_],
20[_], and with respect to all other Loans[_], 20[_].

     “Default” means any occurrence that is, or with notice or the lapse of time or both would
become, an Event of Default.

     “Defaulted Loan” means a Loan with respect to which (i) the Servicer on behalf of the Issuer
has repossessed the Equipment securing such Loan and which is not a Liquidated Loan or

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(ii) any
portion of the Loan Value is deemed uncollectible in accordance with the Credit and Collection
Policy.

     “Definitive Notes” is defined in Section 2.9 of this Indenture.

     “Delinquent Loan” is defined in Annex A to the Servicing Agreement.

     “Deposit Account” is defined in Section 9-102(a)(29) of the UCC.

     “Determination Date” means, with respect to any Transfer Date, the second Business Day prior
to such Transfer Date.

     “Eligible Deposit Account” means: (a) a segregated deposit account maintained with a
depository institution or trust company whose short-term unsecured debt obligations are rated at
least A-1+ by S&P and P-1 by Moody’s, (b) a segregated account which is either (i) maintained in
the corporate trust department of the Indenture Trustee or (ii) maintained with a depository
institution or trust company whose long term unsecured debt obligations are rated at least BBB- by
S&P and Baa3 by Moody’s, or (c) a segregated trust account or similar account maintained with a
federally or state chartered depository institution whose long term unsecured debt obligations are
rated at least BBB- by S&P and Baa3 by Moody’s subject to regulations regarding fiduciary funds on
deposit substantially similar to 12 C.F.R. § 9.10(b) in effect on the Closing Date.

     “Equipment” means any transportation equipment, industrial equipment, furniture and fixtures,
construction equipment, maritime assets, technology and telecommunications equipment or other
equipment (including medical and dental equipment and IT equipment), together with all accessions
thereto securing an Obligor’s indebtedness under the respective Loan.

     “Equipment Loan” means middle market equipment loans that consist of loans and finance leases
secured by new or used transportation equipment, industrial equipment, furniture and fixtures,
construction equipment, maritime assets, technology and telecommunications equipment or other
equipment (including medical and dental equipment and IT equipment) made to obligors in the United
States of America and managed by the Commercial Equipment Financing and Healthcare Financial
Services divisions of GE Capital.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Event of Default” is defined in Section 5.1 of this Indenture.

     “Excess Spread Amount” means, with respect to any Payment Date, the portion, if any, of
Available Amounts for such Payment Date remaining after giving effect to the payments made pursuant
to clauses (i) through (vii) under Section 8.3(a) of the Indenture with
respect to any Payment Date prior to an Event of Default.

     “Executive Officer” means, with respect to any corporation, the Chief Executive Officer, Chief
Operating Officer, Chief Financial Officer, President, Executive Vice President, any Vice

7

 

President, the Secretary or the Treasurer of such corporation; and with respect to any partnership,
any general partner thereof.

     “Federal Book-Entry Regulations” means (a) the Federal regulations listed on Appendix A to
Operating Circular No. 7 issued by the Federal Reserve Banks and (b) the Federal regulations
published at 25 C.F.R. Part 350.

     “Final Maturity Date” means the Payment Date in May 2016.

     “Financial Asset” has the meaning assigned thereto in Section 8-102 of Article 8 of the UCC.

     “Fitch” means Fitch, Inc. and its successors and assigns.

     “Floating Rate Notes” means the Class B Notes and the Class C Notes.

     “GE Capital” means General Electric Capital Corporation, a Delaware corporation.

     “GECS” means General Electric Capital Services, Inc. or any successors or assigns thereto.

     “GECT” means General Electric Credit Corporation of Tennessee, a Tennessee corporation.

     “General Intangibles” is defined in Section 9-102(a)(42) of the UCC.

     “Grant” means to create and grant a Lien pursuant to this Indenture, and other forms of the
verb “to Grant” shall have correlative meanings. A Grant with respect to the Collateral or any
other agreement or instrument shall include a grant of a Lien upon all rights, powers and options
(but none of the obligations) of the Granting party thereunder, including the right, upon the
occurrence of a Default and declaration thereof by the party to whom such Grant is made, to claim
for, collect, receive and give receipt for principal and interest payments in respect of the
Collateral and all other amounts 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.

     “Indenture” means this Indenture, dated as of [___], between the Issuer and the Indenture
Trustee, as the same may be amended and supplemented from time to time.

     “Indenture Trustee” means [___], not in its individual capacity but solely as Indenture
Trustee under this Indenture, or any successor Indenture Trustee under this Indenture.

     “Independent” means, with respect to any specified Person, any such Person who (i) is in fact
independent of any Seller, the Servicer, the Issuer, or any Affiliate of any thereof, (ii) does not
have any direct financial interest, or any material indirect financial interest in any Seller, the
Servicer, the Issuer, or any Affiliate of any thereof and (iii) is not connected with any Seller,
the

8

 

Servicer, the Issuer, or any Affiliate of any thereof, as an officer, employee, promoter,
underwriter, trustee, partner, director or Person performing similar functions; provided,
however, that a Person shall not fail to be Independent of any Seller, the Servicer, the
Issuer, or any Affiliate of any thereof merely because such Person is the beneficial owner of 1% or
less of any class of securities issued by the Issuer, the Servicer, or any Affiliate thereof, as
the case may be.

     “Independent Certificate” means a certificate or opinion to be delivered to the Indenture
Trustee under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1 of this Indenture, made by an Independent appraiser or other
expert appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of
reasonable care, and such opinion or certificate shall state that the signer has read the
definition of “Independent” in this Indenture and that the signer is Independent within the meaning
thereof.

     “Insolvency Event” means, with respect to a specified Person: (a) the entry by a court having
jurisdiction in the premises of (i) a decree or order for relief in respect of such Person in an
involuntary case or proceeding under any applicable federal or state bankruptcy, insolvency,
reorganization, or other similar law or (ii) a decree or order adjudging such Person a bankrupt or
insolvent, or approving as properly filed a petition seeking reorganization, arrangement,
adjustment, or composition of or in respect of such Person under any applicable Federal or State
law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator, or other
similar official of such Person or of any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 60 consecutive days; or (b) the
commencement by such Person of a voluntary case or proceeding under any applicable federal or state
bankruptcy, insolvency, reorganization, or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree or order for
relief in respect of such Person in an involuntary case or proceeding under any applicable federal
or state bankruptcy, insolvency, reorganization, or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer
or consent seeking reorganization or relief under any applicable federal or state law, or the
consent by it to the filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator, or similar official of such
Person or of any substantial part of its property, or the making by it of an assignment for the
benefit of creditors, or such Person’s failure to pay its debts generally as they become due, or
the taking of corporate action by such Person in furtherance of any such action.

     “Instruments” has the meaning assigned thereto in Section 9-102 of Article 9 of the UCC.

     “Interest Accrual Period” means, with respect to any Payment Date (the “current Payment Date”)
and any Class of Notes, the period from and including the preceding Payment Date (or, in the case
of the initial Payment Date from and including the Closing Date) to but excluding the current
Payment Date.

     “Interest Rate” means (i) as to the Class A Notes, the Class A Interest Rate, (ii) as to the
Class B Notes, the Class B Interest Rate, and (iii) as to the Class C Notes, the Class C Interest
Rate.

9

 

     “Investment Company Act” means the provisions of the Investment Company Act of 1940, 15 U.S.C
§§ 80a et seq., as amended from time to time, and any regulations promulgated thereunder.

     “Investment Earnings” means, with respect to any Payment Date, the interest and other
investment earnings (net of losses and investment expenses) on amounts on deposit in the Trust
Accounts to be included as part of Available Amounts pursuant to Section 8.6(a).

     “Investment Property” is defined in Section 9-102(a)(49) of the UCC.

     “Issuer” means GE Equipment Midticket, LLC, Series [___], a Delaware limited liability
company, until a successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained in this Indenture and required by the TIA, each other obligor on the Notes.

     “Issuer Limited Liability Company Agreement” means the Limited Liability Company Agreement of
the Issuer, dated as of [___], as the same may be amended or supplemented from time to time.

     “Issuer Order” and “Issuer Request” means a written order or request, respectively, signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

     “LIBOR” is defined in Section 2.16 of this Indenture.

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

     “LIBOR Rate Adjustment Date” is defined in Section 2.16 of this Indenture.

     “Lien” means a security interest (as such term is defined in Section 1-201 of Article 1 of the
UCC), lien, charge, pledge, equity or encumbrance of any kind, other than tax liens, mechanics’
liens and any liens that attach to the related Loan by operation of law as a result of any act or
omission by the related Obligor.

     “Liquidated Loan” means any Loan (i) liquidated through the sale or other disposition of all
or a portion of the related Equipment, (ii) that has been charged off in its entirety in accordance
with the Credit and Collection Policy without realizing upon the Equipment or (iii) the due date of
any Scheduled Payment of which has been extended, at any time after the Cut-off Date, for an
aggregate period of 12 or more calendar months.

     “Liquidation Proceeds” means, with respect to any Liquidated Loan, the amounts collected in
respect thereof from whatever source (including the proceeds of insurance policies with respect to
the related Equipment or Obligor) during the Collection Period in which it became a Liquidated
Loan, net of the sum of any amounts expended in connection with such liquidation and any amounts
required by law to be remitted to the Obligor on such Liquidated Loan or any creditor of such
Obligor to the extent required by applicable law or agreement.

10

 

     “Loan” means any agreement (including any invoice) pursuant to, or under which, an Obligor
shall be obligated to make payments with respect to any Equipment Loan owned by the Issuer.

     “Loan Files” means the documents specified in Section 2.1 of the Sale Agreement.

     “Loan Value” is defined in the Purchase and Sale Agreement.

     “Managing Member” means CEF Equipment Holding, L.L.C., a Delaware limited liability company,
or any successor Managing Member under the Issuer Limited Liability Company Agreement.

     “Maturity Date” means (i) as to the Class A Notes, the Class A Maturity Date, (ii) as to the
Class B Notes, the Class B Maturity Date, and (iii) as to the Class C Notes, the Class C Maturity
Date.

     “Monthly Interest Amount Payable” means, with respect to any Payment Date (the “current
Payment Date”) and any Class of Notes, an amount equal to the sum of (a) the aggregate amount of
interest accrued on that Class of Notes at the applicable Interest Rate from and including the
preceding Payment Date (or, in the case of the initial Payment Date from and including the Closing
Date) to but excluding the current Payment Date plus (b) the Monthly Interest Shortfall for that
Class of Notes and the current Payment Date.

     “Monthly Interest Shortfall” means, with respect to any Payment Date (the “current Payment
Date”) and any Class of Notes, the excess of the Monthly Interest Amount Payable for the preceding
Payment Date over the amount in respect of interest on that Class of Notes that was actually paid
to the Noteholder for that Class of Notes on such preceding Payment Date, plus interest on such
excess, to the extent permitted by law, at a rate per annum equal to the Interest Rate on that
Class of Notes, from such preceding Payment Date to but excluding the current Payment Date.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.

     “Note Balance” means the aggregate Outstanding Principal Balance of the Notes from time to
time.

     “Note Depository Agreement” means the agreement among the Issuer, the Indenture Trustee and
The Depository Trust Company, as the initial Clearing Agency, dated as of the Closing Date.

     “Note Distribution Account” means the account designated as such, established and owned by the
Issuer and maintained in accordance with Section 8.2(a) of this Indenture.

     “Note Owner” means, with respect to a Book-Entry Note, the Person who is the owner of such
Book-Entry Note, as reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with the Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of the Clearing Agency).

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     “Note Pool Factor” means, as of the close of business on any Payment Date with respect to any
Class of Notes, the Outstanding Principal Balance of that Class of Notes divided by the original
Outstanding Principal Balance of that Class of Notes (carried out to the seventh decimal place).
The Note Pool Factor for each Class will be 1.0000000 as of the Closing Date, and, thereafter, will
decline to reflect reductions in the Outstanding Principal Balance of the Notes.

     “Note Register” and “Note Registrar” have the respective meanings specified in Section
2.4 of this Indenture.

     “Noteholder” means the person in whose name a Class A, Class B or Class C Note is registered
on the Note Register.

     “Notes” means the Class A Notes, the Class B Notes and the Class C Notes.

     “Obligor” means, as to each Loan, any Person who owes payments under the Loan.

     “Officers’ Certificate” means, as to any Person, a certificate signed by an Authorized Officer
of such Person.

     “Opinion of Counsel” means a written opinion of counsel (who may, except as otherwise
expressly provided in this Indenture, be an employee of or counsel to the Issuer or an Affiliate of
the Issuer), which counsel and opinion shall be acceptable to the Indenture Trustee, or the Rating
Agencies, as applicable.

     “Other Assets” is defined in Section 11.20 of this Indenture.

     “Outstanding” means, as of the date of determination, all Notes theretofore authenticated and
delivered under this Indenture except:

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

     (ii) Notes or portions thereof the payment for which funds in the necessary amount have
been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the
Noteholders (provided, however, that if such Notes are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture); and

     (iii) Notes in exchange for or in lieu of other Notes that have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a bona fide purchaser; provided, that in
determining whether the Noteholders of the requisite Outstanding Principal Balance of the
Notes have given any request, demand, authorization, direction, notice, consent or waiver
hereunder or under any Related Document, Notes owned by the Issuer or any Affiliate thereof
shall be disregarded and deemed not to be Outstanding, except that, in determining whether
the Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that a Responsible Officer
of the Indenture Trustee actually knows to be so owned shall be so disregarded. Notes so
owned that have been pledged in good faith may be regarded as

12

 

Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not
the Issuer or any Affiliate thereof.

     “Outstanding Principal Balance” means the aggregate principal amount of all Notes, or Class of
Notes, as applicable, Outstanding at the date of determination.

     “Overcollateralization Amount” means, with respect to any Payment Date, the excess, if any, of
(i) the Pool Balance at the beginning of the related Collection Period over (ii) the aggregate
Outstanding Principal Balance of the Class A Notes, Class B Notes and Class C Notes before giving
effect to any principal payments made on the Notes on such Payment Date.

     “Paying Agent” means with respect to the Notes, initially the Indenture Trustee or any other
Person that meets the eligibility standards for the Indenture Trustee specified in Section
6.11 of this Indenture and is authorized by the Issuer to make the distributions from the Note
Distribution Account, including payment of principal of or interest on the Notes on behalf of the
Issuer.

     “Payment Date” means, with respect to each Collection Period, the [_]th day of the
calendar month following the end of that Collection Period, or, if such day is not a Business Day,
the next Business Day, commencing on [_], 20[_].

     “Permitted Investments” means one or more of the following:

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

     (b) repurchase agreements on obligations specified in clause (a); provided,
that the short-term debt obligations of the party agreeing to repurchase are rated at least
A-1+ by S&P and P-1 by Moody’s;

     (c) federal funds, certificates of deposit, time deposits and bankers’ acceptances
(which shall each have an original maturity of not more than 90 days or, in the case of
bankers’ acceptances, shall in no event have an original maturity of more than 365 days) of
any United States depository institution or trust company incorporated under the laws of the
United States or any State thereof or of any United States branch or agency of a foreign
commercial bank; provided that the short-term debt obligations of such depository
institution or trust company are rated at least A-1+ by S&P and P-1 by Moody’s;

     (d) commercial paper (having original maturities of not more than 30 days) which on the
date of acquisition are rated at least A-1+ by S&P and P-1 by Moody’s;

     (e) securities of money market funds rated at least A-1+ by S&P and P-1 by Moody’s; and

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     (f) any other investment permitted by each of the Rating Agencies as set forth in
writing delivered to the Indenture Trustee; provided, that investments described in
clauses (e) and (f) shall be made only so long as making such investments
will not require the Issuer to register as an investment company under the Investment
Company Act of 1940, as amended.

     “Person” means any individual, sole proprietorship, partnership, joint venture, unincorporated
organization, trust, association, corporation (including a business trust), limited liability
company, institution, public benefit corporation, joint stock company, or government or any agency
or political subdivision thereof, or any other entity of whatever nature.

     “Pool Balance” means, with respect to the beginning of any calendar month, the sum of the
aggregate Loan Values of the Loans at the opening of business on the first day of such calendar
month.

     “Precomputed Loan” means any Loan under which the portion of a payment allocable to earned
interest (which may be referred to in the related Loan as an add-on finance charge) and the portion
allocable to principal are determined according to the sum of periodic balances, the sum of monthly
payments or any equivalent method or are monthly actuarial loans.

     “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing
all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose
of this definition, any Note authenticated and delivered under Section 2.5 of this
Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

     “Proceeding” means any suit in equity, action at law or other judicial or administrative
proceeding.

     “Promissory Note” is defined in Section 9-102(a)(65) of the UCC.

     “Purchase Amount” means, as of the close of business on the last day of a Collection Period,
an amount equal to the Loan Value of the applicable Loan, as of the first day of the immediately
following Collection Period (or, with respect to any applicable Loan that is a Liquidated Loan or
Defaulted Loan, as of the day immediately prior to such Loan becoming a Liquidated Loan or
Defaulted Loan less any Liquidation Proceeds actually received by the Issuer) plus interest accrued
and unpaid thereon as of such last day at a rate per annum equal to the APR for such Loan.

     “Purchase and Sale Agreement” means the Purchase and Sale Agreement, dated as of [                    ],
between the Purchaser and the Issuer, as the same may be amended or supplemented from time to time.

     “Purchased Loan” means a Loan repurchased as of the close of business on the last day of a
Collection Period by a Seller pursuant to the Sale Agreement and repurchased as of such time by CEF
Equipment Holding, L.L.C. pursuant to the Purchase and Sale Agreement.

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     “Purchaser” means CEF Equipment Holding, L.L.C., a Delaware limited liability company, in its
capacity as the purchaser, and its successors and assigns.

     “Rating Agency” means each of Fitch, Moody’s and S&P. If any of such organizations or its
successor is no longer in existence, the Issuer shall designate a nationally recognized statistical
rating organization or other comparable Person as a substitute Rating Agency, notice of which
designation shall be given to the Indenture Trustee and the Servicer.

     “Rating Agency Condition” means, with respect to any action, that (i) each Rating Agency
(other than Moody’s) shall have been given prior notice thereof and that each of the Rating
Agencies (other than Moody’s) shall have notified the Issuer and the Indenture Trustee in writing
that such action will not result in a reduction or withdrawal of the then current rating of any
Class of the Notes and (ii) Moody’s shall have been given at least 10 Business Days’ prior notice
thereof and shall have not notified the Issuer and the Indenture Trustee that such action will
result in a reduction or withdrawal of the then current rating of any Class of the Notes.

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

     “Record Date” means, with respect to a Payment Date or Redemption Date, the close of business
on the Business Day preceding such Payment Date or Redemption Date, or, if Definitive Notes are
issued, the close of business on the last day of the calendar month preceding the month of such
Payment Date, whether or not such day is a Business Day, or if Definitive Notes were not
outstanding on such date, the date of issuance of the Definitive Notes.

     “Records” means all documents, books, records and other information (including computer
programs, tapes, disks, data processing software and related property and rights) prepared and
maintained by the Issuer with respect to the Loans and the Obligors thereunder.

     “Recoveries” means, with respect to any Liquidated Loan, monies collected in respect thereof,
from whatever source (other than from the sale or other disposition of the Equipment), after such
Loan became a Liquidated Loan.

     “Redemption Date” means the Payment Date specified by the Issuer pursuant to Section
10.1 of this Indenture, as applicable.

     “Redemption Price” means the unpaid principal amount of the Notes redeemed, plus accrued and
unpaid interest thereon at the applicable interest rate to but excluding the Redemption Date.

     “Related Documents” means the Sale Agreement, the Purchase and Sale Agreement, the Servicing
Agreement, the Indenture, the Issuer Limited Liability Company Agreement, the CEF Limited Liability
Company Agreement, the Administration Agreement, the Note Depository
Agreement, the Swap Agreement and all other agreements, instruments, and documents and

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including all other pledges, powers of attorney, consents, assignments, contracts, notices, and all
other written matter whether heretofore, now or hereafter executed by or on behalf of any Person,
or any employee of any Person, and delivered in connection with any of the foregoing. Any
reference in the foregoing documents to a Related Document shall include all Annexes, Exhibits and
Schedules thereto, and all amendments, restatements, supplements or other modifications thereto,
and shall refer to such Related Document as the same may be in effect at any and all times such
reference becomes operative.

     “Related Security” means with respect to any Loan: (a) any interest (including security
interests), if any, in the related Equipment; (b) all guarantees, insurance or other agreements or
arrangements of any kind from time to time supporting or securing payment of such Loan (including
rights (if any) to receive proceeds on insurance policies covering the Obligors); and (c) all
Records relating to such Loan.

     “Reporting Servicer” means the Indenture Trustee, if applicable or a Servicing Function
Participant, as the case may be.

     “Required Reserve Account Amount” means 2.05% of the initial aggregate Loan Value.

     “Reserve Account” means the account designated as such, established and owned by the Issuer
and maintained in accordance with Section 8.2.

     “Reserve Account Deficiency” means the excess, if any, of the Required Reserve Account Amount
over the Available Reserve Account Amount.

     “Responsible Officer” means, with respect to the Indenture Trustee, any officer within the
Corporate Trust Office of the Indenture Trustee, including any Vice President, Assistant Vice
President, Secretary or Assistant Secretary, or any other officer of the Indenture Trustee
customarily performing functions similar to those performed by any of the above designated officers
and also, with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.,
or any successor thereto.

     “Sale Agreement” means the Sale Agreement, dated as of [                    ], among GE Capital, GECT and
Purchaser, as the same may be amended or supplemented from time to time.

     “Scheduled Payment” on a Loan means that portion of the payment required to be made by the
Obligor during any Collection Period sufficient to amortize the loan balance under (x) in the case
of a Precomputed Loan, the actuarial method or (y) in the case of a Simple Interest Loan, the
simple interest method, in each case, over the term of the Loan and to provide interest at the APR;
provided that Termination Values shall also constitute Scheduled Payments.

     “Securities Act” means the Securities Act of 1933 15 U.S.C. 77a et seq., as
amended, and any regulations promulgated thereunder.

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     “Securities Account” has the meaning assigned thereto in Section 8-501(a) of Article 8 of the
UCC.

     “Securities Exchange Act” means the provisions of the Securities Exchange Act of 1934 15
U.S.C. Sections 78a et seq., as amended, and any regulations promulgated
thereunder.

     “Securities Intermediary” is defined in Section 8-102 of Article 8 of the UCC.

     “Seller” means each of GE Capital or GECT, in its capacity as the seller, its successors and
assigns.

     “Servicer” means GE Capital, as the Servicer under the Servicing Agreement, as the case may
be, or any other Person designated as a Successor Servicer under such agreement.

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

     “Servicer Default” means an event specified in Section 5.1 of the Servicing Agreement.

     “Servicing Advance” is defined in Annex A to the Servicing Agreement.

     “Servicing Agreement” means the Servicing Agreement, dated as of [                    ], between the Issuer
and the Servicer, as the same may be amended or supplemented from time to time.

     “Servicing Fee” is defined in Annex A to the Servicing Agreement.

     “Servicing Function Participant” means any Person, other than the Servicer, that is performing
activities that address the Servicing Criteria, unless such Person’s activities relate only to 5%
or less of the Loans.

     “Simple Interest Loan” means any Loan under which the portion of a payment allocable to
interest and the portion allocable to principal is determined by allocating a fixed level payment
between principal and interest, such that such payment is allocated first to the accrued and unpaid
interest at the Annual Percentage Rate for such Loan on the unpaid principal balance and the
remainder of such payment is allocable to principal.

     “State” means any one of the 50 states of the United States of America or the District of
Columbia.

     “Successor Servicer” is defined in Section 6.2 of the Servicing Agreement.

     “Swap Agreement” means the 2002 ISDA Master Agreement dated as of [                    ], including all
schedules and confirmations thereto between the Issuer and GECS, in its capacity as Swap
Counterparty, as the same may be amended, supplemented, renewed, extended or replaced from time to
time.

     “Swap Counterparty” means GECS, solely in its capacity as a swap counterparty, and any
successors or assigns thereto.

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     “Swap Event of Default” means a “Swap Event of Default” or similar term as provided in the
Swap Agreement.

     “Swap Payments Incoming” means on any Payment Date the net amount, if any, then payable by the
Swap Counterparty to the Issuer, excluding any Swap Termination Payments.

     “Swap Payments Outgoing” means on any Payment Date the net amount, if any, then payable by the
Issuer to the Swap Counterparty, excluding any applicable Swap Termination Payments.

     “Swap Termination Event” means a “Swap Termination Event” or similar term as provided in the
Swap Agreement.

     “Swap Termination Payment” means any termination payment payable by the Issuer to the Swap
Counterparty or by the Swap Counterparty to the Issuer under the Swap Agreement.

     “Termination Value” means the “Termination Value” (if any) payable by a lessee pursuant to the
applicable Loan.

     “TIA” or the “Trust Indenture Act” means the Trust Indenture Act of 1939, as in force on the
date of this Indenture unless otherwise specifically provided.

     “Transfer Date” means the Business Day preceding the twentieth day of each calendar month.

     “Treasury Regulations” means regulations, including proposed or temporary regulations,
promulgated under the Code. References to specific provisions of proposed or temporary regulations
shall include analogous provisions of final Treasury Regulations or other successor Treasury
Regulations.

     “Trust Account Property” means the Trust Accounts, all amounts, Financial Assets, Investment
Property and other investments or other property held from time to time in or credited to any Trust
Account and all Proceeds of the foregoing.

     “Trust Accounts” has the meaning assigned thereto in Section 8.2(a) of this Indenture.

     “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect
in the relevant jurisdiction, as amended from time to time.

     SECTION 1.2. Other Interpretive Matters. All terms defined directly or by
incorporation in this Indenture shall have the defined meanings when used in any document delivered
pursuant thereto unless otherwise defined therein. For purposes of this Indenture, unless the
context otherwise requires: (a) accounting terms not otherwise defined herein and accounting terms
partly defined herein to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles; and unless otherwise provided, references
to any month, quarter or year refer to a fiscal month, quarter or year as determined in accordance
with the fiscal calendar of GECS; (b) unless defined in this Indenture or the context otherwise
requires, capitalized terms used in this Indenture which are defined in

18

 

the UCC shall have the
meaning given such term in the UCC; (c) references to any amount as on deposit or outstanding
on any particular date means such amount at the close of business on such day; (d) the words
“hereof,” “herein” and “hereunder” and words of similar import refer to this Indenture as a whole
and not to any particular provision of this Indenture; (e) references to any Section, Schedule or
Exhibit are references to Sections, Schedules and Exhibits in or to this Indenture, and references
to any paragraph, subsection, clause or other subdivision within any Section or definition refer to
such paragraph, subsection, clause or other subdivision of such Section or definition; (f) the term
“including” means “including without limitation”; (g) references to any law or regulation refer to
that law or regulation as amended from time to time and include any successor law or regulation;
(h) references to any agreement refer to that agreement as from time to time amended, restated or
supplemented or as the terms of such agreement are waived or modified in accordance with its terms;
(i) references to any Person include that Person’s successors and assigns; and (j) headings are for
purposes of reference only and shall not otherwise affect the meaning or interpretation of any
provision hereof.

     SECTION 1.3. Incorporation by Reference of TIA. Whenever this Indenture refers to a
provision of the TIA, the provision is incorporated by reference in and made a part of this
Indenture. The following terms, where used in the TIA, shall have the following meanings for the
purposes hereof:

     “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.

     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 rule have the meaning assigned to them by
such definitions.

ARTICLE II

THE NOTES

     SECTION 2.1. Form. The Notes shall consist of $[                    ] principal amount of Class A
Notes, $[                    ] principal amount of Class B Notes, and $[                    ] principal amount of Class C Notes
and the forms thereof and the Indenture Trustee’s certificate of authentication, shall be in
substantially the forms set forth in Exhibits A-1, A-2 and A-3
respectively, with such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as may, consistently herewith, be
determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.

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     The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by
any combination of these methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

     Each Note shall be dated the date of its authentication. The terms of the Notes set forth in
Exhibits A-1, A-2 and A-3 are part of the terms of this Indenture.

     The aggregate principal amount of Notes which may be authenticated and delivered under this
Indenture is limited to $[                    ] of Notes, except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to
Sections 2.4, 2.5 or 9.5. The Notes shall be issuable only in registered
form and only in minimum denominations of at least $1,000; provided that the foregoing
shall not restrict or prevent the transfer in accordance with Section 2.4 of any Note
having an Outstanding Principal Balance of other than an integral multiple of $1,000, or the
issuance of a single Note of each Class, with a denomination less than $1,000.

     SECTION 2.2. Execution, Authentication and Delivery. (a) 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.

     (b) Notes bearing the manual or facsimile signature of individuals who were at the time of
signature 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.

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

     (d) The Notes may from time to time be executed by the Issuer and delivered to the Indenture
Trustee for authentication together with an Issuer Request to the Indenture Trustee directing the
authentication and delivery of such Notes and thereupon the same shall be authenticated and
delivered by the Indenture Trustee in accordance with such Issuer Request.

     SECTION 2.3. Temporary Notes. Pending the preparation of Definitive Notes, the
Issuer may execute, and upon receipt of an Issuer Order, the Indenture Trustee shall authenticate
and deliver, temporary Notes of the tenor of the Definitive Notes in lieu of which they are issued
and with such variations not inconsistent with this Indenture 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 Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.2, without charge to the
Noteholder. Upon surrender for cancellation of any one or more temporary Notes, the Issuer

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shall execute and the Indenture Trustee shall authenticate and deliver in exchange therefor a like
principal amount of Definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under this Indenture as if
they were Definitive Notes.

     SECTION 2.4. Registration; Registration of Transfer and Exchange. (a) The Issuer
shall cause to be kept a register (the “Note Register”) in which, subject to such reasonable
regulations as it may prescribe, the Issuer shall provide for the registration of Notes and the
registration of transfers of Notes. The Issuer hereby appoints the Indenture Trustee as the
initial “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein
provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it is unable to make such an appointment, assume the duties of the Note Registrar.

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

     The Indenture Trustee shall not register the transfer of any Note (other than the transfer of
a Note to the nominee of the Clearing Agency) unless the transferee has executed and delivered to
the Indenture Trustee a certification to the effect that either (i) the transferee is not (a) an
employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to Title I of ERISA or
(b) a plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975 of the
Code (each of the foregoing, a “Benefit Plan”), and is not acting on behalf of or investing the
plan assets of a Benefit Plan, or (ii) the transferee’s acquisition and continued holding of the
Note will not give rise to a nonexempt prohibited transaction under ERISA, Section 4975 of the Code
or any substantially similar applicable law. Each transferee of a Book-Entry Note shall be deemed
to make one of the foregoing representations.

     (b) Subject to Section 2.4(a), upon surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section 3.2, if the
requirements of Section 8-401(a)(1) of the UCC are met, the Issuer shall execute, the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name
of the designated transferee or transferees, one or more new Notes in any authorized denominations
of a like aggregate principal amount. At the option of the Noteholder, Notes may be exchanged for
other new Notes of the same Class in any authorized denominations of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency. Whenever any Notes
are so surrendered for exchange, if the requirements of Section 8-401(a)(1) of the UCC are met, the
Issuer shall execute, the Indenture Trustee shall authenticate and the Noteholder shall obtain from
the Indenture Trustee, the Notes that the Noteholder making the exchange is entitled to receive.
The Indenture Trustee shall make a notation on any such new Note of the amount of principal, if
any, that has been paid on such Note.

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

     (d) Every Note presented or surrendered for registration of transfer or exchange shall (if so
required by the Issuer or the Indenture Trustee) be duly endorsed by, or be accompanied by a
written instrument of transfer in form satisfactory to the Issuer and the Indenture Trustee duly
executed by, the Noteholder thereof or such Noteholder’s attorney duly authorized in writing, with
such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the
Note Registrar, which requirements include membership or participation in the Securities Transfer
Agent’s Medallion Program (“STAMP”) or such other “signature guarantee program” as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act.

     (e) No service charge shall be made to a Noteholder for any registration of transfer or
exchange of Notes, but the Issuer or the Indenture Trustee will require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection with any
registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.3
or 9.5.

     SECTION 2.5. Mutilated, Destroyed, Lost or Stolen Notes. (a) If: (i) any mutilated
Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by the Indenture Trustee and the
Issuer to hold the Indenture Trustee and the Issuer, respectively, harmless, then, in the absence
of notice to the Issuer, the Note Registrar or the Indenture Trustee that such Note has been
acquired by a bona fide purchaser, and provided that the requirements of Section 8-405 of the UCC
are met, the Issuer shall execute, and upon its request the Indenture Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note, a
replacement Note of the same Class and principal amount and bearing a number not contemporaneously
outstanding; provided, however, that if any such destroyed, lost or stolen Note,
but not a mutilated Note, shall have become, or within seven days shall be, due and payable, or
shall have been called for redemption, instead of issuing a replacement Note, the Issuer may pay
such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without
surrender thereof. If, after the delivery of such replacement Note (or payment of a destroyed,
lost or stolen Note pursuant to the proviso to the preceding sentence), a bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee 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 payment made) or
any assignee of such Person, except a bona fide purchaser, and shall be entitled to recover upon
the security or indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith.

     (b) Upon the issuance of any replacement Note under this Section, the Issuer or the Indenture
Trustee may require the payment by such Noteholder of a sum sufficient to cover any

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tax or other governmental charge that may be imposed in relation thereto and any other
reasonable expenses (including the fees and expenses of the Indenture Trustee) connected therewith.

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

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

     SECTION 2.6. Persons Deemed Owner. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of
determination) as the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

     SECTION 2.7. Payment of Principal and Interest; Defaulted Interest. (a) Any
installment of interest or principal, if any, payable on any Note that is punctually paid or duly
provided for by the Issuer on the applicable Payment Date shall be paid to the Person in whose name
such Note (or one or more Predecessor Notes) is registered on the Record Date by check mailed
first-class, postage prepaid, to such Person’s address as it appears on the Note Register on such
Record Date. However, unless Definitive Notes have been issued, with respect to Notes registered
on the Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be
Cede & Co.), payment will be made by wire transfer in immediately available funds to the account
designated by such nominee. Notwithstanding the above, the final installment of principal payable
with respect to such Note (and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.1) shall be payable as provided in clause (b)(ii). The
funds represented by any such checks returned undelivered shall be held in accordance with
Section 6.16.

     (b) (i) The principal of each Note shall be payable in installments on each Payment Date as
provided in Section 8.3.

     (ii) Notwithstanding the foregoing, the entire Outstanding Principal Balance
shall be due and payable on: (A) the date on which an Event of Default shall have
occurred and be continuing if the Indenture Trustee or the Noteholders representing
not less than a majority of the Outstanding Principal Balance of the Notes have
declared the Notes to be immediately due and payable in the manner provided in
Section 5.2, and (B) if any Notes remain Outstanding, the Maturity Date.

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     (iii) Except as otherwise provided in Section 5.2, no part of the
principal of any Note shall be paid prior to the Payment Date on which such
principal is due in accordance with the preceding provisions of this
Section, except that the Issuer may redeem the Notes in their entirety in
accordance with Section 10.1.

     (iv) The Indenture Trustee shall notify the Person in whose name a Note is
registered at the close of business on the Record Date preceding the Payment Date on
which the Issuer expects that the final installment of principal of and interest on
such Note will be paid. Such notice shall be mailed no later than five days prior
to such final Payment Date and shall specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment.

     (v) All reductions in the principal amount of a Note effected by payments of
installments of principal made on any Payment Date shall be binding upon all holders
of such Note and of any Note issued upon the registration of transfer thereof or in
exchange therefore or in lieu thereof, whether or not such payment is noted on such
Note. All payments on the Notes shall be made without any requirement of
presentment but each holder of any Note shall be deemed to agree, by its acceptance
of the same, to surrender such Note at the Corporate Trust Office against payment of
the final installment of principal of such Note.

     (c) (i) For each Payment Date, the interest due and payable with respect to the Class A
Notes, Class B Notes and Class C Notes will be the interest that has accrued on the respective
Notes since the last Payment Date or, in the case of the first Payment Date, since the Closing
Date, at the Class A Interest Rate, Class B Interest Rate and Class C Interest Rate, respectively,
applied to the then Outstanding Principal Balances of the Class A Notes, Class B Notes and, as
applicable, the Class C Notes, respectively, on the preceding Payment Date subject to Section
3.1. With respect to the Floating Rate Notes and the Class A Notes, the interest will be
calculated on the basis of the actual number of days in the applicable Interest Accrual Period and
a 360 day year.

     (ii) If the Issuer defaults in a payment of interest on the Notes, the Issuer
shall pay, in any lawful manner, defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable interest rate from the Payment Date
for which such payment is in default. The Issuer shall pay such defaulted interest
on a subsequent special payment date declared by the Issuer to the Persons who are
Noteholders on a subsequent special record date, which special record date shall be
at least five Business Days prior to the special payment date. At least 15 days
before any such special record date, the Issuer shall mail to each Noteholder a
notice that states the special record date, the special payment date and the amount
of defaulted interest to be paid.

     (d) All payments made with respect to any Note shall be made in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of

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public and private debts and shall be applied first to the interest then due and payable on
such Notes and then to the principal thereof.

     SECTION 2.8. Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder that the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly canceled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this
Section except as expressly permitted by this Indenture. All canceled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that they be returned to
it; provided, that such Issuer Order is timely and the Notes have not been previously
disposed of by the Indenture Trustee.

     SECTION 2.9. Book-Entry Notes. Each of the Class A Notes, the Class B Notes and the
Class C 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 Clearing
Agency), or its custodian, by, or on behalf of, the Issuer. Each of the Class A Notes, the Class B
Notes and the Class C Notes shall initially be registered on the Note Register in the name of Cede
& Co., the nominee of The Depository Trust Company as the initial Clearing Agency, and no Class A
Note Owner, Class B Note Owner or Class C Note Owner will receive a Definitive Note representing
such Note Owner’s interest in such Note, except as provided in Section 2.11. Unless and
until definitive, fully registered Notes (the “Definitive Notes”) representing the Class A Notes,
the Class B Notes or the Class C Notes have been issued to the applicable Note Owners:

     (i) the Issuer, the Note Registrar and the Indenture Trustee, and their
officers, directors, employees and agents may deal with the Clearing Agency for all
purposes (including the payment of principal of and interest on the Class A Notes,
the Class B Notes and the Class C Notes) as the sole Noteholder and shall have no
obligations to the Note Owners;

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

     (iii) the rights of the respective Note Owners shall be exercised only through
the Clearing Agency and the Clearing Agency Participants and shall be limited to
those established by law and agreements between such respective Note Owners and the
Clearing Agency and/or the Clearing Agency Participants pursuant to the Note
Depository Agreement. Unless and until Definitive Notes are issued pursuant to
Section 2.11, the Issuer intends that the Clearing Agency will make
book-entry transfers among the Clearing Agency Participants and receive and transmit
payments of principal of and interest on the related Class A Notes, Class B Notes
and Class C Notes, as the case may be, to such Clearing

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Agency Participants (and neither the Indenture Trustee nor the Note Registrar
shall have any liability therefor); and

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

     SECTION 2.10. Notices to Clearing Agency. Whenever a notice or other communication
to the Class A Noteholders, Class B Noteholders or Class C Noteholders is required under this
Indenture, unless and until Definitive Notes have been issued to the related Note Owners, the
Indenture Trustee shall give all such notices and communications to the Clearing Agency.

     SECTION 2.11. Definitive Notes. (a) If: (i) the Issuer advises the Indenture
Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities under the Note Depository Agreement with respect to the Notes, and the Issuer is
unable to locate a qualified successor, (ii) circumstances change so that the book-entry system
through the Clearing Agency is less advantageous due to economic or administrative burden or the
use of the book-entry system becomes unlawful with respect to the Notes and the Issuer notifies the
Indenture Trustee in writing that because of the change in circumstances the Issuer is terminating
the book-entry system with respect to the Notes or (iii) after the occurrence of an Event of
Default, Note Owners representing beneficial interests aggregating at least a majority of the
Outstanding Principal Balance of the Notes advise the Clearing Agency in writing that the
continuation of a book-entry system through the Clearing Agency is no longer in the best interests
of the Note Owners, then the Clearing Agency has undertaken to notify all Note Owners and the
Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes
to Note Owners requesting the same. Upon surrender to the Indenture Trustee of the typewritten
Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration and
transfer instructions from the Clearing Agency for registration, the Issuer shall execute, and the
Indenture Trustee shall authenticate, the Definitive Notes in accordance with the instructions of
the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee shall be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive Notes, all references
herein to obligations imposed upon or to be performed by the Clearing Agency shall be deemed to be
imposed upon and performed by the Issuer, to the extent applicable with respect to such Definitive
Notes, and the Issuer shall recognize the holders of the relevant Definitive Notes as Noteholders
hereunder.

     (b) Definitive Notes will not be eligible for clearing or settlement through DTC, Euroclear or
Clearstream.

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     SECTION 2.12. Notes owned by the Issuer or its Affiliates. In determining whether
the Noteholders of the required Outstanding Principal Balance of the Notes have concurred in any
direction, waiver or consent, Notes owned by the Issuer or an Affiliate of the Issuer shall be
considered as though not Outstanding, except that for the purposes of determining whether the
Indenture Trustee shall be protected in relying on any such direction, waiver or consent, only
Notes which a Responsible Officer actually knows are so owned shall be so disregarded.

     SECTION 2.13. CUSIP Numbers. The Issuer in issuing the Notes may use “CUSIP” numbers
(if then generally in use), and, if so, the Indenture Trustee shall indicate the “CUSIP” numbers of
the Notes in notices of redemption and related materials as a convenience to Noteholders;
provided that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in any notice of
redemption and related materials.

     SECTION 2.14. Perfection Representations and Warranties. The parties hereto agree
that the representations, warranties and covenants set forth in Schedule 1 shall be a part
of this Indenture for all purposes.

     SECTION 2.15. Notes to Constitute Indebtedness. The parties hereto agree that it is
their mutual intent that, for all applicable tax purposes, the Notes will constitute indebtedness
of the Issuer. Further, each party hereto and each Noteholder (by accepting and holding a Note)
hereby covenants to every other party hereto and to every other Noteholder to treat the Notes as
indebtedness for all applicable tax purposes in all tax filings, reports and returns and otherwise,
and further covenants that neither it nor any of its Affiliates will take, or participate in the
taking of or permit to be taken, any action that is inconsistent with the treatment of the Notes as
indebtedness for tax purposes. All successors and assignees of the parties hereto shall be bound
by the provisions hereof.

     SECTION 2.16. Determination of LIBOR. LIBOR (“LIBOR”) applicable to the calculation
of the Interest Rates for the Floating Rate Notes for any Interest Accrual Period shall be
determined on each LIBOR Rate Adjustment Date as follows:

     For any Interest Accrual Period, the rate, as obtained by the Indenture Trustee, one-month
United States dollar deposits which appears on the Dow Jones Telerate Screen Page 3750 as of 11:00
A.M., London, England time, on the second LIBOR Business Day prior to the first day of such
Interest Accrual Period (a “LIBOR Rate Adjustment Date”). “Telerate Screen Page 3750” means the
display designated as page 3750 on the Telerate Service (or such other page as may replace page
3750 on that service for the purpose of displaying London interbank offered rates of major banks).
With respect to a LIBOR Rate Adjustment Date on which no rate appears on Telerate Page 3750, LIBOR
for the applicable Interest Accrual Period will be the rate calculated by the Indenture Trustee as
the arithmetic mean of at least two quotations obtained by the Indenture Trustee after requesting
the principal London offices of each of three major reference banks in the London interbank market,
which may include the Indenture Trustee and its affiliates, as selected by the Indenture Trustee
after consultation with the Issuer, to provide the Indenture Trustee with its offered quotation for
deposits in U.S. dollars for a one-month period, commencing on the second London Banking Day
immediately prior to the applicable Interest Accrual Period, to prime banks in the London interbank
market at approximately 11:00 a.m.,

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London time, on such LIBOR Rate Adjustment Date and in a principal amount approximately equal
to the aggregate outstanding principal balance of the Floating Rate Notes. If at least two such
quotations are provided, LIBOR determined on the applicable LIBOR Rate Adjustment Date will be the
arithmetic mean of the quotations. If fewer than two quotations referred to in the preceding
sentence above are provided, LIBOR determined on the applicable LIBOR Rate Adjustment Date will be
the rate calculated by the Indenture Trustee as the arithmetic mean of the rates quoted at
approximately 11:00 a.m. in New York on the applicable LIBOR Rate Adjustment Date by one or more
major banks in New York City, selected by the Indenture Trustee after consultation with the Issuer
for loans in U.S. dollars to leading European banks, having a maturity of one month, commencing on
the second London Banking Day prior to the applicable Interest Accrual Period, and in a principal
amount that is approximately equal to the aggregate outstanding principal balance of the Floating
Rate Notes. If the banks so selected by the Indenture Trustee are not quoting as provided above,
LIBOR for the applicable LIBOR Rate Adjustment Date will be LIBOR in effect on the preceding LIBOR
Rate Adjustment Date.

     The establishment of LIBOR by the Indenture Trustee on any LIBOR Rate Adjustment Date and the
Indenture Trustee’s subsequent calculation of the Class B Interest Rate and the Class C Interest
Rate applicable to the relevant Interest Accrual Period, in the absence of manifest error, shall be
final and binding.

     Promptly following each LIBOR Rate Adjustment Date, the Indenture Trustee shall supply the
Issuer with the results of its determination of LIBOR on such date.

ARTICLE III

COVENANTS

     SECTION 3.1. Payments. The Issuer will duly and punctually pay the principal of and
interest, if any, on the Notes in accordance with the terms of the Notes and this Indenture and
shall not withdraw funds from the Note Distribution Account except as set forth in Section
8.3. In addition, the Issuer will duly and punctually pay to the Swap Counterparty, any Swap
Payments Outgoing and Swap Termination Payments when due in the priorities set forth in Section
8.3 of this Indenture.

     SECTION 3.2. Maintenance of Office or Agency. (a) The Issuer will maintain at the
Corporate Trust Office an office or agency where Notes may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Issuer in respect of the Notes
and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to
serve as its agent for the foregoing purposes.

     (b) The chief executive office of the Issuer at which the Issuer maintains its records with
respect to the Loans, its interests in the Equipment, and the transactions contemplated hereby, is
currently located in Danbury, Connecticut. The Issuer will not change the location of such offices
without giving the Indenture Trustee at least 30 days prior written notice thereof.

     SECTION 3.3. Paying Agent’s Obligations. The Issuer will cause each Paying Agent to
comply with the obligations of the Paying Agent set forth in Section 6.16.

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     SECTION 3.4. Existence. (a) The Issuer will keep in full effect its existence,
rights and franchises as a limited liability company under the laws of the jurisdiction of its
organization.

     (b) The Issuer shall at all times observe and comply in all material respects with (i) all
laws applicable to it, and (ii) all requisite and appropriate organizational and other formalities
in the management of its business and affairs and the conduct of the transactions contemplated
hereby.

     SECTION 3.5. Protection of the Collateral; Further Assurances. The Issuer will from
time to time execute and deliver and file, as applicable, all such supplements and amendments
hereto and all such writings of further assurance and other writings, and will take such other
action necessary or advisable to:

     (i) more effectively Grant all or any portion of the Collateral;

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

     (iii) perfect, publish notice of or protect the validity of any Grant made or
to be made by this Indenture and perfect the Lien contemplated hereby in favor of
the Indenture Trustee in all property included in the Collateral;

     (iv) enforce or cause the Servicer to enforce any of the Collateral; or

     (v) preserve and defend against the claims of all Persons and parties, (a)
title to the Collateral (including the right to receive all payments due or to
become due with respect to the Loans) and the interests in the property included in
the Collateral and (b) the rights of the Indenture Trustee and the Noteholders with
respect to such Collateral (including the right to receive all payments due or to
become due with respect to the Loans) and interests with respect to the property
included in the Collateral.

     SECTION 3.6. Opinions as to the Collateral. (a) On the Closing Date, the Issuer
shall furnish to the Indenture 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 created by this Indenture and reciting the details
of such action, or stating that, in the opinion of such counsel, no such action is necessary to
make such Lien effective.

     (b) On or before April 1 in each calendar year, the Issuer shall furnish to the Indenture
Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents, and with respect to the execution
and filing of any financing statements and continuation statements, as is necessary to maintain the
Lien of this Indenture and reciting the details of such action, or stating
that in the opinion of such counsel no such action is necessary to maintain such Lien. Such

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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 of this Indenture until April 1 in the following
calendar year.

     SECTION 3.7. Performance of Obligations; Servicing of Loans. (a) The Issuer will not
take any action and will use its best efforts not to permit any action to be taken by others that
would release any Person from any material covenants or obligations under any instrument or
agreement included in the Collateral or that would result in the amendment, hypothecation,
subordination, termination or discharge of, or impair the validity or effectiveness of, any such
instrument or agreement, except as expressly provided in this Indenture, the Servicing Agreement,
Swap Agreement or such other instrument or agreement.

     (b) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the other Related Documents and in the instruments and agreements
included in the Collateral, including filing or causing to be filed all UCC financing statements
and continuation statements required to be filed by this Indenture and the Servicing Agreement in
accordance with and within the time periods provided for herein and therein.

     (c) The Issuer hereby covenants and agrees that it will enforce the obligations of the
Servicer under the Servicing Agreement and if a Servicer Default shall arise from the failure of
the Servicer to perform any of its duties or obligations under the Servicing Agreement with respect
to the Loans, the Issuer shall take all reasonable steps available to it to remedy such failure.

     (d) The Issuer hereby covenants and agrees that: (i) it shall promptly exercise its rights to
terminate the Servicer pursuant to Section 5.1 of the Servicing Agreement upon the
occurrence of a Servicer Default set forth in clause (a) of such section and (ii) prior to
exercising its rights to terminate the Servicer pursuant to Section 5.1 of the Servicing
Agreement upon the occurrence of a Servicer Default set forth in clause (b) of such section, obtain
the consent of the Noteholders representing a majority of the Outstanding Principal Balance of the
Notes. Within thirty (30) days after the giving of notice of termination to the Servicer of the
Servicer’s rights and powers pursuant to Section 6.2 of the Servicing Agreement, the Issuer
shall appoint a successor servicer (the “Successor Servicer”), such appointment to be reflected by
a written assumption in a form acceptable to the Indenture Trustee. In the event that a Successor
Servicer has not been appointed and accepted its appointment at the time when the previous Servicer
ceases to act as Servicer, the Indenture Trustee without further action shall automatically be
appointed the Successor Servicer. The Indenture Trustee may resign as the Servicer by giving
written notice of such resignation to the Issuer and in such event will be released from such
duties and obligations, such release not to be effective until the date a Successor Servicer enters
into a servicing agreement with the Issuer as provided below. Upon delivery of any such notice to
the Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under the Servicing
Agreement. Any Successor Servicer other than the Indenture Trustee shall: (i) be an established
financial institution having a net worth of not less than $50,000,000 and whose regular business
includes the servicing of receivables and (ii) enter into a servicing agreement with the Issuer
having substantially the same provisions as the provisions of the Servicing Agreement
applicable

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to the Servicer. If the Indenture Trustee shall succeed to the previous Servicer’s
duties as servicer of the Loans as provided herein, it shall do so in its individual capacity and
not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI
shall be inapplicable to the Indenture Trustee in its duties as the Successor Servicer and the
servicing of the Loans. In case the Indenture Trustee shall become the Successor Servicer under
the Servicing Agreement, the Indenture Trustee shall be entitled to appoint as Servicer any one of
its Affiliates; provided, that it shall be fully liable for the actions and omissions of
such Affiliate in its capacity as Successor Servicer.

     (e) Upon any termination of the Servicer’s rights and powers pursuant to the Servicing
Agreement, the Issuer shall promptly notify the Indenture Trustee and Moody’s. As soon as a
Successor Servicer is appointed, the Issuer shall notify the Indenture Trustee of such appointment,
specifying in such notice the name and address of such Successor Servicer.

     (f) The Issuer agrees that it will not, without the prior written consent of the Indenture
Trustee or the Noteholders of at least a majority of the Outstanding Principal Balance, amend,
modify, waive, supplement, terminate or surrender, or agree to any amendment, modification,
supplement, termination, waiver or surrender of, the terms of any Collateral (except to the extent
otherwise in accordance with the Credit and Collection Policies) or the Related Documents, or waive
timely performance or observance by the Purchaser under the Purchase and Sale Agreement, the
applicable Seller under the Sale Agreement or the Servicer under the Servicing Agreement;
provided, that, no such amendment or waiver shall: (i) increase or reduce in any
manner the amount of, or accelerate or delay the timing of, deposits required to be made to the
Trust Accounts and payments that are required to be made from the Trust Accounts for the benefit of
the Noteholders, or (ii) reduce the aforesaid percentage of the Notes that are required to consent
to any such amendment, in either case without the consent of the Noteholders of all the Outstanding
Notes. If any such amendment, modification, supplement or waiver shall be so consented to by the
Indenture Trustee or such Noteholders, the Issuer agrees, promptly following a request by the
Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense, such
agreements, instruments, consents and other documents as the Indenture Trustee may deem necessary
or appropriate in the circumstances.

     (g) Promptly following a request from the Indenture Trustee to do so and at the Issuer’s
expense, the Issuer shall take all such lawful action as the Indenture Trustee may request to
compel or secure the performance and observance by the Servicer of its obligations to the Issuer
under or in connection with the Servicing Agreement or by the Purchaser of its obligations to the
Issuer under or in connection with the Purchase and Sale Agreement in accordance with the terms
thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to
the Issuer under or in connection with the Servicing Agreement (or under or in connection with the
Purchase and Sale Agreement) to the extent and in the manner directed by the Indenture Trustee,
including the transmission of notices of default on the part of the Servicer or the Purchaser
thereunder and the institution of legal or administrative actions or proceedings to compel or
secure performance by the Servicer or the Purchaser of each of their obligations under the
Servicing Agreement or the Purchase and Sale Agreement.

     SECTION 3.8. Taxes. The Issuer shall pay all taxes when due and payable or levied
against its assets, properties or income, including any property that is part of the Collateral.

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     SECTION 3.9. Annual Statement as to Compliance. The Issuer will deliver to the
Indenture Trustee, on or before the 90th day after the end of each calendar year of the Issuer
(commencing with the calendar year 200[_]), an Officers’ Certificate, substantially in the form of
Exhibit B, stating that:

     (i) a review of the activities of the Issuer during such year and of
performance under this Indenture has been made under such Authorized Officers’
supervision; and

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

     SECTION 3.10. Annual Reports on Assessment of Compliance with Servicing Criteria.
On or before the 90th day after the end of each calendar year of the Issuer (commencing with the calendar year 20[_])
each Reporting Servicer will furnish, and shall cause each Servicing Function Participant with
which it has entered into a servicing relationship with respect to the Loans to furnish, to the
Indenture Trustee, a report on assessment of compliance with the Servicing Criteria that contains
(A) a statement by such Reporting Servicer of its responsibility for assessing compliance with the
Servicing Criteria applicable to it, (B) a statement that such Reporting Servicer used the
Servicing Criteria to assess compliance with the applicable Servicing Criteria, (C) such Reporting
Servicer’s assessment of compliance with the applicable Servicing Criteria as of and for the period
ending December 31, 20[_], including, if there has been any material instance of noncompliance with
the applicable servicing criteria, a discussion of each such failure and the nature and status
thereof, and (D) a statement that a registered public accounting firm has issued an attestation
report on such Reporting Servicer’s assessment of compliance with the applicable Servicing Criteria
as of and for such period; such attestation report shall be in accordance with Rules 1-02(a)(3) and
2-02(g) of Regulation S-X under the Securities Act and the Securities Exchange Act and shall be
provided as an exhibit to such Reporting Servicer’s report on assessment of compliance with the
Servicing Criteria.

     SECTION 3.11. Negative Covenants. So long as any Notes are Outstanding, the Issuer
shall not:

     (a) sell, transfer, exchange or otherwise dispose of any of the properties or assets of the
Issuer, including those included in the Collateral, except as expressly permitted by this Indenture
or Section 6.2 of the Sale Agreement;

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

     (c) engage in any business or activity other than in connection with, or relating to the
financing, purchasing, owning, selling and managing ownership of, the Loans and the interests in

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the property constituting the Collateral, the issuance of the Notes, and the specific
transactions contemplated by the Related Documents and activities incidental thereto;

     (d) issue, incur, assume, or allow to remain outstanding any indebtedness, or guaranty any
indebtedness or otherwise become liable, directly or indirectly for any Indebtedness of any Person,
other than the Notes or Swap Agreement, except as contemplated by this Indenture and the other
Related Documents;

     (e) seek dissolution or liquidation in whole or in part or reorganization of its business or
affairs;

     (f) (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 (other than the
Lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the
Collateral or any part thereof or any interest therein or the proceeds thereof or (C) permit the
Lien of this Indenture not to constitute a valid first priority (other than with respect to any tax
lien, mechanics’ lien or other lien not considered a Lien) “security interest” (as such term is
defined in Section 1-201 of Article 1 of the UCC) in the Collateral;

     (g) make any loan or advance to any Affiliate of the Issuer or to any other Person;

     (h) make any expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty);

     (i) remove the Managing Member without cause unless the Rating Agency Condition shall have
been satisfied in connection with such removal;

     (j) 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, 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, (iii) set aside
or otherwise segregate any amounts for any such purpose or (iv) make payments to or distributions
from the Collection Account, in each case, except in accordance with this Indenture and the Related
Documents;

     (k) convey or transfer any of its properties or assets, including those included in the
Collateral, to any Person, unless (i) the Person that acquires such property or assets shall: (A)
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 Noteholders and (B)
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 Securities Exchange Act in connection with the Notes and (ii) the
conditions in clause (l) below have been satisfied; and

     (l) consolidate or merge with or into any other Person or convey or transfer any of its
properties or assets, including those included in the Collateral, to any Person unless:

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     (i) such Person shall be a United States citizen or a Person organized and
existing under the laws of the United States of America or any State,

     (ii) such Person shall 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,

     (iii) immediately after giving effect to such transaction, no Default or Event
of Default shall have occurred and be continuing;

     (iv) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

     (v) the Issuer shall have received an Opinion of Counsel (and shall have
delivered copies thereof to the Indenture Trustee) to the effect that such
transaction will not have any material adverse tax consequence to the Issuer or any
Noteholder;

     (vi) any action that is necessary to maintain the Lien created by this
Indenture and the same priority thereof shall have been taken; and

     (vii) the Issuer shall have delivered to the Indenture Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation or merger
or such conveyance or transfer, as the case may be, and such supplemental indenture
comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with (including any filing required
by the Securities Exchange Act).

     SECTION 3.12. Successor or Transferee. (a) Upon any consolidation or merger of the
Issuer in accordance with Section 3.11(l), the Person formed by or surviving such
consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and
may exercise every right and power of and have every obligation 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 3.11(k), the Issuer 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 stating that the Issuer is
to be so released.

     SECTION 3.13. Notice of Events of Default. (a) The Issuer shall give the Indenture
Trustee and the Rating Agencies prompt written notice of each Event of Default hereunder, each
default on the part of the Servicer of its obligations under the Servicing Agreement (and, in the
case of a Servicer Default, shall specify in such notice the action, if any, the Issuer is taking
with respect to such default) each default on the part of the Purchaser of its obligations under
the

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Purchase and Sale Agreement and the occurrence of each Swap Event of Default and Swap
Termination Event.

     (b) The Issuer shall deliver to the Indenture Trustee, within five days after the Issuer
obtains actual knowledge thereof, written notice in the form of an Officers’ Certificate of any
event that, with the giving of notice or the lapse of time or both, would become an Event of
Default under clause (iii) of the definition thereof, its status and what action the Issuer
is taking or proposes to take with respect thereto.

     SECTION 3.14. 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.

ARTICLE IV

SATISFACTION AND DISCHARGE

     SECTION 4.1. Satisfaction and Discharge of Indenture. (a) This Indenture shall cease
to be of further effect 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) Section 3.2, (v) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7) and the obligations of the Indenture Trustee under
Sections 4.2 and 6.4) and (vi) the rights of Noteholders and Swap Counterparty as
beneficiary hereof with respect to the property so deposited with the Indenture Trustee payable to
all or any of them, and the Indenture Trustee, on demand of and at the expense of the Issuer, shall
execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect
to the Notes, when (A) all Notes theretofore authenticated and delivered to Noteholders (other than
(x) Notes that have been destroyed, lost or stolen and that have been replaced or paid as provided
in Section 2.5 and (y) Notes in respect of which funds have theretofore been deposited in
trust or segregated and held in trust by the Issuer as provided in Section 6.16(i)) have
been delivered to the Indenture Trustee for cancellation and (B) the Issuer has paid or caused to
be paid or provided for (to the satisfaction of the Person entitled thereto) all other sums due and
payable with respect to the Swap Agreement; provided that the Issuer has delivered to the Indenture
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have
been complied with.

     (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Issuer to the Indenture Trustee under Section 6.7, and if funds shall have been deposited
with the Indenture Trustee pursuant to Section 4.1(a)(A)(y), the obligations of the
Indenture Trustee under Sections 4.2 and 6.17 (in its capacity as Paying Agent)
shall survive.

     (c) The Indenture Trustee shall provide prompt written notice to each Rating Agency of any
satisfaction and discharge of this Indenture pursuant to this Article IV.

     SECTION 4.2. Application of Trust Funds. All funds deposited with the Indenture
Trustee pursuant to Section 4.1 shall be held in trust and (a) applied by it, in accordance
with the provisions of the Notes and this Indenture, to the payment, either directly or through any
Paying

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Agent, as the Indenture Trustee may determine, to the Noteholders of the particular Notes
for the payment or redemption of which such funds have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest or (b) applied by it in
accordance with the provisions of this Indenture to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Swap Counterparty any Swap Payments
Outgoing or Swap Termination Payments due; but such funds need not be segregated from other funds
except to the extent required herein or as required by law.

ARTICLE V

REMEDIES

     SECTION 5.1. Events of Default. “Event of Default”, wherever used herein, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (i) default in the payment of any interest on any Note when the same becomes
due and payable, and such default shall continue for a period of five days;

     (ii) default in the payment of the principal of any Note at the Maturity Date;

     (iii) default in the observance or performance of any covenant or agreement of
the Issuer made in this Indenture (other than a covenant or agreement a default in
the observance or performance of which is elsewhere in this Section specifically
dealt with), or any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the time when
the same shall have been made, and such default shall continue or not be cured, or
the circumstance or condition in respect of which such misrepresentation or warranty
was incorrect shall not have been eliminated or otherwise cured, for a period of 30
days (or for such longer period, not in excess of 90 days, as may be reasonably
necessary to remedy such default if the Issuer delivers an Officer’s Certificate to
the Indenture Trustee to the effect that the Issuer has commenced, or will promptly
commence and diligently pursue, all reasonable efforts to remedy such default and
such default can be remedied in 90 days or less) after there shall have been given,
by registered or certified mail, to the Issuer by the Indenture Trustee or to the
Issuer and the Indenture Trustee by the Noteholders of at least 25% of the
Outstanding Principal Balance of the Notes,
a written notice specifying such default or incorrect representation or
warranty and requiring it to be remedied and stating that such notice is a notice of
Default hereunder; or

     (iv) any Insolvency Event shall occur with respect to the Issuer.

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     SECTION 5.2. Remedies. (a) If an Event of Default should occur and be continuing,
the Indenture Trustee may, and, at the direction (which direction shall be in writing) of the
Noteholders, pursuant to Section 5.8 or, in the case of clause (viii) below, at the
direction (which direction shall be in writing) of not less than 66-2/3% of the Outstanding
Principal Balance of the Notes, the Indenture Trustee shall (subject to Section 6.2(a)(v)),
do one or more of the following:

     (i) declare all the Notes to be immediately due and payable, by a notice in
writing to the Issuer, and upon any such declaration the Outstanding Principal
Balance, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable;

     (ii) in the case of an Event of Default described in Section 5.1(i) or
(ii), demand the Issuer to pay to the Indenture Trustee, for the benefit of
the Noteholders, the whole amount then due and payable on the Notes for principal
and interest, with interest upon the overdue principal at the applicable interest
rate, and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest, at the applicable interest rate,
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;

     (iii) 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 amounts adjudged due;

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

     (v) exercise any remedies of a secured party under the UCC as in effect in the
State of New York and take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee, the Swap Counterparty and the
Noteholders;

     (vi) subject to Section 5.14, sell the Collateral, or any portion
thereof or rights or interest therein, at one or more public or private sales called
and conducted in any manner permitted by law;

     (vii) make demand upon the Issuer, by written notice, that the Issuer deliver
to the Indenture Trustee all Loan Files (in which event the Issuer covenants to make
demand upon the Servicer to so deliver such Loan Files); and

     (viii) exercise all rights, remedies, powers, privileges and claims of the
Issuer against the Servicer or the Purchaser under or in connection with the
Servicing Agreement and the Purchase and Sale Agreement, including the right or
power to terminate or to take any action to compel or secure performance or
observance by the Servicer or the Purchaser of each of their obligations to the
Issuer thereunder and to give any consent, request, notice, direction, approval,

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extension or waiver under the Servicing Agreement or the Purchase and Sale
Agreement, and any right of the Issuer to take such action shall be suspended.

     (b) At any time after a declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the amount due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Noteholders of Notes representing not less than
a majority of the Outstanding Principal Balance, by written notice to the Issuer and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

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

     (A) all payments of principal of and interest on all Notes including any
payments payable to the Swap Counterparty under the Swap Agreement and all other
amounts that would then be due hereunder or upon such Notes if the Event of Default
giving rise to such acceleration had not occurred; and

     (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 5.9.

     No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereto.

     (c) In case there shall be pending, relative to the Issuer or any Person having or claiming an
ownership interest in the Collateral, Proceedings under Title 11 of the United States Code or any
other applicable Federal or State bankruptcy, insolvency or other similar law, or in case a
receiver, assignee, 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 Person, or in case of any other comparable judicial Proceedings relative to the Issuer, or to
the creditors or property of the Issuer, the Indenture Trustee (irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to
this Section) shall be entitled and empowered to, and, at the direction (which direction shall be
in writing) of the Noteholders pursuant to Section 5.8 by intervention in such proceedings
or otherwise:

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

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predecessor
Indenture Trustee, except as a result of negligence or bad faith) and of the
Noteholders allowed in such Proceedings;

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

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

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

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

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

     (e) All rights of action and of asserting claims under this Indenture, or under any of the
Notes or the Swap Agreement, 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 and
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
benefit of the Noteholders and the Swap Counterparty as provided in this Indenture.

     (f) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving
the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a
party), the Indenture Trustee shall be held to represent all the Noteholders and the

39

 

Swap
Counterparty, and it shall not be necessary to make any Noteholder or the Swap Counterparty a party
to any such Proceedings.

     SECTION 5.3. [Reserved].

     SECTION 5.4. Unconditional Rights of Noteholders To Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, each Noteholder shall have the right, which
is absolute and unconditional, to receive payment of the principal of and interest, if any, on such
Note on or after the respective due dates thereof expressed in such Note or in this Indenture (or,
in the case of redemption, on or after the Redemption Date) and to institute suit for the
enforcement of any such payment, and such right shall not be impaired without the consent of such
Noteholder.

     SECTION 5.5. 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 5.6. Rights and Remedies Cumulative. Except as otherwise provided with
respect to the replacement or payment of mutilated, destroyed, lost, or stolen Notes in Section
2.5(d), 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 5.7. Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee or any Noteholder to exercise any right or remedy accruing upon any Default or Event of
Default shall impair any such right or remedy or constitute a waiver of any such Default or Event
of Default or an acquiescence therein. Every right and remedy given by this Article or by law to
the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may
be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

     SECTION 5.8. Control by Noteholders. (a) Except as otherwise expressly provided in
this Indenture, the Noteholders of not less than a majority of the Outstanding Principal Balance of
the Notes shall have the right to (i) direct the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee with respect to the Notes, (ii)
accelerate the Notes pursuant to Section 5.2 after an Event of Default or (iii) exercise
any trust or power conferred on the Indenture Trustee; provided, that such direction shall
not be in conflict with any rule of law or with this Indenture; provided, further,
that, subject to Section 6.1, the Indenture Trustee need not take any action that it
determines might involve it in liability on the part of the Indenture Trustee for which the
Indenture Trustee is not indemnified to its satisfaction

40

 

or might materially adversely affect the
rights of any Noteholder(s) not consenting to such action. The Indenture Trustee may take any
other action deemed proper by the Indenture Trustee that is not inconsistent with such direction.

     (b) No Noteholder shall have any right to institute any Proceeding, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

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

     (ii) the Noteholder(s) of not less than 66-2/3% of the Outstanding Principal
Balance of the Notes have made written request to the Indenture Trustee to institute
such Proceeding in respect of such Event of Default in its own name as Indenture
Trustee hereunder;

     (iii) such Noteholder(s) have offered to the Indenture Trustee indemnity
reasonably acceptable to the Indenture Trustee against the costs, expenses and
liabilities to be incurred in complying with such request;

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

     (v) so long as any of the Notes remain Outstanding, no direction by other
Noteholders inconsistent with such written request has been given to the Indenture
Trustee during such 60-day period by the Noteholders of 66-2/3% of the Outstanding
Principal Balance of the Notes;

     (vi) with respect to any bankruptcy reorganization, arrangement, insolvency or
liquidation proceedings, or similar proceedings under any United States Federal or
State bankruptcy or similar law, the Noteholders representing not less than 66-2/3%
of the Outstanding Principal Balance of each Class of Notes that remains Outstanding
has consented thereto in writing; provided, that the foregoing shall not in
any way limit the Noteholder’s rights to pursue any other creditor rights or
remedies that the Noteholders may have for claims against the Issuer,

it being understood and intended that no one or more Noteholder(s) 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 Noteholder or to obtain or to seek to obtain priority or
preference over any other Noteholder(s) or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all the other Noteholders.
Nothing in this Section shall be construed as limiting the rights of otherwise qualified
Noteholders to petition a court for the removal of an Indenture Trustee pursuant to Section
6.8 hereof.

     In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, each representing less than a majority of the

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Outstanding Principal Balance of the Notes, the Indenture Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Indenture.

     SECTION 5.9. Waiver of Past Defaults. Prior to the time a judgment or decree for
payment of amounts due has been obtained as described in Section 5.2, the Noteholders of
not less than a majority of the Outstanding Principal Balance of the Notes may waive any past
Default or Event of Default and its consequences except a Default: (a) in payment of principal of
or interest on any of the Notes or (b) in respect of a covenant or provision hereof that cannot be
modified or amended without the consent of each Noteholder. In the case of any such waiver, the
Issuer, the Indenture Trustee and the Noteholders shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereto.

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

     SECTION 5.10. Undertaking for Costs. All parties to this Indenture agree (and each
Noteholder by such Noteholder’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 attorney’s fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section shall not apply to: (a) any suit instituted by the Indenture Trustee, (b) any suit
instituted by any Noteholder(s) holding in the aggregate more than 10% of the Outstanding Principal
Balance of the Notes or (c) any suit instituted by any Noteholder for the enforcement of the
payment of principal of or interest on any Note on or after the respective due dates expressed in
such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date).

     SECTION 5.11. Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Indenture Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

     SECTION 5.12. Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the Lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be

42

 

impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Collateral or upon any of the assets of the
Issuer. Any funds or other property collected by the Indenture Trustee shall be applied in
accordance with Section 8.3(c).

     SECTION 5.13. [Reserved]

     SECTION 5.14. Sale of Collateral. (a) The power to effect any sale of any portion of
the Collateral described pursuant to Section 5.2 shall not be exhausted by any one or more
sales as to any portion of the Collateral remaining unsold, but shall continue unimpaired until the
entire Collateral shall have been sold or all amounts due under this Indenture have been paid in
full. The Indenture Trustee may from time to time, upon directions in accordance with Section
5.8, postpone any public sale by public announcement made at the time and place of such sale.
For any public sale of the Collateral, the Indenture Trustee shall have provided each Noteholder
and Moody’s with notice of such sale at least two weeks in advance of such sale which notice shall
specify the date, time and location of such sale.

     (b) To the extent permitted by applicable law, the Indenture Trustee shall not in any private
sell to a third party the Collateral, or any portion thereof unless,

     (i) the holders of not less than 66-2/3% of the then Outstanding Principal
Balance of the Notes consent to or direct the Indenture Trustee in writing to make
such sale; or

     (ii) the proceeds of such sale would be not less than the sum of all amounts
due under this Indenture.

     (c) In connection with a sale of all or any portion of the Collateral:

     (i) any one or more Noteholders 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 any Noteholder
may, in paying the purchase price therefore, deliver in lieu of cash any Outstanding
Notes or claims for interest thereon for credit in the amount that shall, upon
distribution of the net proceeds of such sale, be payable thereon, and the Notes, in
case the amounts so payable thereon shall be less than the amount due thereon, shall
be returned to the Noteholders after being appropriately stamped to show such
partial payment;

     (ii) the Indenture Trustee is hereby irrevocably appointed the agent and
attorney-in-fact of the Issuer to transfer and convey any portion of the Collateral
in connection with a sale thereof, and to take all action necessary to effect such
sale;

     (iii) the Indenture Trustee shall execute and deliver an appropriate instrument
of conveyance transferring, without representation, warranty or recourse, any
portion of the Collateral in connection with a sale thereof;

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     (iv) 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 funds; and

     (v) the Indenture Trustee may not sell or otherwise liquidate the Collateral
following an Event of Default, other than an Event of Default described in
Sections 5.1(i) or (ii), unless the applicable conditions in this
Section 5.14 are met and: (A) all the Noteholders direct in writing a sale
or liquidation of the Collateral, (B)(i) the Indenture Trustee determines, based on
a certification of the Issuer, that the anticipated proceeds of such sale or
liquidation (after deducting the reasonable expenses of such sale or liquidation),
based on a certificate of the Issuer, would be sufficient to discharge in full all
amounts due and unpaid upon such Notes and other amounts payable pursuant to
Sections 8.3(c) and (ii) the Noteholders acting unanimously do not direct in
writing the Indenture Trustee to the contrary within fifteen days of receipt of
notice of such determination by the Indenture Trustee or (C) the Indenture Trustee
determines that the Collateral will not continue to provide sufficient funds for the
payment of principal of and interest on the Notes as they would have become due if
the Notes had not been declared due and payable, and the Indenture Trustee obtains
the consent of Noteholders of 66-2/3% of the Outstanding Principal Balance of the
Notes. In determining whether to sell or hold the Collateral, the Indenture Trustee
may obtain and rely upon an opinion of any Independent investment banking or
accounting firm of national reputation in the United States as to the feasibility of
such proposed action and as to the sufficiency of the Collateral to discharge in
full all amounts then due and unpaid upon the Notes for principal and interest.

     (d) The method, manner, time, place and terms of any sale of all or any portion of the
Collateral shall be commercially reasonable.

     (e) The provisions of this Section shall not be construed to restrict the ability of the
Indenture Trustee to exercise any rights and powers against the Issuer or the Collateral that are
vested in the Indenture Trustee by this Indenture, including, without limitation, the power of the
Indenture Trustee to proceed against the collateral subject to the lien of this Indenture and to
institute judicial proceedings for the collection of any deficiency remaining thereafter.

     (f) The purchase price received by the Indenture Trustee in respect of any sale made in
accordance with this Section shall be deemed conclusive and binding on the parties hereto and the
Noteholders and the proceeds of such sale shall be applied in accordance with Section
8.3(c).

ARTICLE VI

THE INDENTURE TRUSTEE

     SECTION 6.1. Duties of the Indenture Trustee. (a) If an Event of Default has
occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it
by this Indenture and use the same degree of care and skill in their exercise as a prudent person
would exercise or use under the circumstances in the conduct of such person’s own affairs.

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     (b) Except during the continuance of an Event of Default actually known to a Responsible
Officer:

     (i) the Indenture Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Indenture Trustee; and

     (ii) in the absence of bad faith on its part, the Indenture Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the Indenture
Trustee and conforming to the requirements of this Indenture; provided,
however, in the case of any such certificates or opinions that by any
provision hereof are specifically required to be furnished to the Indenture Trustee,
the Indenture Trustee shall examine the certificates and opinions to determine
whether or not they conform to the requirements of this Indenture.

     (c) No provision of this Indenture shall be construed to relieve the Indenture Trustee from
liability for its own grossly negligent action, its own grossly negligent failure to act, or its
own willful misconduct, except that:

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

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

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

     (iv) the Indenture Trustee shall not be charged with knowledge of an Event of
Default or Servicer Default unless a Responsible Officer obtains actual knowledge of
such event or the Indenture Trustee receives written notice of such event from the
Issuer or Note Owners owning Notes aggregating not less than 10% of the Outstanding
Principal Balance of the Notes; and

     (v) the Indenture Trustee shall have no duty to monitor the performance of the
Issuer or its agents, nor shall it have any liability in connection with malfeasance
or nonfeasance by the Issuer. The Indenture Trustee shall have
no liability in connection with compliance of the Issuer or its agents with
statutory or regulatory requirements related to the Loans. The Indenture Trustee
shall not make or be deemed to have made any representations or warranties with
respect to the Loans or the validity or sufficiency of any assignment of the Loans
to the Collateral or the Indenture Trustee.

     (d) Every provision of this Indenture that in any way relates to the Indenture Trustee is
subject to clauses (a), (b), (c) and (g) of this Section
6.1.

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     (e) The Indenture Trustee shall not be liable for interest on any amounts received by it
except as the Indenture Trustee may agree in writing with the Issuer.

     (f) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers if it shall have reasonable grounds to believe
that repayments of such funds or adequate indemnity satisfactory to it against any loss, liability
or expense is not reasonably assured to it.

     (g) Whether or not therein expressly so provided, 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 this Section and the TIA.

     (h) The Indenture Trustee:

     (i) shall at all times be a “participant” (as such term is defined in the
Federal Book-Entry Regulations) in the Federal Reserve System;

     (ii) shall, to the extent that any of the Trust Accounts is a Securities
Account, comply with all of the obligations of a Securities Intermediary under
Article 8 of the UCC with respect thereto; and

     (iii) agrees that each item of property including cash received by it for
deposit in or credit to a Trust Account, and each investment made by it pursuant to
Section 8.6 shall constitute and be treated by it as a Financial Asset.

     (i) No person other than the Indenture Trustee as provided herein and the Custodian as
approved in the Custody and Control Agreement, shall have “control” (as such term is defined in
Section 8-106 of Article 8 of the UCC and Section 9-401 of Article 9 of the UCC) of any of the
Trust Accounts.

     SECTION 6.2. Rights of Indenture Trustee. (a) Subject to the provisions of
Section 6.1:

     (i) the Indenture Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, note,
debenture, other evidence of indebtedness or other paper or document believed by it
to be genuine and to have been signed or presented by the proper
party or parties (and the Indenture Trustee need not investigate any fact or
matter stated in the document);

     (ii) any request or direction or action of the Issuer mentioned herein shall be
sufficiently evidenced by an Issuer Order;

     (iii) whenever in the administration of this Indenture the Indenture Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Indenture Trustee (unless

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other
evidence be herein specifically prescribed) may, in the absence of bad faith on its
part, conclusively rely upon an Officers’ Certificate;

     (iv) the Indenture Trustee may consult with counsel as to legal matters and the
advice or opinion of any such counsel selected by the Indenture Trustee with respect
to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon;

     (v) the Indenture Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of any
of the Noteholders pursuant to this Indenture, unless such Noteholders shall have
offered to the Trustee security or indemnity satisfactory to it against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

     (vi) the Indenture Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, note, debenture, other
evidence of indebtedness, or other paper or document, but the Indenture Trustee, in
its discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if the Indenture Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Issuer, personally or by agent or attorney;

     (vii) the Indenture Trustee 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 and the Indenture Trustee shall not be responsible for any
misconduct or negligence on the part of any agent, attorney, custodian or nominee
appointed with due care by it hereunder;

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

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

     (x) the Indenture Trustee shall not be bound to ascertain or inquire as to the
performance or observance of any covenants, conditions or agreements on the part of
the Issuer;

     (xi) the permissive rights of the Indenture Trustee to do things enumerated in
this Indenture shall not be construed as a duty and the Indenture Trustee shall not
be answerable for other than its gross negligence or willful default;

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     (xii) in the event that the Indenture Trustee is also acting as Paying Agent or
Note Registrar hereunder, the rights and protections afforded to the Indenture
Trustee pursuant to this Article VI shall also be afforded to such Paying
Agent or Note Registrar; and

     (xiii) in no event shall the Indenture Trustee be liable for special, indirect
or consequential damages.

     (b) The recitals contained herein and in the Notes, except the Indenture Trustee’s
certificates of authentication, shall be taken as the statements of the Issuer, and the Indenture
Trustee assumes no responsibility for their correctness. The Indenture Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Notes, except to the
extent provided by the Indenture Trustee’s certificate of authentication on the Notes. The
Indenture Trustee shall not be accountable for the use or application by the Issuer of the proceeds
of the Notes.

     SECTION 6.3. Individual Rights of the Indenture Trustee. The Indenture Trustee shall
not, in its individual capacity, but may in a fiduciary capacity, become the owner of Notes or
otherwise extend credit to the Issuer. The Indenture Trustee may otherwise deal with the Issuer or
its Affiliates with the same rights it would have if it were not the Indenture Trustee. Any Paying
Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. However,
the Indenture Trustee must comply with Sections 6.11 and 6.13.

     SECTION 6.4. Funds Held in Trust. Funds and investments and other property held by
the Indenture Trustee shall be segregated and held in one or more Trust Accounts held with the
Indenture Trustee hereunder.

     SECTION 6.5. Notice of Defaults. If a Default occurs and is continuing and is
actually known to a Responsible Officer, the Indenture Trustee shall mail to each Noteholder notice
of the Default within 90 days after it occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the mandatory redemption
provisions of such 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 interests of Noteholders.

     SECTION 6.6. [Reserved]

     SECTION 6.7. Compensation and Indemnity. The Issuer shall pay to the Indenture
Trustee from time to time reasonable compensation for its services hereunder as the Issuer and the
Indenture Trustee may agree in writing (which compensation shall not be limited by any law on
compensation of a trustee of an express trust). The Issuer shall reimburse the Indenture Trustee
upon its request, for all reasonable out-of-pocket expenses incurred or made by it, including costs
of collection, in addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents,
counsel, accountants and experts. The Issuer shall indemnify the Indenture Trustee and its
officers, directors, employees and agents and hold them harmless against any and all loss,
liability or expense (including attorneys’ fees and disbursements)

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incurred by them in connection
with the administration of this trust and the performance of its duties hereunder, including the
costs and expenses of defending themselves against any claim or liability in connection with the
exercise or performance of their duties hereunder. The Indenture Trustee shall notify the Issuer
with a copy to the Servicer, promptly of any claim for which it may seek indemnity. Failure by the
Indenture Trustee to so notify the Issuer shall not relieve the Issuer of its obligations
hereunder. The Issuer shall defend the claim and the Indenture Trustee may have separate counsel
and the Issuer shall, or shall cause the Servicer to, pay the fees and expenses of such counsel.
The Issuer need not reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct,
negligence or bad faith.

     The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall
survive the discharge of this Indenture. When the Indenture Trustee incurs expenses after the
occurrence of a Default specified in Section 5.1(iv), 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.

     The Indenture Trustee agrees not to institute (alone or in conjunction with any other Person)
against the Issuer any bankruptcy, reorganization, arrangement, insolvency, moratorium or
liquidation proceedings or other proceedings under U.S. federal or State bankruptcy or similar laws
on account of the non-payment to the Indenture Trustee of any amounts provided by this Section
6.7, until after the balance of each Note is reduced to zero and the expiration of a period
equal to the longest applicable preference period under such bankruptcy laws and other applicable
laws plus 366 days following such payment; provided, that nothing in this paragraph shall
preclude, or be deemed to estop, the Indenture Trustee from taking any action prior to the
expiration of the applicable preference period in any involuntary insolvency proceeding filed or
commenced against the Issuer by a Person other than the Indenture Trustee or to otherwise limit any
claims that the Indenture Trustee may have against the Issuer. The foregoing shall not limit the
ability of the Indenture Trustee to take any action in accordance with Section 5.2.

     SECTION 6.8. Resignation and Removal; Appointment of Successor. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture Trustee shall become
effective until the acceptance of appointment by the successor Indenture Trustee pursuant to this
Section. The Indenture Trustee may resign at any time by so notifying the Issuer in writing. The
Noteholders of not less than 66-2/3% of the Outstanding Principal Balance of the
Notes may remove the Indenture Trustee by so notifying the Indenture Trustee in writing and
may appoint a successor Indenture Trustee. The Issuer shall remove the Indenture Trustee if:

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

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

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

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

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

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

     If a successor Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the
Noteholders of not less than a majority of the Outstanding Principal Balance of the Notes may
petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee.

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

     Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the
Issuer’s obligations under Section 6.7 shall continue for the benefit of the retiring
Indenture Trustee. The retiring Indenture Trustee shall have no liability for any act or omission
by any successor Trustee.

     SECTION 6.9. Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all 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. The
Indenture Trustee shall provide the Rating Agencies and the Issuer prior written notice of any such
transaction; provided, that such corporation or banking association shall be otherwise
qualified and eligible under Section 6.11.

     In case at the time such successor(s) by merger, conversion or consolidation to the Indenture
Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have
been authenticated but not delivered, any such successor to the Indenture Trustee may adopt
the certificate of authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been authenticated, any
successor to the Indenture Trustee may authenticate such Notes either in the name of any
predecessor trustee hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates of authentication shall have the full force and effect to the same
extent given to the certificate of authentication of the Indenture Trustee anywhere in the Notes or
in this Indenture.

     SECTION 6.10. Appointment of Co-Trustee or Separate Trustee. (a) Notwithstanding any
other provisions of this Indenture, at any time, for the purpose of meeting any legal requirement
of any jurisdiction in which any part of the Collateral may at the time be located, the

50

 

Indenture
Trustee shall have the power and may execute and deliver all instruments to appoint one or more
Person(s) to act as co-trustee(s), or separate trustee(s) for the benefit of the Noteholders, and
to vest in such Person(s), in such capacity all rights hereunder with respect to the Collateral, or
any part thereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Indenture Trustee may consider necessary or desirable. No
co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a
successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any
co-trustee or separate trustee shall be required under Section 6.8.

     (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(s) are to be
performed, the Indenture Trustee shall be incompetent or unqualified to perform such
act(s), in which event such rights, powers, duties and obligations (including the
holding of rights with respect to the Collateral or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Indenture Trustee;

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

     (iii) the Indenture Trustee may at any time accept the resignation of or
remove, in its sole discretion, 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 Agreement 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 as its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Agreement on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be exercised by the

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Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor
trustee.

     (e) The Indenture Trustee shall have no obligation to determine whether a co-trustee or
separate trustee is legally required in any jurisdiction in which any part of the Collateral may be
located.

     SECTION 6.11. Eligibility; Disqualification. The Indenture Trustee shall at all
times satisfy the requirements of TIA § 310(a) and Section 26(a)(1) of the Investment Company Act
of 1940, as amended. There shall at all times be an Indenture Trustee hereunder which shall (a) be
a corporation organized and doing business under the laws of the United States of America, any
state thereof or the District of Columbia, authorized under such laws to exercise corporate trust
powers; (b) have a combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition; (c) be subject to supervision or examination by
federal or state authority; and (d) at the time of appointment, shall have a long term senior,
unsecured debt rating of “Baa3” or better by Moody’s (or, if not rated by Moody’s, a comparable
rating by another statistical rating agency). The Indenture Trustee shall comply with TIA §
310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9);
provided, however, that there shall be excluded from the operation of TIA §
310(b)(1) any indenture(s) under which other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in TIA § 310(b)(1) are met.

     If such corporation publishes reports of condition at least annually, pursuant to law or to
the requirements of said supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time the
Indenture Trustee shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified in this Article.

     This Indenture shall always have a Trustee who satisfies the requirements of Section 310(a)(1)
of the TIA. The Trustee is subject to the provisions of Section 310(b) of the TIA regarding
disqualification of a trustee upon acquiring any conflicting interest.

     If a default occurs under this Indenture, and the Indenture Trustee is deemed to have a
conflicting interest as a result of acting as trustee for each of the Class A Notes, the Class B
Notes and the Class C Notes, a successor Indenture Trustee shall be appointed for one or all of
such Classes, so that there will be separate Indenture Trustees for the Class A Notes, the Class B
Notes and the Class C Notes. No such event shall alter the voting rights of the Class A
Noteholders, Class B Noteholders or Class C Noteholders under this Indenture or any other Related
Document. However, so long as any amounts remain unpaid with respect to the Class A Notes, only
the Indenture Trustee for the Class A Noteholders will have the right to exercise remedies under
this Indenture (but subject to the express provisions of Section 5.2 and to the right of
the Class B Noteholders and Class C Noteholders to receive their share of any proceeds of
enforcement) and thereafter so long as any amounts remain unpaid with respect to the Class B Notes,
only the Indenture Trustee for the Class B Noteholders will have the right to exercise remedies
under the Indenture (but subject to the right of the Class C Noteholders to receive their share of
any proceeds of enforcement). Upon repayment of the Class A Notes in full, all rights

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to exercise remedies under this Indenture will transfer to the Indenture Trustee for the
Class B Notes and, upon payment of the Class B Notes in full, all rights to exercise remedies under
this Indenture will transfer to the Indenture Trustee for the Class C Notes.

     In the case of the appointment hereunder of a successor Indenture Trustee with respect to any
Class of Notes, the Issuer, the retiring Indenture Trustee and the successor Indenture Trustee with
respect to such Class of Notes shall execute and deliver an indenture supplemental hereto wherein
the successor Indenture Trustee shall accept such appointment and which (i) shall contain such
provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, the
successor Indenture Trustee all the rights, powers, trusts and duties of the retiring Indenture
Trustee with respect to the Notes of the Class to which the appointment of such successor Indenture
Trustee relates, (ii) if the retiring Indenture Trustee is not retiring with respect to all Classes
of Notes, shall contain such provisions as shall be deemed necessary or desirable to confirm that
all the rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the
Notes of each Class as to which the retiring Indenture Trustee is not retiring shall continue to be
vested in the retiring Indenture Trustee, and (iii) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Indenture Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Indenture Trustees co-trustees of the same trust and
that each such Indenture Trustee shall be trustee of a trust or trusts hereunder separate and apart
from any trust or trusts hereunder administered by any other such Indenture Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or removal of the retiring
Indenture Trustee shall become effective to the extent provided therein.

     SECTION 6.12. Acceptance by Indenture Trustee. The Indenture Trustee hereby
acknowledges the grant of a Lien on the Collateral and the receipt of a Lien on the assets
constituting the Collateral granted by the Issuer hereunder and declares that the Indenture
Trustee, through a custodian, will hold such Lien on the Collateral granted by the Issuer in trust,
for the use and benefit of all Noteholders subject to the terms and provisions hereof.

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

     SECTION 6.14. Reports by Indenture Trustee to Noteholders. To the extent required by
the TIA, within 60 days after each December 20 (beginning in 200[_]), following the date of this
Indenture, the Indenture Trustee shall mail to the Noteholders a brief report dated as of such
reporting date that complies with TIA Section 313(a), if such a report is required pursuant to TIA
Section 313(a). The Indenture Trustee also shall comply with TIA Section 313(b). The Indenture
Trustee shall also transmit by mail all reports as required by TIA Section 313(c).

     A copy of each such report required under TIA Section 313 shall, at the time of such
transmission to Noteholders be filed with the Commission and with each stock exchange or other
market system on which the Notes are listed. The Issuer shall notify the Indenture Trustee in
writing if the Notes become listed on any stock exchange or market trading system.

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     SECTION 6.15. Representations and Warranties. The Indenture Trustee hereby represents
that:

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

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

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

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

     SECTION 6.16. The Paying Agent. The Issuer hereby appoints the Indenture Trustee as
the initial Paying Agent. All payments of amounts due and payable with respect to any Notes that
are to be made from amounts withdrawn from the Note Distribution Account pursuant to Section
8.3(b) or (c) or from the Collection Account pursuant to Section 8.3(a) shall
be made on behalf of the Issuer by the Paying Agent.

     The Paying Agent hereby agrees that subject to the provisions of this Section, it shall:

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

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

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

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

          (v) comply with all requirements of the Code and any applicable State law with
respect to the withholding from any payments made by it on any Notes of any
applicable withholding taxes imposed thereon and with respect to any applicable
reporting requirements in connection therewith.

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

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

     Each Paying Agent (other than the initial Paying Agent) shall be appointed by Issuer Order
with written notice thereof to the Indenture Trustee. Any Paying Agent appointed by the Issuer
shall be a Person who would be eligible to be Indenture Trustee hereunder as provided in
Section 6.11. The Issuer shall not appoint any Paying Agent (other than the Indenture
Trustee) which is not, at the time of such appointment, a depository institution or trust company,
including the Indenture Trustee, that (a) is incorporated under the laws of the United States of
America or any State thereof, (b) is subject to supervision and examination by federal or state

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banking authorities and (c) has outstanding unsecured commercial paper or other short-term
unsecured debt obligations that are rated “A-1+” by S&P or “Prime-1” by Moody’s (or its
equivalent).

     SECTION 6.17. Repayment of Amounts Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all funds then held by any
Paying Agent other than the Indenture Trustee under this Indenture with respect to such Notes
shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 4.1, and thereupon such Paying Agent shall be released from all further
liability with respect to such funds.

     SECTION 6.18. Provisions of Swap Agreement. The Issuer has entered into the Swap
Agreement with the Swap Counterparty, in a form satisfactory to the Rating Agencies. The Issuer
may, from time to time, enter into one or more replacement Swap Agreement in the event that the
Swap Agreement is terminated prior to its scheduled expiration pursuant to a Swap Event of Default
or a Swap Termination Event.

     Upon the occurrence of (i) any Swap Event of Default arising from any action taken, or failure
to act, by the Swap Counterparty, or (ii) any Swap Termination Event (except as described in the
following sentence) with respect to which the Swap Counterparty is an Affected Party (as defined in
the Swap Agreement), the Indenture Trustee may and will, at the direction of the holders of at
least 51% of the Outstanding Principal Balance of the Class A Notes, the Class B Notes and the
Class C Notes, acting together as a single Class, direct the Issuer to designate an Early
Termination Date (as defined in the Swap Agreement) with respect to the Swap Agreement and the
Issuer shall upon such direction designate an Early Termination Date. If a Swap Termination Event
occurs as a result of the insolvency or bankruptcy of the Swap Counterparty, the Indenture Trustee
will direct the Issuer to designate an Early Termination Date and the Issuer shall upon such
direction designate an Early Termination Date pursuant to the Swap Agreement.

     The Swap Counterparty shall not have any voting rights or rights to exercise any remedies
under this Indenture until after the Outstanding Principal Balance of the Notes has been reduced to
zero and the Noteholders have been paid all amounts owed to them under this Indenture. After the
Outstanding Principal Balance of the Notes has been reduced to zero and the Noteholders have been
paid all amounts owed to them under this Indenture, the Swap Counterparty shall have all of the
rights and obligations, including all voting rights, of the Noteholders set forth in this
Indenture. Such voting rights shall be exercisable at any time by the Swap Counterparty based upon
the notional amount outstanding under the Swap Agreement at such time.

ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS

     SECTION 7.1. Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee: (a) not more than five
Business Days after the earlier of: (i) each Record Date and (ii) three months after the last
Record Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and
addresses of the Noteholders as of such Record Date, and (b) at such other

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times as the Indenture Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not more than 10 days
prior to the time such list is furnished; provided, however, that so long as the
Indenture Trustee is the Note Registrar, no such list shall be required to be furnished.

     SECTION 7.2. Preservation of Information; Communications to Noteholders. (a) The
Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of the Noteholders contained in the most recent list furnished to the Indenture Trustee
as provided in Section 7.1 and the names and addresses of Noteholders received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in Section 7.1 upon receipt of a new list so furnished.

     (b) Three or more Noteholders, or one or more Noteholder(s) evidencing at least 25% of the
Outstanding Principal Balance of the Notes, may communicate pursuant to TIA § 312(b) with other
Noteholders with respect to their rights under this Indenture or under the Notes.

     (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA
§ 312(c).

     SECTION 7.3. Reports by Issuer. (a) The Issuer shall:

          (i) file with the Indenture Trustee, within 15 days after the Issuer is
required to file the same with the Commission, copies of the annual reports and of
the information, documents and other reports (or copies of such portions of any of
the foregoing as the Commission may from time to time by rules and regulations
prescribe) that the Issuer may be required to file with the Commission pursuant to
Section 13 or 15(d) of the Securities Exchange Act or, if the Issuer is not required
to file with the Commission information, documents or reports pursuant to either
Section 13 or Section 15(d) of the Securities Exchange Act, then the Issuer will
file with the Indenture Trustee and with the Commission, in accordance with rules
and regulations prescribed by the Commission, such of the supplementary and period
information, documents and reports required pursuant to the Securities Exchange Act
as may be prescribed in such rules and regulations;

          (ii) file with the Commission, in accordance with the rules and regulations
prescribed from time to time by the Commission, such additional information,
documents and reports with respect to compliance by the Issuer with the conditions
and covenants of this Indenture (with a copy of any such filings being delivered
promptly to the Indenture Trustee); and supply to the Indenture Trustee (and the
Indenture Trustee shall transmit by mail to all Noteholders described in TIA §
313(c)) such summaries of any information, documents and reports required to be
filed by the Issuer pursuant to clauses (i) and (ii) as may be
required by the rules and regulations prescribed from time to time by the
Commission.

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

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     SECTION 7.4. De-Listing of Definitive Notes. If as of the beginning of any fiscal
year for the Issuer (other than fiscal year 200[_]), the Definitive Notes are held (directly or, in
the case of Book Entry Notes held through the Clearing Agency) by less than 300 Noteholders and/or
Clearing Agency participants having accounts with the Clearing Agency, the Issuer shall, in
accordance with the Securities Exchange Act and the rules and regulations promulgated thereunder,
timely file a Form 15 with respect to the Issuer suspending all reporting requirements under the
Securities Exchange Act.

ARTICLE VIII

ACCOUNTS, DISBURSEMENTS AND RELEASES

     SECTION 8.1. Collection of Amounts Due. Except as otherwise expressly provided
herein, the Indenture Trustee may demand payment or delivery of, and shall receive and collect,
directly and without intervention or assistance of any fiscal agent or other intermediary, all sums
and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture.
The Indenture Trustee shall apply all such amounts received by it as provided in this Indenture.
Amounts properly withdrawn by the Issuer pursuant to Section 8.3 of this Indenture shall be
deemed released from the Collateral and the security interest therein granted to the Indenture
Trustee, and the Issuer shall in no event thereafter be required to refund any such withdrawn
amounts. To the extent there are uninvested amounts deposited in any of the Trust Accounts (as
defined below), the Issuer shall invest all such amounts in Permitted Investments selected by the
Issuer that mature no later than the immediately succeeding Transfer Date preceding the following
Payment Date.

     SECTION 8.2. Trust Accounts. (a) On or prior to the Closing Date, the Issuer
covenants to have established and shall thereafter maintain the following accounts with the
Indenture Trustee (the “Trust Accounts”), which accounts shall be Eligible Deposit Accounts:

          (i) Collection Account;

          (ii) Note Distribution Account; and

          (iii) Reserve Account.

     (b) If any Trust Account is a Securities Account, such Trust Account will be maintained in
accordance with the Custody and Control Agreement.

     (c) If any Trust Account is a Deposit Account: (i) If, at any time, any such Trust Account
ceases to be an Eligible Deposit Account, the Issuer shall within 10 Business Days (or such longer
period, not to exceed 30 calendar days, as to which each Rating Agency may consent) establish a new
Trust Account as an Eligible Deposit Account and shall transfer any cash and/or any investments
held in the no-longer Eligible Deposit Account to such new Trust Account; and

          (ii) the Issuer and Indenture Trustee agree, as security for the Issuer’s
obligations under this Indenture, that:

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          (A) any Trust Account Property that constitutes, or is held through or in, a
Deposit Account shall be, or shall be held through or in, an Eligible Deposit
Account continuously identified in the deposit bank’s books and records as subject
to a security interest of the Indenture Trustee and, except as maybe expressly
provided herein to the contrary, in order to perfect the security interest of the
Indenture Trustee in accordance with Section 9.104 of the UCC, the Indenture Trustee
shall have the power to direct disposition of the funds in such Deposit Account
without further consent by the Issuer; provided, however, that prior
to delivery by the Indenture Trustee to the Issuer of notice otherwise, the Issuer
shall have the right to direct the disposition of funds in such Deposit Account;
provided, further that the Indenture Trustee agrees that it will not
deliver such notice or exercise its power to direct disposition of the funds in such
Deposit Account until an Event of Default has occurred; and

          (B) all Permitted Investments and other investments shall be held by the
Custodian in accordance with the Custody and Control Agreement and shall be subject
to the Indenture Trustee’s security interest in such Trust Property.

     SECTION 8.3. Priority of Payments. (a) On each Payment Date prior to an Event of
Default and acceleration of the Notes, after the payment to the Servicer of any accrued and unpaid
Servicing Fees and reimbursement of any Servicing Advances, from any amounts withdrawn from the
Reserve Account on the related Transfer Date and Available Amounts, payments shall be made in the
following order of priority:

          (i) to the Indenture Trustee, amounts payable to the Indenture Trustee pursuant
to Section 6.7 of the Indenture for the related Collection Period,
provided that, except after the occurrence and during the continuance of an
Event of Default, the aggregate amounts payable other than in respect of fees shall
not exceed $75,000 during any calendar year;

          (ii) to the Administrator, the Administration Fee and all unpaid Administration
Fees from prior Collection Periods in accordance with the Administration Agreement;

          (iii) to the Swap Counterparty any Swap Payments Outgoing in accordance with
the Swap Agreement;

          (iv) to pay with the same priority and ratably in proportion to the Outstanding
Principal Balance of the Class A Notes and the amount of any Swap Termination
Payment due and payable by the Issuer to the Swap Counterparty:

               (1) to the Note Distribution Account, the Monthly Interest Amount
Payable on the Class A Notes; and

               (2) to the Swap Counterparty, any Swap Termination Payments payable to
the Swap Counterparty upon the termination of the Swap Agreement;
provided that if any amounts allocable to the Class A Notes
are not needed to pay interest due on such Class A Notes as of such

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Payment Date, such amounts will be applied to pay the portion, if any,
of any Swap Termination Payment remaining unpaid;

          (v) to the Note Distribution Account, the Monthly Interest Amount Payable on
the Class B Notes;

          (vi) to the Note Distribution Account, the Monthly Interest Amount Payable on
the Class C Notes;

          (vii) to the Note Distribution Account, principal payable on the Notes in an
amount equal to the amount by which the Note Balance of all the Notes then
outstanding exceeds the excess of (x) the Pool Balance at the end of the related
Collection Period over (y) the Overcollateralization Amount;

          (viii) to the Note Distribution Account, 50% of the Excess Spread Amount, if
any;

          (ix) to the Reserve Account, the amount, if any, required to be deposited in
the Reserve Account pursuant to Section 8.4(c);

          (x) to the Indenture Trustee, any amounts payable to the Indenture Trustee
pursuant to Section 6.7 of the Indenture to the extent not previously
reimbursed; and

          (xi) to the Issuer, the remaining balance, if any.

     (b) On each Payment Date prior to an Event of Default and acceleration of the Notes, funds on
deposit in the Note Distribution Account shall be paid in the following order of priority:

          (i) to the Class A Noteholders, an amount equal to the Monthly Interest Amount
Payable in respect of the Class A Notes for the Interest Accrual Period immediately
preceding such Payment Date, together with any such amounts that accrued in respect
of prior Interest Accrual Periods for which no payment was previously made;
provided, that if the Available Amounts remaining to be paid pursuant to
this clause are less than the full amount required to be so paid, such remaining
Available Amounts shall be paid to the Holders of Class A Notes pro rata based on
their respective entitlement pursuant to this clause

          (ii) to the Class B Noteholders, the Monthly Interest Amount Payable in respect
of the Class B Notes; provided, that if the Available Amounts remaining to
be paid pursuant to this clause are less than the full amount required to be so
paid, such remaining Available Amounts shall be paid to the Holders of Class B Notes
pro rata based on their respective entitlement pursuant to this clause;

          (iii) to the Class C Noteholders, the Monthly Interest Amount Payable in
respect of the Class C Notes; provided, that if the Available Amounts
remaining to be paid pursuant to this clause are less than the full amount required

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to be so paid, such remaining Available Amounts shall be paid to the Holders of
Class C Notes pro rata based on their respective entitlement pursuant to this
clause;

          (iv) to the Class A Noteholders, until the Outstanding Principal Balance of the
Class A Notes has been reduced to zero;

          (v) to the Class B Noteholders until the Outstanding Principal Balance of the
Class B Notes has been reduced to zero; and

          (vi) to the Class C Noteholders until the Outstanding Principal Balance of the
Class C Notes has been reduced to zero.

     (c) Following an Event of Default and acceleration of the Notes, after the payment to the
Servicer of any accrued and unpaid Servicing Fees and reimbursement of any Servicing Advances, any
amounts withdrawn from the Reserve Account on the related Transfer Date and Available Amounts will
be applied in the following order of priority, at the date or dates fixed by the Indenture Trustee
and, in case of the distribution of the entire amount due on account of principal or interest, upon
presentation of the Notes and surrender thereof:

          (i) to pay the Indenture Trustee, for all amounts due under Section
6.7;

          (ii) to pay the Administrator, all accrued and unpaid Administration
Fees;

          (iii) to pay the Swap Counterparty any Swap Payments Outgoing;

          (iv) to pay with the same priority and ratably in proportion to the
Outstanding Principal Balance of the Class A Notes and the amount of any
Swap Termination Payment due and payable by the Issuer to the Swap
Counterparty:

               (A) the Monthly Interest Amount Payable on each class of Class A
Notes during the prior Interest Accrual Period, plus any amount of
interest on the Class A Notes that was not paid when due (and, to the
extent permitted by law, any interest on that unpaid amount); and

               (B) any Swap Termination Payments payable to the Swap
Counterparty due under the Swap Agreement; provided that if
any amounts allocable to the Class A Notes are not needed to pay
interest due on such Class A Notes as of such payment date, such
amounts will be applied to pay the portion, if any, of any Swap
Termination Payment remaining unpaid;

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          (v) to the Class A Noteholders pro rata in respect of principal until
the Class A Noteholders are paid in full;

          (vi) to pay the Monthly Interest Amount Payable on the Class B Notes
during the prior interest period, plus any amount of interest on the Class B
Notes that was not paid when due (and, to the extent permitted by law, any
interest on that unpaid amount);

          (vii) to the Class B Noteholders in respect of principal until the
Class B Noteholders are paid in full;

          (viii) to pay the Monthly Interest Amount Payable on the Class C Notes
during the prior interest period, plus any amount of interest on the Class C
Notes that was not paid when due (and, to the extent permitted by law, any
interest on that unpaid amount);

          (ix) to the Class C Noteholders in respect of principal until the Class
C Noteholders are paid in full; and

          (x) to the Issuer the remaining balance, if any.

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

     (e) All Class A Notes issued under this Indenture shall be in all respects equally and ratably
entitled to the benefits hereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the terms and
provisions of this Indenture. Payments of principal and interest on the Class A shall be made pro
rata among all Outstanding Class A Notes, without preference or priority of any kind.

     (f) All Class B Notes issued under this Indenture shall be in all respects equally and ratably
entitled to the benefits hereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the terms and
provisions of this Indenture. Payments of principal and interest on the Class B Notes shall be
made pro rata among all Outstanding Class B Notes, without preference or priority of any kind.

     (g) All Class C Notes issued under this Indenture shall be in all respects equally and ratably
entitled to the benefits hereof without preference, priority or distinction on account of the
actual time or times of authentication and delivery, all in accordance with the terms and
provisions of this Indenture. Payments of principal and interest on the Class C Notes shall be
made pro rata among all Outstanding Class C Notes, without preference or priority of any kind.

     SECTION 8.4. Reserve Account. (a) On each Transfer Date, if the sum of Available
Amounts and other amounts on deposit in the Collection Account is less than the aggregate amount
required to be paid or deposited pursuant to clauses (i) through (vii) of
Section 8.3(a), the Issuer shall withdraw from the Reserve Account the amount of such
deficiency up to the

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Available Reserve Account Amount and shall deposit such amount in the
Collection Account for application in accordance with such clauses of Section 8.3(a). On
each Transfer Date, if, after giving effect to the Available Amounts payable and amounts withdrawn
from the Reserve Account pursuant to the preceding sentence and applied pursuant to Section
8.3, the Outstanding Principal Balance of any Class would exceed zero on the Maturity Date for
such Class, the Issuer shall withdraw from the Reserve Account the amount of such deficiency up to
the Available Reserve Account Amount and shall deposit such amount in the Collection Account.

     (b) On the Final Maturity Date, and on the first Transfer Date following the occurrence of an
Event of Default with respect to the Notes that has resulted in the acceleration of the Notes, the
Issuer shall withdraw from the Reserve Account the Available Reserve Account Amount and shall apply
such amount in accordance with Section 8.3(c).

     (c) If on any Payment Date, after giving effect to all withdrawals from the Reserve Account on
the related Transfer Date, the Available Reserve Account Amount is less than the Required Reserve
Account Amount then in effect, Available Amounts and other amounts on deposit in the Collection
Account shall be deposited into the Reserve Account pursuant to Section 8.3(a)(ix) up to
the amount of the Reserve Account Deficiency.

     (d) On the date on which the Reserve Account has been terminated, after giving effect to any
withdrawal on such date pursuant to Section 8.4(a) or (b) and making any payments
to the Noteholders required pursuant to this Indenture, all amounts then remaining in the Reserve
Account shall be released to the Issuer.

     (e) The Reserve Account will terminate on the earliest to occur of (i) the date on which the
Note Balance has been paid in full and all other amounts payable to the Noteholders have been paid
in full; (ii) the Final Maturity Date; and (iii) the termination of the Issuer.

     SECTION 8.5. Reports. On each Determination Date, the Issuer shall, or shall cause
the Servicer to, provide to the Indenture Trustee (with a copy to the Rating Agencies), for the
Indenture Trustee to forward to each Noteholder of record, a statement substantially in the form of
Exhibit C setting forth at least the following information as to each Class of the Notes to
the extent applicable:

          (i) the principal amount to be paid on each Class of Notes;

          (ii) the interest amount to be paid on each Class of Notes;

          (iii) the Pool Balance as of the opening of business on the first day of the
Collection Period in which such Determination Date occurs;

          (iv) the aggregate Outstanding Principal Balance and the Note Pool Factor for
each Class of Notes after giving effect to payments allocated to principal reported
under clause (i) above;

          (v) the amount of the Servicing Fee paid to the Servicer with respect to the
preceding Collection Period;

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          (vi) the amount of Servicing Advances with respect to the preceding Collection
Period;

          (vii) the amount of the Administration Fee paid to the Administrator in respect
of the preceding Collection Period;

          (viii) the aggregate outstanding principal balance of any Loans that became
Liquidated Loans for such Collection Period;

          (ix) the portion of the outstanding principal balance written off in respect of
Loans that became Defaulted Loans;

          (x) the aggregate Loan Value of Loans that became Defaulted Loans for such
Collection Period;

          (xi) the aggregate Purchase Amounts for Loans, if any, that were repurchased or
purchased in such Collection Period;

          (xii) the aggregate outstanding principal balance of Loans that became
Delinquent Loans for such Collection Periods;

          (xiii) the aggregate amount of Recoveries for such Collection Period; and

          (xiv) the aggregate amount of Liquidation Proceeds for such Collection Period.

     Each amount set forth pursuant to clauses (i), (ii), (iii),
(v) and (vi) shall be expressed as a dollar amount per $1,000 of original principal
balance of such Note.

     In addition, the Issuer shall, or shall cause, a copy of (i) the Servicer’s certificate
referred to in Section 2.7, (ii) the Officer’s Certificate referred to in Section 2.8(a) or
2.8(b) and (iii) the report of certified public accountants referred to in Section
2.9, in each case, of the Servicing Agreement to be sent to the Rating Agencies and the
Indenture Trustee. A copy of such Servicer’s certificate, such Officer’s Certificate and such
report may be obtained by any Noteholder by a request in writing to the Issuer addressed to the
Corporate Trust Office.

     SECTION 8.6. General Provisions Regarding Accounts. (a) Funds on deposit in the Trust
Accounts shall be invested or reinvested by the Issuer in Permitted Investments selected by the
Issuer. All Investment Earnings on funds on deposit in the Trust Accounts shall be deemed to
constitute a portion of the Available Amounts. Other than as permitted by the Rating Agencies,
funds on deposit in the Trust Accounts shall be invested in Permitted Investments that will mature
so that such funds will be available at the close of business on the Transfer Date preceding the
following Payment Date; provided, however, that funds on deposit in Trust Accounts
may be invested in Permitted Investments of the entity serving as Indenture Trustee that may mature
so that such funds will be available on the date prior to the Payment Date. Funds deposited in a
Trust Account on the Transfer Date that precedes a Payment Date upon the maturity of any Permitted
Investments are not required to be invested overnight.

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     (b) The Issuer shall ensure that, in connection with any investment of any funds or any sale
of any investment held in any of the Trust Accounts, the Lien granted to the Indenture Trustee and
perfected in such Trust Account will continue to be perfected in such investment or the proceeds of
such sale, in either case without any further action by any Person, and, in connection with any
direction to the Indenture Trustee to make any such investment or sale, if requested by the
Indenture Trustee, the Issuer shall deliver or cause to be delivered to the Indenture Trustee an
Opinion of Counsel to such effect.

     (c) The Indenture Trustee shall not in any way be held liable by reason of any insufficiency
in any of the Trust Accounts resulting from any loss on any Permitted Investment included therein,
except for losses attributable to the Indenture Trustee’s failure to make payments on such
Permitted Investments issued by the Indenture Trustee, in its commercial capacity as principal
obligor and not as trustee, in accordance with their terms. The Indenture Trustee shall have no
liability in respect of losses incurred as a result of the liquidation of any Permitted Investment
prior to its stated maturity.

     (d) (i) If a Default or Event of Default shall have occurred and be continuing with respect to
the Notes but the Notes shall not have been declared due and payable pursuant to Section
5.2, or, (ii) if the Notes shall have been declared due and payable following an Event of
Default, but amounts collected or receivable from the Collateral are being applied in accordance
with Section 8.3(c) as if there had not been such a declaration; then the Issuer shall, to
the fullest extent practicable, invest and reinvest funds in the Trust Accounts in the Permitted
Investments identified in clause (d) of the definition of Permitted Investments.

     SECTION 8.7. Release of Collateral. (a) Subject to the payment of its fees and
expenses pursuant to Section 6.7, the Indenture Trustee may, and when required by 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 this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article 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 funds.

     (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due to the Indenture Trustee pursuant to Section 6.7 have been paid, release any remaining
portion of the Collateral that secured the Notes and the Swap Agreement from the Lien of this
Indenture.

     (c) The Indenture Trustee shall release property from the Lien of this Indenture pursuant to
this Section only upon receipt of an Issuer Request requesting such release accompanied by an
Officers’ Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates
in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable requirements of Section
11.1.

     SECTION 8.8. Opinion of Counsel. The Indenture Trustee shall receive at least seven
days’ notice when requested by the Issuer to take any action pursuant to Section 8.7(a),
accompanied by copies of any instruments involved, and the Indenture Trustee shall also require, as
a condition to such action, an Opinion of Counsel stating the legal effect of any such action,

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outlining the steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with and such action will not materially
and adversely impair the security for the Notes or the rights of the Noteholders in contravention
of this Indenture; provided, however, that such Opinion of Counsel shall not be
required to express an opinion as to the fair value of the Collateral. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and validity of any
certificate or other instrument delivered to the Indenture Trustee in connection with any such
action.

ARTICLE IX

SUPPLEMENTAL INDENTURES

     SECTION 9.1. Supplemental Indentures Without Consent of Noteholders and Swap
Counterparty. Without the consent of the Noteholders and the Swap Counterparty but with prior
written notice to the Rating Agencies, the Issuer and the Indenture Trustee, when authorized by an
Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental
hereto (which shall conform to the TIA as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

     (a) 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 a Lien on 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;

     (b) 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;

     (c) to add to the covenants of the Issuer, for the benefit of the Noteholders and the Swap
Counterparty, or to surrender any right or power herein conferred upon the Issuer;

     (d) to mortgage or pledge any property to or with the Indenture Trustee;

     (e) 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 or to make any other provisions with respect to matters or questions arising
under this Indenture or in any supplemental indenture; provided, that such action shall not
materially adversely affect the interests of the Noteholders or the Swap Counterparty;

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

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

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

     SECTION 9.2. Supplemental Indentures With Consent of Noteholders. The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, may, with prior written notice to the Rating
Agencies and with the consent of the Noteholders evidencing not less than a majority of the
Outstanding Principal Balance of the Notes, by Act of such Noteholders delivered to the Issuer and
the Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the provisions of this
Indenture or of modifying in any manner the rights of the Noteholders under this Indenture;
provided, however, that no such supplemental indenture shall, as evidenced by an
Officer’s Certificate of the Issuer delivered to the Indenture Trustee, adversely affect in any
material respect the interests of the Swap Counterparty, without the consent of the Swap
Counterparty; and, provided further, that no such supplemental indenture shall, as
evidenced by an Officer’s Certificate of the Issuer delivered to the Indenture Trustee, adversely
affect in any material respect the interests of a Noteholder, without the consent of such
Noteholder affected thereby:

     (a) change the date of payment of any installment of principal of or interest on any Note, or
reduce the principal amount thereof, the interest rate thereon or the Redemption Price with respect
thereto, change the provisions of this Indenture relating to the application of collections on, or
the proceeds of the sale of, the Collateral to the 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 or after the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);

     (b) reduce the percentage of the Outstanding Principal Balance, the consent of the Noteholders
of which is required for any such supplemental indenture, or the consent of the Noteholders of
which is required for any waiver of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences provided for in this Indenture;

     (c) modify or alter the provisions of the proviso to the definition of “Outstanding”;

     (d) reduce the percentage of the Outstanding Principal Balance required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Collateral pursuant to Section
5.2;

     (e) modify any provision of this Section except to increase any percentage specified herein or
to provide that certain additional provisions of this Indenture or the Related Documents cannot be
modified or waived without the consent of the Noteholder of each Outstanding Note affected thereby;

     (f) modify any of the provisions of this Indenture in such manner as to affect the calculation
of the amount of any payment of interest or principal due on any Note on any Payment Date
(including the calculation of any of the individual components of such calculation)

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or to affect the rights of the Noteholders to the benefit of any provisions for the mandatory
redemption of the Notes contained herein; or

     (g) permit the creation of any Lien ranking prior to or on a parity with the Lien of this
Indenture with respect to any part of the Collateral or, except as otherwise permitted or
contemplated herein, terminate the Lien of this Indenture on any property at any time subject
hereto or deprive any Noteholder of the security provided by the Lien of this Indenture.

     It shall not be necessary for any Act of the Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof. The manner of obtaining such consents (and any other consents
of Noteholders provided for in this Indenture or in any other Related Document) and of evidencing
the authorization of the execution thereof by Noteholders shall be subject to such reasonable
requirements as the Indenture Trustee may provide.

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

     SECTION 9.3. Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or
the modifications thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and, subject to Sections 6.1 and 6.2, shall be fully protected
in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall not be obligated
to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights,
duties, liabilities or immunities under this Indenture or otherwise.

     SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified
and amended in accordance therewith with respect to the Notes and the Swap Agreement affected
thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer, the Swap Counterparty and the
Noteholders shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

     SECTION 9.5. Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article may, and if
required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee
as to any matter provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture
Trustee and the Issuer, to any such supplemental indenture may be prepared and

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executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange
for Outstanding Notes.

     SECTION 9.6. Conformity with Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article IX shall conform to the
requirements of the TIA as then in effect so long as this Indenture shall then be qualified under
the TIA.

ARTICLE X

REDEMPTION OF NOTES

     SECTION 10.1. Redemption. The Notes are subject to redemption in whole, but not in
part, on or after any Payment Date on which the aggregate Pool Balance (calculated as of the end of
the related Collection Period) first becomes less than 10% of the Pool Balance as of the Cut-off
Date and for a purchase price equal to the Redemption Price; provided, however,
that the Issuer has available funds sufficient to pay the Redemption Price following the exercise
by the Purchaser of the clean up call set forth in Section 6.1 of the Purchase and Sale
Agreement. The Issuer shall furnish the Rating Agencies notice of such redemption. If such Notes
are to be redeemed pursuant to this Section, the Issuer shall furnish notice of such election to
the Indenture Trustee not later than 25 days prior to the Redemption Date and the Issuer shall
deposit in the Note Distribution Account the Redemption Price of the Notes to be redeemed.

     SECTION 10.2. Form of Redemption Notice. Notice of redemption under Section
10.1 shall be given by the Issuer by first-class mail, postage prepaid, mailed not less than
five days prior to the applicable Redemption Date to each Noteholder, as of the close of business
on the Record Date preceding the applicable Redemption Date, at such Noteholder’s address appearing
in the Note Register.

     All notices of redemption shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price;

          (iii) the place where such Notes are to be surrendered for payment of the
Redemption Price (which shall be the office or agency of the Issuer to be maintained
as provided in Section 3.2); and

          (iv) the CUSIP numbers of the Notes being redeemed.

     Failure to give notice of redemption, or any defect therein, to any Noteholder shall not
impair or affect the validity of the redemption of any other Note.

     SECTION 10.3. Notes Payable on Redemption Date. The Notes or portions thereof to be
redeemed shall, following notice of redemption pursuant to this Article, become due and payable on
the Redemption Date at the Redemption Price and (unless the Issuer shall default in the payment of
the Redemption Price) no interest shall accrue on the Redemption Price for any

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period after the date to which accrued interest is calculated for purposes of calculating the
Redemption Price.

ARTICLE XI

MISCELLANEOUS

     SECTION 11.1. Compliance Certificates and Opinions, etc. (a) Upon any written
application or request (or oral application with prompt written or telecopied confirmation) by the
Issuer to the Indenture Trustee to take any action under this Indenture, other than any request
that (i) the Indenture Trustee authenticate the Notes specified in such request, or (ii) the
Indenture Trustee pay amounts due and payable to the Issuer hereunder to the Issuer’s assignee
specified in such request, the Issuer shall furnish to the Indenture Trustee: (1) an Officers’
Certificate stating that all conditions precedent, if any, provided for in this Indenture relating
to the proposed action have been complied with, (2) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been complied with and (3) (if
required by the TIA) an Independent Certificate from a firm of certified public accountants meeting
the applicable requirements of this Section, except that, in the case of any such application or
request as to which the furnishing of such documents is specifically required by 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:

     (w) 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;

     (x) 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;

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

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

     (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 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an
Officers’ Certificate certifying or stating the opinion of each person signing such certificate as
to the fair value (within 90 days of such deposit) to the Issuer of the Collateral or other
property or securities to be so deposited.

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     (ii) Whenever the Issuer is required to furnish to the Indenture Trustee an
Officers’ Certificate described in clause (i), the Issuer shall also deliver
to the Indenture Trustee an Independent Certificate as to the same matters if the
fair value to the Issuer of the Collateral or other property or securities to be so
deposited and of all other such Collateral or other property or securities released
from the Lien of this Indenture since the commencement of the then-current fiscal
year of the Issuer, as set forth in the certificates required by clause (i)
and this clause (ii), equals 10% or more of the Outstanding Principal
Balance of the Notes, but such certificate need not be furnished with respect to any
Collateral or other property or securities so deposited if the fair value thereof to
the Issuer as set forth in the related Officers’ Certificate is less than $1,000,000
or less than one percent of the then Outstanding Principal Balance of the Notes.

     (iii) Other than with respect to property as contemplated by clause (v),
whenever any Collateral or other property or securities are to be released from the
Lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an
Officers’ Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such release) of the Collateral
or other 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
Officers’ Certificate described in clause (iii), the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate as to the same matters
if the fair value to the Issuer of the Collateral or other property or securities
and of all other such Collateral or other property, other than property as
contemplated by clause (v), or securities released from the Lien of this
Indenture since the commencement of the then-current fiscal year of the Issuer, as
set forth in the certificates required by clause (iii) and this clause
(iv), equals 10% or more of the Outstanding Principal Balance of the Notes, but
such certificate need not be furnished in the case of any release of Collateral or
other property or securities if the fair value thereof to the Issuer as set forth in
the related Officers’ Certificate is less than $1,000,000 or less than one percent
of the then Outstanding Principal Balance of the Notes.

     (v) Notwithstanding Section 3.9 or any other provision of this
Section, the Issuer may, without compliance with the requirements of the other
provisions of this Section: (A) collect, liquidate, sell or otherwise dispose of
Loans and Equipment as and to the extent permitted or required by the Related
Documents and (B) make cash payments out of the Trust Accounts as and to the extent
permitted or required by the Related Documents so long as the Issuer shall deliver
to the Indenture Trustee every six months, commencing [___], 20[_], an Officers’
Certificate of the Issuer stating that all such dispositions of Collateral that
occurred since the execution of the previous such Officers’ Certificate (or for the
first such Officers’ Certificate, since the Closing Date) were in the ordinary

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course of the Issuer’s business and that the proceeds thereof were applied in
accordance with the Related Documents.

     SECTION 11.2. Form of Documents Delivered to Indenture Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

     Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate,
opinion or representations with respect to the matters upon which his certificate or opinion is
based is/are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of any Seller, the Servicer, the Purchaser, the Issuer
or the Administrator, Managing Member, stating that the information with respect to such factual
matters is in the possession of any Seller, the Servicer, the Purchaser, the Issuer or the
Administrator, Managing Member, as applicable, unless such Authorized Officer or counsel knows, or
in the exercise of reasonable care should know, that the certificate, opinion or representations
with respect to such matters is/are erroneous. Any Opinion of Counsel may be based on the written
opinion of other counsel, in which event such Opinion of Counsel shall be accompanied by a copy of
such other counsel’s opinion and shall include a statement to the effect that such counsel believes
that such counsel and the Indenture Trustee may reasonably rely upon the opinion of such other
counsel.

     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.

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

     Whenever in this Indenture, in connection with any application, 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.

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     SECTION 11.3. Acts of Noteholders. (a) Any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instrument(s) 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(s) are
delivered to the Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument(s) (and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the “Act” of the Noteholders signing such instrument(s). Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient for any purpose of
this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee
and the Issuer, if made in the manner provided in this Section. At any time the Notes of any Class
are maintained on Book-Entry Notes, any reference in this Indenture to an Act of Noteholders or a
Noteholder or Noteholders representing a specified portion of the Outstanding Principal Balance of
the Notes or such Class of Notes shall be deemed to refer to an Act of Note Owners or a Note Owner
or Note Owners holding such specified portion of the Outstanding Principal Balance of the Notes or
Class, as the case may be.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Indenture Trustee deems sufficient.

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

     (d) Any request, demand, authorization, direction, notice, consent, waiver or Act by the
Noteholder shall bind every Noteholder issued upon the registration of the related Note, 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.

     (e) By accepting the Notes issued pursuant to this Indenture, each Noteholder irrevocably
appoints the Indenture Trustee hereunder as the special attorney-in-fact for such Noteholder vested
with full power on behalf of such Noteholder to effect and enforce the rights of such Noteholder
and the revisions pursuant hereto for the benefit of such Noteholder; provided that nothing
contained in this Section shall be deemed to confer upon the Indenture Trustee any duty or
power to vote on behalf of the Noteholders with respect to any matter on which the Noteholders have
a right to vote pursuant to the terms of this Indenture.

     SECTION 11.4. Notices, etc., to the Indenture Trustee, Issuer and Rating Agencies.
Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders, or
other documents provided or permitted by this Indenture, shall be in writing and, if such request,

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demand, authorization, direction, notice, consent, waiver or Act of Noteholders is to be made
upon, given or furnished to or filed with:

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

     (b) the Issuer by the Indenture Trustee or by any Noteholder, shall be sufficient for every
purpose hereunder if in writing and mailed, first-class, postage prepaid, to the Issuer addressed
to: GE Equipment Midticket, LLC, Series [___], in care of General Electric Capital Corporation,
44 Old Ridgebury Road, Danbury, CT 06810, Attention: Capital Markets Operations, and to General
Electric Capital Corporation, as Administrator, 44 Old Ridgebury Road, Danbury, CT 06810,
Attention: General Counsel, or at any other address previously furnished in writing to the
Indenture Trustee by the Issuer or the Administrator. 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 or
the Trustee shall be in writing, personally delivered or mailed by certified mail, return receipt
requested, to their respective addresses set forth in Section 8.1 of the Servicing
Agreement.

     SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture provides for
notice to Noteholders of any event or the mailing of any report to Noteholders, such notice shall
be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class, postage prepaid or certified mail return receipt requested, or sent by private courier
or confirmed telecopy to each Noteholder affected by such event or to whom such report is required
to be mailed, at its 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 or the mailing of
such report. In any case where notice or report to Noteholders is given by mail, neither the
failure to mail such notice or report nor any defect in any notice or report so mailed to any
particular Noteholder shall affect the sufficiency of such notice or report with respect to other
Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

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

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to mail or send notice to Noteholders, in accordance with Section
11.5, of any event or any report to Noteholders when such notice or report is required to be
delivered pursuant to any provision of this Indenture, then such notification or delivery as shall
be made with the approval of the Trustee shall constitute a sufficient notification for every
purpose hereunder.

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

     SECTION 11.6. Alternate Payment and Notice Provisions. Notwithstanding any provision
of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with
any Noteholder providing for a method of payment, or notice by the Indenture Trustee or any Paying
Agent to such Noteholder, that is different from the methods provided for in this Indenture or the
Notes for such payments or notices. The Issuer will furnish to the Indenture Trustee a copy of
each such agreement and the Indenture Trustee will cause payments to be made and notices to be
given in accordance with such agreements.

     SECTION 11.7. 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 of the Indenture Trustee, whether so expressed or not.

     SECTION 11.8. Severability. Any provision of this Indenture or the Notes that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or of the Notes, as applicable, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

     SECTION 11.9. Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder, the Noteholders, the Swap Counterparty, any other party secured hereunder and any other
Person with an ownership interest in any part of the Collateral, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

     SECTION 11.10. 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 Business Day with the
same force and effect as if made on the date on which nominally due, and no interest shall accrue
for the period from and after any such nominal date.

     SECTION 11.11. Governing Law. (a) THIS AGREEMENT AND THE OBLIGATIONS ARISING
HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTION 5-1401(1) OF THE GENERAL OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY
OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.
THIS INDENTURE IS SUBJECT TO THE TRUST INDENTURE ACT OF 1939, AS AMENDED, AND SHALL BE GOVERNED
THEREBY AND CONSTRUED IN ACCORDANCE THEREWITH.

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     (b) EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN
THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE
ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR
RELATING TO THIS AGREEMENT; PROVIDED, THAT EACH PARTY HERETO ACKNOWLEDGES THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN
NEW YORK CITY; PROVIDED, FURTHER, THAT NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE INDENTURE TRUSTEE FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY
OTHER JURISDICTION TO REALIZE ON THE ISSUER COLLATERAL OR ANY OTHER SECURITY FOR THE ISSUER
OBLIGATIONS SECURED HEREUNDER, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
INDENTURE TRUSTEE. EACH PARTY HERETO SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY
ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT
SUCH PARTY MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM
NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE
RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH PARTY HERETO HEREBY WAIVES PERSONAL SERVICE OF
THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE
OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED
TO SUCH PARTY AT ITS ADDRESS DETERMINED IN ACCORDANCE WITH SECTION 11.4 AND THAT SERVICE SO
MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE
DAYS AFTER DEPOSIT IN THE UNITED STATES MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION
SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW.

     (c) BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT
THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE
BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO
WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO, OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

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     SECTION 11.12. 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 11.13. Recording of Indenture. If this Indenture is subject to recording in
any public recording offices, such recording is to be effected by the Issuer and, at its expense,
accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person secured hereunder or for
the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.

     SECTION 11.14. Trust Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Swap Counterparty, Managing Member or the
Indenture Trustee on the Notes, the Swap Agreement, or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against: (i) the Indenture Trustee or
Managing Member in their individual capacities, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, officer, director, employee or agent of: (a) the
Indenture Trustee or Managing Member in their individual capacities, (b) any owner of a beneficial
interest in the Issuer, Managing Member or the Indenture Trustee or (c) of any successor or assign
of the Indenture Trustee or Managing Member in their individual capacities, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee and Managing
Member have no such obligations in their individual capacities) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any
unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or
call owing to such entity.

     SECTION 11.15. Communication by Noteholders with Other Noteholders. Noteholders may
communicate, pursuant to TIA Section 312(b), with other Noteholders with respect to their rights
under this Indenture or the Notes. The Issuer, the Indenture Trustee, the Note Registrar and all
other parties shall be entitled to rely on and shall have the protection of TIA Section 312(c).

     SECTION 11.16. Inspection. The Issuer agrees that, on reasonable prior notice, it
will permit any representative of the Indenture Trustee, during the Issuer’s normal business hours,
to examine all the books of account, records, reports and other papers of the Issuer, to make
copies and extracts therefrom, to cause such books to be audited by Independent certified public
accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers,
employees and Independent certified public accountants, all at such reasonable times and as often
as may be reasonably requested for the purpose of reviewing or evaluating the financial condition
or affairs of the Issuer or the performance or compliance with the covenants and undertakings of
the Issuer under this Indenture, the Purchase and Sale Agreement or any of the other documents
referred to herein or therein. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information; provided, however, that the foregoing
shall not be construed to prohibit: (i) disclosure of any and all information that is or becomes
publicly known, or information obtained by the Indenture Trustee from sources other than the Issuer
or its agents, (ii) disclosure of any and all information: (A) if required to do so by any
applicable statute, law, rule or regulation, (B) to any government agency or regulatory or self-

77

 

regulatory body having or claiming authority to regulate or oversee any aspects of the
Indenture Trustee’s business or that of its Affiliates, (C) pursuant to any subpoena, civil
investigative demand or similar demand or request of any court, regulatory authority, arbitrator or
arbitration to which the Indenture Trustee or an Affiliate or any officer, director, employee or
shareholder thereof is subject, (D) in any preliminary or final offering circular or prospectus,
registration statement or contract or other document pertaining to the transactions contemplated by
this Indenture and approved in advance by the Issuer or (E) to any Affiliate, independent or
internal auditor, agent, employee or attorney of the Indenture Trustee having a need to know the
same; provided, that the Indenture Trustee advises such recipient of the confidential
nature of the information being disclosed and such recipient agrees to keep such information
confidential, (iii) any other disclosure authorized by the Issuer or (iv) disclosure to the other
parties to the transactions contemplated by the Related Documents.

     SECTION 11.17. Agents of Issuer. The Indenture Trustee hereby acknowledges that it
has been advised that any agent of the Issuer may act on behalf of the Issuer hereunder for
purposes of all consents, amendments, waivers and other actions permitted or required to be taken,
delivered or performed by the Issuer, and the Indenture Trustee agrees that any such action taken
by an agent on behalf of the Issuer shall satisfy the Issuer’s obligations hereunder.

     SECTION 11.18. Survival of Representations and Warranties. The representations,
warranties and certificate of the Issuer made in this Indenture or in any certificate or other
writing delivered by the Issuer pursuant hereto shall survive the authentication and delivery of
the Notes hereunder.

     SECTION 11.19. 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 the TIA, such required provision shall control.

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

     SECTION 11.20. Subordination. Each Noteholder by accepting a Note acknowledges and
agrees that such Note represents indebtedness of the Issuer and does not represent an interest in
any assets (other than a security interest in the Collateral) of the Purchaser (including by virtue
of any deficiency claim in respect of obligations not paid or otherwise satisfied from the
Collateral and proceeds thereof). In furtherance of and not in derogation of the foregoing, each
Noteholder by accepting a Note acknowledges and agrees that: 

     (a) by virtue of its rights under such Note and this Indenture, such Noteholder shall not have
any right, title or interest in or to any assets (or interests therein) (other than a security
interest in the Collateral) conveyed or purported to be conveyed by the Purchaser to any other
Person or Persons (whether by way of a sale, capital contribution or by virtue of the granting of a
lien) (“Other Assets”);

     (b) the Notes constitute claims (as defined in Section 101 of the Bankruptcy Code) solely
against the Issuer, which may be satisfied solely from the Collateral and its proceeds

78

 

(whether through ordinary liquidation or the exercise of UCC remedies and other remedies
provided herein) and do not constitute claims against the Issuer or the Purchaser to the extent
that the Collateral and such proceeds are insufficient to repay the Notes (including interest
thereon, whether accrued before or after the filing of a bankruptcy petition) in full; and

     (c) such Noteholder shall not file or join in a filing of a petition with respect to any
bankruptcy reorganization, arrangement, insolvency or liquidation proceedings, or similar
proceedings under any United States Federal or State bankruptcy or similar law relating to the
Purchaser, or cooperate or encourage others to file such a petition, in each case unless the
Noteholders representing not less than 66-2/3% of the Outstanding Principal Balance of each Class
of Notes that remains Outstanding and holders of any rated securities, rated debt or other rated
investment backed by any Other Assets representing not less than 66-2/3% of the outstanding
principal balance of each class of such securities, debt or other investment has consented thereto
in writing; provided, that the foregoing shall not in any way limit the Noteholder’s rights
to pursue any other creditor rights or remedies that the Noteholders may have for claims against
the Issuer. 

     To the extent that, notwithstanding the agreements and provisions contained in the preceding
sentences of this subsection, any Noteholder either (i) asserts an interest or claim to, or benefit
from, Other Assets, whether asserted against or through the Purchaser or any other Person owned by
the Purchaser, or (ii) is deemed to have any such interest, claim or benefit in or from Other
Assets, whether by operation of law, legal process, pursuant to applicable provisions of insolvency
laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code or any successor
provision having similar effect under the Bankruptcy Code), and whether deemed asserted against or
through the Purchaser or any other Person owned by the Purchaser, then each Noteholder by accepting
a Note further acknowledges and agrees that any such interest, claim or benefit in or from Other
Assets is and shall be expressly subordinated to the indefeasible payment in full of all
obligations and liabilities of the Purchaser other than obligations and liabilities to the
Noteholders, including, the payment of post-petition interest on such other obligations and
liabilities. This subordination agreement shall be deemed a subordination agreement within the
meaning of Section 510(a) of the Bankruptcy Code. Each Noteholder further acknowledges and agrees
that no adequate remedy at law exists for a breach of this Section 11.20 and the terms of
this Section 11.20 may be enforced by an action for specific performance.

79

 

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

	 	 	 	 	 
	 	 	GE EQUIPMENT MIDTICKET, LLC, SERIES
	 	 	[_____]
	 
	 	 	 	 
	 

	 	By:
	 	CEF Equipment Holding, L.L.C.,
	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	[_________],
	 	 	not in its individual capacity but solely
	 	 	as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

Indenture

 

 

EXHIBIT A-1

to Indenture

FORM OF CLASS A NOTES

	 	 	 
	REGISTERED

	 	$                    1
	 
	 	 
	No. R-___

	 	CUSIP NO.                    

     Unless this Note is presented by an authorized representative of The Depository Trust Company,
a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange
or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such
other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

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

GE EQUIPMENT MIDTICKET, LLC, SERIES [_____]

[___]% CLASS A NOTES

     GE EQUIPMENT MIDTICKET, LLC, SERIES [___], a limited liability company duly organized and
existing under the laws of the State of Delaware (including any successor, the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
___DOLLARS ($___), payable as set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the earlier of the [___] Payment Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. The Issuer will pay interest on this Note at the rate
per annum shown above, on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the preceding Payment
Date (after giving effect to all payments of principal made on the preceding Payment Date), subject
to certain limitations contained in Section 3.1 of the Indenture. Interest on this Note will
accrue for each Payment Date from the most recent Payment Date on which interest has been paid to
but excluding the then current Payment Date or, if no interest has yet been paid, from the date
hereof. Interest will be computed on the basis of [the actual number of days in the Interest
Accrual Period and a 360 day year] [a 360-day year of twelve 30-day

 

			
	1 Denominations of $1,000 and in greater whole-dollar
denominations in excess thereof.

A-1-1

 

months]. Such principal of and interest on this Note shall be paid in the manner specified in
the Indenture.

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

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

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

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

Dated: [____________]

	 	 	 	 	 
	 	 	GE EQUIPMENT MIDTICKET, LLC, SERIES
	 	 	[_____]
	 
	 	 	 	 
	 

	 	By:
	 	CEF Equipment Holding, L.L.C.
	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

A-1-2

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Dated: [____________]

           [___], not in its individual capacity but solely as Indenture Trustee.

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 

A-1-3

 

[REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]%
Class A Notes (herein called the “Class A Notes” or the “Notes”), all issued under an Indenture
dated as of [___] (such Indenture, as supplemented or amended, is herein called the
“Indenture”), between the Issuer and [___], not in its individual capacity but
solely as 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 and obligations thereunder of the Issuer, the
Indenture Trustee and the Noteholders. The Notes are subject to all terms of the Indenture. All
terms used in this Note that are not otherwise defined herein and that are defined in this
Indenture shall have the meanings assigned to them in or pursuant to this Indenture.

     The Class A Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in this Indenture.

     The Issuer shall pay interest on overdue installments of interest at the Class A Interest Rate
to the extent lawful.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or
under the Indenture or any certificate or other writing delivered in connection therewith, against:
(i) the Indenture Trustee or the Managing Member in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of: (a) the Indenture Trustee or the Managing Member in their individual
capacities, (b) any holder of a beneficial interest in the Issuer, the Managing Member or the
Indenture Trustee or of (c) any successor or assign of the Indenture Trustee or the Managing Member
in their individual capacities, except as any such Person may have expressly agreed and except that
any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, will be deemed to represent and warrant that either (i) it is not
(a) an employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to Title I of
ERISA or (b) a plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code (each of the foregoing, a “Benefit Plan”), and is not acting on behalf or investing the
plan assets of a Benefit Plan, or (ii) its acquisition and continued holding of the Note will not
give rise to a nonexempt prohibited transaction under ERISA, Section 4975 of the Code, or any
substantially similar applicable law.

     It is the intent of the Issuer, the Servicer, the Noteholders and the Note Owners that, for
purposes of Federal and State income tax and any other tax measured in whole or in part by income,
the Notes will qualify as indebtedness of the Issuer. Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in a Note, agrees to

A-1-4

 

treat, and to take no action inconsistent with the treatment of, the Notes for such tax
purposes as indebtedness of the Issuer.

     This Note and the Indenture and the obligations arising hereunder and thereunder shall in all
respects, including all matters of construction, validity and performance, be governed by, and
construed and enforced in accordance with, the internal laws of the State of New York (including
Section 5-1401(1) of the General Obligations Law, but without regard to any other conflict of laws
provisions thereof) and any applicable laws of the United States of America.

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

     Anything herein to the contrary notwithstanding, except as expressly provided in the Related
Documents, neither [___], in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees, successors or assigns shall be personally liable for, nor shall recourse be
had to any of them for, the payment of principal of or interest on, or performance of, or omission
to perform, any of the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and indemnifications have
been made by the Indenture Trustee for the sole purposes of binding the interests of the Indenture
Trustee in the assets of the Issuer. The Noteholder by the acceptance hereof, and each Note Owner
by the acceptance of a beneficial interest herein, each agrees that, except as expressly provided
in the Related Documents, in the case of an Event of Default under the Indenture, the Noteholder
and Note Owner shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.

A-1-5

 

ASSIGNMENT

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

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

	 	 	 
	 

	 	 

(name and address of assignee)

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

	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	* /
	 

	 	 
	 	 	 	 

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Signature Guaranteed:	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Note Registrar, which requirements include membership or participation in STAMP or such
other “signature guarantee program” as may be determined by the Note Registrar in addition to, or
in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

			
	 	 	*/ NOTE: The signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular without alteration,
enlargement or any change whatsoever.

A-1-6

 

EXHIBIT A-2

to Indenture

FORM OF CLASS B NOTES

	 	 	 
	REGISTERED

	 	$                    2
	 
	 	 
	No. R-___

	 	CUSIP NO.                                        

     Unless this Note is presented by an authorized representative of The Depository Trust Company,
a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange
or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such
other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

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

GE EQUIPMENT MIDTICKET, LLC, SERIES [_____]

[___]% CLASS B NOTES

     GE Equipment Midticket, LLC, Series [___], a limited liability company duly organized and
existing under the laws of the State of Delaware (including any successor, the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
___DOLLARS ($___), payable as set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on the earlier of the [___] Payment Date and the Redemption Date, if any,
pursuant to Section 10.1 of the Indenture. The Issuer will pay interest on this Note at the rate
per annum shown above, on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the preceding Payment
Date (after giving effect to all payments of principal made on the preceding Payment Date), subject
to certain limitations contained in Section 3.1 of the Indenture. Interest on this Note will
accrue for each Payment Date from the most recent Payment Date on which interest has been paid to
but excluding the then current Payment Date or, if no interest has yet been paid, from the date
hereof. Interest will be computed on the basis of the actual number

 

			
	2 Denominations of $1,000 and in greater whole-dollar
denominations in excess thereof.

A-2-1

 

of days in the Interest Accrual Period and a 360 day year. Such principal of and interest on
this Note shall be paid in the manner specified in the Indenture.

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

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

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

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

Dated: [____________]

	 	 	 	 	 
	 	 	GE EQUIPMENT MIDTICKET, LLC, SERIES
	 	 	[_____]
	 
	 	 	 	 
	 

	 	By:
	 	   CEF Equipment Holding, L.L.C.
	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	   Name:
	 

	 	 	 	   Title:

A-2-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Dated: [____________]

	 	 	 	 	 
	 	 	[___________________], not in its individual
	 	 	capacity but solely as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-2-3

 

[REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]%
Class B Notes (herein called the “B Notes” or the “Notes”), all issued under an Indenture dated as
of [___] (such Indenture, as supplemented or amended, is herein called the “Indenture”),
between the Issuer and [___], not in its individual capacity but solely as 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 and obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture. All terms used in this Note
that are not otherwise defined herein and that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

     Class B Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture and are subordinated to the Class A Notes to the
extent provided in the Indenture.

     The Issuer shall pay interest on overdue installments of interest at the Class B Interest Rate
to the extent lawful.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or
under the Indenture or any certificate or other writing delivered in connection therewith, against:
(i) the Indenture Trustee or the Managing Member in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of: (a) the Indenture Trustee or the Managing Member in their individual
capacities, (b) any holder of a beneficial interest in the Issuer, the Managing Member or the
Indenture Trustee or of (c) any successor or assign of the Indenture Trustee or the Managing Member
in their individual capacities, except as any such Person may have expressly agreed and except that
any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, will be deemed to represent and warrant that either (i) it is not
(a) an employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to Title I of
ERISA or (b) a plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code (each of the foregoing, a “Benefit Plan”), and is not acting on behalf or investing the
plan assets of a Benefit Plan, or (ii) its acquisition and continued holding of the Note will not
give rise to a nonexempt prohibited transaction under ERISA, Section 4975 of the Code, or any
substantially similar applicable law.

     It is the intent of the Issuer, the Servicer, the Noteholders and the Note Owners that, for
purposes of Federal and State income tax and any other tax measured in whole or in part by income,
the Notes will qualify as indebtedness of the Issuer. Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in a Note, agrees to

A-2-4

 

treat, and to take no action inconsistent with the treatment of, the Notes for such tax
purposes as indebtedness of the Issuer.

     This Note and the Indenture and the obligations arising hereunder and thereunder shall in all
respects, including all matters of construction, validity and performance, be governed by, and
construed and enforced in accordance with, the internal laws of the State of New York (including
Section 5-1401(1) of the General Obligations Law, but without regard to any other conflict of laws
provisions thereof) and any applicable laws of the United States of America.

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

     Anything herein to the contrary notwithstanding, except as expressly provided in the Related
Documents, neither [___], in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees, successors or assigns shall be personally liable for, nor shall recourse be
had to any of them for, the payment of principal of or interest on, or performance of, or omission
to perform, any of the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and indemnifications have
been made by the Indenture Trustee for the sole purposes of binding the interests of the Indenture
Trustee in the assets of the Issuer. The Noteholder, by the acceptance hereof, and each Note Owner
by the acceptance of a beneficial interest herein, each agrees that, except as expressly provided
in the Related Documents, in the case of an Event of Default under the Indenture, the Noteholder
and Note Owner shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, however, that nothing contained herein shall be taken to
prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note.

A-2-5

 

ASSIGNMENT

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

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

(name and address of assignee)

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

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	*
	 

	 	 
	 	 	 	 	 	 
	 	 	Signature Guaranteed:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	   	 	 

     Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Note Registrar, which requirements include membership or participation in STAMP or such
other “signature guarantee program” as may be determined by the Note Registrar in addition to, or
in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

			
	*	 	NOTE: The signature to this assignment must correspond with the name of the registered owner as
it appears on the face of the within Note in every particular without alteration, enlargement or
any change whatsoever.

A-2-6

 

EXHIBIT A-3

to Indenture

FORM OF CLASS C NOTES

			
	REGISTERED
	 	$___3

			
	No. R-___
	 	CUSIP NO. ___

     Unless this Note is presented by an authorized representative of The Depository Trust Company,
a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange
or payment, and any Note issued is registered in the name of Cede & Co. or in such other name as is
requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such
other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

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

GE EQUIPMENT MIDTICKET, LLC, SERIES [_____]

[___]% CLASS C NOTES

     GE Equipment Midticket, LLC, Series [___], a limited liability company duly organized and
existing under the laws of the State of Delaware (including any successor, the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of
___DOLLARS ($___), payable as set forth in the Indenture;
provided, that the entire unpaid principal amount of this Note shall be due and payable on
the earlier of the [___] Payment Date and the Redemption Date, if any, pursuant to Section
10.1 of the Indenture. The Issuer will pay interest on this Note at the rate per annum shown
above, on each Payment Date until the principal of this Note is paid or made available for payment,
on the principal amount of this Note outstanding on the preceding Payment Date (after giving effect
to all payments of principal made on the preceding Payment Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Note will accrue for each Payment Date
from the most recent Payment Date on which interest has been paid to but excluding the then current
Payment Date or, if no interest has yet been paid, from the date hereof. Interest will be computed
on the basis of the actual number of days in the

 

			
	 	 	3Denominations of $1,000 and in greater
whole-dollar denominations in excess thereof.

A-3-1

 

Interest Accrual Period and a 360 day year. Such principal of and interest on this Note shall
be paid in the manner specified in the Indenture.

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

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

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

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

Dated: [____________]

	 	 	 	 	 
	 	 	GE EQUIPMENT MIDTICKET, LLC, SERIES [____]
	 
	 	 	 	 
	 

	 	By:
	 	CEF Equipment Holding, L.L.C.
	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

A-3-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

Dated: [___]

	 	 	 	 	 
	 	 	[___________________], not in its individual capacity
	 	 	but solely as Indenture Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

A-3-3

 

[REVERSE OF NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its [___]%
Class C Notes (herein called the “C Notes” or the “Notes”), all issued under an Indenture dated as
of [___] (such Indenture, as supplemented or amended, is herein called the “Indenture”),
between the Issuer and [___], not in its individual capacity but solely as 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 and obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture. All terms used in this Note
that are not otherwise defined herein and that are defined in the Indenture shall have the meanings
assigned to them in or pursuant to the Indenture.

     Class C Notes are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture and are subordinated to the Class A Notes and the
Class B Notes to the extent provided in the Indenture.

     The Issuer shall pay interest on overdue installments of interest at the Class C Interest Rate
to the extent lawful.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture Trustee on the Notes or
under the Indenture or any certificate or other writing delivered in connection therewith, against:
(i) the Indenture Trustee or the Managing Member in their individual capacities, (ii) any owner of
a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director or employee of: (a) the Indenture Trustee or the Managing Member in their individual
capacities, (b) any holder of a beneficial interest in the Issuer, the Managing Member or the
Indenture Trustee or of (c) any successor or assign of the Indenture Trustee or the Managing Member
in their individual capacities, except as any such Person may have expressly agreed and except that
any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note, or, in the case of a Note Owner, a
beneficial interest in the Note, will be deemed to represent and warrant that either (i) it is not
(a) an employee benefit plan (as defined in Section 3(3) of ERISA) that is subject to Title I of
ERISA or (b) a plan (as defined in Section 4975(e)(1) of the Code) that is subject to Section 4975
of the Code (each of the foregoing, a “Benefit Plan”), and is not acting on behalf or investing the
plan assets of a Benefit Plan, or (ii) its acquisition and continued holding of the Note will not
give rise to a nonexempt prohibited transaction under ERISA, Section 4975 of the Code, or any
substantially similar applicable law.

     It is the intent of the Issuer, the Servicer, the Noteholders and the Note Owners that, for
purposes of federal and State income tax and any other tax measured in whole or in part by income,
the Notes will qualify as indebtedness of the Issuer. Each Noteholder or Note Owner, by acceptance
of a Note, or, in the case of a Note Owner, a beneficial interest in a Note, agrees to

A-3-4

 

treat, and to take no action inconsistent with the treatment of, the Notes for such tax
purposes as indebtedness of the Issuer.

     This Note and the Indenture and the obligations arising hereunder and thereunder shall in all
respects, including all matters of construction, validity and performance, be governed by, and
construed and enforced in accordance with, the internal laws of the State of New York (including
Section 5-1401(1) of the General Obligations Law, but without regard to any other conflict of laws
provisions thereof) and any applicable laws of the United States of America.

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

     Anything herein to the contrary notwithstanding, except as expressly provided in the Related
Documents, neither [___], in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective partners, beneficiaries, agents, officers,
directors, employees, successors or assigns shall be personally liable for, nor shall recourse be
had to any of them for, the payment of principal of or interest on, or performance of, or omission
to perform, any of the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and indemnifications have
been made by the Indenture Trustee for the sole purposes of binding the interests of the Indenture
Trustee in the assets of the Issuer. The Noteholder, by the acceptance hereof, and each Note Owner
by the acceptance of a beneficial interest herein, each agrees that, except as expressly provided
in the Related Documents, in the case of an Event of Default under the Indenture, the Noteholder
and Note Owner shall have no claim against any of the foregoing for any deficiency, loss or claim
therefrom; provided, that nothing contained herein shall be taken to prevent recourse to,
and enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

A-3-5

 

ASSIGNMENT

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

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

(name and address of assignee)

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

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Dated:
	 	 	 	 	 	*	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Signature Guaranteed:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

          Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements
of the Note Registrar, which requirements include membership or participation in STAMP or such
other “signature guarantee program” as may be determined by the Note Registrar in addition to, or
in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

			
	*	 	NOTE: The signature to this assignment must correspond with the name of the registered owner as
it appears on the face of the within Note in every particular without alteration, enlargement or
any change whatsoever.

A-3-6

 

EXHIBIT B

   to Indenture

FORM OF SECTION 3.9 OFFICERS’ CERTIFICATE

			
	___,
	 	___

[___]

[___]

[___]

Attention: [___________________]

     Pursuant to Section 3.9 of the Indenture, dated as of [___] (the “Indenture”), between
GE EQUIPMENT MIDTICKET, LLC, Series [___] (the “Issuer”) and [___], as Indenture Trustee, the
undersigned hereby certify that:

     (i) a review of the activities of the Issuer during the previous fiscal year
and of performance under the Indenture has been made under the supervision of the
undersigned; and

     (ii) to the best knowledge of the undersigned, based on such review, the Issuer
has complied with all conditions and covenants under the Indenture throughout such
year. [or, if there has been a default in the compliance of any such condition or
covenant, this certificate is to specify each such default known to the undersigned
and the nature and status thereof]

	 	 	 	 	 
	 	 	GE EQUIPMENT MIDTICKET, LLC, Series [____]
	 
	 	 	 	 
	 

	 	By:
	 	CEF Equipment Holding, L.L.C.
	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

B-1

 

EXHIBIT C

to Indenture

Form of Noteholder’s Statement Pursuant to Section 8.5

Record Date:

Payment Date:

	 	 	 
	Amount of principal being paid on Notes:
	 
	 	 
	Class A Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Class B Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Class C Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Amount of interest being paid in Notes:
	 
	 	 
	Class A Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Class B Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Class C Notes:

	 	($             per $1,000 original principal amount)
	 
	 	 
	Pool Balance at end of the preceding Collection Period:
	 
	 	 
	After giving effect to distributions on this Payment Date:

	 	(1)	 	Outstanding Principal Balance of Class A Notes:
	 
	 	(2)	 	Outstanding Principal Balance of Class B Notes:
	 
	 	(3)	 	Outstanding Principal Balance of Class C Notes:
	 
	 	(4)	 	Class A Note Pool Factor:
	 
	 	(5)	 	Class B Note Pool Factor:
	 
	 	(6)	 	Class C Note Pool Factor:

	 	 	 	 	 
	(ii)

	 	Amount of Servicing Fee:
	 	($             per $1,000 original principal amount)
	 
	 	 	 	 
	(iii)

	 	Amount of Servicer Advances:
	 	($             per $1,000 original principal amount)
	 
	 	 	 	 
	(iv)

	 	Amount of Administration Fee:
	 	($             per $1,000 original principal amount)

C-1

 

	 	 	 
	(v)

	 	Amount of other Fees and Expenses Paid: ($___) [Disclose identity of party receiving such fees and expenses)
	 
	 	 
	(vi)

	 	Aggregate amount of outstanding principal balance of Loans that become Liquidated Loans for
the Collection Period;
	 
	 	 
	(vii)

	 	Aggregate amount of the portion of the outstanding principal balance of Loans written off in
respect of Loans that became Defaulted Loans for such Collection Period;
	 
	 	 
	(viii)

	 	Aggregate Loan Value of Loans that became Defaulted Loans for the Collection Period;
	 
	 	 
	(ix)

	 	Aggregate Purchase Amounts for the Collection Period;
	 
	 	 
	(x)

	 	Aggregate amount of outstanding principal balance of Loans that became Delinquent Loans for
the Collection Period;
	 
	 	 
	(xi)

	 	Aggregate amount of Recoveries for the Collection Period; and
	 
	 	 
	(xii)

	 	Aggregate amount of Liquidation Proceeds for the Collection Period.
	 
	 	 
	(xiii)

	 	Material breaches of Loan representations or warranties or covenants in the Transaction
Documents.
	 
	 	 
	 
	 	 
	Attention: [________________________]

C-2

 

SCHEDULE 1

to Indenture

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

     In addition to the representations, warranties and covenants contained in the Indenture, to induce
the Indenture Trustee to enter into the Indenture, the Issuer hereby represents, warrants, and
covenants to Indenture Trustee on behalf of the Noteholders as to itself as follows, on the Closing
Date:

General

     1. The 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.

     2. The Loans constitute “accounts,” “general intangibles,” “instruments,” or “tangible chattel
paper,” within the meaning of the UCC as in effect in the State of New York.

     3. The Issuer has taken all steps necessary to perfect its security interest against the
Purchaser in the property securing the Loans that constitute chattel paper.

Creation

     4. The Issuer owns and has good and marketable title to the Loans free and clear of any Lien,
claim or encumbrance of any Person, excepting only liens for taxes, assessments or similar
governmental charges or levies incurred in the ordinary course of business that are not yet due and
payable or as to which any applicable grace period shall not have expired, or that are being
contested in good faith by proper proceedings and for which adequate reserves have been
established, but only so long as foreclosure with respect to such a lien is not imminent and the
use and value of the property to which the Lien attaches is not impaired during the pendency of
such proceeding.

Perfection

     5. The Issuer has caused or will have caused, within ten days after the effective date of the
Indenture, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the sale of the Loans from
Purchaser to the Issuer, and the security interest in the Loans granted to the Indenture Trustee
hereunder and all financing statements referred to in this paragraph contain a statement that: “A
purchase of or security interest in any collateral described in this financing statement will
violate the rights of the Indenture Trustee.”.

     6. With respect to Loans that constitute an instrument or tangible chattel paper, either:

Schedule 1

1

 

 

     (a) Such instruments or tangible chattel paper are in the possession of a custodian and
the Indenture Trustee has received a written acknowledgment from the custodian that the
custodian is holding such instruments or tangible chattel paper to effect the Indenture
Trustee’s security interest therein; or

     (b) A custodian received possession of such instruments or tangible chattel paper after
the Indenture Trustee received a written acknowledgment from such custodian that such
custodian is acting to effect the Indenture Trustee’s security interest therein.

     7. With respect to the Trust Accounts and all subaccounts that constitute deposit accounts the
Issuer has delivered to the Indenture Trustee a fully executed agreement pursuant to which the bank
maintaining the deposit accounts has agreed to comply with all instructions originated by the
Indenture Trustee directing disposition of the funds in the Trust Accounts without further consent
by the Issuer.

Priority

     8. Other than the transfer of the Loans to the Issuer under the Purchase and Sale Agreement
and the security interest granted to the Indenture Trustee pursuant to the Indenture, neither the
Issuer nor the Purchaser has pledged, assigned, sold, granted a security interest in, or otherwise
conveyed any of the Loans or the Trust Accounts or any subaccount thereof. Neither the Issuer nor
the Purchaser has authorized the filing of, or is aware of any financing statements against the
Issuer or the Purchaser that include a description of collateral covering the Loans or the Trust
Accounts or any subaccount thereof other than any financing statement relating to the security
interest granted to the Indenture Trustee hereunder or that has been terminated.

     9. Survival of Perfection Representations. Notwithstanding any other provision of the
Indenture or any other Related Document, the Perfection Representations contained in this Schedule
shall be continuing, and remain in full force and effect until such time as all Notes under the
Indenture have been finally and fully paid and performed.

     10. No Waiver. The parties to the Indenture: (i) shall not, without obtaining a
confirmation of the then-current rating of the Notes, waive any of the Perfection Representations;
(ii) shall provide the Ratings Agencies with prompt written notice of any breach of the Perfection
Representations, and (iii) shall not, without obtaining a confirmation of the then-current rating
of the Notes (as determined after any adjustment or withdrawal of the ratings following notice of
such breach) waive a breach of any of the Perfection Representations.

     11. Issuer to Maintain Perfection and Priority. The Issuer covenants that, in order
to evidence the interests of the Issuer and the Indenture Trustee under this Agreement, the Issuer
shall or shall cause the Servicer to, take such action, or execute and deliver such instruments
(other than effecting a Filing (as defined below), unless such Filing is effected in accordance
with this paragraph) as may be necessary or advisable (including, without limitation, such actions
as are requested by the Indenture Trustee) to maintain and perfect, as a first priority interest,
the Indenture Trustee’s security interest in the Collateral. The Issuer shall cause the Servicer
to, from time to time and within the time limits established by law, prepare and present to the
Indenture Trustee for the Indenture Trustee to authorize (based in reliance on the Opinion

Schedule 1

2

 

 

of Counsel hereinafter provided for) the Servicer to file all financing statements,
amendments, continuations, initial financing statements in lieu of a continuation statement,
terminations, partial terminations, releases or partial releases, or any other filings necessary or
advisable to continue, maintain and perfect the Indenture Trustee’s security interest in the
Collateral as a first-priority interest (each a “Filing”). The Issuer shall cause the Servicer to,
present each such Filing to the Indenture Trustee together with (x) an Opinion of Counsel to the
effect that such Filing is (i) consistent with grant of the security interest to the Indenture
Trustee pursuant to the Granting Clause of this Indenture, (ii) satisfies all requirements and
conditions to such Filing in this Indenture and (iii) satisfies the requirements for a Filing of
such type under the Uniform Commercial Code in the applicable jurisdiction (or if the Uniform
Commercial Code does not apply, the applicable statute governing the perfection of security
interests), and (y) a form of authorization for the Issuer’s signature authorizing the Servicer to
effect such Filing under the Uniform Commercial Code without the signature of the Issuer where
allowed by applicable law.

Schedule 1

3

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