Document:

Amended and Restated Trust Agreement

 Exhibit 4.2 
  

EXECUTION COPY 
  
 AMENDED AND RESTATED TRUST AGREEMENT 
  
 dated as of November 23, 2005 
  
 by and among 
  
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor, 
  
 ACCREDITED MORTGAGE LOAN REIT TRUST 
 as Depositor, 
  
 and 
  
 U.S.
BANK TRUST NATIONAL ASSOCIATION, 
 as Owner Trustee 
  

ACCREDITED MORTGAGE LOAN TRUST 2005-4 
 Asset-Backed Notes, Series 2005-4 

 TABLE OF CONTENTS 
  

					
	 	  	ARTICLE I	  	 
	 	  	DEFINITIONS	  	 
			
	 Section 1.01.
	  	Capitalized Terms	  	1
	 Section 1.02.
	  	Other Definitional Provisions.	  	4
			
	 	  	ARTICLE II	  	 
	 	  	ORGANIZATION	  	 
			
	 Section 2.01.
	  	Name	  	5
	 Section 2.02.
	  	Office	  	5
	 Section 2.03.
	  	Purposes and Powers	  	5
	 Section 2.04.
	  	Appointment of Owner Trustee	  	6
	 Section 2.05.
	  	Initial Capital Contribution of Owner Trust Estate	  	6
	 Section 2.06.
	  	Declaration of Trust	  	6
	 Section 2.07.
	  	Liability of the Certificateholders	  	7
	 Section 2.08.
	  	Title to Trust Property.	  	7
	 Section 2.09.
	  	Situs of Issuer	  	7
	 Section 2.10.
	  	Representations and Warranties of the Sponsor	  	7
	 Section 2.11.
	  	Federal Income Tax Treatment of the Issuer	  	8
	 Section 2.12.
	  	Covenants of the Sponsor	  	9
	 Section 2.13.
	  	Covenants of the Certificateholders	  	9
	 Section 2.14.
	  	Representations and Warranties of the Depositor	  	10
	 Section 2.15.
	  	Covenants of the Depositor	  	11
			
	 	  	ARTICLE III	  	 
	 	  	[Reserved]	  	 
			
	 	  	ARTICLE IV	  	 
	 	  	CERTIFICATES AND TRANSFER OF INTERESTS	  	 
			
	 Section 4.01.
	  	Initial Ownership	  	12
	 Section 4.02.
	  	The Certificates	  	12
	 Section 4.03.
	  	Execution, Authentication and Delivery of Certificates	  	12
	 Section 4.04.
	  	Registration of Transfer and Exchange of Certificates	  	12
	 Section 4.05.
	  	Mutilated, Destroyed, Lost or Stolen Certificates	  	13
	 Section 4.06.
	  	Persons Deemed Owners	  	14
	 Section 4.07.
	  	Access to List of Certificateholders’ Names and Addresses	  	14
	 Section 4.08.
	  	Maintenance of Office or Agency	  	14
	 Section 4.09.
	  	Restrictions on Transfers of Certificates	  	14

  

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

  

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	 	  	ARTICLE X	  	 
	 	  	TERMINATION OF TRUST AGREEMENT	  	 
			
	Section 10.01.	  	Termination of Trust Agreement.	  	29
			
	 	  	ARTICLE XI	  	 
	 	  	SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES	  	 
			
	Section 11.01.	  	Eligibility Requirements for Owner Trustee	  	30
	Section 11.02.	  	Resignation or Removal of Owner Trustee	  	30
	Section 11.03.	  	Successor Owner Trustee	  	31
	Section 11.04.	  	Merger or Consolidation of Owner Trustee	  	31
	Section 11.05.	  	Appointment of Co-Trustee or Separate Trustee.	  	32
			
	 	  	ARTICLE XII	  	 
	 	  	MISCELLANEOUS	  	 
			
	Section 12.01.	  	Supplements and Amendments	  	33
	Section 12.02.	  	No Legal Title to Owner Trust Estate in Certificateholders	  	34
	Section 12.03.	  	Limitations on Rights of Others	  	34
	Section 12.04.	  	Notices.	  	35
	Section 12.05.	  	Severability	  	35
	Section 12.06.	  	Separate Counterparts	  	35
	Section 12.07.	  	Successors and Assigns	  	35
	Section 12.08.	  	No Petition	  	35
	Section 12.09.	  	No Recourse	  	36
	Section 12.10.	  	Headings	  	36
	Section 12.11.	  	GOVERNING LAW	  	36
	Section 12.12.	  	[Intentionally Omitted.]	  	36
	Section 12.13.	  	Third-Party Beneficiaries	  	36
	Section 12.14.	  	[Intentionally Omitted.]	  	36
	Section 12.15.	  	Servicer	  	36
			
	 	  	EXHIBITS	  	 
			
	Exhibit A	  	Form of Trust Certificate	  	 
	Exhibit B	  	Form of Certificate of Trust	  	 
	Exhibit C	  	Form of Investment Letter	  	 
	Exhibit D	  	Form of Transferor Certificate	  	 

  

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 This AMENDED AND RESTATED TRUST AGREEMENT, dated as of November 23, 2005, is among ACCREDITED HOME
LENDERS, INC., as sponsor (the “Sponsor”), ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as depositor (the “Depositor”) and U.S. BANK TRUST NATIONAL ASSOCIATION, a national banking
association, as owner trustee (the “Owner Trustee”). 
  
 NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Capitalized Terms. For all purposes of this
Agreement, the following terms shall have the meanings set forth below: 
  
 “Agreement” shall mean this Trust Agreement, as may be amended and supplemented from time to time. 
  
 “Authorized Officer” shall have the meaning assigned thereto in Appendix I to the Indenture. 
  
 “Basic Documents” shall mean this Agreement, the Sale and
Servicing Agreement, the Indenture and the Swap Agreement. 
  
 “Business Day” shall mean any day other than (i) a Saturday or Sunday or (ii) a day that is either a legal holiday or a day on which banking institutions in the State of New York, the State of Delaware, the State
of California, or the state in which the Indenture Trustee’s office from which payments will be made to the Certificateholder, are authorized or obligated by law, regulation or executive order to be closed. 
  
 “Certificate” shall mean each Trust Certificate. 

 
 “Certificateholder” shall mean each Person in whose name
a Trust Certificate is registered. 
  
 “Certificate of
Trust” shall mean the Certificate of Trust, in the form of Exhibit B, to be filed for the Issuer pursuant to Section 3810(a) of the Statutory Trust Statute. 
  
 “Certificate Register” and “Certificate Registrar” shall mean the register mentioned and
the registrar appointed pursuant to Section 4.04. 
  
 “Class Note Balance” shall have the meaning assigned to such term in the Indenture. 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended, and, where appropriate in context, Treasury Regulations promulgated
thereunder. 
  

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 “Corporate Trust Office” shall mean, with respect to the Owner Trustee, an office of the
Owner Trustee which for purposes of the Agreement is located at 209 South LaSalle Street, Suite 300, Chicago, Illinois 60604, Attention: Corporate Trust Administration; or at such other address as the Owner Trustee may designate by notice to the
Certificateholders and the Sponsor, or an office of any successor Owner Trustee (the address of which the successor Owner Trustee will notify the Certificateholders and the Sponsor). 
  
 “Depositor” shall mean Accredited Mortgage Loan REIT Trust, a Maryland real estate investment trust.

  
 “ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended. 
  
 “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 “Expenses” shall have the meaning assigned to such term in Section 9.02. 
  
 “Group I Mortgage Loans” shall mean a pool of fixed- and adjustable-rate mortgage loans, as identified in the related Mortgage Loan
Schedule. 
  
 “Group II Mortgage Loans” shall
mean a pool of fixed- and adjustable-rate mortgage loans, as identified in the related Mortgage Loan Schedule. 
  
 “Indenture” shall mean the Indenture, dated as of November 1, 2005, by and between the Issuer and the Indenture Trustee. 

 
 “Indenture Trustee” means Deutsche Bank National Trust
Company, as Indenture Trustee under the Indenture. 
  
 “Investment Letter” shall have the meaning assigned to such term in Section 4.04. 
  
 “Issuer” shall mean the Accredited Mortgage Loan Trust 2005-4, the Delaware statutory trust created pursuant to this Agreement.

  
 “Loan Group” shall mean either Loan Group I
or Loan Group II. 
  
 “Loan Group I” shall mean
the pool of Mortgage Loans identified in the Mortgage Loan Schedule as having been assigned to Loan Group I. 
  
 “Loan Group II” shall mean the pool of Mortgage Loans identified in the Mortgage Loan Schedule as having been assigned to Loan Group II.

  
 “Mortgage Loans” shall mean the Group I
Mortgage Loans and the Group II Mortgage Loans. 
  
 “Non-U.S. Person” shall mean an individual, corporation, partnership or other person other than a United States Person. 
  
 “Noteholder” shall have the meaning assigned to such terms in the Indenture. 
  

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 “Notes” shall mean the Class A-1 Notes, Class A-2A Notes, Class A-2B
Notes, Class A-2C Notes, Class A-2D Notes, Class M-1 Notes, Class M-2 Notes, Class M-3 Notes, Class M-4 Notes, Class M-5 Notes, Class M-6 Notes, Class M-7 Notes, Class M-8 Notes and Class M-9 Notes. 
  
 “Outstanding” shall have the meaning assigned to such term
in the Indenture. 
  
 “Ownership Interest” means,
with respect to any Certificate, any ownership or security interest in such Certificate, including any interest in such Certificate as the Certificateholder thereof and any other interest therein, whether direct or indirect, legal or beneficial, as
owner or as pledgee. 
  
 “Owner Trust Estate”
shall mean the Trust Estate, including the contribution of $1,000 referred to in Section 2.05 hereof. 
  
 “Owner Trustee” shall mean U.S. Bank Trust National Association, a national banking association, not in its individual capacity but
solely as owner trustee under this Agreement, and any successor owner trustee hereunder. 
  
 “Payment Date” shall mean the 25th day of each month or, if such
25th day is not a Business Day, the next succeeding Business Day, commencing December 27, 2005. 
  
 “Percentage Interest” shall mean with respect to any
Certificate, the percentage portion of the Certificates evidenced thereby as stated on the face of such Certificate. 
  
 “Plan” shall mean (i) an employee benefit plan (within the meaning of Section 3(3) of ERISA) that is subject to Title I of
ERISA, (ii) a plan (within the meaning of Section 4975(e)(1) of the Code) that is subject to Section 4975 of the Code or (iii) a governmental plan (within the meaning of Section 3(32) of ERISA) that is subject to any
federal, state or local law that is, to a material extent, similar to Title I of ERISA or Section 4975 of the Code. 
  
 “Prospective Holder” shall have the meaning set forth in Section 4.09(a). 
  
 “Rating Agency Condition” means, with respect to any action
to which a Rating Agency Condition applies, that each Rating Agency shall have been given ten (10) days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each of the Rating Agencies shall have
notified the Indenture Trustee, the Sponsor, the Servicer, the Owner Trustee and the Issuer in writing that such action will not result in a reduction or withdrawal of the then current rating of the Notes that it maintains. 
  
 “Record Date” shall mean, with respect to the Certificates
and any Payment Date, the last Business Day of the month preceding the month in which the related Payment Date occurs. 
  
 “Sale and Servicing Agreement” shall mean the Sale and Servicing Agreement, dated as of November 1, 2005, among the Sponsor, the
Issuer, the Indenture Trustee, and the Servicer. 
  

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 “Secretary of State” shall mean the Secretary of State of the State of Delaware.

  
 “Servicer” shall mean Accredited Home
Lenders, Inc., a California corporation, or any successor servicer appointed pursuant to the Sale and Servicing Agreement. 
  
 “Sponsor” shall mean Accredited Home Lenders, Inc., a California corporation. 
  
 “Statutory Trust Statute” shall mean Chapter 38 of Title 12
of the Delaware Code, 12 Del. Code § 3801 et seq., as the same may be amended from time to time. 
  
 “Swap Agreement” the interest rate swap agreement, dated as of November 23, 2005, between the Issuer and the Swap Provider.

  
 “Swap Provider” shall mean the counterparty
to the Swap Agreement either (a) entitled to receive payments from the Issuer or (b) required to make payments to the Issuer, in either case pursuant to the terms of the Swap Agreement, and any successor in interest or assign. Initially,
the Swap Provider shall be Barclays Bank PLC. 
  
 “Transfer” means any direct or indirect transfer, sale, pledge, hypothecation or other form of assignment of any Ownership Interest in a Certificate. 
  
 “Treasury Regulations” shall mean regulations, including proposed or temporary regulations, promulgated
under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 
  
 “Trust Certificate” shall mean a certificate evidencing the
beneficial interest of a Certificateholder in the Issuer, substantially in the form attached hereto as Exhibit A. 
  
 “Underwriters” shall mean Goldman, Sachs & Co., Lehman Brothers Inc., and Credit Suisse First Boston LLC. 
  
 Section 1.02. Other Definitional Provisions. 
  
 (a) Capitalized terms used herein and not otherwise defined herein have the
meanings assigned to them in Appendix I to the Indenture and the Sale and Servicing Agreement. 
  
 (b) All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto unless otherwise defined therein. 
  
 (c) As used in this Agreement and in any certificate or other document made
or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such certificate or other document, and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent
not defined, shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Agreement or in any such certificate or other document are inconsistent with
the meanings of such terms under generally accepted accounting principles, the definitions contained in this Agreement or in any such certificate or other document shall control. 
  

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 (d) The words “hereof,” “herein,” “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement; Section and Exhibit references contained in this Agreement are references to Sections and Exhibits in or to this Agreement
unless otherwise specified; and the term “including” shall mean “including without limitation.” 
  
 (e) The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as
to the feminine and neuter genders of such terms. 
  
 (f) Any
agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a Person are also to its permitted successors and assigns. 
  
 ARTICLE II 
  
 ORGANIZATION 
  
 Section 2.01. Name. The Issuer governed hereby shall be known as “Accredited Mortgage Loan Trust 2005-4,” in which name the Owner
Trustee may conduct the business of the Issuer, make and execute contracts and other instruments on behalf of the Issuer and sue and be sued on behalf of the Issuer. 
  
 Section 2.02. Office. The office of the Issuer shall be in care of the Owner Trustee at the Corporate Trust
Office or at such other address in the State of Delaware as the Owner Trustee may designate by written notice to the Certificateholders, Indenture Trustee and the Sponsor. 
  
 Section 2.03. Purposes and Powers. The purpose of the Issuer is to engage in the following activities:

  
 (a) to issue the Notes pursuant to the
Indenture and to sell such Notes; 
  
 (b) with
the proceeds of the sale of the Notes and Certificates, to purchase the Mortgage Loans to be included in the Owner Trust Estate from the Depositor with the balance of such funds pursuant to the Sale and Servicing Agreement; 
  
 (c) to assign, grant, transfer, pledge, mortgage and convey
the Owner Trust Estate pursuant to the Indenture and to hold, manage and distribute to the Certificateholders any portion of the Owner Trust Estate released from the lien of, and remitted to the Issuer pursuant to, the Indenture; 
  

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 (d) to enter into and perform its obligations under the Basic Documents to which it is or
is to be a party; 
  
 (e) to engage in those
activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith; 
  
 (f) subject to compliance with the Basic Documents, to engage in such other activities as may be required in
connection with conservation of the Owner Trust Estate and the making of distributions and payments to the Noteholders and the Certificateholders; and 
  
 (g) to issue the Certificates pursuant to this Agreement. 
  
 The Issuer is hereby authorized by the initial beneficiary and the Certificateholders to engage in the foregoing activities.
The Issuer shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement or the other Basic Documents. 
  
 Section 2.04. Appointment of Owner Trustee. The Sponsor hereby
appoints the Owner Trustee as trustee of the Issuer effective as of the date hereof, to have all the rights, powers and duties set forth herein and in the Statutory Trust Statute, and the Owner Trustee hereby accepts such appointment. 
  
 The Owner Trustee may engage, in the name of the Issuer or in its own name on
behalf of the Issuer, in the activities of the Issuer, make and execute contracts on behalf of the Issuer and sue on behalf of the Issuer. 
  
 Section 2.05. Initial Capital Contribution of Owner Trust Estate. The Depositor hereby sells, assigns, transfers, conveys and sets over to the
Owner Trustee, as of the date hereof, the sum of $1,000. The Owner Trustee hereby acknowledges receipt in trust from the Depositor, as of the date hereof, of the foregoing contribution, which shall constitute the initial Owner Trust Estate and shall
be deposited in the Payment Account. The Depositor shall pay organizational expenses of the Issuer as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner
Trustee. Concurrently with the execution of this Agreement, the Issuer will enter into the Sale and Servicing Agreement pursuant to which it will purchase the Mortgage Loans, which comprise the remainder of the Owner Trust Estate. Upon the transfer
of the Mortgage Loans pursuant to the Sale and Servicing Agreement, the Owner Trustee shall transfer the initial capital contribution, in the sum of $1,000, to the Depositor. 
  
 Section 2.06. Declaration of Trust. The Owner Trustee hereby declares that it will hold the Owner Trust Estate
in trust upon and subject to the conditions set forth herein for the use and benefit of the Noteholders and the Certificateholders, subject to the obligations of the Issuer under the Basic Documents. 
  
 It is the intention of the parties hereto that, solely for state income and
franchise tax purposes, the Issuer constitutes a statutory trust under the Statutory Trust Statute and that this 
  

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 Agreement constitutes the governing instrument of such statutory trust. It is the intention of the parties hereto that,
solely for state income and franchise tax purposes, the Issuer shall be treated as a security arrangement, with the assets of the Issuer being the Loan Groups. The parties agree that, unless otherwise required by appropriate state tax authorities,
the Issuer will file or cause to be filed annual or other necessary returns, reports and other forms, if any, consistent with the characterization of the Issuer and each Loan Group as provided in the preceding sentence for such tax purposes.
Effective as of the date hereof, the Owner Trustee shall have all rights, powers and duties set forth herein and in the Statutory Trust Statute with respect to accomplishing the purposes of the Issuer. The Owner Trustee shall file the Certificate of
Trust with the Secretary of State. 
  
 Section 2.07.
Liability of the Certificateholders. Subject to Section 2.05, no Certificateholder shall have any personal liability for any liability or obligation of the Issuer. The Certificates shall be fully paid and nonassessable. 
  
 Section 2.08. Title to Trust Property. 
  
 (a) Subject to the Indenture, legal title to all of the Owner Trust Estate
shall be vested at all times in the Issuer as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to
be vested in the Owner Trustee and/or a separate trustee, as the case may be. 
  
 (b) The Certificateholders shall not have legal title to any part of the Owner Trust Estate. No transfer by operation of law or otherwise of any interest of the Certificateholders shall operate to terminate this
Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of any part of the Owner Trust Estate. 
  
 Section 2.09. Situs of Issuer. The Issuer will be located in the State of Delaware and administered by the Owner Trustee in the States of
Delaware and Illinois. The Issuer shall not have any employees; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or without the State of Delaware. 
  
 Section 2.10. Representations and Warranties of the Sponsor. The
Sponsor hereby represents and warrants to the Owner Trustee that: 
  
 (a) The Sponsor is duly organized and validly existing as a corporation in good standing under the laws of the State of California, with power and authority to own its properties and to conduct its business as such properties are currently
owned and such business is presently conducted. 
  
 (b) The
Sponsor has the power and authority to execute and deliver this Agreement and to carry out its terms; and the execution, delivery and performance of this Agreement has been duly authorized by the Sponsor by all necessary corporate action.

  
 (c) The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the articles 
  

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 of incorporation or by-laws of the Sponsor, or any indenture, agreement or other instrument to which the Sponsor is a
party or by which it is bound; nor result in the creation or imposition of any lien upon any of its properties pursuant to the terns of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any
law or, any order, rule or regulation applicable to the Sponsor of any court or of any Federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Sponsor or its properties. 

 
 (d) There are no proceedings or investigations pending or notice of which
has been received in writing before any court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Sponsor or its properties: (x) asserting the invalidity of this Agreement, (y) seeking
to prevent the consummation of any of the transactions contemplated by this Agreement or (z) seeking any determination or ruling that should reasonably be expected to materially and adversely affect the performance by the Sponsor of its
obligations under, or the validity or enforceability of, this Agreement. 
  
 (e) The representations and warranties of the Sponsor in Article III of the Sale and Servicing Agreement are true and correct. 
  

(f) The Sponsor has duly executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding obligation of the Sponsor,
enforceable against the Sponsor, in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by the
application of equitable principles. 
  
 (g) The Sponsor is not in
default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental agency, which default might have consequences that would materially and adversely affect the condition
(financial or otherwise) or operations of the Sponsor or its properties or might have consequences that would materially and adversely affect its performance hereunder. 
  
 (h) The Sponsor will hold itself out to the public under its own name as a separate and distinct entity from the Issuer and
conduct its business so as not to mislead others as to the identity of the Issuer. Without limiting the generality of the foregoing, to the extent that the Sponsor makes on behalf of the Issuer, as administrator of the Issuer, oral and written
communications, including without limitation, all letters, invoices, contracts, statements and applications such oral and written communications will be made solely by the Sponsor, as administrator of the Issuer, in the name of the Issuer if they
are made on behalf of the Issuer. 
  
 Section 2.11.
Federal Income Tax Treatment of the Issuer. The parties hereto intend that the Depositor, or other entity that is a REIT or a Qualified REIT Subsidiary, will at all times that the Notes are outstanding own a 100% Percentage Interest in the
Trust Certificates; that the Depositor will qualify for taxation as a REIT at all times that it is a Certificateholder; and that the Issuer will be a Qualified REIT Subsidiary at all times the Notes are outstanding. 
  

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 Section 2.12. Covenants of the Sponsor. The Sponsor agrees and covenants for the benefit of
each Certificateholder and the Owner Trustee, during the term of this Agreement, and to the fullest extent permitted by applicable law, that: 
  
 (a) it shall not, for any reason, institute proceedings for the Issuer to be adjudicated bankrupt or insolvent, or consent to or join in the institution
of bankruptcy or insolvency proceedings against the Issuer, or file a petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to the bankruptcy of the Issuer, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Issuer or a substantial part of the property of the Issuer or cause or permit the Issuer to make any assignment for the benefit of creditors, or admit in
writing the inability of the Issuer to pay its debts generally as they become due, or declare or effect a moratorium on the debt of the Issuer or take any action in furtherance of any such action; 
  
 (b) it shall obtain from each counterparty to each Basic Document to which it
or the Issuer is a party and each other agreement entered into on or after the date hereof to which it or the Issuer is a party, an agreement by each such counterparty that prior to the occurrence of certain events specified in such agreement, such
counterparty shall not institute against, or join any other Person in instituting against, it or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of the United
States or any state of the United States; and 
  
 (c) it shall
not, for any reason, withdraw or attempt to withdraw from this Agreement or any other Basic Document to which it is a party. 
  
 Section 2.13. Covenants of the Certificateholders. Each Certificateholder by becoming a beneficial owner of the Certificate or by its
acceptance of a Certificate agrees: 
  
 (a) to be bound by the
terms and conditions of the Certificates of which such Certificateholder is the beneficial owner and of this Agreement and the other Basic Documents, including any supplements or amendments hereto and thereto and to perform the obligations of a
Certificateholder as set forth therein or herein, in all respects as if it were a signatory hereto. This undertaking is made for the benefit of the Issuer, the Owner Trustee and all other Certificateholders, present and future; 
  
 (b) to the appointment of the Owner Trustee as such Certificateholder’s
agent and attorney-in-fact to sign any federal income tax information return filed on behalf of the Issuer and, if requested by the Issuer, to sign such federal income tax information return in its capacity as holder of an interest in the Issuer;

  
 (c) not to take any position in such Certificateholder’s
tax returns inconsistent with those taken in any tax returns filed by the Issuer; and 
  
 (d) not to take any action that would cause the Issuer to become subject to federal income tax or fail to take any action that would prevent the Issuer from becoming subject to federal income tax. 
  

 9 

 Section 2.14. Representations and Warranties of the Depositor. The Depositor hereby
represents and warrants to the Owner Trustee that: 
  
 (a) The
Depositor is duly organized and validly existing as a Maryland real estate investment trust in good standing under the laws of the State of Maryland, with power and authority to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted. 
  
 (b)
The Depositor has the power and authority to execute and deliver this Agreement and to carry out its terms; the Depositor has full power and authority to transfer and assign the property to be transferred and assigned to and deposited with the
Issuer and the Depositor has duly authorized such transfer and assignment and deposit to the Issuer by all necessary trust action; and the execution, delivery and performance of this Agreement has been duly authorized by the Depositor by all
necessary trust action. 
  
 (c) The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the
declaration of trust or by-laws of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any lien upon any of its properties pursuant to
the terns of any such indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any law or, any order, rule or regulation applicable to the Depositor of any court or of any Federal or state regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties. 
  
 (d) There are no proceedings or investigations pending or notice of which has been received in writing before any court, regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Depositor or its properties: (x) asserting the invalidity of this Agreement, (y) seeking to prevent the consummation of any of the transactions contemplated by this
Agreement or (z) seeking any determination or ruling that should reasonably be expected to materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement.

  
 (e) The representations and warranties of the Depositor in
Article III of the Sale and Servicing Agreement are true and correct. 
  
 (f) The Depositor has duly executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding obligation of the Depositor, enforceable against the Depositor, in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by the application of equitable principles. 
  
 (g) The Depositor is not in default with respect to any order or decree of
any court or any order, regulation or demand of any federal, state, municipal or other governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or otherwise) or operations of the
Depositor or its properties or might have consequences that would materially and adversely affect its performance hereunder. 
  

 10 

 (h) The Depositor will hold itself out to the public under its own name as a separate and distinct entity
from the Issuer and conduct its business so as not to mislead others as to the identity of the Issuer. 
  
 Section 2.15. Covenants of the Depositor. The Depositor agrees and covenants for the benefit of each Certificateholder and the Owner Trustee,
during the term of this Agreement, and to the fullest extent permitted by applicable law, that: 
  
 (a) it shall not, for any reason, institute proceedings for the Issuer to be adjudicated bankrupt or insolvent, or consent to or join in the institution
of bankruptcy or insolvency proceedings against the Issuer, or file a petition seeking or consenting to reorganization or relief under any applicable federal or state law relating to the bankruptcy of the Issuer, or consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Issuer or a substantial part of the property of the Issuer or cause or permit the Issuer to make any assignment for the benefit of creditors, or admit in
writing the inability of the Issuer to pay its debts generally as they become due, or declare or effect a moratorium on the debt of the Issuer or take any action in furtherance of any such action; 
  
 (b) it shall obtain from each counterparty to each Basic Document to which it
or the Issuer is a party and each other agreement entered into on or after the date hereof to which it or the Issuer is a party, an agreement by each such counterparty that prior to the occurrence of certain events specified in such agreement, such
counterparty shall not institute against, or join any other Person in instituting against, it or the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of the United
States or any state of the United States; 
  
 (c) it shall not,
for any reason, withdraw or attempt to withdraw from this Agreement or any other Basic Document to which it is a party; and 
  
 (d) the Depositor hereby reaffirms the covenants of the Depositor in Section 3.06(h) of the Sale and Servicing Agreement and those covenants are
incorporated herein by this reference. 
  
 ARTICLE III

  
 [RESERVED] 
  

 11 

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

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

 12 

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

 13 

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

  
 Section 4.09. Restrictions on Transfers of
Certificates. (a) Each prospective purchaser and any subsequent transferee of a Certificate (each, a “Prospective Holder”), other than the Sponsor, shall execute and deliver to the Owner Trustee and the Certificate
Registrar and any of their respective successors an Investment Letter in the form of Exhibit C hereto to the effect that: 
  
 (i) Such Person is (A) a “qualified institutional buyer” as defined in Rule 144A under the Securities Act of 1933, as
amended (the “Securities Act”), and is aware that the seller of the Certificate may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A and is acquiring such 

  

 14 

 
Certificate for its own account or for the account of one or more qualified institutional buyers for whom it is authorized to act, or (B) a Person
involved in the organization or operation of the Issuer or an affiliate of such Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended (including, but not limited to, the Sponsor). 
  
 (ii) Such Person understands that the Certificates have not
been and will not be registered under the Securities Act and may be offered, sold, pledged or otherwise transferred only to a person whom the seller reasonably believes is (A) a qualified institutional buyer or (B) a Person involved in the
organization or operation of the Issuer or an affiliate of such Person, in a transaction pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or exempt from the registration requirements
of the Securities Act and any such state securities laws. 
  
 (iii) Such Person understands that the Certificates bear a legend to the following effect: 
  
 “THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE
SECURITIES LAWS. THIS CERTIFICATE MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE ACT, IN
A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE LAWS OR (II) A PERSON INVOLVED IN THE ORGANIZATION OR OPERATION OF THE ISSUER OR AN
AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3a-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO, ACCREDITED HOME LENDERS, INC.) IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE
SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS CERTIFICATE UNDER THE ACT OR ANY STATE SECURITIES LAWS.” 
  

 15 

 (b) By its acceptance of a Certificate, each Prospective Holder agrees and acknowledges that no legal or
beneficial interest in all or any portion of any Certificate may be transferred directly or indirectly to an entity that holds residual securities as nominee to facilitate the clearance and settlement of such securities through electronic book-entry
changes in accounts of participating organizations (a “Book-Entry Nominee”) and any such purported transfer shall be void and have no effect. 
  

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

 16 

 (g) No pledge or transfer of the Certificates shall be effective unless such pledge or transfer is
(i) to a single beneficial owner that represents that it qualifies for taxation as a REIT or is a Qualified REIT Subsidiary and (ii) accompanied by an Opinion of Counsel satisfactory to the Owner Trustee, which Opinion of Counsel shall
not, unless otherwise agreed, be an expense of the Issuer, the Certificate Registrar, the Servicer, or the Sponsor, to the effect such pledge or transfer will not cause the Issuer to be subject to federal income tax. 
  
 ARTICLE V 
  
 ACTIONS BY OWNER TRUSTEE 
  
 Section 5.01. Prior Notice to the Certificateholders with Respect to
Certain Matters. With respect to the following matters, the Owner Trustee shall not take action unless at least thirty (30) days before the taking of such action, the Owner Trustee shall have notified the Certificateholders (unless the
Certificateholders have directed the Owner Trustee to take action) and the Rating Agencies in writing of the proposed action and the Certificateholders shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is
given that such Certificateholders have withheld consent or have provided alternative written direction and in the case of the Rating Agencies, the Rating Agency Condition shall have been met: 
  
 (a) the initiation of any claim or lawsuit by the Issuer
(except claims or lawsuits brought in connection with the collection of the Mortgage Loans) and the compromise of any action, claim or lawsuit brought by or against the Issuer (except with respect to the aforementioned claims or lawsuits for
collection of the Mortgage Loans); 
  
 (b) the
election by the Issuer to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Statutory Trust Statute); 
  
 (c) the amendment or other change to this Agreement or any Basic Document in circumstances where the consent of any Certificateholder is
required; 
  
 (d) the amendment or other change
to this Agreement or any other Basic Document in circumstances where the consent of any Certificateholder is not required and such amendment materially adversely affects the interest of the Certificateholders; 
  
 (e) the appointment pursuant to the Indenture of a successor
Note Registrar, or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar or the consent to the assignment by the Note Registrar or Indenture Trustee or Certificate Registrar of their respective obligations under the
Indenture or this Agreement, as applicable; 
  
 (f) the consent to the waiver of any default of any Basic Document; 
  
 (g) the consent to the assignment by the Indenture Trustee or Servicer of their respective obligations under any Basic Document; 
  
 (h) except as provided in Article X hereof, dissolve, terminate or liquidate the Issuer in whole or in part;

  

 17 

 (i) merge or consolidate the Issuer with or into any other entity, or convey or transfer
all or substantially all of the Issuer’s assets to any other entity; 
  
 (j) cause the Issuer to incur, assume or guaranty any indebtedness other than as set forth in this Agreement or the other Basic Documents; 
  
 (k) do any act which would make it impossible to carry on the ordinary business of the Issuer as described
in Section 2.03 hereof; 
  
 (l) confess a
judgment against the Issuer; 
  
 (m) possess
Issuer assets, or assign the Issuer’s right to property, for other than an Issuer purpose; 
  
 (n) cause the Issuer to lend any funds to any entity; or 
  
 (o) change the Issuer’s purpose and powers from those set forth in this Agreement. 
  
 In addition the Issuer shall not commingle its assets with those of any other
entity. The Issuer shall maintain its financial and accounting books and records separate from those of any other entity. Except as expressly set forth herein, the Issuer shall pay its indebtedness, operating expenses and liabilities from its own
funds, and the Issuer shall not pay the indebtedness, operating expenses and liabilities of any other entity. The Servicer, on behalf of the Issuer, shall maintain appropriate minutes or other records of all appropriate action. The Issuer shall
maintain its office separate from the offices of the Sponsor, the Depositor and the Servicer. 
  
 Notwithstanding the other provisions of this Section 5.01, the Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, and to the extent otherwise consistent with the
Basic Documents, to remove or replace the Servicer or the Indenture Trustee. 
  
 Section 5.02. Action by Certificateholders with Respect to Bankruptcy. The Owner Trustee shall not have the power to (i) institute proceedings to have the Issuer declared or adjudicated bankrupt or
insolvent, (ii) consent to the institution of bankruptcy or insolvency proceedings against the Issuer, (iii) file a petition or consent to a petition seeking reorganization or relief on behalf of the Issuer under any applicable federal or
state law relating to bankruptcy, (iv) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or any similar official) of the Issuer or a substantial portion of the property of the Issuer, (v) make any
assignment for the benefit of the Issuer’s creditors, (vi) cause the Issuer to admit in writing its inability to pay its debts generally as they become due, or (vii) take any action, or cause the Issuer to take any action, in
furtherance of any of the foregoing (any of the above, a “Bankruptcy Action”) without the unanimous prior written consent and approval of all Certificateholders and the Rating Agency Condition shall have been satisfied and the
delivery to the Owner Trustee by each such Certificateholder of a certification that such Certificateholder reasonably believes that the Issuer is insolvent. So long as the Indenture remains in effect, no Certificateholder shall have the power to
take, and shall not take, any Bankruptcy Action with respect to the Issuer or direct the Owner Trustee to take any Bankruptcy Action with respect to the Issuer. The terms of this Section 5.02 shall survive for one year and one day following the
termination of this Agreement. 
  

 18 

 Section 5.03. Restrictions on Certificateholders’ Power. The Certificateholders shall
not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under this Agreement or any of the other Basic Documents or would be contrary to
Section 2.03, nor shall the Owner Trustee be obligated to follow any such direction, if given. 
  
 Section 5.04. Majority Control. Except as expressly provided herein, any action that may be taken by the Certificateholders under this
Agreement may be taken by the holders of Certificates evidencing more than 50% of the Percentage Interest in the Issuer and such action shall be binding upon all Certificateholders. Except as expressly provided herein, any written notice of the
Certificateholders delivered pursuant to this Agreement shall be effective if signed by holders of Certificates evidencing more than 50% of the Percentage Interest in the Issuer at the time of the delivery of such notice and such action shall be
binding upon all Certificateholders. 
  
 ARTICLE VI

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

  

 19 

 direction of the Indenture Trustee, on behalf of the Owner Trustee. If there is a possibility that withholding tax is
payable with respect to a distribution (such as a distribution to a Certificateholder who is a Non-U.S. Person), the Indenture Trustee may in its sole discretion withhold such amounts in accordance with this paragraph. In the event that a
Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and the Indenture Trustee shall reasonably cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees in writing
to reimburse the Owner Trustee for any out-of-pocket expenses incurred. 
  
 Section 6.03. Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others. The Sponsor shall (a) maintain (or cause to be maintained) the books of the Issuer on a calendar year basis on the
accrual method of accounting, and (b) deliver (or cause to be delivered) to each Certificateholder such information, reports or statements as may be required by the Code and applicable Treasury Regulations and as may be required to enable each
Certificateholder to prepare its respective federal and state income tax returns. Consistent with the Issuer’s characterization for tax purposes as a Qualified REIT Subsidiary, no federal income tax return shall be filed on behalf of the Issuer
unless either (y) the Issuer, the Indenture Trustee or the Certificateholders receive an Opinion of Counsel based on a change in applicable law occurring after the date hereof that the Code requires such a filing or (z) the Internal
Revenue Service shall determine that the Issuer (or a related Loan Group) is required to file such a return. In the event that the Issuer (or a related Loan Group) is required to file tax returns, the Indenture Trustee shall elect under
Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Mortgage Loans. The Sponsor shall prepare or shall cause to be prepared any tax returns required to be filed by the Issuer. The
Depositor, or any other such party required by law, shall promptly sign such returns and deliver such returns after signature to the Sponsor and such returns shall be filed by, or at the direction of, the Sponsor with the appropriate tax
authorities. In no event shall the Depositor or the Sponsor be liable for any liabilities, costs or expenses of the Issuer arising out of the application of any tax law, including federal, state, foreign or local income or excise taxes or any other
tax imposed on or measured by income (or any interest, penalty or addition with respect thereto or arising from a failure to comply therewith), except, for any such liability, cost or expense attributable to the Depositor’s breach of its
obligations under this Agreement. 
  
 ARTICLE VII

  
 AUTHORITY AND DUTIES OF OWNER TRUSTEE 

 
 Section 7.01. General Authority. The Owner Trustee is
authorized and directed to execute and deliver or cause to be executed and delivered the Notes, the Certificates and the Basic Documents to which the Issuer is to be a party and each certificate or other document attached as an exhibit to or
contemplated by the Basic Documents to which the Issuer is to be a party and any amendment or other agreement or instrument described in Article IV, in each case, as the Sponsor shall approve, as evidenced conclusively by the Owner Trustee’s
execution thereof. In addition, the Owner Trustee is authorized and directed, on behalf of the Issuer, to execute and deliver to the Authenticating Agent the Trust Request and the Trust Orders referred to in Section 2.11 of the Indenture,
directly to the Authenticating Agent to authenticate and deliver the following Notes: 
  

 20 

				
	 Security

	  	 Original Note
 Principal Balance

	 Class A-1
	  	$	354,752,000
	 Class A-2A
	  	$	258,711,000
	 Class A-2B
	  	$	140,874,000
	 Class A-2C
	  	$	128,843,000
	 Class A-2D
	  	$	106,374,000
	 Class M-1
	  	$	40,634,000
	 Class M-2
	  	$	37,646,000
	 Class M-3
	  	$	23,305,000
	 Class M-4
	  	$	20,317,000
	 Class M-5
	  	$	19,719,000
	 Class M-6
	  	$	17,329,000
	 Class M-7
	  	$	13,744,000
	 Class M-8
	  	$	11,951,000
	 Class M-9
	  	$	11,951,000

  
 In addition to the foregoing, the
Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Issuer, pursuant to the Basic Documents. 
  
 Section 7.02. General Duties. 
  
 (a) It shall be the duty of the Owner Trustee: 
  
 (i) to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and the Basic Documents
to which the Issuer is a party and to administer the Issuer in the interest of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Agreement; and 
  
 (ii) to maintain the Issuer’s existence as a statutory
trust under the laws of the State of Delaware. 
  
 (b) The Owner
Trustee shall not be responsible for taking any action on behalf of the Issuer under any Basic Document unless specifically directed in writing to do so in accordance with Section 7.03 of this Agreement. 
  

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

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 reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no
duty to, take or refrain from taking such action, not inconsistent with this Agreement or the other Basic Documents, as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or
inaction. 
  
 Section 7.04. No Duties Except as Specified in
this Agreement, the Basic Documents or any Instructions. 
  
 (a)
The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to otherwise take or refrain from taking any action under, or
in connection with, this Agreement or any document contemplated hereby to which the Issuer is a party, except as expressly provided by the terms of this Agreement, any other Basic Document or in any document or written instruction received by the
Owner Trustee pursuant to Section 7.03; and no implied duties or obligations shall be read into this Agreement or any other Basic Document against the Owner Trustee. The Owner Trustee shall have no responsibility for filing any tax document,
financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted to it hereunder or to prepare or file any Securities and Exchange Commission filing for
the Issuer or to record this Agreement or any other Basic Document. The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any liens on any part of the Owner Trust
Estate that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the ownership or the administration of the Owner Trust Estate. 
  
 (b) Notwithstanding anything to the contrary herein or in any other document, the Owner Trustee shall not be required to
execute, deliver or certify on behalf of the Issuer or any other Person any filings, certificates, affidavits or other instruments required under the Sarbanes-Oxley Act of 2002. Notwithstanding any Person’s right to instruct the Owner Trustee,
neither the Owner Trustee nor any agent, employee, director or officer of the Owner Trustee shall have any obligation to execute any certificates or other documents required pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations
promulgated thereunder, and the refusal to comply with any such instructions shall not constitute a default or breach under any Basic Document. 
  
 Section 7.05. No Action Except under Specified Documents or Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the other Basic Documents
and (iii) in accordance with any document or written instruction delivered to the Owner Trustee pursuant to Section 7.03. 
  
 Section 7.06. Restrictions. Neither the Owner Trustee nor the Sponsor shall take any action (a) that violates or results in a breach of
or is inconsistent with the purposes of the Issuer set forth in Section 2.03; (b) that causes or effectuates a Transfer of the Depositor’s Ownership Interest in the Issuer for so long as the Depositor is a REIT other than as set forth
in Section 4.09(g) or (c) that, to the actual knowledge of the Sponsor and the Owner Trustee, would result 
  

 23 

 in the Issuer’s becoming taxable as a corporation for federal income tax purposes. The Certificateholders shall not
direct the Owner Trustee to take action that would violate the provisions of this Section 7.06. 
  
 ARTICLE VIII 
  
 CONCERNING THE OWNER TRUSTEE 
  
 Section 8.01. Acceptance of Trusts and Duties. The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to such trusts, but only upon the terms of this Agreement and subject to
the other Basic Documents. The Owner Trustee also agrees to disburse all moneys actually received by it constituting part of the Owner Trust Estate upon the terms of the other Basic Documents and this Agreement. The Owner Trustee shall not be
answerable or accountable hereunder or under any other Basic Document under any circumstances, except (i) for its own willful breach or misconduct or gross negligence or (ii) in the case of the inaccuracy of any representation or warranty
contained in Section 8.03 expressly made by the Owner Trustee in its individual capacity. In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence): 
  
 (a) The Owner Trustee shall not be liable for any error of judgment made by
a Responsible Officer of the Owner Trustee; 
  
 (b) The Owner
Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions of the Certificateholders given in accordance with this Agreement; 
  
 (c) No provision of this Agreement or any other Basic Document shall require
the Owner Trustee to expend or risk funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder or under any other Basic Document if the Owner Trustee shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it; 
  
 (d) Under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any of the Basic Documents, including the
principal of and interest on the Notes; 
  
 (e) The Owner Trustee
shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Sponsor or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate or
for or in respect of the validity or sufficiency of the Basic Documents, other than the certificate of authentication on the Certificates, and the Owner Trustee shall in no event assume or incur any liability, duty, or obligation to any Noteholder
or to any Certificateholders, other than as expressly provided for herein and in the other Basic Documents; 
  
 (f) The Owner Trustee shall not be liable for the default or misconduct of the Indenture Trustee or the Servicer under any of the Basic Documents or
otherwise and the Owner 
  

 24 

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

  
 Section 8.03. Representations and Warranties of the
Owner Trustee. The Owner Trustee hereby represents and warrants to the Sponsor and the Certificateholders, that: 
  
 (a) It is a national banking association duly organized and validly existing in good standing under the laws of the United States of America. It has all
requisite power and authority to execute, deliver and perform its obligations under this Agreement. 
  

 25 

 (b) It has taken all action necessary to authorize the execution and delivery by it of this Agreement,
and this Agreement will be executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf. 
  
 (c) Neither the execution nor the delivery by it of this Agreement nor the consummation by it of the transactions contemplated hereby nor compliance by it
with any of the terns or provisions hereof will contravene any Delaware or Federal law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, or constitute any default
under its charter documents or by-laws. 
  
 (d) This Agreement has
been duly authorized, executed and delivered by the Owner Trustee and constitutes a valid, legal and binding obligation of the Owner Trustee, enforceable against it in accordance with the terms hereof, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other laws affecting the enforcement of creditors’ rights generally and to general principles of equity, regardless of whether such enforcement is considered in a proceeding in equity or at law. 
  
 (e) The Owner Trustee is not in default with respect to any order or decree
of any court or any order, regulation or demand of any federal, state, municipal or governmental agency, which default might have consequences that would materially and adversely affect the condition (financial or other) or operations of the Owner
Trustee or its properties or might have consequences that would materially adversely affect its performance hereunder. 
  
 (f) No litigation is pending or, to the best of the Owner Trustee’s knowledge, threatened against the Owner Trustee which would prohibit its entering
into this Agreement or performing its obligations under this Agreement. 
  
 Section 8.04. Reliance; Advice of Counsel. 
  
 (a)
The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, Note, or other document or paper believed by it in good faith to be genuine and
believed by it in good faith to be signed by the proper party or parties. The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full force and effect. As to any fact or matter the method of the determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely
on a certificate, signed by the president or any vice president or by the treasurer or other authorized officers of the relevant party, as to such fact or matter and such certificate shall constitute full protection to the Owner Trustee for any
action taken or omitted to be taken by it in good faith in reliance thereon. 
  
 (b) In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement or the other Basic Documents, the Owner Trustee (i) may, at the expense of
the Issuer, act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall
have been 
  

 26 

 selected by the Owner Trustee with reasonable care, and (ii) may, at the expense of the Issuer, consult with
counsel, Accountants and other skilled persons to be selected with reasonable care and employed by it. The Owner Trustee shall not be responsible for monitoring the performance of such agents or attorneys or for the failure of others to perform
their duties, even if delegated by the Owner Trustee, if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care. The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in
accordance with the written opinion or advice of any such counsel, Accountants or other such persons and not contrary to this Agreement or any other Basic Document. 
  
 Section 8.05. Not Acting in Individual Capacity. Except as provided in Section 8.03, in accepting the
trusts hereby created, U.S. Bank Trust National Association acts solely as Owner Trustee hereunder and not in its individual capacity, and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by this
Agreement or any other Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof. 
  
 Section 8.06. Owner Trustee Not Liable for the Certificates or Mortgage Loans. The recitals contained herein and in the Certificates (other
than the signature and countersignature of the Owner Trustee on the Certificates) shall be taken as the statements of the Issuer, and the Owner Trustee assumes no responsibility for the correctness thereof. The Owner Trustee makes no representations
as to the validity or sufficiency of this Agreement, of any other Basic Document or of the Certificates (other than the signature and countersignature of the Owner Trustee on the Certificates and as specified in Section 8.03 hereof) or the
Notes, or of any Mortgage Loans or related documents. The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Mortgage Loan, or the perfection and priority of
any security interest created by any Mortgage Loan or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Owner Trust Estate or its ability to generate the payments to be distributed to the
Certificateholders under this Agreement or the Noteholders under the Indenture, including, without limitation, the existence, condition and ownership of any Mortgaged Property, the existence and enforceability of any insurance thereon, the existence
and contents of any Mortgage Loan on any computer or other record thereof, the validity of the assignment of any Mortgage Loan to the Issuer or of any intervening assignment, the completeness of any Mortgage Loan, the performance or enforcement of
any Mortgage Loan, the compliance by the Sponsor or the Servicer with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such warranty or representation or any action of the Indenture
Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee. 
  
 Section 8.07. Owner Trustee May Own Notes. The Owner Trustee in its individual or any other capacity may become the owner or pledgee of the Notes and may deal with the Sponsor, the Depositor, the Indenture
Trustee and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee. 
  
 Section 8.08. Licenses. The Sponsor shall cause the Issuer to use its best efforts to obtain and maintain the effectiveness of any licenses
required in connection with this Agreement and the other Basic Documents and the transactions contemplated hereby and thereby until such time as the Issuer shall terminate in accordance with the terms hereof. 
  

 27 

 ARTICLE IX 
  
 COMPENSATION OF OWNER TRUSTEE 
  

Section 9.01. Owner Trustee’s Fees and Expenses. The Owner Trustee shall receive as compensation for its services hereunder such fees
as have been separately agreed upon before the date hereof between the Servicer and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Servicer for its other reasonable expenses hereunder as separately agreed (the
“Owner Trustee Fee”). 
  
 Section 9.02.
Indemnification. The Sponsor shall be liable as obligor for, and shall indemnify the Owner Trustee (in its individual and trust capacities) and its successors, assigns, agents and servants (collectively, the “Indemnified
Parties”) from and against, any and all liabilities, obligations, losses, damages, taxes, claims, actions and suits, and any and all reasonable costs, expenses and disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever (collectively, “Expenses”) which may at any time be imposed on, incurred by, or asserted against any Indemnified Party in any way relating to or arising out of this Agreement, the other Basic Documents, the Owner
Trust Estate, the administration of the Owner Trust Estate or the action or inaction of the Owner Trustee hereunder, except only that the Sponsor shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising
or resulting from any of the matters described in the third sentence of Section 8.01. The indemnities contained in this Section 9.02 shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement. In
any event of any claim, action or proceeding for which indemnity will be sought pursuant to this Section, the Sponsor will be entitled to participate therein, with counsel selected by the Sponsor and reasonably satisfactory to the Indemnified
Parties, but after notice from an Indemnified Party to the Sponsor of its election to assume the defense thereof, the Sponsor shall not be liable to the Indemnified Party under this Section 9.02 for any legal or other expenses subsequently
incurred by such Indemnified Party in connection with the defense of such action; provided, however, that this sentence shall not be in effect if (1) the Sponsor shall not have employed counsel reasonably satisfactory to the
Indemnified Party to represent the Indemnified Party within a reasonable time after notice of commencement of the action, (2) the Sponsor shall have authorized the employment of counsel for the Indemnified Party at the expense of the Sponsor or
(3) in the event any such claim involves a possible imposition of criminal liability or penalty or a material civil penalty on such Indemnified Party, a conflict of interest between such Indemnified Party and the Sponsor or another indemnitee
or the granting of material injunctive relief against such Indemnified Party, and such Indemnified Party informs the Sponsor that such Indemnified Party desires to be represented by separate counsel, in which case, the reasonable fees and expenses
of such separate counsel shall be borne by the Sponsor. If the Sponsor assumes the defense of any such proceeding, the Sponsor shall be entitled to settle such proceeding without any liability being assessed against any Indemnified Party or, if such
settlement provides for release of any such Indemnified Party without any liability being assessed against any Indemnified Party in connection with all matters relating to the proceeding which have been asserted against such Indemnified Party in
such proceeding by the other parties to such settlement, without the prior written consent of such Indemnified Party, but otherwise only with the prior written consent of such Indemnified Party. 
  

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 Section 9.03. Payments to the Owner Trustee. Any amounts paid to the Owner Trustee pursuant
to this Article IX shall be deemed not to be a part of the Owner Trust Estate immediately after such payment. 
  
 ARTICLE X 
  
 TERMINATION OF TRUST AGREEMENT 
  
 Section 10.01. Termination of Trust Agreement. 
  
 (a) This Agreement (other than Article IX) shall terminate and the Issuer shall dissolve and be of no further force or effect on the earlier of: (i) the final payment or other liquidation of the Mortgage Loans and the disposition of
all REO Properties and the remittance of all funds due hereunder with respect to such Mortgage Loans and REO Properties after the satisfaction and discharge of the Indenture pursuant to Section 4.01 of the Indenture; and (ii) the
expiration of 21 years from the death of the last survivor of descendants of Joseph P. Kennedy (the late ambassador of the United States to the Court of St. James). The bankruptcy, liquidation, dissolution, death or incapacity of the any
Certificateholder or the Sponsor shall not (x) operate to terminate this Agreement or the Issuer, nor (y) entitle Certificateholders’ or the Sponsor’s legal representatives or heirs to claim an accounting or to take any action or
proceeding in any court for a partition or winding up of all or any part of the Issuer or Owner Trust Estate nor (z) otherwise affect the rights, obligations and liabilities of the parties hereto. 
  
 (b) Except as provided in Section 10.01(a) above, none of the Sponsor,
the Servicer, nor the Certificateholders shall be entitled to revoke or terminate the Issuer. 
  
 (c) Notice of any termination of the Issuer, specifying the Payment Date upon which the Certificateholders shall surrender their Certificates to the Indenture Trustee for payment of the final distributions and
cancellation, shall be given by the Owner Trustee to the Certificateholders, the Rating Agencies, the Swap Provider and the Indenture Trustee mailed within five (5) Business Days of receipt by the Owner Trustee from the Servicer of notice of
such termination, which notice given by the Owner Trustee shall state (i) the Payment Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the
Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and surrender of the
Certificates at the office of the Indenture Trustee therein specified. The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Indenture Trustee at the time such notice is given to
Certificateholders. Upon presentation and surrender of Certificates, subject to Section 3808 of the Statutory Trust Statute, amounts distributable on such Payment Date pursuant to the terms of the Indenture. 
  
 (d) In the event that Certificateholders shall not surrender their
Certificates for cancellation within six months after the date specified in the above mentioned written notice, the 
  

 29 

 Owner Trustee shall give a second written notice to Certificateholders to surrender the Certificates for cancellation and
receive the final distribution with respect thereto. If within one year after the second notice the Ownership Interest shall not have been surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Certificateholders concerning surrender of the Certificates, and the cost thereof shall be paid out of the funds and other assets that shall remain subject to this Agreement. Any funds remaining in the
Issuer after exhaustion of such remedies shall be distributed by the Indenture Trustee to the Certificateholders. 
  
 (e) Upon the winding up of the Issuer in accordance with Section 3808 of the Statutory Trust Statute and its termination, the Owner Trustee shall
cause the Certificate of Trust to be canceled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Statute. 
  
 ARTICLE XI 
  
 SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES 
  
 Section 11.01. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation or banking association satisfying the provisions of Section 3807(a) of the Statutory Trust Statute; authorized to exercise trust powers; having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or state authorities; and having (or having a parent that has) a rating of at least “Baa3” by Moody’s, and “A-1” by S&P (or otherwise acceptable to the
Rating Agencies). If such entity shall publish reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section 11.01, the combined capital
and surplus of such entity shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 11.01, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 11.02. 
  
 Section 11.02. Resignation or Removal of Owner Trustee. The Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving written notice thereof to the Issuer, the Sponsor, the Servicer, the Swap Provider and the Indenture Trustee. Upon receiving such notice of resignation, the Sponsor shall promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been so appointed and have accepted appointment within
thirty (30) days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee. 
  
 If at any time the Owner Trustee shall cease to be eligible in accordance
with the provisions of Section 11.01 and shall fail to resign after written request therefor by the Certificateholders or the Sponsor, or if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, 
  

 30 

 then the Certificateholders or the Sponsor, may remove the Owner Trustee. If the Certificateholders or the Sponsor shall
remove the Owner Trustee under the authority of the immediately preceding sentence, the Sponsor, shall promptly appoint a successor Owner Trustee by written instrument in duplicate, one copy of which instrument shall be delivered to the outgoing
Owner Trustee so removed and one copy to the successor Owner Trustee and payment of all fees owed to the outgoing Owner Trustee. 
  
 Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section 11.02
shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 11.03, and payment of all fees and expenses owed to the outgoing Owner Trustee. The Servicer shall provide notice of such resignation
or removal of the Owner Trustee to each of the Rating Agencies, the Swap Provider and the Indenture Trustee. 
  
 Section 11.03. Successor Owner Trustee. Any successor Owner Trustee appointed pursuant to Section 11.02 shall execute, acknowledge and
deliver to the Issuer, the Sponsor, the Indenture Trustee and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon, subject to the payment of all fees and expenses owed to the outgoing Owner
Trustee, the resignation or removal of the predecessor Owner Trustee shall become effective and such successor Owner Trustee without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties, and obligations
of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee. The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and
moneys held by it under this Agreement; and the Sponsor and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the
successor Owner Trustee all such rights, powers, duties, and obligations. 
  
 No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 11.01. 
  
 Upon acceptance of appointment by a successor Owner Trustee pursuant to this
Section 11.03, the Sponsor shall mail notice of the successor of such Owner Trustee to the Certificateholders, the Indenture Trustee, the Noteholders and the Rating Agencies. If the Sponsor fails to mail such notice within ten (10) days
after acceptance of appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Sponsor. 
  

Any successor Owner Trustee appointed pursuant to this Section 11.03 shall file an amendment to the Certificate of Trust with the Secretary of
State identifying the name and principal place of business of such successor Owner Trustee in the State of Delaware. 
  
 Section 11.04. Merger or Consolidation of Owner Trustee. Any corporation or banking association into which the Owner Trustee may be merged or
converted or with which it may be consolidated or any corporation or banking association resulting from any merger, 
  

 31 

 conversion or consolidation to which the Owner Trustee shall be a party, or any corporation or banking association
succeeding to all or substantially all of the corporate trust business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such corporation or banking association shall be eligible pursuant to Section 11.01,
without the execution or filing of any instrument or any further act on the part of any of the parties hereto, except the filing of an amendment to the Certificate of Trust, if appropriate, anything herein to the contrary notwithstanding;
provided, further, that the Owner Trustee shall mail notice of such merger, conversion or consolidation to the Rating Agencies and the Swap Provider and; provided, further, that the Owner Trustee shall file an amendment
to the Certificate of Trust as required under Section 11.03 above. 
  
 Section 11.05. Appointment of Co-Trustee or Separate Trustee. 
  
 (a) Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any jurisdiction in which any part of the Owner Trust Estate or any Mortgaged Property may
at the time be located, and for the purpose of performing certain duties and obligations of the Owner Trustee with respect to the Issuer and the Certificates, the Owner Trustee shall have the power and shall execute and deliver all instruments to
appoint one or more Persons approved by the Owner Trustee and acceptable to the Sponsor to act as co-trustee, jointly with the Owner Trustee, or separate trustee or separate trustees, of all or any part of the Owner Trust Estate, and to vest in such
Person, in such capacity, such title to the Issuer, or any part thereof, and, subject to the other provisions of this Section 11.05, such powers, duties, obligations, rights and trusts as the Sponsor and the Owner Trustee may consider necessary
or desirable. No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 11.01 and no notice of the appointment of any co-trustee or separate trustee
shall be required pursuant to Section 11.03. 
  
 (b) Each
separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provision and conditions: 
  
 (i) all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred upon and exercised or
performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner Trustee joining in such act), except to the extent
that under any law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties, and obligations (including
the holding of title to the Issuer or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee; 
  
 (ii) no trustee under this Agreement shall be personally
liable by reason of any act or omission of any other trustee under this Agreement; and 
  
 (iii) the Owner Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee. 
  

 32 

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

  
 (d) Any separate trustee or co-trustee may at any time appoint
the Owner Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee. 
  
 ARTICLE XII 
  
 MISCELLANEOUS 
  
 Section 12.01. Supplements and Amendments. This Agreement may be
amended by the Sponsor, the Depositor and the Owner Trustee, with prior written notice to the Rating Agencies, but without the consent of any of the Noteholders, the Certificateholders or the Indenture Trustee, to cure any ambiguity, to correct or
supplement any provisions in this Agreement or for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions in this Agreement or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, such action shall not adversely affect in any material respect the interests of any Noteholder, Certificateholder or the Swap Provider (unless the consent of the Swap Provider is obtained). An
amendment described above shall be deemed not to adversely affect in any material respect the interests of any Noteholder if the party requesting the amendment (i) delivers an Opinion of Counsel, at the expense of the party requesting the
change, delivered to the Owner Trustee to such effect, or (ii) satisfies the Rating Agency Condition with respect to such amendment. 
  
 This Agreement may also be amended from time to time by the Sponsor, the Depositor and the Owner Trustee, with the prior written consent of the Rating
Agencies and with the prior written consent of the Indenture Trustee, the Noteholders evidencing more than 50% of the Class Note Balance of the Outstanding Notes of all of the Classes affected thereby and the Certificateholders evidencing more than
50% of the Percentage Interests of the Issuer, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided, however, no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Mortgage Loans or distributions that shall be
required to be made for the benefit of the Noteholders or the Certificateholders, (b) reduce the aforesaid percentage of the Outstanding Principal Balance of the Notes or the Percentage Interests required to consent to any such amendment, in
either case of clause (a) or (b) without the consent of the holders of all the outstanding Notes affected thereby and the Certificateholders of all the outstanding Certificates. 
  

 33 

 Promptly after the execution of any such amendment or consent, the Sponsor shall furnish written
notification of the substance of such amendment or consent to the Certificateholders, the Indenture Trustee, the Swap Provider and each of the Rating Agencies. 
  

It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section to approve the
particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of Certificateholders provided for in this Agreement
or in any other Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe. 
  
 Promptly after the execution of any amendment to the Certificate of Trust,
the Owner Trustee shall cause the filing of such amendment with the Secretary of State. 
  
 Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by this Agreement and that all conditions precedent have been met. The Owner Trustee may, but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s own rights, duties or immunities
under this Agreement or otherwise. 
  
 Section 12.02. No
Legal Title to Owner Trust Estate in Certificateholders. The Certificateholders shall not have legal title to any part of the Owner Trust Estate. The Certificateholders shall be entitled to receive distributions with respect to their undivided
beneficial ownership interest therein only in accordance with Articles VI and X. No transfer, by operation of law or otherwise, of any right, title, or interest of the Certificateholders to and in their ownership interest in the Owner Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Owner Trust Estate. 
  
 Section 12.03. Limitations on Rights of Others. The provisions of this Agreement are solely for the benefit of
the Owner Trustee, the Sponsor, the Depositor, the Certificateholders and, to the extent expressly provided herein, the Indenture Trustee, the Swap Provider and the Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions contained herein. 
  

 34 

 Section 12.04. Notices. 
  
 (a) Unless otherwise expressly specified or permitted by the terms hereof, all communications provided for or permitted
hereunder shall be in writing and shall be deemed to have been given if (1) personally delivered, (2) upon receipt by the intended recipient or three Business Days after mailing if mailed by certified mail, postage prepaid (except that
notice to the Owner Trustee shall be deemed given only upon actual receipt by the Owner Trustee), (3) sent by express courier delivery service and received by the intended recipient or (4) except with respect to notices sent to the Owner
Trustee, transmitted by telex or facsimile transmission (or any other type of electronic transmission agreed upon by the parties and confirmed by a writing delivered by any of the means described in (1), (2) or (3), at the following addresses:
(i) if to the Owner Trustee, at its Corporate Trust Office; and (ii) if to the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel, telecopy: (858) 676-2170; or, as
to each such party, at such other address as shall be designated by such party in a written notice to each other party. 
  
 (b) Any notice required or permitted to be given to a Certificateholder shall be given by first-class mail, postage prepaid, at the address of such
Certificateholder as shown in the Certificate Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly given, whether or not the Certificateholder receives such notice. 

 
 Section 12.05. Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 Section 12.06. Separate Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
  
 Section 12.07. Successors and Assigns. All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the
Sponsor, the Owner Trustee and its successors and each Certificateholder and its successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall
bind the successors and assigns of such Certificateholder. 
  
 Section 12.08. No Petition. The Owner Trustee, by entering into this Agreement, each Certificateholder, by accepting a Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this Agreement,
hereby covenant and agree that they will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States Federal or state bankruptcy law in connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
  

 35 

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

 36 

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

			
	 ACCREDITED HOME LENDERS, INC.,
             as Sponsor

		
	 By:
	 	  

	 Name:
	 	 Charles O. Ryan

	 Title:
	 	 Securitization Coordinator

	
	 ACCREDITED MORTGAGE LOAN REIT TRUST,
             as Depositor

		
	 By:
	 	  

	 Name:
	 	 Melissa Dant

	 Title:
	 	 Senior Secondary Markets Counsel,

	 	 	 Ass’t Vice President, and Ass’t Secretary

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

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature page
to Amended and Restated Trust Agreement] 
  

 37 

 EXHIBIT A 
  
 FORM OF TRUST CERTIFICATE 
  
 THE EQUITY INTEREST IN THE TRUST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR ANY STATE SECURITIES LAWS. THIS EQUITY INTEREST MAY BE DIRECTLY OR INDIRECTLY OFFERED OR SOLD OR OTHERWISE DISPOSED OF (INCLUDING PLEDGED) BY THE HOLDER HEREOF ONLY TO (I) A “QUALIFIED INSTITUTIONAL BUYER”
AS DEFINED IN RULE 144A UNDER THE ACT, IN A TRANSACTION THAT IS REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND OF SUCH STATE LAWS OR (II) A PERSON INVOLVED IN THE
ORGANIZATION OR OPERATION OF THE TRUST OR AN AFFILIATE OF SUCH A PERSON WITHIN THE MEANING OF RULE 3A-7 OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED (INCLUDING, BUT NOT LIMITED TO, ACCREDITED HOME LENDERS, INC.) IN A TRANSACTION THAT IS
REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR THAT IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH LAWS. NO PERSON IS OBLIGATED TO REGISTER THIS EQUITY INTEREST UNDER THE ACT OR ANY STATE SECURITIES LAWS.

  
 NO TRANSFER OF THIS CERTIFICATE OR ANY BENEFICIAL INTEREST HEREIN SHALL BE
MADE TO ANY PERSON UNLESS THE OWNER TRUSTEE HAS RECEIVED A REPRESENTATION LETTER FROM THE TRANSFEREE TO THE EFFECT THAT SUCH TRANSFEREE IS NOT (I) AN EMPLOYEE BENEFIT PLAN (WITHIN THE MEANING OF SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”)) THAT IS SUBJECT TO TITLE OF ERISA, (II) A PLAN (WITHIN THE MEANING OF SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)) THAT IS SUBJECT TO SECTION 4975
OF THE CODE OR (III) A GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION 3(32) OF ERISA) THAT IS SUBJECT TO ANY FEDERAL, STATE OR LOCAL LAW THAT IS, TO A MATERIAL EXTENT, SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE (EACH OF THE FOREGOING,
A “PLAN”) AND IS NOT DIRECTLY OR INDIRECTLY PURCHASING THIS CERTIFICATE OR A BENEFICIAL INTEREST HEREIN ON BEHALF OR, AS INVESTMENT MANAGER OF, AS TRUSTEE OF, OR WITH THE ASSETS OF A PLAN. 
  
 THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF UNLESS, PRIOR TO SUCH
DISPOSITION, THE PROPOSED TRANSFEREE DELIVERS TO THE OWNER TRUSTEE AND THE CERTIFICATE REGISTRAR A CERTIFICATE STATING THAT SUCH TRANSFEREE (A) AGREES TO BE BOUND BY AND TO ABIDE BY THE TRANSFER RESTRICTIONS APPLICABLE TO THIS CERTIFICATE;
(B) IS NOT AN ENTITY THAT WILL HOLD THIS CERTIFICATE AS NOMINEE TO FACILITATE THE CLEARANCE AND SETTLEMENT OF SUCH SECURITY THROUGH ELECTRONIC BOOK-ENTRY CHANGES IN ACCOUNTS OF PARTICIPATING ORGANIZATIONS; AND (C) UNDERSTANDS THAT IT MUST
TAKE INTO ACCOUNT ITS PERCENTAGE INTEREST OF THE TAXABLE INCOME RELATING TO THIS CERTIFICATE. 

			
	Certificate No. 1	 	Percentage Interest: 100%

  
 THIS CERTIFIES THAT
Accredited Mortgage Loan REIT Trust (the “Certificateholder”) is the registered owner of a 100% Percentage Interest in Accredited Mortgage Loan Trust 2005-4 (the “Issuer”) existing under the laws of the State of
Delaware and created pursuant to that certain Trust Agreement, dated as of November 9, 2005, as amended and restated on November 23, 2005 (as amended and restated, the “Trust Agreement”), by and among Accredited Home
Lenders, Inc., as sponsor, Accredited Mortgage Loan REIT Trust, as depositor, and U.S. Bank Trust National Association, not its individual capacity but solely as owner trustee under the Trust Agreement (the “Owner Trustee”).
Capitalized terms used but not otherwise defined herein have the meanings assigned to such terms in the Trust Agreement. The Owner Trustee, on behalf of the Issuer and not in its individual capacity, has executed this Certificate by one of its duly
authorized signatories as set forth below. This Certificate is one of the Certificates referred to in the Trust Agreement and is issued under and is subject to the terms, provisions and conditions of the Trust Agreement to which the
Certificateholder by virtue of the acceptance hereof agrees and by which the Certificateholder hereof is bound. Reference is hereby made to the Trust Agreement for the rights of the Certificateholder, as well as for the terms and conditions of the
Issuer created by the Trust Agreement. 
  
 The recitals contained
herein (other than the signature and countersignature of the Owner Trustee) shall be taken as the statements of the Sponsor, and the Owner Trustee assumes no responsibility for the correctness thereof. 
  
 The Certificateholder, by its acceptance hereof, agrees not to transfer this
Certificate except in accordance with terms and provisions of the Trust Agreement. 
  
 The Certificateholder, by its acceptance hereof, acknowledges that such Certificateholder’s Certificate represents a beneficial interest in the Issuer only and does not represent an interest in or an obligation
of the Servicer, the Depositor, the Sponsor, the Owner Trustee or any Affiliate thereof and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein, in the Trust Agreement or the other
Basic Documents. 
  
 THIS CERTIFICATE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  

 A-2 

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

			
	 ACCREDITED MORTGAGE LOAN
TRUST 2005-4

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

	 	 	Authorized Signatory

  
 Dated: November 23, 2005 
  
 CERTIFICATE OF
AUTHENTICATION 
  
 This is one of the Certificates referred to
in the within-mentioned Trust Agreement. 
  

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

	 	 	Authorized Signatory

  
 Dated: November 23, 2005 
  

 A-3 

 ASSIGNMENT 
  

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfer unto 
  
 PLEASE INSERT SOCIAL SECURITY 
 OR OTHER
IDENTIFYING NUMBER 
 OF ASSIGNEE 
  
 ______________________________________________________________________________________________________________________________ 
 (Please print or type name and address, including postal zip code, of assignee) 
  
  
 ______________________________________________________________________________________________________________________________ 
 the within
instrument, and all rights thereunder, hereby irrevocably constituting and appointing _________________________, Attorney, to transfer said Instrument on the books of the Certificate Registrar, with full power of substitution in the premises.

  
 Dated: 
  

					
	 By:
	 	 *

	 	 /
  

	 	 	Signature Guaranteed:	 	 
			
	 By:
	 	 *

	 	 /
  

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

  

 A-4 

 EXHIBIT B 
  
 FORM OF CERTIFICATE OF TRUST 
  
 CERTIFICATE OF TRUST OF 
 ACCREDITED MORTGAGE
LOAN TRUST 2005-4 
  
 THIS CERTIFICATE OF TRUST OF ACCREDITED
MORTGAGE LOAN TRUST 2005-4 (the “Trust”), is being duly executed and filed by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code, § 3801 et seq.)(the “Act”).

  
 1. Name. The name of the statutory
trust formed hereby is Accredited Mortgage Loan Trust 2005-4. 
  
 2. Delaware Trustee. The name and business address of the trustee of the Trust in the State of Delaware are U.S. Bank Trust National Association, 300 Delaware Avenue, Eighth Floor, Wilmington, Delaware 19801,
Attention: Corporate Trust Administration. 
  
 3.
Series. Pursuant to Section 3806(b)(2) of the Act, the Trust shall issue one or more series of beneficial interests having the rights and preferences set forth in the Governing instrument of the Trust, as the same may be amended from
time to time (each, a “Series” or “Sub-Trust”). 
  
 4. Notice of Limitation of Liabilities of each Series. Pursuant to Section 3804(a) of the Act, there shall be a limitation on
liabilities of each Series such that (a) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to a particular Series shall be enforceable against the assets of such Series only, and not
against the assets of the Trust generally or the assets of any other Series thereof and (b) none of the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Trust generally or any other
Series thereof shall be enforceable against the assets of such Series. 
  
 5. Effective Date. This Certificate of Trust shall be effective upon filing. 
  

 B-1 

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

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

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 B-2 

 EXHIBIT C 
  
 FORM OF INVESTMENT LETTER 
                     ,          
  
 Accredited Home Lenders, Inc. 
 15090 Avenue of Science 
 San Diego, California 92128 
  
 U.S. Bank Trust National Association 
 300 Delaware Avenue, Eighth Floor 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Administration 
  

			
	 Re:
	  	 Accredited Mortgage Loan Trust 2005-4 (the “Issuer”)
 Asset-Backed Notes, Series 2005-4

  
 Ladies and Gentlemen: 
  
                                       
                                        
   (the “Certificateholder”) has purchased or acquired, or intends to purchase or acquire from
                                    , the current
Certificateholder (the “Current Certificateholder”), a Trust Certificate representing a 100% Percentage Interest (the “Certificate”) in the Issuer, which represents an interest in the Issuer created pursuant to that
certain Trust Agreement, dated as of November 9, 2005, as amended and restated on November 23, 2005 (the “Trust Agreement”), by and among Accredited Home Lenders, Inc., as Sponsor, Accredited Mortgage Loan REIT Trust, as
Depositor and U.S. Bank Trust National Association, as Owner Trustee. Capitalized terms used and not otherwise defined herein have the meanings assigned to such terms in the Trust Agreement. 
  
 CERTIFICATION 
  
 The undersigned, as an authorized officer or agent of the Certificateholder, hereby certifies, represents, warrants and
agrees on behalf of the Certificateholder as follows: 
  
 1. The
Certificateholder is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was formed and is authorized to invest in the Certificate. The person executing this letter on behalf of the Certificateholder
is duly authorized to do so on behalf of the Certificateholder. 
  
 2. The Certificateholder hereby acknowledges that no transfer of the Certificate may be made unless such transfer is exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities
Act”); and applicable state securities laws, or is made in accordance with the Securities Act and such laws. 
  
 3. The Certificateholder understands that the Certificate has not been and will not be registered under the Securities Act and may be offered, sold,
pledged or otherwise transferred to a person whom the transferor reasonably believes is (A) a qualified institutional buyer (as defined in Rule 144A under the Securities Act) or (B) a Person involved in the organization or operation of the
Issuer or an affiliate of such Person, in a transaction pursuant to an 
  

 C-1 

 effective registration statement under the Securities Act and any applicable state securities laws or exempt from the
registration requirements of the Securities Act and any such state securities laws. The Certifcateholder understands that the Certificate bears a legend to the foregoing effect. 
  
 4. The Certificateholder is acquiring the Certificate for its own account or for accounts for which it exercises sole
investment discretion, and not with a view to or for sale or other transfer in connection with any distribution of the Certificate in any manner that would violate Section 5 of the Securities Act or any applicable state securities laws, subject
nevertheless to any requirement of law that the disposition of the Certificateholder’s property shall at all times be and remain within its control. 
  
 5. The Certificateholder is (A) a “qualified institutional buyer” (a “QIB”) as defined in Rule 144A under the Securities
Act, and is aware that the transferor of the Certificate may be relying on an exemption from the registration requirements of the Securities Act and is acquiring such Certificate for its own account or for the account of one or more qualified
institutional buyers for whom it is authorized to act, or (B) a Person involved in the organization or operation of the Issuer or an affiliate of such Person within the meaning of Rule 3a-7 of the Investment Company Act of 1940, as amended
(including, but not limited to, the Sponsor). The Certificateholder is able to bear the economic risks of such an investment. The Certificateholder is a QIB because [STATE FACTUAL BASIS FOR QIB STATUS]. 
  
 6. If the Certificateholder sells or otherwise transfers the registered
ownership of such Certificate, the Certificateholder will comply with the restrictions and requirements with respect to the transfer of the ownership of the Certificate under the Trust Agreement, and the Certificateholder will obtain from any
subsequent purchaser or transferee substantially the same certifications, representations, warranties and covenants as required under the Trust Agreement in connection with such subsequent sale or transfer thereof. 
  
 7. The Certificateholder is not an entity that will hold a Certificate as
nominee (a “Book Entry Nominee”) to facilitate the clearance and settlement of such security through electronic book-entry changes in Accounts or participating organizations. 
  
 8. The Certificateholder consents to any amendments of the Trust Agreement as
may be required to effectuate further the restrictions on transfer of the Certificates to Book Entry Nominees. 
  
 9. The Certificateholder is not a Plan and is not, directly or indirectly, purchasing such Certificate on behalf of, as investment manager of, as named
fiduciary of, as trustee of, or with assets of a Plan. 
  
 10. The
Certificateholder hereby agrees to indemnify each of the Issuer, the Indenture Trustee and the Owner Trustee against any liability that may result if the Certificateholder’s transfer of a Certificate (or any portion thereof) is not exempt from
the registration requirements of the Securities Act and any applicable state securities laws or is not made in accordance with such federal and state laws. Such indemnification of the Issuer, the Indenture Trustee, and the Owner Trustee shall
survive the termination of the related Trust Agreement. 
  
 11.
The Certificateholder qualifies for taxation as a REIT or is a qualified REIT subsidiary. 
  

 C-2 

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

			
	 [NAME OF CERTIFICATEHOLDER]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 C-3 

 EXHIBIT D 
  
 FORM OF TRANSFEROR CERTIFICATE 
  
                     ,
         
  
 Accredited Home Lenders, Inc. 
 15090 Avenue of Science 
 San Diego, California 92128 
  
 U.S. Bank Trust National Association 
 300 Delaware Avenue, Eighth Floor 
 Wilmington, Delaware 19801 
 Attention: Corporate Trust Administration 
  

			
	 Re:
	  	Accredited Mortgage Loan Trust 2005-4 (the “Issuer”) Asset-Backed Notes, Series 2005-4

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

			
	 [NAME OF TRANSFEROR]

		
	 By:
	 	  

	 	 	Authorized Officer

  

 D-1Sale and Servicing Agreement, dated as of November 1, 2005

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 SALE AND SERVICING AGREEMENT 
  
 dated as of November 1, 2005 
  
 by and among 
  
 ACCREDITED MORTGAGE LOAN REIT TRUST, 
 as Depositor, 
  
 ACCREDITED HOME LENDERS, INC., 
 as Sponsor and Servicer, 
  
 ACCREDITED MORTGAGE LOAN TRUST 2005-4, 
 as
Issuer, 
  
 and 
  
 DEUTSCHE BANK NATIONAL TRUST COMPANY, 
 as Indenture Trustee 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 	  	ARTICLE I	  	 
	 	  	DEFINITIONS	  	 
			
	Section 1.01.	  	Certain Defined Terms	  	1
	Section 1.02.	  	Provisions of General Application	  	2
			
	 	  	ARTICLE II	  	 
	 	  	SALE AND CONVEYANCE OF THE MORTGAGE LOANS	  	 
			
	Section 2.01.	  	Purchase and Sale of Mortgage Loans; Deposit of Derivatives	  	2
	Section 2.02.	  	Reserved	  	3
	Section 2.03.	  	Purchase Price	  	3
	Section 2.04.	  	Possession of Mortgage Files; Access to Mortgage Files	  	3
	Section 2.05.	  	Delivery of Mortgage Loan Documents	  	3
	Section 2.06.	  	Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee	  	6
	Section 2.07.	  	Grant of Security Interest	  	8
	Section 2.08.	  	Further Action Evidencing Assignments	  	9
	Section 2.09.	  	Assignment of Agreement	  	9
			
	 	  	ARTICLE III	  	 
	 	  	REPRESENTATIONS, WARRANTIES AND COVENANTS	  	 
			
	Section 3.01.	  	Representations, Warranties and Covenants of the Servicer	  	10
	Section 3.02.	  	Representations, Warranties and Covenants of the Sponsor	  	12
	Section 3.03.	  	[Reserved	  	13
	Section 3.04.	  	Representations, Warranties and Covenants of the Indenture Trustee	  	13
	Section 3.05.	  	Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges	  	14
	Section 3.06.	  	Representations, Warranties and Covenants of the Depositor	  	14
			
	 	  	ARTICLE IV	  	 
	 	  	THE MORTGAGE LOANS	  	 
			
	Section 4.01.	  	Representations and Warranties Concerning the Mortgage Loans	  	16
	Section 4.02.	  	Purchase and Substitution	  	25
			
	 	  	ARTICLE V	  	 
	 	  	ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS	  	 
			
	Section 5.01.	  	The Servicer	  	26
	Section 5.02.	  	Collection of Certain Mortgage Loan Payments; Collection Account	  	29
	Section 5.03.	  	Permitted Withdrawals from the Collection Account	  	31
	Section 5.04.	  	Hazard Insurance Policies; Property Protection Expenses	  	32

  

 i 

					
	Section 5.05.	  	Assumption and Modification Agreements	  	33
	Section 5.06.	  	Realization Upon Defaulted Mortgage Loans	  	34
	Section 5.07.	  	Indenture Trustee to Cooperate	  	35
	Section 5.08.	  	Servicing Compensation; Payment of Certain Expenses by Servicer	  	36
	Section 5.09.	  	Annual Statement as to Compliance	  	36
	Section 5.10.	  	Annual Independent Public Accountants’ Servicing Report	  	36
	Section 5.11.	  	Access to Certain Documentation	  	37
	Section 5.12.	  	Maintenance of Fidelity Bond	  	37
	Section 5.13.	  	Subservicing Agreements Between the Servicer and Subservicer and Subservicers	  	37
	Section 5.14.	  	Reports to the Indenture Trustee; Collection Account Statements	  	38
	Section 5.15.	  	Optional Purchase of Defaulted Mortgage Loans	  	38
	Section 5.16.	  	Reports to be Provided by the Servicer	  	39
	Section 5.17.	  	[Reserved	  	40
	Section 5.18.	  	Delinquency Advances	  	40
	Section 5.19.	  	Indemnification; Third Party Claims	  	41
	Section 5.20.	  	Maintenance of Corporate Existence and Licenses; Merger or Consolidation of the Servicer	  	41
	Section 5.21.	  	Assignment of Agreement by Servicer; Servicer Not to Resign	  	42
	Section 5.22.	  	Periodic Filings with the Securities and Exchange Commission Additional Information	  	42
	Section 5.23.	  	Administrative Duties	  	43
	Section 5.24.	  	Advance Facility	  	44
			
	 	  	ARTICLE VI	  	 
	 	  	APPLICATION OF FUNDS	  	 
			
	Section 6.01.	  	Deposits to the Payment Account	  	46
	Section 6.02.	  	Collection of Money	  	47
	Section 6.03.	  	Application of Principal and Interest	  	47
	Section 6.04.	  	[Reserved	  	47
	Section 6.05.	  	Compensating Interest	  	47
			
	 	  	ARTICLE VII	  	 
	 	  	SERVICER DEFAULT	  	 
			
	Section 7.01.	  	Servicer Events of Default	  	47
	Section 7.02.	  	Indenture Trustee to Act: Appointment of Successor	  	50
	Section 7.03.	  	Waiver of Defaults	  	53
			
	 	  	ARTICLE VIII	  	 
	 	  	TERMINATION	  	 
			
	Section 8.01.	  	Termination	  	53
	Section 8.02.	  	Additional Termination Requirements	  	54
	Section 8.03.	  	Accounting Upon Termination of Servicer	  	54

  

 ii 

					
	 	  	ARTICLE IX	  	 
	 	  	[RESERVED]	  	 
			
	 	  	ARTICLE X	  	 
	 	  	MISCELLANEOUS PROVISIONS	  	 
			
	Section 10.01.	  	Limitation on Liability	  	55
	Section 10.02.	  	Acts of Noteholders	  	55
	Section 10.03.	  	Amendment	  	56
	Section 10.04.	  	Recordation of Agreement	  	57
	Section 10.05.	  	Duration of Agreement	  	57
	Section 10.06.	  	Notices	  	57
	Section 10.07.	  	Severability of Provisions	  	57
	Section 10.08.	  	No Partnership	  	58
	Section 10.09.	  	Counterparts	  	58
	Section 10.10.	  	Successors and Assigns	  	58
	Section 10.11.	  	Headings	  	58
	Section 10.12.	  	No Petition	  	58
	Section 10.13.	  	Third Party Beneficiary	  	58
	Section 10.14.	  	Intent of the Parties	  	58
	Section 10.15.	  	GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	  	58
			
	Schedule I	  	Mortgage Loan Schedule	  	 
	Appendix I	  	Defined Terms	  	 
			
	 	  	EXHIBITS	  	 
			
	Exhibit A	  	Contents of the Mortgage File	  	 
	Exhibit B	  	Reserved	  	 
	Exhibit C	  	Indenture Trustee’s Acknowledgement of Receipt	  	 
	Exhibit D	  	Initial Certification of Indenture Trustee	  	 
	Exhibit E	  	Final Certification of Indenture Trustee	  	 
	Exhibit F	  	Request for Release of Documents	  	 
	Exhibit G	  	AHL Officer’s Certificate	  	 

  

 iii 

 SALE AND SERVICING AGREEMENT, dated as of November 1, 2005 (this “Agreement”), by
and among ACCREDITED MORTGAGE LOAN REIT TRUST, a Maryland real estate investment trust, as depositor (the “Depositor”), ACCREDITED HOME LENDERS, INC., a California corporation, as sponsor (the “Sponsor”), ACCREDITED
MORTGAGE LOAN TRUST 2005-4, a Delaware statutory trust, as issuer (the “Issuer”), ACCREDITED HOME LENDERS, INC., a California corporation, as servicer (the “Servicer”), and DEUTSCHE BANK NATIONAL TRUST COMPANY, a
national banking association, as indenture trustee (the “Indenture Trustee”). 
  
 W I T N E S S E T H 
  
 WHEREAS,
the Sponsor has contributed the mortgage loans (the “Mortgage Loans”) listed on Schedule I to this Agreement to the Depositor, pursuant to the Contribution Agreement and Assignment, dated November 9, 2005, between the Sponsor
and the Depositor, (the “Contribution Agreement”); 
  
 WHEREAS, the Depositor desires to sell to the Issuer, and the Issuer desires to purchase from the Depositor, the Mortgage Loans; 
  
 WHEREAS, immediately after such purchase, the Issuer will pledge such Mortgage Loans to the Indenture Trustee pursuant to the terms of an Indenture, dated
as of November 1, 2005 (the “Indenture”), between the Issuer and the Indenture Trustee, and issue the Accredited Mortgage Loan Trust 2005-4, Asset-Backed Notes (the “Notes”); 
  
 WHEREAS, the Servicer has agreed to service the Mortgage Loans, which
constitute the principal assets of the Trust; 
  
 WHEREAS, the
Indenture Trustee will hold the Mortgage Loans and certain other assets pledged to the Indenture Trustee pursuant to the Indenture; 
  
 WHEREAS, the Issuer will enter into an interest rate swap agreement with the Swap Provider where the Issuer agrees to pay certain fixed-rate amounts to
the Swap Provider and the Swap Provider agrees to pay certain floating-rate amounts to the Trust; and 
  
 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained, the Depositor, the Sponsor, the Issuer, the Servicer and the
Indenture Trustee hereby agree as follows: 
  
 ARTICLE I

  
 DEFINITIONS 
  
 Section 1.01. Certain Defined Terms. Capitalized terms used
herein but not defined herein shall have the meanings ascribed to such terms in Appendix I attached hereto. 
  

 1 

 Section 1.02. Provisions of General Application. 
  
 (a) The terms defined herein and in Appendix I to the Indenture include the
plural as well as the singular. 
  
 (b) The words
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole. Unless otherwise noted, all references to Articles and Sections shall be deemed to refer to Articles and Sections
of this Agreement. 
  
 (c) Any reference to statutes are to be
construed as including all statutory provisions consolidating, amending or replacing the statute to which reference is made and all regulations promulgated pursuant to such statutes. 
  
 (d) All calculations of interest with respect to the LIBOR Notes provided for herein shall be on the basis of a 360-day year
and the actual number of days elapsed in the related Interest Accrual Period. All calculations of interest with respect to any Mortgage Loan provided for herein shall be made in accordance with the terms of the related Mortgage Note and Mortgage or,
if such documents do not specify the basis upon which interest accrues thereon, on the basis of a 360 day year consisting of twelve 30-day months, to the extent permitted by applicable law. 
  
 (e) Any Mortgage Loan payment is deemed to be received on the date such
payment is actually received by the Servicer; provided, however, that, for purposes of calculating payments on the Notes, prepayments with respect to any Mortgage Loan are deemed to be received on the date they are applied in
accordance with Accepted Servicing Practices consistent with the terms of the related Mortgage Note and Mortgage to reduce the outstanding Principal Balance of such Mortgage Loan on which interest accrues. 
  
 ARTICLE II 
  
 SALE AND CONVEYANCE OF THE MORTGAGE LOANS 
  
 Section 2.01. Purchase and Sale of Mortgage Loans; Deposit of
Derivatives. 
  
 (a) The Sponsor hereby directs the Depositor
to sell, transfer, assign, set over and convey, and the Depositor does hereby sell, transfer, assign, set over and convey to the Issuer, in each case without recourse, but subject to the terms and provisions of this Agreement, all of the right,
title and interest of the Depositor in and to the Mortgage Loans, including the Cut-Off Date Principal Balance of, and interest due on, such Mortgage Loans listed on Schedule I attached hereto, and all other assets included or to be included in the
Trust Estate (other than the Swap Agreement, which is being entered into directly by the Issuer). 
  
 (b) The Depositor may cause the deposit of derivatives at any time into the Accredited Mortgage Loan Trust 2005-4 and any such deposited derivatives shall
become part of the Trust Estate. 
  

 2 

 (c) The parties hereto understand and agree that it is not intended that any Mortgage Loan be included in
the Issuer that is a “High-Cost Home Loan” as defined by HOEPA or any other applicable predatory or abusive lending laws. 
  
 Section 2.02. Reserved. 
  
 Section 2.03. Purchase Price. On the Closing Date, as full consideration for the Depositor’s sale of the Mortgage Loans to the Issuer,
the Underwriters, on behalf of the Issuer, will deliver to, or at the direction of, the Depositor an amount in cash equal to $1,183,184,625.00. Additionally, the Depositor will receive the Certificates issued by the Issuer pursuant to the Trust
Agreement. 
  
 Section 2.04. Possession of Mortgage Files;
Access to Mortgage Files. 
  
 (a) Upon the receipt by the
Depositor, or its designee, of the purchase price for the Mortgage Loans set forth in Section 2.03 hereof, the ownership of each Mortgage Note, each Mortgage and the contents of the Mortgage File related to each Mortgage Loan will be vested in
the Issuer, and will be pledged to the Indenture Trustee, for the benefit of the Noteholders. 
  
 (b) Pursuant to Section 2.05 hereof, the Depositor has delivered, or caused to be delivered the Indenture Trustee’s Mortgage File related to each Mortgage Loan to the Indenture Trustee. 
  
 (c) The Indenture Trustee will hold the Indenture Trustee’s Mortgage
Files in trust pursuant to the terms of the Indenture for the benefit of all present and future Noteholders and the Swap Provider. 
  
 (d) Consistent with the terms of the Indenture, the Indenture Trustee shall afford the Depositor, the Sponsor, the Issuer and the Servicer reasonable
access to all records and documentation regarding the Mortgage Loans relating to this Agreement, such access being afforded at customary charges, upon reasonable prior written request and during normal business hours at the offices of the Indenture
Trustee. 
  
 (e) No later than the fifth Business Day of each
fourth month, commencing in April 2006, the Indenture Trustee shall deliver to the Servicer a report dated as of the first day of such month, identifying those Mortgage Loans for which it has not yet received (i) an original recorded Mortgage
or a copy thereof certified to be true and correct by the public recording office in possession of such Mortgage or (ii) in the event that Assignments of Mortgage are required to be recorded in accordance with the provisions of
Section 2.05, an original recorded Assignment of Mortgage to the Indenture Trustee and any required intervening Assignments of Mortgage or a copy thereof certified to be a true and correct copy by the public recording office in possession of
such Assignment of Mortgage. 
  
 Section 2.05. Delivery of
Mortgage Loan Documents. (a) In connection with the transfer and assignment of the Mortgage Loans, the Depositor shall, on or before the Closing Date, deliver, or cause to be delivered, to the Indenture Trustee (as pledgee of the Issuer
pursuant to the Indenture), the following documents or instruments constituting the Indenture Trustee’s Mortgage File with respect to each Mortgage Loan so transferred or assigned: 
  
 (i) the original Mortgage Note, endorsed without recourse in blank or to “Deutsche Bank National Trust
Company, as Indenture Trustee under the Indenture dated as of November 1, 2005, Accredited Mortgage Loan Trust 2005-4” by the Sponsor, including all intervening endorsements showing a complete chain of endorsement; 
  

 3 

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

  

 4 

 (y) with respect to clause (iv) above, in lieu of delivering the completed
assignment in recordable form, deliver to the Indenture Trustee, the assignment in recordable form, otherwise complete except for recording information. 
  
 The Indenture Trustee is hereby authorized and directed, upon an Event of Default and subject to subsection (b) below, with respect to each assignment described in
Section 2.05(a)(iv) hereof, to endorse such assignment as follows: “Deutsche Bank National Trust Company, as Indenture Trustee under the Indenture dated as of November 1, 2005, Accredited Mortgage Loan Trust 2005-4.” 

 
 (b) As promptly as practicable, but in any event within thirty
(30) days from the Closing Date, the Sponsor shall promptly submit, or cause to be submitted for recording in the appropriate public office for real property records, each assignment referred to in Section 2.05(a)(iv); provided, that the
Sponsor need not cause to be recorded any assignment which (i) is registered on the MERS System, or (ii) relates to a Mortgage Loan in any jurisdiction under the laws of which, as evidenced by an Opinion of Counsel delivered by the Sponsor
(at the Sponsor’s expense) to the Indenture Trustee, acceptable to the Rating Agencies, the recordation of such assignment is not necessary to protect the Indenture Trustee’s, the Noteholders’, the Swap Provider’s and the
Certificates’ interest in the related Mortgage Loan. The Indenture Trustee, shall retain a copy of each assignment submitted for recording. In the event that any such assignment is lost or returned unrecorded because of a defect therein, the
Sponsor shall promptly prepare a substitute assignment or cure such defect, as the case may be, and thereafter the Sponsor shall submit each such assignment for recording. The costs relating to the delivery and recordation of the documents in
connection with the Mortgage Loans as specified in this Article II shall be borne by the Sponsor. With respect to Mortgage Loans (i) not registered on the MERS System, or (ii) not covered by an Opinion of Counsel described in this section
2.05(b) to the extent that assignments of mortgage have not been recorded within one year after the Closing Date, the Depositor shall, and if the Depositor fails to, then the Sponsor shall be obligated to repurchase such Mortgage Loans in accordance
with the provisions of Section 4.02. 
  
 In connection with
the assignment of any Mortgage Loan registered on the MERS System, promptly after the Closing Date, the Sponsor will cause, at its own expense, the MERS System to indicate that such Mortgage Loan has been assigned to the Indenture Trustee for the
benefit of the Noteholders by entering (a) the Indenture Trustee’s Org ID in the “Investor” field which identifies the Indenture Trustee and (b) in the “Pool” field a code which identifies the securitization serial
number of the Notes issued in connection with such Mortgage Loans. The Sponsor and the Servicer will not alter the entries referenced in this paragraph with respect to any such Mortgage Loan during the term of this Agreement unless and until such
Mortgage Loan is repurchased or otherwise in accordance with the terms of this Agreement. 
  
 (c) The Sponsor shall, within five (5) Business Days after the receipt thereof, deliver, or cause to be delivered, to the Indenture Trustee: (i) the original recorded Mortgage and related power of attorney,
if any, in those instances where a copy thereof certified by the Sponsor was delivered to the Indenture Trustee; (ii) the original recorded assignment of Mortgage from 
  

 5 

 the last endorsee to the Indenture Trustee, which, together with any intervening assignments of Mortgage, evidences a
complete chain of assignment from the originator of the Mortgage Loan to the Indenture Trustee, in those instances where copies of such assignments certified by the Sponsor were delivered to the Indenture Trustee; and (iii) the title insurance
policy or title opinion required in Section 2.05(a)(vi). 
  
 Notwithstanding anything to the contrary contained in this Section 2.05, in those instances where the public recording office retains the original Mortgage, power of attorney, if any, assignment or assignment of Mortgage after it has
been recorded or such original has been lost, the Sponsor shall be deemed to have satisfied its obligations hereunder upon delivery to the Indenture Trustee, of a copy of such Mortgage, power of attorney, if any, assignment or assignment of Mortgage
certified by the public recording office to be a true copy of the recorded original thereof. 
  
 From time to time the Sponsor may forward, or cause to be forwarded, to the Indenture Trustee, additional original documents evidencing any assumption or modification of a Mortgage Loan. 
  
 (d) All original documents relating to the Mortgage Loans that are not
required to be delivered to the Indenture Trustee, pursuant to Section 2.05(a) hereof are, and shall be, held by the Servicer, the Sponsor or the Depositor, as the case may be, in trust for the benefit of the Indenture Trustee, on behalf of the
Noteholders and the Swap Provider. In the event that any such original document is required pursuant to the terms of this Section 2.05 to be a part of an Indenture Trustee’s Mortgage File, such document shall be delivered promptly to the
Indenture Trustee. From and after the sale of the Mortgage Loans to the Issuer pursuant hereto, to the extent that the last assignee thereof retains title of record to any Mortgage Loans prior to the vesting of legal title in the Issuer, such title
shall be retained in trust for the Issuer as the owner of the Mortgage Loans, and the Indenture Trustee, as the pledgee of the Issuer under the Indenture. In acting as custodian of any original document which is part of the Indenture Trustee’s
Mortgage Files, the Servicer agrees further that it does not and will not have or assert any beneficial ownership interest in the related Mortgage Loans or the Mortgage Files. Promptly upon the Servicer’s receipt of any such original document,
the Servicer, on behalf of the Issuer, shall mark conspicuously each such original document, and its master data processing records with a legend evidencing that the Issuer has purchased the related Mortgage Loan and all right and title thereto and
interest therein, and pledged such Mortgage Loan and all right and title thereto and interest therein to the Indenture Trustee, on behalf of the Noteholders and the Swap Provider. 
  
 Section 2.06. Acceptance of the Trust Estate; Certain Substitutions; Certification by the Indenture Trustee.
(a) The Indenture Trustee is authorized and directed to, and agrees to, do the following: 
  
 (i) execute and deliver to the Depositor, the Sponsor and the Servicer, on or prior to the Closing Date with respect to each Mortgage Loan
transferred on such date, an acknowledgement of receipt, in the form attached as Exhibit C hereto, of the original Mortgage Note as required to be included in the Indenture Trustee’s Mortgage File (with any exceptions noted) and declares
that it will hold such documents and any 
  

 6 

 amendments, replacements or supplements thereto, as well as any other assets included in the definition
of Trust Estate and delivered to the Indenture Trustee, subject to the conditions set forth in the Indenture, for the benefit of the Noteholders. 
  
 (ii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within sixty (60) days after the Closing Date
(or, with respect to any Qualified Substitute Mortgage Loans, within sixty (60) days after receipt thereof), and to deliver to the Servicer, the Depositor and the Sponsor a certification, in the form attached hereto as Exhibit D, to the
effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such certification as not covered by such
certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and appears, on its face, not to have been mutilated, damaged, torn or
otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to have been initialed), appears regular on its face and relates to such Mortgage Loan, and
(iii) based on its examination and only as to the foregoing documents, the information set forth on the Mortgage Loan Schedule with respect to items (i), (ii) (with respect to property address only, excluding zip code), (iii) and
(vi) of the definition of “Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date; provided however, no certification of the Indenture Trustee
shall constitute a determination by the Indenture Trustee of the proper form, adequacy or enforceability of any document included in the Indenture Trustee’s Mortgage File. 
  
 (iii) to review (or cause to be reviewed) each Indenture Trustee’s Mortgage File within one hundred
eighty (180) days after the Closing Date (or, with respect to any Qualified Substitute Mortgage Loans, within one hundred eighty (180) days after receipt thereof), and to deliver to the Servicer and the Sponsor a certification in the form
attached hereto as Exhibit E to the effect that, except as otherwise noted, as to each Mortgage Loan listed in the related Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any Mortgage Loan specifically identified in such
certification as not covered by such certification), (i) all documents specified in Section 2.05(a)(i)-(iv) and (vi) are in its possession, (ii) each such document has been reviewed by it and has not been mutilated, damaged,
torn or otherwise physically altered (handwritten additions, changes or corrections shall not constitute physical alteration if they reasonably appear to be initialed by the Mortgagor), appears regular on its face and relates to such Mortgage Loan,
and (iii) based on its examination and only as to the foregoing documents, the information set forth in items (i), (ii) (with respect to property address only, excluding zip code), (iii) and (vi) of the definition of
“Mortgage Loan Schedule” accurately reflects the information set forth in the Indenture Trustee’s Mortgage File delivered on such date. 
  
 In performing any such review, the Indenture Trustee may conclusively rely on the Sponsor as to the purported genuineness of any such document and any
signature thereon. It is understood that the scope of the Indenture Trustee’s review of the Indenture Trustee’s Mortgage Files is limited solely to confirming that the documents listed in Section 2.05 have been executed 
  

 7 

 and received and relate to the Indenture Trustee’s Mortgage Files identified in the related Mortgage Loan Schedule.
The Indenture Trustee shall be under no duty or obligation to inspect, review or examine any such documents, instruments, certificates or other papers to determine that they are genuine, enforceable, or appropriate for the represented purpose or
that they are other than what they purport to be on their face. 
  
 (b) If the Indenture Trustee during the process of reviewing the Indenture Trustee’s Mortgage Files finds any document constituting a part of a Indenture Trustee’s Mortgage File which is not executed, has not been received, is
unrelated to the Mortgage Loan identified in the related Mortgage Loan Schedule, or does not conform to the requirements of Section 2.05 or the description thereof as set forth in the related Mortgage Loan Schedule, the Indenture Trustee shall
promptly so notify the Servicer and the Sponsor. Upon receipt of such notice respecting such defect, the Depositor and the Sponsor shall have a sixty (60) day period after such notice within which to correct or cure any such defect, or if the
Servicer determines that the defect materially and adversely affects the value of the related Mortgage Loan or the interest of the Noteholders in the related Mortgage Loan, to either (i) substitute in lieu of such Mortgage Loan a Qualified
Substitute Mortgage Loan in the manner and subject to the conditions set forth in this Section 2.06 or (ii) purchase such Mortgage Loan at a purchase price equal to the Loan Repurchase Price. Upon receipt by the Indenture Trustee of two
copies of a certification, in the form attached hereto as Exhibit F, of a Servicing Officer of such substitution or purchase and, in the case of a substitution, upon receipt by the Indenture Trustee, of the related Indenture Trustee’s
Mortgage File, and the deposit of the Loan Repurchase Price, in the case of a purchase, or the Substitution Adjustment, if any, in connection with a substitution, in the Collection Account, the Indenture Trustee shall release to the Servicer for
release to the Depositor or the Sponsor, as applicable, the related Indenture Trustee’s Mortgage File and the Indenture Trustee shall execute, without recourse, and deliver such instruments of transfer furnished by the Depositor or the Sponsor
as may be necessary to transfer such Mortgage Loan to the Depositor or the Sponsor, as applicable. 
  
 Section 2.07. Grant of Security Interest. (a) It is intended that the conveyance of the Mortgage Loans and other property by the
Depositor to the Issuer as provided in this Article II be, and be construed for all purposes other than tax and accounting purposes as, a sale of the Mortgage Loans and such other property by the Depositor to the Issuer. It is, for all purposes
other than tax and accounting purposes further, not intended that such conveyance be deemed a pledge of the Mortgage Loans or such other property by the Depositor to the Issuer to secure a debt or other obligation of the Depositor. However, in the
event that the Mortgage Loans or any of such other property are held to be property of the Depositor, or if for any reason this Agreement is held or deemed to create a security interest in the Mortgage Loans or any of such other property, then it is
intended that: (i) this Agreement shall also be deemed to be a security agreement within the meaning of the Uniform Commercial Code; (ii) the conveyance provided for in this Article II shall be deemed to be a grant by the Depositor to the
Issuer of a security interest in all of the Depositor’s right, title and interest in and to the Mortgage Loans and such other property and all amounts payable to the holders of the Mortgage Loans in accordance with the terms thereof and all
proceeds of the conversion, voluntary or involuntary, of the foregoing into cash, instruments, securities or other property, including, without limitation, all amounts from time to time held or invested in the Accounts whether in the form of cash,
instruments, securities or other property; (iii) the possession by the Indenture Trustee, of the Mortgage Notes 
  

 8 

 and such other items of property as constitute instruments, money, negotiable documents or chattel paper shall be deemed
to be “possession by the secured party” for purposes of perfecting the security interest pursuant to the Uniform Commercial Code; and (iv) notifications to persons holding such property, and acknowledgments, receipts or confirmations
from persons holding such property, shall be deemed notifications to, or acknowledgments, receipts or confirmations from financial intermediaries, bailees or agents, as applicable, of the Indenture Trustee for the purpose of perfecting such security
interest under applicable law. The Depositor, the Sponsor, the Servicer, on behalf of the Issuer and the Indenture Trustee, shall, to the extent consistent with this Agreement, take such actions as may be reasonably necessary to ensure that, if this
Agreement were deemed to create a security interest in the Mortgage Loans or any of such other property, such security interest would be deemed to be a perfected security interest of first priority under applicable law and will be maintained as such
throughout the term of this Agreement. 
  
 (b) The Depositor, the
Sponsor and the Servicer shall take no action inconsistent with the Trust’s ownership of the Trust Estate and each shall indicate or shall cause to be indicated in its records and records held on its behalf that ownership of each Mortgage Loan
and the other assets in the Trust Estate is vested in the Issuer, as owner, and is pledged to the Indenture Trustee, for the benefit of the Noteholders and the Swap Provider pursuant to the terms of the Indenture. The Indenture Trustee is authorized
to act, pursuant to the terms of this Agreement for the benefit of the Noteholders and shall be authorized to act at the direction of such parties. In addition, the Depositor, the Sponsor and the Servicer shall respond to any inquiries from third
parties with respect to ownership of a Mortgage Loan or any other asset in the Trust Estate by stating that it is not the owner of such asset and that the Issuer is the owner of such Mortgage Loan or other asset in the Trust Estate, which is pledged
to the Indenture Trustee, for the benefit of the Noteholders and the Swap Provider. 
  
 Section 2.08. Further Action Evidencing Assignments. (a) The Servicer agrees that, from time to time, at its expense, it shall cause the Sponsor or Depositor, as the case may be, to, and each of the
Sponsor and Depositor agree that it shall, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or appropriate, or that the Servicer or the Indenture Trustee may reasonably request,
in order to perfect, protect or more fully evidence the transfer of ownership of the Mortgage Loans and other assets in the Trust Estate or to enable the Indenture Trustee, to exercise or enforce any of its rights hereunder. Without limiting the
generality of the foregoing, the Servicer, the Sponsor and the Depositor shall, upon the request of the Servicer or the Indenture Trustee execute and file (or cause to be executed and filed) such real estate filings, financing or continuation
statements, or amendments thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate. 
  
 (b) Each of the Sponsor and the Depositor hereby grants to the Servicer and the Indenture Trustee powers of attorney to execute all documents on its
behalf under this Agreement as may be necessary or desirable to effectuate the foregoing. 
  
 Section 2.09. Assignment of Agreement. The Sponsor, the Depositor and the Servicer hereby acknowledge and agree that the Issuer may assign its interest under this Agreement to the Indenture Trustee, for
the benefit of the Noteholders and the Swap Provider, as may be required 
  

 9 

 to effect the purposes of the Indenture, without further notice to, or consent of, the Sponsor or the Servicer, and the
Indenture Trustee shall succeed to such of the rights of the Issuer hereunder as shall be so assigned. The Issuer shall, pursuant to the Indenture, assign all of its right, title and interest in and to the Mortgage Loans and its right to exercise
the remedies created by Section 4.02 of this Agreement for breaches of the representations, warranties, agreements and covenants of the Sponsor contained in Sections 3.02 and 4.01 of this Agreement, assign such right, title and interest to the
Indenture Trustee, for the benefit of the Noteholders and the Swap Provider. The Sponsor agrees that, upon such assignment to the Indenture Trustee, such representations, warranties, agreements and covenants will run to and be for the benefit of the
Indenture Trustee and the Indenture Trustee may enforce, without joinder of the Sponsor or the Issuer, the repurchase obligations of the Sponsor set forth herein with respect to breaches of such representations, warranties, agreements and covenants.

  
 ARTICLE III 
  
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 Section 3.01. Representations, Warranties and Covenants of the
Servicer. The Servicer hereby represents, warrants and covenants to the Indenture Trustee, the Depositor, the Sponsor, the Issuer, the Swap Provider and the Noteholders as of the Closing Date and during the term of this Agreement that:

  
 (a) The Servicer is duly organized, validly existing and in
good standing under the laws of its state of incorporation and has the power to own its assets and to transact the business in which it is currently engaged. The Servicer is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction in which the character of the business transacted by it or properties owned or leased by it or the performance of its obligations hereunder requires such qualification and in which the failure so to qualify could
reasonably be expected to have a material adverse effect on the business, properties, assets, or condition (financial or other) of the Servicer or the performance of its obligations hereunder. 
  
 (b) The Servicer has the power and authority to make, execute, deliver and
perform this Agreement and all of the transactions contemplated under this Agreement, and has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement, and assuming the due authorization, execution
and delivery hereof by the other parties hereto constitutes, or will constitute, the legal, valid and binding obligation of the Servicer, enforceable in accordance with its terms, except as enforcement of such terms may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law).

  
 (c) The Servicer is not required to obtain the consent of any
other party or any consent, license, approval or authorization from, or registration or declaration with, any governmental authority, bureau or agency which consent already has not been obtained in connection with the execution, delivery,
performance, validity or enforceability of this Agreement, except such as have been obtained prior to the Closing Date. 
  

 10 

 (d) The execution, delivery and performance of this Agreement by the Servicer will not violate any
provision of any existing law or regulation or any order or decree of any court or the charter or bylaws of the Servicer, or constitute a breach of any mortgage, indenture, contract or other Agreement to which the Servicer is a party or by which it
may be bound. 
  
 (e) Except as set forth in the Prospectus
Supplement under the heading “Risk Factors,” there is no action, suit, proceeding or investigation pending or to Servicer’s knowledge threatened against the Servicer which, either in any one instance or in the aggregate, is, in
the Servicer’s judgment, likely to result in any material adverse change in the business, operations, financial condition, properties, or assets of the Servicer, or in any material impairment of the right or ability of the Servicer to carry on
its business substantially as now conducted, or in any material liability on the part of the Servicer, or which would draw into question the validity of this Agreement, the Notes, or the Mortgage Loans or of any action taken or to be taken in
connection with the obligations of the Servicer contemplated herein or therein, or which would be likely to impair materially the ability of the Servicer to perform its obligations hereunder. 
  
 (f) Neither this Agreement nor any statement, report, or other document
furnished by the Servicer pursuant to this Agreement or in connection with the transactions contemplated hereby, including, without limitation, the sale or placement of the Notes, contains any untrue material statement of fact provided by or on
behalf of the Servicer or omits to state a material fact necessary to make the statements provided by or on behalf of the Servicer contained herein or therein not misleading. 
  
 (g) The Servicer does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every
covenant contained in this Agreement. 
  
 (h) The Servicer is not
an “investment company” or a company “controlled by an investment company,” within the meaning of the Investment Company Act of 1940, as amended. 
  
 (i) The Servicer shall take all necessary steps to maintain the Indenture Trustee’s perfection and priority in the
Mortgage Loans. 
  
 (j) The Servicer will fully furnish, in
accordance with the Fair Credit Reporting Act and its implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three
of the credit repositories), on a monthly basis. 
  
 (k) The
Servicer is a member of MERS in good standing, and will comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS. 
  
 It is understood and agreed that the representations, warranties and
covenants set forth in this Section 3.01 shall survive the delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and inure to the benefit of the Indenture Trustee. 
  

 11 

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

 12 

 (g) The Sponsor is not in default with respect to any order or decree of any court or any order,
regulation or demand of any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.02 may not be waived and shall survive
delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee. 
  
 Section 3.03. [Reserved.] 
  
 Section 3.04. Representations, Warranties and Covenants of the Indenture Trustee. The Indenture Trustee hereby represents, warrants and
covenants to the Issuer, the Swap Provider, the Servicer, the Depositor and the Sponsor that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Indenture Trustee is a national banking association duly organized, validly existing and in good standing under the
laws of the United States of America; 
  
 (b) The Indenture
Trustee has the requisite power and authority to execute, deliver and perform, and to enter into and consummate transactions contemplated by this Agreement; 
  
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Indenture Trustee, all requisite action having been taken, and,
assuming the due authorization, execution and delivery hereof by the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such
enforcement is considered in a proceeding in equity or at law); 
  
 (d) No consent, approval, authorization or order of or registration or filing with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Indenture Trustee with
this Agreement or the consummation by the Indenture Trustee of any of the transactions contemplated hereby, except as have been made on or prior to the Closing Date; 
  
 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or
thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in
an acceleration under (A) the articles of association or bylaws of the Indenture Trustee, or (B) to the best of its knowledge, of any term, condition or provision of any material indenture, deed of trust, contract or other agreement or
instrument to which the Indenture Trustee is a party or by which it is bound; or (ii) results or will result in a violation of any statute, rule, regulation, order, judgment or decree applicable to the Indenture Trustee of any court or
governmental authority having jurisdiction over the Indenture Trustee or its subsidiaries which violation would materially and adversely affect the Indenture Trustee’s performance of its duties hereunder; and 
  

 13 

 (f) There are no actions, suits or proceedings before or against or investigations of, the Indenture
Trustee, pending or to the knowledge of the Indenture Trustee threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the Indenture Trustee’s reasonable judgment, would materially and
adversely affect the performance by the Indenture Trustee of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  
 It is understood and agreed that the representations, warranties and covenants set forth in this Section 3.04 shall survive delivery of the
respective Indenture Trustee’s Mortgage Files to the Indenture Trustee. 
  
 Section 3.05. Covenants and Representations of the Sponsor and Servicer Regarding Prepayment Charges. 
  
 (a) The Servicer covenants that it will not waive any Prepayment Charge or part of a Prepayment Charge unless in connection with a Mortgage Loan that is
in default or for which a default is reasonably foreseeable. 
  
 (b) The Sponsor hereby represents and warrants that the information set forth in the Prepayment Charge Schedule is complete, true and correct in all material respects at the date or dates respecting which such information is furnished and
each Prepayment Charge is permissible and enforceable in accordance with its terms (except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency, moratorium, receivership and other similar laws relating to
creditors’ rights generally) under applicable law. 
  
 (c)
Upon discovery by the Sponsor or the Indenture Trustee of a breach of the foregoing, the party discovering such breach shall give prompt written notice to the other parties. Within 60 days of the earlier of discovery by the Servicer or receipt of
notice by the Servicer of breach, the Servicer shall cure such breach in all material respects. If the covenant made by the Servicer in clause (a) above is breached the Servicer must pay into the Collection Account the amount of the waived
Prepayment Charge. If the representation made by the Sponsor in clause (b) above is breached, the Sponsor must pay into the Collection Account the amount of the scheduled Prepayment Charge, less any amount previously collected and paid by the
Servicer into the Collection Account. The foregoing obligations of the Servicer and the Sponsor shall be the sole and exclusive remedies for a breach of this Section 3.05(a) or (b). 
  
 Section 3.06. Representations, Warranties and Covenants of the Depositor. The Depositor hereby represents,
warrants and covenants to the Indenture Trustee, the Issuer, the Swap Provider, the Sponsor and the Servicer that as of the date of this Agreement or as of such date specifically provided herein: 
  
 (a) The Depositor is a Maryland real estate investment trust duly organized,
validly existing and in good standing under the laws of the State of Maryland. 
  

 14 

 (b) The Depositor has the trust power and authority to convey the Mortgage Loans and to execute, deliver
and perform, and to enter into and consummate the transactions contemplated by this Agreement. 
  
 (c) This Agreement has been duly and validly authorized, executed and delivered by the Depositor, all requisite corporate action having been taken, and, assuming the due authorization, execution and delivery hereof by
the other parties hereto, constitutes or will constitute the legal, valid and binding agreement of the Depositor, enforceable against the Depositor in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the rights of creditors generally, and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law). 
  
 (d) No consent, approval, authorization or order of or registration or filing
with, or notice to, any governmental authority or court is required for the execution, delivery and performance of or compliance by the Depositor with this Agreement or the consummation by the Depositor of any of the transactions contemplated
hereby, except as have been made on or prior to the Closing Date. 
  
 (e) None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby or thereby, or the fulfillment of or compliance with the terms and conditions of this Agreement, (i) conflicts or will
conflict with or results or will result in a breach of, or constitutes or will constitute a default or results or will result in an acceleration under (A) the certificate of trust or bylaws of the Depositor, or (B) of any term, condition
or provision of any material indenture, deed of trust, contract or other agreement or instrument to which the Depositor or any of its subsidiaries is a party or by which it or any of its subsidiaries is bound; (ii) results or will result in a
violation of any law, rule, regulation, order, judgment or decree applicable to the Depositor of any court or governmental authority having jurisdiction over the Depositor or its subsidiaries; or (iii) results in the creation or imposition of
any lien, charge or encumbrance which would have a material adverse effect upon the Mortgage Loans or any documents or instruments evidencing or securing the Mortgage Loans. 
  
 (f) Except as set forth in the Prospectus Supplement under the heading “Risk Factors,” there are no
actions, suits or proceedings before or against or investigations of, the Depositor pending, or to the knowledge of the Depositor, threatened, before any court, administrative agency or other tribunal, and no notice of any such action, which, in the
Depositor’s reasonable judgment, might materially and adversely affect the performance by the Depositor of its obligations under this Agreement, or the validity or enforceability of this Agreement. 
  
 (g) The Depositor is not in default with respect to any order or decree of
any court or any order, regulation or demand of any federal, state, municipal or governmental agency that may materially and adversely affect its performance hereunder. 
  
 (h) The Depositor hereby covenants that it has filed a federal income tax return for its taxable year ending
December 31, 2004 on Internal Revenue Service Form 1120 REIT on which the Depositor elected to be taxed as a REIT. The Depositor hereby represents 
  

 15 

 that it has been organized in conformity with the requirements for qualification for taxation as a REIT and hereby
covenants that it at all times the Depositor owns Trust Certificates, either directly, or indirectly through one or more Qualified REIT Subsidiaries, will conduct its operations so as to qualify as a REIT. If, at any time the Depositor owns Trust
Certificates, either directly, or indirectly through one or more Qualified REIT Subsidiaries, the Depositor determines that is has failed to qualify as a REIT, the Depositor shall, within 30 days of such discovery, notify the Indenture Trustee of
such failure. 
  
 It is understood and agreed that the
representations, warranties and covenants set forth in this Section 3.06 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee.

  
 ARTICLE IV 
  
 THE MORTGAGE LOANS 
  
 Section 4.01. Representations and Warranties Concerning the Mortgage
Loans. The Sponsor makes the following representations and warranties to the Depositor, the Servicer, the Indenture Trustee, the Swap Provider and the Issuer as to the Mortgage Loans on which the Issuer relies in accepting the Mortgage Loans in
trust and executing the Notes. All uses and variations of the word “enforceable” in this Section 4.01, shall be deemed to be qualified as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law). With respect to the representations and warranties stated in Sections
4.01(i), (r), (ddd), (eee) and (fff), the Sponsor makes such representations and warranties on behalf of itself and the Depositor. Such representations, warranties and covenants are made or deemed to be made as of the Closing Date. 
  
 (a) The information with respect to each Mortgage Loan set forth in the
Mortgage Loan Schedule is true and correct as of the Cut-Off Date, based on Cut-Off Date Principal Balances. 
  
 (b) Each Mortgage Loan is being serviced either (i) through the Servicer or (ii) a Person controlling, controlled by or under common control
with the Servicer and qualified to service mortgage loans. 
  
 (c)
Each Mortgage Loan was underwritten or reunderwritten pursuant to the Underwriting Guidelines which conform in all material respects to the description thereof set forth in the Prospectus Supplement. 
  
 (d) All of the original or certified documentation required to be delivered
to the Indenture Trustee pursuant to this Agreement (including all material documents related thereto) with respect to each Mortgage Loan has been or will be delivered to the Indenture Trustee in accordance with the terms of this Agreement. Each of
the documents and instruments specified to be included therein has been duly executed and in due and proper form, and each such document or instrument is in a form generally acceptable to prudent mortgage lenders that regularly originate or purchase
mortgage loans comparable to the Mortgage Loans for sale to prudent investors in the secondary market that invest in mortgage loans such as the Mortgage Loans. 
  

 16 

 (e) [Reserved.] 
  

(f) Each Mortgaged Property is improved by a single (one to four) family residential dwelling, which may include condominiums, individual units in a
planned unit development and townhouses but shall not include cooperatives. 
  
 (g) No Mortgage Loan had an LTV at origination in excess of 100%. 
  
 (h) Each Mortgage Loan is a valid, subsisting enforceable and perfected first lien as identified on the Mortgage Loan Schedule on the Mortgaged Property
and subject in all cases to the exceptions to title set forth in the title insurance policy, with respect to the related Mortgage Loan, which exceptions are generally acceptable to banking institutions in connection with their regular mortgage
lending activities, and such other exceptions to which similar properties are commonly subject and which do not individually, or in the aggregate, materially and adversely affect the benefits of the security intended to be provided by such Mortgage.
At the time each Mortgage Loan was originated, the originator was a mortgagee approved by the Secretary of Housing and Urban Development pursuant to Sections 203 and 211 of the National Housing Act or a savings and loan association, a savings bank,
a commercial bank or similar banking institution which was supervised and examined by a federal or state authority or a mortgage banker or broker licensed or authorized to do business in the jurisdiction in which the related Mortgaged Property is
located, applying the same standards and procedures used by the Sponsor in originating Mortgage Loans directly. 
  
 (i) Immediately prior to the transfer and assignment of the Mortgage Loans to the Depositor pursuant to the Contribution Agreement, the Sponsor held good
and marketable title to, and was the sole owner of each Mortgage Loan, subject to no liens, charges, mortgages or encumbrances or rights of others, except liens of third party warehouse lenders that will be released simultaneously with the transfer
and assignment contemplated herein; and immediately prior to the transfer and assignment herein contemplated, the Depositor held good and marketable title to, and was the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages,
encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment; and immediately upon the transfer and assignment herein contemplated, the Indenture Trustee will hold good and marketable title
to, and be the sole owner of, each Mortgage Loan subject to no liens, charges, mortgages, encumbrances or rights of others except liens which will be released simultaneously with such transfer and assignment. 
  
 (j) There is no delinquent tax or assessment lien on any Mortgaged Property,
and each Mortgaged Property is free of substantial damage and is in good repair. 
  
 (k) There is no valid and enforceable right of rescission, set-off, defense or counterclaim to any Mortgage Note or Mortgage, including the obligation of the related Mortgagor to pay the unpaid principal of or
interest on such Mortgage Note or the defense of usury, nor will the operation of any of the terms of the Mortgage Note or the Mortgage, or the 
  

 17 

 exercise of any right thereunder, render either the Mortgage Note or the Mortgage unenforceable in whole or in part, or
subject to any right of rescission, set-off, counterclaim or defense, including the defense of usury, and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto. 
  
 (l) There is no mechanics’ lien or claim for work, labor or material
affecting any Mortgaged Property which is or may be a lien prior to, or equal with and no rights are outstanding that under the law gives rise to such liens, the lien of the related Mortgage except those which are insured against by any title
insurance policy referred to in paragraph (n) below. 
  
 (m)
Each Mortgage Loan at the time it was made complied with, and each Mortgage Loan at all times was serviced in compliance with, in each case, in all material respects, applicable local, state and federal laws and regulations, including, without
limitation, the federal Truth-in-Lending Act and other consumer protection laws, the Home Ownership and Equity Protection Act of 1994, real estate settlement procedure, usury, equal credit opportunity, disclosure and recording laws and all
applicable predatory and abusive lending laws. 
  
 (n) With
respect to each Mortgage Loan, a lender’s title insurance policy, issued in standard California Land Title Association form or American Land Title Association form, or other form acceptable in a particular jurisdiction by a title insurance
company authorized to transact business in the state in which the related Mortgaged Property is situated, in an amount at least equal to the original Principal Balance of such Mortgage Loan insuring the mortgagee’s interest under the related
Mortgage Loan as the holder of a valid first mortgage lien of record on the real property described in the related Mortgage, as the case may be, subject only to exceptions of the character referred to in paragraph (h) above, was effective on
the date of the origination of such Mortgage Loan, and, as of the Closing Date such policy will be valid and inure to the benefit of the Indenture Trustee on behalf of the Noteholders. 
  
 (o) The improvements upon each Mortgaged Property are covered by a valid and existing hazard insurance policy (which may be
a blanket policy of the type described in this Agreement) with a generally acceptable carrier that provides for fire and extended coverage representing coverage not less than the least of (i) the outstanding Principal Balance of the related
Mortgage Loan, (ii) the minimum amount required to compensate for damage or loss on a replacement cost basis or (iii) the full insurable value of the Mortgaged Property. 
  
 (p) If any Mortgaged Property is in an area identified in the Federal Register by the Federal Emergency Management Agency as
having special flood hazards, a flood insurance policy (which may be a blanket policy of the type described in this Agreement) in a form meeting the requirements of the current guidelines of the Federal Insurance Administration is in effect with
respect to such Mortgaged Property with a generally acceptable carrier in an amount representing coverage not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, (ii) the minimum amount required to
compensate for damage or loss on a replacement cost basis or (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. 
  
 (q) Each Mortgage and Mortgage Note is the legal, valid and binding obligation of the maker thereof and is enforceable in
accordance with its terms, except only as 
  

 18 

 such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity (whether considered in a proceeding or action in equity or at law), and all parties to each Mortgage Loan had full legal capacity to execute all documents relating
to such Mortgage Loan and convey the estate therein purported to be conveyed. 
  
 (r) The Sponsor has directed and the Depositor has caused to be performed any and all acts required to be performed to preserve the rights and remedies of the Indenture Trustee in any Insurance Policies applicable to
any Mortgage Loan delivered by the Sponsor or the Depositor including, to the extent such Mortgage Loan is not covered by a blanket policy described in this Agreement, any necessary notifications of insurers, assignments of policies or interests
therein, and establishments of coinsured, joint loss payee and mortgagee rights in favor of the Indenture Trustee. 
  
 (s) The Sponsor has caused or will have caused, within ten days, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security interest in the original Mortgage Note and all subsequent assignments of the original Mortgage, granted to the Indenture Trustee hereunder, subject to the provisions of
Section 2.05(b) of this Agreement. 
  
 (t) The terms of each
Mortgage Note and each Mortgage have not been impaired, altered, waived or modified in any respect, except by a written instrument which has been recorded, if necessary, to protect the interest of the Noteholders and which has been delivered to the
Indenture Trustee. 
  
 (u) The proceeds of each Mortgage Loan have
been fully disbursed, and there is no obligation on the part of the mortgagee to make future advances thereunder. All costs, fees and expenses incurred in making or closing or recording such Mortgage Loans were paid. 
  
 (v) Except as otherwise required by law or pursuant to the statute under
which the related Mortgage Loan was made, the related Mortgage Note is not and has not been secured by any collateral, pledged account or other security except the lien of the corresponding Mortgage. 
  
 (w) No Mortgage Loan was originated under a buydown plan. 
  
 (x) No Mortgage Loan provides for negative amortization, has a shared
appreciation feature, or other contingent interest feature. 
  
 (y) Each Mortgaged Property is located in the state identified in the Mortgage Loan Schedule and consists of one or more parcels of real property with a residential dwelling erected thereon and that no residence or dwelling is a mobile
home. 
  
 (z) Each Mortgage securing a Mortgage Note contains a
provision for the acceleration of the payment of the unpaid Principal Balance of the related Mortgage Loan in the event the related Mortgaged Property is sold without the prior consent of the mortgagee thereunder. 
  

 19 

 (aa) Any advances made after the date of origination of a Mortgage Loan but prior to the Cut-Off Date,
have been consolidated with the outstanding principal amount secured by the related Mortgage, and the secured principal amount, as consolidated, bears a single interest rate and single repayment term reflected on the Mortgage Loan Schedule. The
consolidated principal amount does not exceed the original principal amount of the related Mortgage Loan. No Mortgage Note permits or obligates the Depositor, the Servicer, the Sponsor or any other Person to make future advances to the related
Mortgagor at the option of the Mortgagor. 
  
 (bb) There is no
proceeding pending or threatened for the total or partial condemnation of any Mortgaged Property, nor is such a proceeding currently occurring, and each Mortgaged Property is undamaged by waste, fire, earthquake or earth movement, flood, tornado or
other casualty, so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended. 
  

(cc) All of the improvements which were included for the purposes of determining the Appraised Value of any Mortgaged Property lie wholly within the
boundaries and building restriction lines of such Mortgaged Property, and no improvements on adjoining properties encroach upon such Mortgaged Property, except as stated in the related title insurance policy and affirmatively insured. 
  
 (dd) No improvement located on or being part of any Mortgaged Property is in
violation of any applicable zoning law or regulation. As of the related date of origination, all inspections, licenses and certificates required to be made or issued with respect to all occupied portions of each Mortgaged Property and, with respect
to the use and occupancy of the same, including, but not limited to, certificates of occupancy and fire underwriting certificates, have been made or obtained from the appropriate authorities and such Mortgaged Property is lawfully occupied under the
applicable law. 
  
 (ee) With respect to each Mortgage
constituting a deed of trust, a trustee, duly qualified under applicable law to serve as such, has been properly designated and currently so serves and is named in such Mortgage, and no fees or expenses are or will become payable by the Sponsor, the
Depositor, or the Issuer to the trustee under the deed of trust, except in connection with a trustee’s sale after default by the related Mortgagor. 
  
 (ff) [Reserved.] 
  
 (gg) [Reserved.] 
  
 (hh) Each Mortgage contains customary and enforceable provisions which render the rights and remedies of the holder thereof adequate for the realization
against the related Mortgaged Property of the benefits of the security, including (i) in the case of a Mortgage designated as a deed of trust, by trustee’s sale and (ii) otherwise by judicial foreclosure. There is no homestead or
other exemption available which materially interferes with the right to sell the related Mortgaged Property at a trustee’s sale or the right to foreclose the related Mortgage. 
  
 (ii) There is no default, breach, violation or event of acceleration existing under any Mortgage or the related Mortgage
Note and no event which, with the passage of time 
  

 20 

 or with notice and the expiration of any grace or cure period, would constitute a default, breach, violation or event of
acceleration; and the Depositor has not waived any default, breach, violation or event of acceleration. 
  
 (jj) No instrument of release or waiver has been executed in connection with any Mortgage Loan, and no Mortgagor has been released, in whole or in part.

  
 (kk) [Reserved.] 
  
 (ll) The Sponsor has no actual knowledge that there exists on any Mortgaged
Property any hazardous substances, hazardous wastes or solid wastes, as such terms are defined in the CERCLA, the Resource Conservation and Recovery Act of 1976, or other federal, state or local environmental legislation. 
  
 (mm) No action, error, omission, misrepresentation, negligence, fraud or
similar occurrence with respect to the origination of a Mortgage Loan has taken place on the part of any person, including, without limitation, the Mortgagor, any appraiser, any builder or developer, or any other party involved in the origination of
the Mortgage Loan or in the application of any insurance in relation to such Mortgage Loan. 
  
 (nn) The Sponsor has not solicited the Mortgagor in connection with any refinancing. 
  
 (oo) If the Mortgage Loan is an adjustable rate Mortgage Loan, all of the adjustments to the Mortgage Interest Rate, to the amount of the monthly payment,
and to the principal balance have been made in accordance with the terms of the related Mortgage Note. 
  
 (pp) The origination and collection practices used with respect to the Mortgage Loan have been in all respects legal, proper, prudent and customary in the
mortgage origination and servicing business. 
  
 (qq) An appraisal
of the related Mortgaged Property was made and signed, prior to the approval of the Mortgage Loan application, by a qualified appraiser who met the requirements of the Sponsor’s appraisal policy and procedures and who had no interest, direct or
indirect in the Mortgaged Property or in any loan made on the security thereof, whose compensation was not affected by the approval or disapproval of the Mortgage Loan. 
  
 (rr) The Mortgagor has received all disclosure materials required by applicable law with respect to the making of adjustable
rate mortgage loans; and if the Mortgage Loan is a refinanced Mortgage Loan, the Mortgagor has received all disclosure and rescission materials required by applicable law with respect to the making of a refinanced Mortgage Loan, and evidence of such
receipt is and will remain in the Servicer’s file. 
  
 (ss)
If the residential dwelling on the Mortgaged Property is a condominium unit or a unit in a planned unit development (other than a de minimis planned unit development), such condominium or planned unit development project meets the Sponsor’s
eligibility requirements. 
  

 21 

 (tt) None of the Mortgage Loans was more than one payment past due or had been dishonored. None of the
Mortgage Loans have been thirty or more days delinquent more than one time in the twelve months preceding the Cut-Off Date. 
  
 (uu) The Sponsor has not advanced funds, or induced, solicited or knowingly received any advance of funds by a person other than the Mortgagor, directly
or indirectly, for the payment of any amount required under the Mortgage Loan, except for interest prepaid upon the closing of the Mortgage Loan. No Mortgage Loan contains any provision pursuant to which Monthly Payments are: (i) paid or
partially paid with funds deposited in any separate account established by the Sponsor, the Mortgagor, or anyone on behalf of the Mortgagor or (ii) paid by any source other than the Mortgagor. The Mortgage Loan is not deemed a graduated payment
mortgage loan and the Mortgage Loan does not have a shared appreciation or other contingent interest feature. 
  
 (vv) No foreclosure proceedings are pending against the Mortgaged Property and the Mortgage Loan is not subject to any pending bankruptcy or insolvency
proceeding, and to the Sponsor’s best knowledge, no material litigation or material lawsuit relating to the Mortgage Loan is pending. 
  
 (ww) Principal payments on the Mortgage Loan commenced or will commence within sixty days after the proceeds of the Mortgage Loan were disbursed.

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

 22 

 (ccc) The Mortgage Loans constitute “instruments” within the meaning of the applicable UCC.

  
 (ddd) The Sponsor received all consents and approvals required
by the terms of the Mortgage Loans to the contribution of the Mortgage Loans pursuant to the Contribution Agreement to the Depositor and the Depositor has received all consents and approvals required by the terms of the Mortgage Loans to the sale of
the Mortgage Loans hereunder to the Owner Trustee and the subsequent pledge to the Indenture Trustee. 
  
 (eee) Other than the security interest granted to the Indenture Trustee pursuant to the Indenture, neither the Sponsor nor the Depositor has pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the Mortgage Loans. Neither the Sponsor nor the Depositor has authorized the filing of nor is aware of any financing statements against the Sponsor or the Depositor that
include a description of collateral covering the Mortgage Loans other than any financing statement relating to the security interest granted to the Indenture Trustee hereunder or that has been terminated. Neither the Sponsor nor the Depositor is
aware of any judgment or tax lien filings affecting the Mortgage Loans against either the Depositor or the Sponsor. 
  
 (fff) All financing statements filed or to be filed against the Sponsor or the Depositor in favor of the Indenture Trustee in connection herewith
describing the Mortgage Loans contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Indenture Trustee.” 
  
 (ggg) None of the Mortgage Loans are classified as (a) “high
cost” loans under the Home Ownership and Equity Protection Act of 1994 or (b) “high cost,” “threshold,” “covered”, “predatory” or “abusive” loans under any other applicable state, federal
or local law (including without limitation any regulation or ordinance) (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans
having high interest rates, points and/or fees). 
  
 (hhh) No
proceeds from any Mortgage Loan were used to finance single-premium credit insurance policies. With respect to each Mortgage Loan, no borrower obtained a prepaid single-premium credit-life, credit-disability, credit unemployment or credit property
insurance policy in connection with the origination of the mortgage loan. 
  
 (iii) No Mortgage Loan is a “High Cost Home Loan” or “Covered Loan,” as applicable, (as such terms are defined in the then current Standard & Poor’s LEVELS Glossary which is now
Version 5.6c Revised, Appendix E) and no Mortgage Loan originated on or after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair Lending Act. No Mortgage Loan that was originated on or after October 1, 2002 and
before March 7, 2003 is secured by property located in the State of Georgia. There is no Mortgage Loan that was originated on or after March 7, 2003 which is a “high cost home loan” as defined under the Georgia Fair Lending Act.

  

 23 

 (jjj) No Mortgage Loan is secured by a leasehold interest, unless such leasehold interest extends 60
months beyond the stated maturity of the Mortgage Note. 
  
 (kkk)
There is no pending action or proceeding directly involving the Mortgaged Property in which compliance with any environmental law, rule or regulation is an issue. Based upon customary and prudent residential mortgage industry underwriting standards,
there is no violation of any environmental law, rule or regulation with respect to the Mortgaged Property, and nothing further remains to be done to satisfy in full all requirements of each such law, rule or regulation constituting a prerequisite to
use and enjoyment of said property. 
  
 (lll) The Mortgagor has
not notified Accredited, and Accredited has no knowledge of any relief requested or allowed to the Mortgagor under the Servicemembers Civil Relief Act or any similar state statute. 
  
 (mmm) No Mortgage Loan was made in connection with the construction (other than a “construct to perm” loan) or
rehabilitation of a Mortgaged Property or facilitating the trade in or exchange of a Mortgaged Property. 
  
 (nnn) Accredited has complied with all applicable anti money laundering laws and regulations, including without limitation the USA Patriot Act of 2001
(collectively, the “Anti-Money Laundering Laws”). 
  
 (ooo) No Mortgage Loan imposes a Prepayment Charge for a term in excess of five years. 
  
 (ppp) No Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey Home Ownership Act, effective as of November 27, 2003, or
the Home Loan Protection Act of New Mexico, effective as of January 1, 2004. 
  
 (qqq) No Mortgage Loan is a “High-Cost Home Loan” as defined in the Massachusetts Predatory Home Loan Practice Act effective November 7, 2004 (MA House Bill 4880). 
  
 (rrr) With respect to the Mortgage Loans in Group I, (i) no Mortgage
Loan imposes a Prepayment Charge for a term in excess of three years, (ii) the servicer for each Mortgage Loan has fully furnished (and, on a going forward basis, will fully furnish), in accordance with the Fair Credit Reporting Act and its
implementing regulations, accurate and complete information (i.e., favorable and unfavorable) on its borrower credit files to Equifax, Experian, and Trans Union Credit Information Company (three of the credit repositories), on a monthly basis,
(iii) with respect to any Mortgage Loan originated on or after August 1, 2004, neither the related mortgage nor the related mortgage note requires the borrower to submit to arbitration to resolve any dispute arising out of or relating in
any way to the mortgage loan transaction, (iv) no Mortgage Loan is covered by the Home Ownership and Equity Protection Act of 1994 (“HOEPA”), (v) no Mortgage Loan is a “high cost home,” “covered” (excluding
home loans defined as “covered home loans” in the New Jersey Home Ownership Security Act of 2002 that were originated between November 26, 2003 and July 7, 2004), “high risk home” or “predatory” loan under any
applicable state, federal or local law (or a similarly classified loan using different terminology under a law imposing heightened regulatory scrutiny or additional 
  

 24 

 legal liability for residential mortgage loans having high interest rates, points and/or fees), (vi) each Mortgage
Loan is a “qualified mortgage” under Section 860G(a)(3) of the Code, and (vii) the original Principal Balance of each Mortgage Loan was within Freddie Mac’s dollar amount limits for conforming one- to four-family mortgage
loans, as follows: 
  

					
	 Number of Units

	  	Maximum Original Loan Amount of First Mortgage

	 	  	Continental United States or Puerto
Rico

	  	 Alaska, Guam, Hawaii or
 Virgin Islands

	 1
	  	359,650	  	539,475
	 2
	  	460,400	  	690,600
	 3
	  	556,500	  	834,750
	 4
	  	691,600	  	1,037,400

  
 (sss) A breach of any
one of the representations set forth in paragraphs (ggg), (hhh), (iii) and (qqq) above, will be deemed to materially and adversely affect the interests of the Noteholders and shall require a repurchase of the affected Mortgage Loan pursuant to
Section 4.02. 
  
 It is understood and agreed that the
representations, warranties and covenants set forth in this Section 4.01 shall survive delivery of the respective Indenture Trustee’s Mortgage Files to the Indenture Trustee and shall inure to the benefit of the Indenture Trustee on behalf
of the Noteholders. 
  
 Section 4.02. Purchase and
Substitution. (a) It is understood and agreed that the representations and warranties set forth in Section 4.01 shall survive the transfer of the Mortgage Loans by the Depositor to the Issuer, the subsequent pledge thereof by the
Issuer to the Indenture Trustee, for the benefit of the Noteholders, and the delivery of the Notes to the Noteholders, and shall continue in full force and effect, notwithstanding any restrictive or qualified endorsement on the Mortgage Notes and
notwithstanding subsequent termination of this Agreement. 
  
 (b)
Upon discovery by the Depositor, the Sponsor, the Servicer, the Indenture Trustee or a Noteholder of a breach of any of the representations and warranties in Section 4.01 which materially and adversely affects the value of any Mortgage Loan, or
which materially and adversely affects the interests of the Noteholders in the related Mortgage Loan, the party discovering such breach or failure shall promptly (and in any event within five (5) days of the discovery) give written notice
thereof to the others. Within sixty (60) days of the earlier of its discovery or its receipt of notice of any breach of a representation or warranty, the Depositor shall, and if the Depositor fails to, then the Sponsor shall (a) promptly
cure such breach in all material respects, (b) purchase such Mortgage Loan on a Servicer Remittance Date, in the manner and at the price specified in Section 2.06(b) and this Section 4.02, or (c) remove such Mortgage Loan from
the Trust Estate (in which case it shall become a Deleted Mortgage Loan) and substitute one or more Qualified Substitute Mortgage Loans in the manner specified in Section 2.06 and this Section 4.02. The Indenture Trustee shall deliver
prompt written notice to the Rating Agencies of any repurchase or substitution made pursuant to this Section 4.02 or Section 2.06(b). 
  

 25 

 (c) As to any Deleted Mortgage Loan for which the Depositor or the Sponsor substitutes a Qualified
Substitute Mortgage Loan or Loans, the Servicer shall cause the Depositor or Sponsor to effect such substitution by delivering to the Indenture Trustee a certification, in the form attached hereto as Exhibit F, executed by a Servicing
Officer, and the documents described in Sections 2.05(a)(i)-(vi) for such Qualified Substitute Mortgage Loan or Loans. 
  
 (d) The Servicer shall deposit in the Collection Account all payments received in connection with such Qualified Substitute Mortgage Loan or Loans after
the date of such substitution. Monthly Payments due with respect to Qualified Substitute Mortgage Loans in or before the Due Period in which the substitution occurs shall not be part of the Trust Estate and will be retained by the Sponsor on the
next succeeding Payment Date. For the Due Period in which the substitution occurs, distributions to Noteholders will include the Monthly Payment due on any Deleted Mortgage Loan for such Due Period and thereafter the Sponsor shall be entitled to
retain all amounts received in respect of such Deleted Mortgage Loan. The Servicer shall give written notice to the Indenture Trustee that such substitution has taken place and shall amend the Mortgage Loan Schedule to reflect the removal of such
Deleted Mortgage Loan from the terms of this Agreement and the substitution of the Qualified Substitute Mortgage Loan or Loans. Upon such substitution, such Qualified Substitute Mortgage Loan or Loans shall be subject to the terms of this Agreement
in all respects. 
  
 (e) With respect to any Mortgage Loan that
has been converted to an REO Mortgage Loan, all references in this Section 4.02 or Section 2.06 to “Mortgage Loan” shall be deemed to also refer to the REO Mortgage Loan. With respect to any Mortgage Loan that the Depositor and
Sponsor are required to repurchase that is or becomes a Liquidated Mortgage Loan, in lieu of repurchasing such Mortgage Loan, the Servicer shall deposit into the Payment Account, pursuant to Section 8.01 of the Indenture, an amount equal to the
amount of the Liquidated Loan Loss, if any, incurred in connection with the liquidation of such Mortgage Loan within the same time period in which the Servicer, Depositor or Sponsor would have otherwise been required to repurchase such Mortgage
Loan. 
  
 (f) It is understood and agreed that the obligations of
the Depositor and the Sponsor set forth in Sections 2.06 and 4.02 to cure, purchase or substitute for a defective Mortgage Loan, or to indemnify as described in Section 4.02(g) constitute the sole remedies of the Indenture Trustee and the
Noteholders respecting a breach of the representations and warranties of the Sponsor set forth in Section 4.01 of this Agreement. 
  
 (g) The Sponsor shall be obligated to indemnify the Depositor, the Indenture Trustee, the Issuer, the Owner Trustee and the Noteholders for any third
party claims arising out of a breach by the Sponsor of representations or warranties regarding the Mortgage Loans. 
  
 ARTICLE V 
  
 ADMINISTRATION AND SERVICING OF THE MORTGAGE LOANS 
  
 Section 5.01. The Servicer. (a) The Servicer shall service and administer the Mortgage Loans in accordance with this Agreement and in accordance with Accepted Servicing Practices, and shall have full power and authority,
acting alone, to do or cause to be done any and all things in connection with such servicing and administration which it may deem necessary or desirable. 
  

 26 

 (b) The Servicer shall exercise its discretion consistent with Accepted Servicing Practices and the terms
of this Agreement, with respect to the enforcement of defaulted Mortgage Loans in such manner as will maximize the receipt of principal and interest with respect thereto, including but not limited to the sale of such Mortgage Loan to a third party,
the modification of such Mortgage Loan, or foreclosure upon the related property with a Mortgage and disposition thereof. 
  
 (c) The duties of the Servicer shall include collecting and posting of all payments, responding to inquiries of Mortgagors or by federal, state or local
government authorities with respect to the Mortgage Loans, investigating delinquencies, reporting tax information to Mortgagors in accordance with its customary practices and accounting for collections and furnishing monthly and annual statements to
the Indenture Trustee with respect to distributions, paying Compensating Interest and making Delinquency Advances and Servicing Advances pursuant hereto. The Servicer shall follow its customary standards, policies and procedures in performing its
duties as Servicer. The Servicer shall cooperate with the Indenture Trustee and furnish to the Indenture Trustee with reasonable promptness information in its possession as may be necessary or appropriate to enable the Indenture Trustee to perform
its tax reporting duties hereunder. The Indenture Trustee shall furnish the Servicer with any powers of attorney and other documents as the Indenture Trustee shall deem necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any
misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the Servicer shall not, without the Indenture Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit
or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture Trustee’s name without indicating the Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not directly
relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties) solely under the Indenture
Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against
Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare, execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the
intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  
 (d) [Reserved.] 
  
 (e) The Servicer shall, in accordance with Accepted Servicing Practices, have the right to approve requests of Mortgagors for consent to (i) partial
releases of Mortgage Loans and (ii) alterations, removal, demolition or division of Mortgaged Properties subject to Mortgage Loans. No such request shall be approved by the Servicer unless: (x) the provisions of the related Mortgage Note
have been complied with; (y) the LTV (which may, for this purpose, be 
  

 27 

 determined at the time of any such action) after any release does not exceed the LTV set forth for such Mortgage Loan in
the Mortgage Loan Schedule; and (z) the lien priority, monthly payment, Mortgage Interest Rate or maturity date of the related Mortgage is not affected except in accordance with Section 5.01(f); provided, however, that the
foregoing requirements (x), (y) and (z) shall not apply to any such situation described in this paragraph if such situation results from any condemnation or easement activity by a governmental entity. 
  
 (f) Notwithstanding anything else contained herein, the Servicer may not
agree to a modification or extension of any Mortgage Loan unless both (i) such Mortgage Loan is in default or a default thereon is reasonably foreseeable and (ii) such modification or extension would not result in the Servicer agreeing to
modifications or extensions on Mortgage Loans with Initial Pool Balances of the related Group of more than 5.0% of the Maximum Collateral Amount. In addition, the Servicer may not agree to more than (i) one modification or extension with
respect to any individual Mortgage Loan in a calendar year or (ii) three modifications or extensions of an individual Mortgage Loan during the life of such Mortgage Loan. 
  
 (g) [Reserved.] 
  
 (h) Without limiting the generality of the foregoing, but subject to Sections 5.05 and 5.06, the Servicer in its own name may be authorized and empowered
pursuant to a power of attorney executed and delivered by the Indenture Trustee to execute and deliver, and may be authorized and empowered by the Indenture Trustee, to execute and deliver, on behalf of itself, the Noteholders and the Indenture
Trustee or any of them, (i) any and all instruments of satisfaction or cancellation or of partial or full release or discharge and all other comparable instruments with respect to the Mortgage Loans and with respect to the Mortgaged Properties,
(ii) and to institute foreclosure proceedings or obtain a deed in lieu of foreclosure so as to effect ownership of any Mortgaged Property on behalf of the Indenture Trustee, and (iii) to hold title to any Mortgaged Property upon such
foreclosure or deed in lieu of foreclosure on behalf of the Indenture Trustee; provided, however, that Section 5.07(a) shall constitute a power of attorney from the Indenture Trustee to the Servicer to execute an instrument of
satisfaction (or assignment of mortgage without recourse) with respect to any Mortgage Loan paid in full (or with respect to which payment in full has been escrowed). Subject to Sections 5.05 and 5.06, the Indenture Trustee shall furnish the
Servicer with any powers of attorney and other documents as the Servicer shall reasonably request to enable the Servicer to carry out its servicing and administrative duties hereunder; provided, however, the Servicer shall prepare for and deliver to
the Indenture Trustee for its execution any such powers of attorney; provided, further, that the Indenture Trustee shall not be responsible for any misuse of any such power of attorney. Notwithstanding anything contained herein to the contrary, the
Servicer shall not, without the Indenture Trustee’s written consent, other than routine foreclosure actions: (i) initiate any action, suit or proceeding directly relating to the servicing of the Mortgage Loan solely under the Indenture
Trustee’s name without indicating the Servicer’s representative capacity, (ii) initiate any other action, suit or proceeding not directly relating to the servicing of any Mortgage Loan (including but not limited to actions, suits or
proceedings against Noteholders or Certificateholders, or against the Depositor for breaches of representations and warranties) solely under the Indenture Trustee’s name, (iii) engage counsel to represent the Indenture Trustee in any
action, suit or proceeding not directly related to the servicing of any Mortgage Loan (including but not limited to actions, suits or proceedings against Noteholders or 
  

 28 

 Certificateholders, or against the Depositor for breaches of representations and warranties, or (iv) prepare,
execute or deliver any government filings, forms, permits, registrations or other documents or take any action with the intent to cause, and that actually causes, the Indenture Trustee to be registered to do business in any state. 
  
 (i) The Servicer shall give prompt notice to the Indenture Trustee of any
action, of which the Servicer has actual knowledge, to (i) assert a claim against the Issuer or (ii) assert jurisdiction over the Trust. 
  
 (j) Servicing Advances incurred by the Servicer in connection with the servicing of the Mortgage Loans (including any penalties in connection with the
payment of any taxes and assessments or other charges) on any Mortgaged Property shall be recoverable by the Servicer to the extent described herein. 
  
 (k) The Servicer shall be entitled to rely, and shall be fully protected in relying, upon any promissory note, writing, resolution, notice, consent,
certificate, affidavit, letter, e-mail, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper person or
persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Mortgagor(s)), independent accountants and other experts selected by the Servicer. 
  
 (l) The Servicer shall have no liability to the Depositor, the Sponsor, the Indenture Trustee, the Owner Trustee, any
Noteholder or any other Person for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided, however, that the foregoing shall not apply to any breach of
representations or warranties made by the Servicer herein, or to any specific liability imposed upon the Servicer pursuant to this Agreement or any liability that would otherwise be imposed upon the Servicer by reason of its willful misconduct, bad
faith or negligence in the performance of its duties hereunder or by reason of its failure to perform its obligations or duties hereunder. 
  
 (m) The Servicer further is authorized and empowered by the Indenture Trustee, on behalf of the Noteholders and the Indenture Trustee, when the Servicer
believes it is appropriate in its best judgment to register any Mortgage Loan on the MERS System, or cause the removal from the registration of any Mortgage Loan on the MERS System, to execute and deliver, on behalf of the Indenture Trustee and the
Noteholders or any of them, any and all instruments of assignment and other comparable instruments with respect to such assignment or re-recording of a Mortgage in the name of MERS, solely as nominee for the Indenture Trustee and its successors and
assigns. Any expenses incurred in connection with the actions described in the preceding sentence shall be reimbursable to the Servicer as Servicing Advances. 
  

Section 5.02. Collection of Certain Mortgage Loan Payments; Collection Account. (a) The Servicer shall make reasonable efforts to
collect all payments called for under the terms and provisions of the Mortgage Loans, and shall, to the extent such procedures shall be consistent with this Agreement, follow Accepted Servicing Practices. Consistent with the foregoing, the Servicer
may in its discretion waive any assumption fees or other fees which may be collected in the ordinary course of servicing such Mortgage Loans. 
  

 29 

 (b) The Servicer shall establish and maintain, in the name of the Indenture Trustee, a segregated account
(the “Collection Account”), in trust for the benefit of the Noteholders. The Collection Account shall be established and maintained as an Eligible Account. 
  
 (c) The Servicer shall deposit in the Collection Account any amounts representing Monthly Payments on the Mortgage Loans due
or to be applied as of a date after the Cut-Off Date on each Business Day, not more than two Business Days after the date of collection, the following payments and collections received or made by it (other than in respect of monthly payments of
principal on and interest of the Mortgage Loans that were due on or before the related Cut-Off Date and Monthly Payments due on November 1, 2005): 
  
 (i) payments of interest on the Mortgage Loans including Prepayment Charges; 
  
 (ii) payments of principal of the Mortgage Loans, including
Principal Prepayments; 
  
 (iii) the Loan
Repurchase Price of Mortgage Loans repurchased pursuant to Sections 2.06(b) or 4.02; 
  
 (iv) the Substitution Adjustment received in connection with Mortgage Loans for which Qualified Substitute Mortgage Loans are received
pursuant to Sections 2.06 and 4.02; 
  
 (v) all
Net REO Proceeds; 
  
 (vi) all Net Liquidation
Proceeds; and 
  
 (vii) all Insurance Proceeds
(including, for this purpose, any amounts required to be deposited by the Servicer pursuant to Section 5.04 hereof). 
  
 It is understood that the Servicer need not deposit amounts representing fees, late payment charges or extension or other administrative charges (other
than Prepayment Charges) payable by Mortgagors, or amounts received by the Servicer for the account of Mortgagors for application towards the payment of taxes, insurance premiums, assessments and similar items or foreclosure proceeds to the extent
payable to the related Mortgagor. 
  
 (d) The Servicer shall
invest any funds in the Collection Account in Permitted Investments, which shall mature not later than the Business Day next preceding the Servicer Remittance Date next following the date of such investment (except that any investment held by the
Indenture Trustee may mature on such Servicer Remittance Date) and shall not be sold or disposed of prior to its maturity. All net income and gain realized from any such investment shall be for the benefit of the Servicer and shall be subject to its
withdrawal or order on a Servicer Remittance Date. The Servicer shall deposit from its own funds the amount of any loss, to the extent not offset by investment income or earnings, in the Collection Account upon the realization of such loss.

  

 30 

 Section 5.03. Permitted Withdrawals from the Collection Account. The Servicer may make
withdrawals from the Collection Account, on or prior to any Servicer Remittance Date, for the following purposes: 
  
 (a) to pay to the Sponsor amounts received in respect of any Defective Mortgage Loan purchased or substituted for by the Sponsor to the extent that the
payment of any such amounts on the Servicer Remittance Date upon which the proceeds of such purchase are paid would make the total amount distributed in respect of any such Mortgage Loan on such Servicer Remittance Date greater than the Loan
Repurchase Price or the Substitution Adjustment therefor; 
  
 (b)
to reimburse the Servicer for unreimbursed Delinquency Advances and unreimbursed Servicing Advances with respect to the Mortgage Loans for which it has made a Delinquency Advance or Servicing Advance, from late or deferred payments collected,
collections other than timely Monthly Payments, Liquidation Proceeds and/or the Loan Repurchase Price or Substitution Adjustment of or relating to such Mortgage Loans; 
  
 (c) to reimburse the Servicer for any Delinquency Advances and Servicing Advances determined in good faith to have become
Nonrecoverable Advances, such reimbursement to be made from any funds in the Collection Account; 
  
 (d) to withdraw any amount received from a Mortgagor that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction; 
  
 (e) to withdraw any funds deposited in the Collection Account that were not required to be deposited therein; 
  
 (f) to pay the Servicer the Servicing Compensation pursuant to
Section 5.08 hereof to the extent not retained or paid; 
  
 (g) [Reserved]; 
  
 (h) without duplication, and solely
out of amounts which are payable to a former servicer pursuant to Section 7.02(g), to pay to the Indenture Trustee or any successor servicer amounts paid by them in connection with the transfer of the Servicer’s servicing obligations
pursuant to Article VII hereof and required under such Article VII to be borne by the Servicer; 
  
 (i) to withdraw income on the Collection Account as provided in Section 5.02(d); and 
  
 (j) amounts deposited into the Collection Account in respect of late fees, assumption fees and similar fees (other than
Prepayment Charges). 
  

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

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 (c) If the Mortgage Loan at the time of origination relates to a Mortgaged Property in an area identified
in the Federal Register by the Federal Emergency Management Agency as having special flood hazards as designated to the Servicer by the Sponsor, the Servicer will cause to be maintained with respect thereto a flood insurance policy in a form meeting
the requirements of the current guidelines of the Federal Insurance Administration with a generally acceptable carrier in an amount representing coverage, and which provides for a recovery by the Servicer on behalf of the Issuer of insurance
proceeds relating to such Mortgage Loan of not less than the least of (i) the outstanding Principal Balance of the related Mortgage Loan, plus the principal balance of the related first lien, if any, (ii) the minimum amount required to
compensate for damage or loss on a replacement cost basis and (iii) the maximum amount of insurance that is available under the Flood Disaster Protection Act of 1973. The Servicer shall indemnify the Issuer out of the Servicer’s own funds
for any loss to the Issuer resulting from the Servicer’s failure to maintain the insurance required by this Section. 
  
 Section 5.05. Assumption and Modification Agreements. When a Mortgaged Property has been or is about to be conveyed by the Mortgagor, the
Servicer shall, to the extent it has knowledge of such conveyance or prospective conveyance, exercise its rights to accelerate the maturity of the related Mortgage Loan under any “due-on-sale” clause contained in the related Mortgage or
Mortgage Note; provided, however, that the Servicer shall not exercise any such right if (i) the “due-on-sale” clause, in the reasonable belief of the Servicer, is not enforceable under applicable law or (ii) the
Servicer reasonably believes that to permit an assumption of the Mortgage Loan would not materially and adversely affect the interest of the Noteholders. In such event, the Servicer shall enter into an assumption and modification agreement with the
Person to whom such property has been or is about to be conveyed, pursuant to which such Person becomes liable under the Mortgage Note and, unless prohibited by applicable law or the mortgage documents, the Mortgagor remains liable thereon. If the
foregoing is not permitted under applicable law, the Servicer is authorized to enter into a substitution of liability agreement with such Person, pursuant to which the original Mortgagor is released from liability and such Person is substituted as
Mortgagor and becomes liable under the Mortgage Note. The Mortgage Loan, if assumed, shall conform in all respects to the requirements and representations and warranties of this Agreement. The Servicer shall notify the Indenture Trustee that any
applicable assumption or substitution agreement has been completed by forwarding to the Indenture Trustee the original copy of such assumption or substitution agreement, which copy shall be added by the Indenture Trustee to the related Indenture
Trustee’s Mortgage File and which shall, for all purposes, be considered a part of such Indenture Trustee’s Mortgage File to the same extent as all other documents and instruments constituting a part thereof. The Servicer shall be
responsible for promptly recording any such assumption or substitution agreements. In connection with any such assumption or substitution agreement, the required monthly payment on the related Mortgage Loan shall not be changed but shall remain as
in effect immediately prior to the assumption or substitution, the stated maturity or outstanding Principal Balance of such Mortgage Loan shall not be changed, the Mortgage Interest Rate shall not be changed nor shall any required monthly payments
of principal or interest be deferred or forgiven. Any fee collected by the Servicer for consenting to any such conveyance or entering into an assumption or substitution agreement shall be retained by or paid to the Servicer as additional servicing
compensation. 
  

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 Notwithstanding the foregoing paragraph or any other provision of this Agreement, the Servicer shall not
be deemed to be in default, breach or any other violation of its obligations hereunder by reason of any assumption of a Mortgage Loan by operation of law or any assumption which the Servicer may be restricted by law from preventing, for any reason
whatsoever. 
  
 Section 5.06. Realization Upon Defaulted
Mortgage Loans. (a) The Servicer shall foreclose upon or otherwise comparably effect the ownership on behalf of the Issuer of Mortgaged Properties relating to defaulted Mortgage Loans as to which no satisfactory arrangements can be made for
collection of Delinquent payments and which the Sponsor has not purchased pursuant to Section 5.15, unless the Servicer reasonably believes that Net Liquidation Proceeds with respect to such Mortgage Loan would not be increased as a result of
such foreclosure or other action, in which case, such Mortgage Loan will be charged-off and will become a Liquidated Mortgage Loan. The Servicer shall have no obligation to purchase any Mortgaged Property at any foreclosure sale. In connection with
such foreclosure or other conversion, the Servicer shall exercise foreclosure procedures with the same degree of care and skill in their exercise or use, as it would ordinarily exercise or use under the circumstances in the conduct of their own
affairs. Any amounts including Liquidation Expenses, advanced by the Servicer in connection with such foreclosure or other action shall constitute Servicing Advances. 
  
 Pursuant to its efforts to sell any REO Property, the Servicer either itself or through an agent selected by the Servicer
shall manage, conserve, protect and operate such REO Property in the same manner and to such extent as is customary in the locality where such REO Property is located and may, incident to its conservation and protection of the interests of the
Servicer, rent the same, or any part thereof, as the Servicer deems to be in the best interest of the Issuer for the period prior to the sale of such REO Property. The net income generated from the REO Property and the proceeds from a sale of any
REO Property shall be deposited in the Collection Account. 
  
 (b)
If the Servicer has reason to believe that a Mortgaged Property which the Servicer is contemplating acquiring in foreclosure or by deed in lieu of foreclosure contains environmental or hazardous waste risks known to the Servicer, the Servicer shall
notify the Indenture Trustee prior to acquiring the Mortgaged Property. The Servicer shall not institute foreclosure actions with respect to such a property if it reasonably believes that such action would not be consistent with the Accepted
Servicing Practices, and in no event shall the Servicer be required to manage, operate or take any other action with respect thereto which the Servicer in good faith believes will result in “clean-up” or other liability under applicable
law, unless the Servicer receives an indemnity acceptable to it in its sole discretion. 
  
 (c) The Servicer shall determine, with respect to each defaulted Mortgage Loan, when it has recovered, whether through trustee’s sale, foreclosure sale or otherwise, all amounts if any it expects to recover from
or on account of such defaulted Mortgage Loan, whereupon such Mortgage Loan shall become a Liquidated Mortgage Loan. 
  
 (d) Net Foreclosure Profits, if any, shall be paid directly to the Sponsor. 
  
 (e) With respect to its obligations under this Section 5.06, the Servicer shall take all such actions as it reasonably
believes are consistent with Accepted Servicing Practices. 
  

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 Section 5.07. Indenture Trustee to Cooperate. (a) Upon the payment in full of any
Mortgage Loan or the receipt by the Servicer of a notification that payment in full will be escrowed in a manner customary for such purposes, the Servicer shall deliver to the Indenture Trustee one copy of a Request for Release. Upon receipt of such
copy of the Request for Release, the Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File, in trust to (i) the Servicer (ii) an escrow agent or (iii) any employee, agent or attorney of the
Indenture Trustee, in each case pending its release by the Servicer, such escrow agent or such employee, agent or attorney of the Indenture Trustee, as the case may be. Upon any such payment in full, or the receipt of such notification that such
funds have been placed in escrow, the Servicer is authorized to give, as attorney-in-fact for the Indenture Trustee and the mortgagee under the Mortgage which secured the Mortgage Note, an instrument of satisfaction (or assignment of Mortgage
without recourse) regarding the Mortgaged Property relating to such Mortgage, which instrument of satisfaction or assignment, as the case may be, shall be delivered to the Person or Persons entitled thereto against receipt therefor of payment in
full, it being understood and agreed that no expense incurred in connection with such instrument of satisfaction or assignment, as the case may be, shall be chargeable to the Collection Account. 
  
 (b) (i) From time to time and as appropriate in the servicing of any
Mortgage Loan, including, without limitation, foreclosure or other comparable conversion of a Mortgage Loan, the Indenture Trustee shall (except in the case of the payment or liquidation pursuant to which the related Indenture Trustee’s
Mortgage File is released to an escrow agent or an employee, agent or attorney of the Indenture Trustee), upon request of the Servicer and delivery to the Indenture Trustee of one copy of a Request for Release, release the related Indenture
Trustee’s Mortgage File to the Servicer and shall execute such documents as shall be necessary to the prosecution of any such proceedings, including, without limitation, an assignment without recourse of the related Mortgage to the Servicer.
The Indenture Trustee shall complete in the name of the Indenture Trustee any endorsement in blank on any Mortgage Note prior to releasing such Mortgage Note to the Servicer. Such receipt shall obligate the Servicer to return the Indenture
Trustee’s Mortgage File to the Indenture Trustee when the need therefor by the Servicer no longer exists unless the Mortgage Loan shall be liquidated, in which case, the Servicer shall deliver one copy of a Request for Release indicating such
loan has been paid in full. 
  
 (ii) Each Request
for Release may be delivered to the Indenture Trustee (x) via mail or courier, (y) via facsimile or (z) by such other means, including, without limitation, electronic or computer readable medium, as the Servicer and the Indenture
Trustee shall mutually agree. The Indenture Trustee shall promptly release the related Indenture Trustee’s Mortgage File(s) within five (5) Business Days of receipt of one copy of a properly completed Request for Release pursuant to
clauses (x), (y) or (z) above or such shorter period as may be agreed upon by the Servicer and the Indenture Trustee. Receipt of a Request for Release pursuant to clauses (x), (y) or (z) above shall be authorization to the
Indenture Trustee to release such Indenture Trustee’s Mortgage Files, provided the Indenture Trustee has determined that such Request for Release has been executed, with respect to clauses (x) or (y) above, or approved, with respect
to clause (z) above, by a Servicing Officer of the Servicer. If the Indenture Trustee is unable to release the Indenture Trustee’s Mortgage Files within the time frames previously specified, the Indenture Trustee shall immediately notify
the Servicer, 
  

 35 

 indicating the reason for such delay, but in no event shall such notification be later than seven
(7) Business Days after receipt of a Request for Release. If the Servicer, is required to pay penalties or damages due solely to the Indenture Trustee’s negligent failure to release the related Indenture Trustee’s Mortgage File or the
Indenture Trustee’s negligent failure to execute and release documents in a timely manner, the Indenture Trustee shall be liable for such penalties or damages. 
  
 (c) No costs associated with the procedures described in this Section 5.07 shall be an expense of the Issuer or the
Indenture Trustee and the Indenture Trustee shall have no liability or obligation whatsoever to pay or advance any such amounts, except for any penalties and damages as set forth in Section 5.07(b)(ii) above. 
  
 Section 5.08. Servicing Compensation; Payment of Certain Expenses by
Servicer. The Servicer shall be entitled to receive and retain, out of collections on the Mortgage Loans for each Due Period, as servicing compensation for such Due Period, an amount (the “Servicing Fee”) equal to the product of
one-twelfth of the Servicing Fee Rate and the aggregate Stated Principal Balance of the Mortgage Loans in each Loan Group as of the beginning of such Due Period. Additional servicing compensation in the form of assumption fees, late payment charges
or extension and other administrative charges (other than Prepayment Charges) shall be retained by the Servicer. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder (including payment of all
other fees and expenses not expressly stated hereunder to be payable by or from another source) and shall not be entitled to reimbursement therefor except as specifically provided herein. 
  
 Section 5.09. Annual Statement as to Compliance. The Servicer will deliver to the Issuer, the Indenture Trustee,
the Rating Agencies and the Sponsor on or before March 15 of each year, beginning March 15, 2006, an Officer’s Certificate of the Servicer stating that (a) a review of the activities of the Servicer during the preceding calendar
year and of its performance under this Agreement has been made under such officer’s supervision and (b) to the best of such officer’s knowledge, based on such review, the Servicer has fulfilled all its material obligations under this
Agreement throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. 
  
 Section 5.10. Annual Independent Public Accountants’ Servicing
Report. On or before March 15 of each year, beginning March 15, 2006, the Servicer at its expense shall cause a firm of independent public accountants that is a member of the American Institute of Certified Public Accountants (who may
also render other services to the Servicer) to furnish a report to the Issuer, the Indenture Trustee, the Rating Agencies and the Sponsor to the effect that such firm has examined certain documents and records relating to the servicing of mortgage
loans under servicing agreements (including this Agreement) substantially similar to this Agreement, and that such examination, which has been conducted substantially in compliance with the Uniform Single Attestation Program for Mortgage Bankers or
the Audit Guide for Audits of HUD Approved Nonsupervised Mortgagees (to the extent that the procedures in such audit guide are applicable to the servicing obligations set forth in such agreements), has disclosed no items of noncompliance with the
provisions of this Agreement which, in the opinion of such firm, are material, except for such items of noncompliance as shall be set forth in such report. 
  

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 Section 5.11. Access to Certain Documentation. The Servicer shall provide to the Indenture
Trustee, the FDIC and the supervisory agents and examiners (as required in the latter case by applicable State and federal regulations) of each of the foregoing access to the documentation regarding the Mortgage Loans, such access being afforded
without charge but only upon reasonable request and during normal business hours at the offices of the Servicer designated by it. 
  
 Upon any change in the format of the computer tape maintained by the Servicer in respect of the Mortgage Loans, the Servicer shall deliver a copy of such
computer tape to the Indenture Trustee and in addition shall provide a copy of such computer tape to the Indenture Trustee at such other times as the Indenture Trustee may reasonably request. 
  
 The Servicer shall keep confidential (including from affiliates thereof)
information concerning the Mortgage Loans, except as required by law. 
  
 Section 5.12. Maintenance of Fidelity Bond. The Servicer shall, during the term of its service as Servicer maintain in force a fidelity bond and errors and omissions insurance in respect of its officers, employees or agents.
Such bond and insurance shall comply with the requirements from time to time of Fannie Mae or Freddie Mac for Persons performing servicing for mortgage loans purchased by such association. 
  
 Section 5.13. Subservicing Agreements Between the Servicer and
Subservicer and Subservicers. (a) The Servicer may enter into subservicing agreements for any servicing and administration of Mortgage Loans with any institution which is in compliance with the laws of each state necessary to enable it to
perform its obligations under such subservicing agreement. The Servicer shall give notice to the Indenture Trustee of the appointment of any subservicer and shall furnish to the Indenture Trustee a copy of the subservicing agreement. The Servicer
shall give notice to each Rating Agency of the appointment of any subservicer. For purposes of this Agreement, the Servicer shall be deemed to have received payments on Mortgage Loans when any subservicer has received such payments. Any such
subservicing agreement shall be consistent with and not violate the provisions of this Agreement. 
  
 (b) The Servicer may terminate any subservicing agreement in accordance with the terms and conditions of such subservicing agreement and thereafter
directly service the related Mortgage Loans itself or enter into a subservicing agreement with a successor subservicer that qualifies under Subsection (a) of this Section 5.13. The Servicer shall give notice to each Rating Agency of the
termination of any subservicer and the appointment of any successor subservicer. 
  
 (c) The Servicer shall not be relieved of its obligations under this Agreement notwithstanding any subservicing agreement or any of the provisions of this Agreement relating to agreements or arrangements between the
Servicer and a subservicer or otherwise, and the Servicer shall be obligated to the same extent and under the same terms and conditions as if it alone were servicing and administering the Mortgage Loans. The Servicer shall be entitled to enter into
any agreement with a subservicer for indemnification of the Servicer by such subservicer and nothing contained in such subservicing agreement shall be deemed to limit or modify this Agreement. The Issuer shall not indemnify the Servicer for any
losses due to the Servicer’s negligence. 
  

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 (d) Any subservicing agreement and any other transactions or services relating to the Mortgage Loans
involving a subservicer shall be deemed to be between the subservicer and the Servicer alone and the Indenture Trustee and the Noteholders shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with
respect to any Subservicer except as set forth in Subsection (e) of this Section 5.13 and the related Subservicing Agreement. 
  
 (e) Notwithstanding any contrary provision contained herein, in connection with the assumption of the responsibilities, duties and liabilities and of the
authority, power and rights of the Servicer hereunder by the Indenture Trustee or any other successor servicer pursuant to Section 7.02, it is understood and agreed that the Servicer’s rights and obligations under any subservicing
agreement then in force between the Servicer and a subservicer may be assumed or terminated (without cost) by the Indenture Trustee or any other successor servicer at its option as successor to the Servicer. 
  
 The Servicer shall, upon request of the Indenture Trustee, but at the expense
of the Servicer, deliver to the assuming party documents and records relating to each subservicing agreement and an accounting of amounts collected and held by it and otherwise use its best reasonable efforts to effect the orderly and efficient
transfer of the subservicing agreements to the assuming party, without the payment of any fee by the Indenture Trustee, any Noteholders, notwithstanding any contrary provision in any subservicing agreement. 
  
 Section 5.14. Reports to the Indenture Trustee; Collection Account
Statements. Not later than twenty-five (25) days after each Payment Date, the Servicer shall provide to the Indenture Trustee a statement, certified by a Servicing Officer, setting forth the status of the Collection Account as of the close
of business on the last day of the Due Period preceding such Payment Date, stating that all payments required by this Agreement to be made by the Servicer on behalf of the Indenture Trustee have been made (or if any required payment has not been
made by the Servicer, specifying the nature and status thereof) and showing, for the period covered by such statement, the aggregate of deposits into and withdrawals from the Collection Account and the aggregate of deposits into the Payment Account
as specified in Section 6.01. Such statement shall also state the aggregate Stated Principal Balance and the aggregate unpaid principal balance of all the Mortgage Loans as of the close of business on the last day of the month preceding the
month in which such Payment Date occurs. 
  
 Section 5.15.
Optional Purchase of Defaulted Mortgage Loans. (a) The Depositor, in its sole discretion, shall have the right to elect (by written notice sent to the Servicer and the Indenture Trustee), but shall not be obligated, to purchase for its
own account from the Issuer any Mortgage Loan which is ninety (90) days or more Delinquent in the manner at the Loan Repurchase Price (except that the amount described in the definition of Loan Repurchase Price shall in no case be net of the
Servicing Fee). The purchase price for any Mortgage Loan purchased hereunder shall be deposited in the Collection Account and the Indenture Trustee, upon the Indenture Trustee’s receipt of written notice by the Servicer of such deposit, shall
release or cause to be released to the purchaser of such Mortgage Loan the related Indenture 
  

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 Trustee’s Mortgage File and shall execute and deliver such instruments of transfer or assignment prepared by the
purchaser of such Mortgage Loan, in each case without recourse, as shall be necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto and the purchaser of such Mortgage Loan shall succeed to all the
Indenture Trustee’s right, title and interest in and to such Mortgage Loan and all security and documents related thereto. Such assignment shall be an assignment outright and not for security. The purchaser of such Mortgage Loan shall thereupon
own such Mortgage Loan, and all security and documents, free of any further obligation to the Indenture Trustee or the Noteholders with respect thereto. 
  
 (b) After the Depositor or its Affiliate has repurchased any Mortgage Loans which are 90 days or more Delinquent in an aggregate amount equal to 1% of the
Maximum Collateral Amount, then notwithstanding the foregoing, the Depositor or its Affiliate may only exercise its option pursuant to this Section 5.15 with respect to the Mortgage Loan or Mortgage Loans (including REO Mortgage Loans) that
have been Delinquent for the longest period at the time of such repurchase. 
  
 (c) The Depositor may not repurchase pursuant to this Section 5.15 more than 10% of the Mortgage Loans, measured by the outstanding Principal Balance of the Mortgage Loans repurchased as a percentage of the
Initial Pool Balance. 
  
 Section 5.16. Reports to be
Provided by the Servicer. (a) By 3:00 p.m. eastern time on the second Business Day following the fifteenth (15th) day of each month (the “Servicer Reporting Date”), the Servicer shall deliver to the Indenture Trustee,
the Underwriter, Intex and Bloomberg a Servicer Remittance Report for the related Servicer Remittance Date in an electronic format reporting on a loan-by-loan basis in such format as the Servicer and the Indenture Trustee may agree, and setting
forth the following information with respect to all Mortgage Loans as well as a break out as to each Loan Group as of the close of business on the last Business Day of the prior calendar month (except as otherwise provided in clause (v) below):

  
 (i) the total number of Mortgage Loans and
the Aggregate Principal Balances thereof, together with the number, Aggregate Principal Balances of such Mortgage Loans and the percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such
Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans (A) 31-60 days Delinquent, (B) 61-90 days Delinquent and (C) 91 or more days Delinquent; 
  
 (ii) the number, Aggregate Principal Balances of all Mortgage Loans and percentage (based on the Aggregate
Principal Balances of the Mortgage Loans) of the Aggregate Principal Balances of such Mortgage Loans to the Aggregate Principal Balance of all Mortgage Loans in foreclosure proceedings and the number, Aggregate Principal Balances of all Mortgage
Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of any such Mortgage Loans also included in any of the statistics described in the foregoing clause (i); 
  
 (iii) the number, Aggregate Principal Balances of all
Mortgage Loans and percentage (based on the Aggregate Principal Balances of the Mortgage Loans) of 
  

 39 

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

 
 (xi) the number and the Aggregate Principal Balance of
Mortgage Loans repurchased pursuant to Section 5.15; and 
  
 (xii) such other loan level information as either the Indenture Trustee may reasonably request to enable it to prepare the Indenture Trustee’s Remittance Report. 
  
 (b) [Reserved.] 
  
 (c) [Reserved.] 
  
 Section 5.17. [Reserved.] 
  
 Section 5.18. Delinquency Advances. If, on any Servicer Remittance Date, the Servicer determines that any Monthly Payments due during the
related Due Period have not been received as of the end of the related Due Period, the Servicer shall determine the amount of any 
  

 40 

 Delinquency Advance required to be made with respect to the related Payment Date. The Servicer shall include in the
amount to be deposited in the Payment Account on such Servicer Remittance Date an amount equal to the Delinquency Advance, if any, which deposit may be made in whole or in part from funds in the Collection Account being held for future payment or
withdrawal on or in connection with Payment Dates in subsequent months, other than any such amounts which are voluntary Principal Prepayments in full. Any funds being held for future payment to Noteholders and so used shall be replaced by the
Servicer from its own funds by deposit in the Collection Account on or before the Business Day preceding any future Servicer Remittance Date to the extent that funds in the Collection Account on such Servicer Remittance Date shall be less than the
Servicer Remittance Amount for such Payment Date. 
  
 The Servicer
shall designate on its records the specific Mortgage Loans and related installments (or portions thereof) as to which such Delinquency Advance shall be deemed to have been made, such determination being conclusive for purposes of withdrawals from
the Collection Account pursuant to Section 5.03 hereof. 
  
 Section 5.19. Indemnification; Third Party Claims. The Servicer agrees to indemnify and to hold each of the Issuer, the Owner Trustee, the Depositor, the Sponsor, the Indenture Trustee and each Noteholder harmless against any
and all claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and any other costs, fees and expenses (including attorneys’ fees and expenses) that the Issuer, the Owner Trustee, the Depositor, the Sponsor, the
Indenture Trustee and any Noteholder (or any director, officer, employee or agent of the foregoing) may sustain in any way related to the failure of the Servicer to perform its duties and service the Mortgage Loans in compliance with the terms of
this Agreement and the other Basic Documents and in connection with the Indenture as provided in Section 6.16 thereof. Each indemnified party and the Servicer shall immediately notify the other indemnified parties if a claim is made by a third
party with respect to this Agreement and the other Basic Documents and the Servicer shall assume the defense of any such claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly pay, discharge and satisfy
any judgment or decree which may be entered against the Issuer, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee and/or a Noteholder (or any director, officer, employee or agent of the foregoing) in respect of such
claim. The obligations of the Servicer under this Section 5.19 arising prior to any resignation or termination of the Servicer hereunder shall survive the resignation or termination of the Servicer or the termination of this Agreement or the
Indenture. 
  
 Section 5.20. Maintenance of Corporate
Existence and Licenses; Merger or Consolidation of the Servicer. (a) The Servicer will keep in full effect its existence, rights and franchises as a corporation, will obtain and preserve its qualification to do business as a foreign
corporation in each jurisdiction necessary to protect the validity and enforceability of this Agreement or any of the Mortgage Loans and to perform its duties under this Agreement and will otherwise operate its business so as to cause the
representations and warranties under Section 3.01 hereof to be true and correct at all times under this Agreement. 
  
 (b) Any corporation into which the Servicer may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Servicer shall be a party, or any corporation succeeding to all or 
  

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 substantially all of the business of the Servicer, shall be the successor of the Servicer, hereunder, without the
execution or filing of any paper or any further act on the part of any of the parties hereto provided that, such corporation meets the qualifications set forth in Section 7.02(b). The Servicer, as applicable, shall send notice of any such
merger or consolidation to the Owner Trustee, the Indenture Trustee and the Servicer, as applicable. 
  
 Section 5.21. Assignment of Agreement by Servicer; Servicer Not to Resign. The Servicer shall not assign this Agreement nor resign from the
obligations and duties hereby imposed on it except upon the determination that the Servicer’s duties hereunder are no longer permissible under applicable law and that such incapacity cannot be cured by the Servicer, without incurring
unreasonable expense. Any such determination that the Servicer’s duties hereunder are no longer permissible under applicable law permitting the resignation of the Servicer, as applicable, shall be evidenced by a written Opinion of Counsel (who
may be counsel for the Servicer) to such effect delivered to the Indenture Trustee, the Issuer, the Depositor, the Sponsor and the Servicer, as applicable. No such resignation of the Servicer shall become effective until a successor servicer
appointed in accordance with the terms of this Agreement has assumed the Servicer’s responsibilities and obligations hereunder in accordance with Section 7.02. The Servicer shall provide the Indenture Trustee and the Rating Agencies with
30 days’ prior written notice of its intention to resign pursuant to this Section 5.21. 
  
 Section 5.22. Periodic Filings with the Securities and Exchange Commission Additional Information. 
  
 (a) The Indenture Trustee shall reasonably cooperate with the Servicer in
connection with the satisfaction of the reporting requirements under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Indenture Trustee shall prepare on behalf of the Trust Fund any Forms 8-K and 10-K customary for
similar securities as required by the Exchange Act and the Rules and Regulations of the Securities and Exchange Commission (the “Commission”) thereunder, and shall file (via the Commission’s Electronic Data Gathering and Retrieval
System) such Forms on behalf of the Servicer. The Servicer hereby grants to the Indenture Trustee a limited power of attorney to execute and file each such Form 8-K but only to the extent no accompanying certification is required to be filed on
behalf of the Servicer. Such power of attorney shall continue until the earlier of (i) receipt by the Indenture Trustee from the Servicer of written termination of such power of attorney and (ii) termination of the Trust Fund. The Servicer
shall execute the Form 10-Ks. The Indenture Trustee shall have no liability with respect to any failure to properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any
information not resulting from its own negligence or willful misconduct. 
  
 (b) Each Form 8-K shall be filed by the Indenture Trustee within 15 days after each Payment Date, with a copy of the Indenture Trustee’s Remittance Report for such Payment Date as an exhibit thereto. Prior to
March 30th of each year (or such earlier date as may be required by the Exchange Act and the Rules and Regulations of the Commission) commencing with 2006, the Indenture Trustee shall file a Form 10-K, in substance as required by applicable law
or the Commission’s staff interpretations. Such Form 10-K shall include as exhibits the Servicer’s annual statement of compliance described under Section 5.09 and the accountant’s report described under Section 5.10, in each
case to the extent they have been timely delivered to 
  

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 the Indenture Trustee. If they are not so timely delivered, the Indenture Trustee shall file the incomplete Form 10-K,
together with a Form 12b-25, and thereafter shall file an amended Form 10-K including such documents as exhibits reasonably promptly after they are delivered to the Indenture Trustee. The Indenture Trustee shall have no liability with respect to any
failure to properly prepare or file such periodic reports resulting from or relating to the Indenture Trustee’s inability or failure to obtain any information not resulting from its own negligence or willful misconduct. The Form 10-K shall also
include a certification in the form attached hereto as Exhibit G (the “Certification”), which shall be signed by the senior officer of the Servicer in charge of securitization. The Indenture Trustee shall prepare and deliver each
Form 10-K to the Servicer for execution no later than March 20th of each year. The Servicer shall return the executed Form 10-K and the Certification to the Indenture Trustee for filing no later than March 25th of each year. 
  
 (c) The Servicer shall indemnify and hold harmless the Indenture Trustee and
its officers, directors and affiliates from and against any losses, damages, penalties, fines, forfeitures, reasonable and necessary legal fees and related costs, judgments and other costs and expenses arising out of or based upon a breach of the
Servicer’s obligations under this Section or the Sponsor’s negligence, bad faith or willful misconduct in connection therewith. 
  
 (d) Upon any filing with the Commission, the Indenture Trustee shall promptly deliver to the Servicer a copy of any executed report, statement or
information. 
  
 (e) The Indenture Trustee shall prepare and file
a voluntary suspension of filing on Form 15 as soon as it is permitted to do so under the Exchange Act and the rules and regulations of the Commission. 
  
 Section 5.23. Administrative Duties. (a) Duties with Respect to the Basic Documents. The Servicer shall perform all its duties and
the duties of the Issuer under the Basic Documents. In addition, the Servicer shall consult with the Owner Trustee as the Servicer deems appropriate regarding the duties of the Issuer under the Basic Documents. The Servicer shall monitor the
performance of the Issuer and shall advise the Owner Trustee when action is necessary to comply with the Trust’s duties under the Basic Documents. The Servicer shall prepare for execution by the Issuer or shall cause the preparation by other
appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the Basic Documents. In furtherance of the foregoing, the Servicer
shall take all necessary action that is the duty of the Issuer to take pursuant to the Basic Documents. 
  
 (b) Duties with Respect to the Issuer. In addition to the duties of the Servicer set forth in this Agreement or any of the Basic Documents, the
Servicer shall perform such calculations and shall prepare for execution by the Issuer or the Owner Trustee or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions
as it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and federal tax and securities laws and shall take all appropriate action that it is the
duty of the Issuer to take pursuant to this Agreement or any of the Basic Documents. In accordance with the directions of the Issuer or the Owner Trustee, the Servicer shall administer, perform, or supervise the 
  

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 performance of such other activities in connection with the Basic Documents as are not covered by any of the foregoing
provisions and as are expressly requested by the Issuer or the Owner Trustee and are reasonably within the capability of the Servicer. 
  
 In carrying out the foregoing duties under this Agreement, the Servicer may enter into transactions with or otherwise deal with any of its Affiliates;
provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuer and shall be, in the Servicer’s opinion, no less favorable to the Issuer in any material respect.

  
 (c) Additional Information to be Furnished to the
Issuer. The Servicer shall furnish to the Owner Trustee from time to time such additional information regarding the Issuer or the Basic Documents as the Owner Trustee shall reasonably request. The Servicer shall prepare, execute and deliver all
certificates or other documents required to be delivered by the Issuer pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated thereunder. 
  
 Section 5.24. Advance Facility. 
  
 (a) The Servicer on behalf of the Issuer, is hereby authorized to enter into a facility (such an arrangement, an
“Advance Facility”) with any Person which provides that such Person (an “Advancing Person”) may fund Delinquency Advances and/or Servicing Advances under this Agreement, although no such facility shall reduce or otherwise affect
the Servicer’s obligation to fund such Delinquency Advances and/or Servicing Advances. No consent of the Indenture Trustee, Noteholders or any other party shall be required before the Servicer may enter into an Advance Facility nor shall the
Indenture Trustee or the Noteholders be a third party beneficiary of any obligation of an Advancing Person to the Servicer. If the Servicer enters into an Advance Facility, the Servicer and the related Advancing Person shall deliver to the Indenture
Trustee at the address set forth in Section 10.06 hereof a written notice (an “Advance Facility Notice”), stating (a) the identity of the Advancing Person and (b) the identity of the Person (the “Servicer’s
Assignee”) that will, subject to Section 5.24(b) hereof, have the right to make withdrawals from the Collection Account pursuant to Section 5.03(b) hereof to reimburse previously unreimbursed Delinquency Advances and/or Servicing
Advances (“Advance Reimbursement Amounts”). If the Servicer enters into such an Advance Facility pursuant to this Section 5.24, upon reasonable request of the Advancing Person, the Indenture Trustee shall execute a letter of
acknowledgment, as prepared by the Servicer confirming its receipt of written notice of the existence of such Advance Facility. To the extent that an Advancing Person purchases or funds any Delinquency Advance or any Servicing Advance and provides
the Indenture Trustee with written notice acknowledged by the Servicer that such Advancing Person is entitled to reimbursement directly from the Indenture Trustee pursuant to the terms of the Advance Facility, such Advancing Person shall be entitled
to receive reimbursement pursuant to this Agreement for such amount to the extent provided in Section 5.24(b). Such notice from the Advancing Person must specify the amount of the reimbursement, the Section of this Agreement that permits the
applicable Delinquency Advance or Servicing Advance to be reimbursed and the section(s) of the Advance Facility that entitle the Advancing Person to request reimbursement from the Indenture Trustee, rather than the Servicer, and include the
Servicer’s acknowledgment thereto or proof of an Event of Default under the Advance Facility. The Indenture Trustee shall 
  

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 have no duty or liability with respect to any calculation of any reimbursement to be paid to an Advancing Person and
shall be entitled to rely without independent investigation on the Advancing Person’s notice provided pursuant to this Section 5.24. For the avoidance of doubt, an Advancing Person whose obligations under the Advance Facility are limited
to the funding of Delinquency Advances and/or Servicing Advances shall not be considered to be a subservicer hereunder. 
  
 (b) Notwithstanding the foregoing, and for the avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only be entitled to
reimbursement of Delinquency Advance reimbursement amounts hereunder from withdrawals from the Collection Account pursuant to Section 5.03(b) and (c) of this Agreement and shall not otherwise be entitled to make withdrawals or receive
amounts that shall be deposited in the Payment Account, and (ii) none of the Indenture Trustee or the Noteholders shall have any right to, or otherwise be entitled to, receive any Delinquency Advance reimbursement amounts to which the Servicer
or Servicer’s Assignee, as applicable, shall be entitled pursuant to Section 5.03(b) and (c) hereof. An Advance Facility may be terminated by the joint written direction of the Servicer and the related Advancing Person. Written notice
of such termination shall be delivered to the Indenture Trustee in the manner set forth in Section 10.06 hereof. Neither the Issuer nor the Indenture Trustee shall, as a result of the existence of any Advance Facility, have any additional duty
or liability with respect to the calculation or payment of any Delinquency Advance reimbursement amount, nor, as a result of the existence of any Advance Facility, shall the Issuer or the Indenture Trustee have any additional responsibility to track
or monitor the administration of the Advance Facility or the payment of Delinquency Advance reimbursement amounts to the Servicer’s Assignee. The Servicer shall indemnify the Indenture Trustee, any successor Servicer and the Issuer for any
claim, loss, liability or damage resulting from any claim by the related Advancing Person, except to the extent that such claim, loss, liability or damage resulted from or arose out of negligence, recklessness or willful misconduct on the part of
the Indenture Trustee or any successor Servicer, as the case may be, or failure by the successor Servicer to remit funds as required by this Agreement or the commission of an act or omission to act by the successor Servicer and the passage of any
applicable cure or grace period, such that an Event of Default under this Agreement occurs or such entity is subject to termination for cause under this Agreement. The Servicer shall maintain and provide to any successor Servicer and, upon request,
the Indenture Trustee a detailed accounting on a loan-by-loan basis as to amounts advanced by, pledged or assigned to, and reimbursed to any Advancing Person. The successor Servicer and the Indenture Trustee, as applicable, shall be entitled to rely
on any such information provided by the predecessor Servicer, and the successor Servicer and the Indenture Trustee, as applicable, shall not be liable for any errors in such information. 
  
 (c) If an Advancing Person is entitled to reimbursement for any particular Delinquency Advance or Servicing Advance as set
forth in Section 5.24(a), then the Servicer shall not be permitted to reimburse itself therefor under Section 5.03(b) and (c), but instead the Servicer shall include such amounts in the applicable remittance to the Indenture Trustee made
pursuant to Section 5.02 to the extent of amounts on deposit in the Collection Account on the related Servicer Remittance Date. The Indenture Trustee is hereby authorized to pay to an Advancing Person reimbursements for Delinquency Advances and
Servicing Advances from the Payment Account to the same extent the Servicer would have been permitted to reimburse itself for such Delinquency Advances and/or Servicing Advances in accordance with Section 5.03(b) and (c), had the Servicer made
such Delinquency Advance or Servicing Advance. 
  

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 (d) All Delinquency Advances and Servicing Advances made pursuant to the terms of this Agreement shall be
deemed made and shall be reimbursed on a “first in first out” (FIFO) basis. In the event the Servicer’s Assignee shall have received some or all of an Delinquency Advance reimbursement amount related to Delinquency Advances and/or
Servicing Advances that were made by a Person other than the Servicer or its related Advancing Person in error, then such Servicer’s Assignee shall be required to remit any portion of such Delinquency Advance reimbursement amount to each Person
entitled to such portion of such Delinquency Advance reimbursement amount. Without limiting the generality of the foregoing, the Servicer shall remain entitled to be reimbursed pursuant to Section 5.03(b) and (c) for all Delinquency
Advances and/or Servicing Advances funded by the Servicer to the extent the related Delinquency Advance reimbursement amounts have not been assigned, sold or pledged to such Advancing Person or Servicer’s Assignee. 
  
 (e) In the event the Servicer is terminated pursuant to Section 7.01,
the Advancing Person shall succeed to the terminated Servicer’s right of reimbursement set forth in Section 5.03(b) and (c) to the extent of such Advancing Person’s financing of Delinquency Advances or Servicing Advances
hereunder then remaining unreimbursed. 
  
 (f) Any amendment to
this Section 5.24 or to any other provision of this Agreement that may be necessary or appropriate to effect the terms of an Advance Facility as described generally in this Section 5.24, including amendments to add provisions relating to a
successor Servicer, may be entered into by the Indenture Trustee, the Sponsor, the Depositor, the Issuer and the Servicer without the consent of any Noteholder, provided such amendment complies with Section 10.03 hereof. All reasonable costs
and expenses (including attorneys’ fees) of each party hereto of any such amendment shall be borne solely by the Servicer. The parties hereto hereby acknowledge and agree that: (a) the Delinquency Advances and/or Servicing Advances
financed by, sold and/or pledged to an Advancing Person under any Advance Facility are obligations owed to the Servicer payable only from the cash flows and proceeds received under this Agreement for reimbursement of Delinquency Advances and/or
Servicing Advances only to the extent provided herein, and the Indenture Trustee and the Issuer are not, as a result of the existence of any Advance Facility, obligated or liable to repay any Delinquency Advances and/or Servicing Advances financed
by the Advancing Person; (b) the Servicer will be responsible for remitting to the Advancing Person the applicable amounts collected by it as reimbursement for Delinquency Advances and/or Servicing Advances purchased or funded by the Advancing
Person, subject to the provisions of this Agreement; and (c) the Indenture Trustee shall not have any responsibility to track or monitor the administration of the financing arrangement between the Servicer and any Advancing Person. 

 
 ARTICLE VI 
  
 APPLICATION OF FUNDS 
  
 Section 6.01. Deposits to the Payment Account. By 12:00 noon
(Eastern Time) on each Servicer Remittance Date, the Servicer shall remit to the Indenture Trustee for deposit in the 
  

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

  
 Section 7.01. Servicer Events of Default.
(a) The following events shall each constitute a “Servicer Event of Default” hereunder: 
  
 (i) any failure by the Servicer to remit to the Indenture Trustee any payment required to be made by the Servicer under the terms of this
Agreement (other than Servicing Advances covered by clause (ii) below and Delinquency Advances, which shall have no cure period), which continues unremedied for one (1) Business Day after the date upon which notice of such failure,
requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and Indenture Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; provided however that any
failed remittance cured within one Business Day of such failure shall include interest accrued at the Prime Rate (as set forth in the Wall Street Journal) on the amount of such remittance from and including the date the remittance was required to be
made to and including the date the remittance was actually made; 
  

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 (ii) the failure by the Servicer to make any required Servicing Advance, which failure
continues unremedied for a period of thirty (30) days after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture
Trustee by the Noteholders affected thereby evidencing Percentage Interests of at least 25%; 
  
 (iii) any failure on the part of the Servicer duly to observe or perform in any material respect any other of the covenants or agreements
on the part of the Servicer contained in this Agreement, or the failure of any representation and warranty made pursuant to Section 3.01(a) hereof to be true and correct which continues unremedied for a period of thirty (30) days after the
date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Indenture Trustee or to the Servicer and the Indenture Trustee by the Noteholders affected thereby evidencing Percentage
Interests of at least 25%; 
  
 (iv) a decree or
order of a court or agency or supervisory authority having jurisdiction in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or for the appointment of a conservator or receiver or liquidation in
any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Servicer and such decree or order shall have remained in
force, undischarged or unstayed for a period of ninety (90) days; 
  
 (v) the Servicer shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the
Servicer or of or relating to all or substantially all of the Servicer’s property; 
  
 (vi) the Servicer shall admit in writing its inability generally to pay its debts as they become due, file a petition to take advantage of
any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors, or voluntarily suspend payment of its obligations; 
  
 (vii) if on any Payment Date the Rolling Six Month Delinquency Ratio exceeds 17%; 
  
 (viii) if on any Payment Date, the Cumulative Realized Loss
Percentage exceeds the following percentages on any Payment Date during the following periods: 
  

			
	 Payment Date Occurring During

	  	Percentage

	 December 2008 – November 2009
	  	6.50%
	 December 2009 - November 2010
	  	7.00%
	 December 2010 - November 2011
	  	7.50%
	 December 2011 and thereafter
	  	8.00%

  
 (ix)
the occurrence of an Event of Default under the Indenture. 
  

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 So long as a Servicer Event of Default shall have occurred and not have been remedied: (x) with
respect solely to Section 7.01(a)(i), if such payment is in respect of Delinquency Advances or Compensating Interest owing by the Servicer and such payment is not made by 12:00 noon New York time on the second Business Day prior to the
applicable Payment Date, the Indenture Trustee, upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee of such failure, shall give immediate telephonic and facsimile notice of such failure to a Servicing
Officer of the Servicer and the Indenture Trustee may, and upon request of the Holders representing more than 50% of the Class Note Balance, shall, terminate all of the rights and obligations of the Servicer under this Agreement, except for the
Servicer’s indemnification obligation under Section 5.19, and the Indenture Trustee (if it is the successor servicer) or a successor servicer appointed in accordance with Section 7.02, shall immediately make such Delinquency Advance
or payment of Compensating Interest as provided in Section 7.02 and assume, pursuant to Section 7.02 hereof, the duties of a successor servicer; (y) with respect to that portion of Section 7.01(a)(i) not referred to in the
preceding clause (x) and with respect to clauses (ii), (iii), (iv), (v), (vi) and (xii) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture
Trustee shall, but only at the direction of the Majority Noteholders, by notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee, and in addition to whatever rights such Noteholders may have at law or equity to damages,
including injunctive relief and specific performance, terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under Section 5.19, and in and to the Mortgage Loans
and the proceeds thereof, as Servicer; and (z) with respect to clauses (vii)-(ix) of Section 7.01(a), upon receipt of written notice or actual knowledge by a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall,
after notice in writing to the Servicer and a Responsible Officer of the Indenture Trustee, terminate all the rights and obligations of the Servicer under this Agreement, except for the Servicer’s indemnification obligations under
Section 5.19, and in and to the Mortgage Loans and the proceeds thereof, as Servicer. Upon receipt by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Mortgage Loans
or otherwise, shall, subject to Section 7.02, pass to and be vested in another successor servicer, and another successor servicer is hereby authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or
otherwise, at the expense of the Servicer, any and all documents and other instruments and do or cause to be done all other acts or things necessary or appropriate to effect the purposes of such notice of termination, including, but not limited to,
the transfer and endorsement or assignment of the Mortgage Loans and related documents. The Servicer agrees to cooperate (and to pay any related costs and expenses) with the Indenture Trustee or another successor servicer in effecting the
termination of the Servicer’s responsibilities and rights hereunder, including, without limitation, the transfer to another successor servicer, for administration by it of all amounts which shall at the time be credited by the Servicer to the
Collection Account or thereafter received with respect to the Mortgage Loans. The Indenture Trustee shall promptly notify the Rating Agencies and the Swap Provider of the occurrence of a Servicer Event of Default upon discovery or receipt of notice
by a Responsible Officer of the Indenture Trustee; provided, however, the Indenture Trustee shall not be obligated to monitor the Servicer’s compliance with the terms hereof or to determine the occurrence of any Servicer Event of Default.

  

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 Section 7.02. Indenture Trustee to Act: Appointment of Successor. (a) (i) On and
after the time the Servicer receives a notice of termination pursuant to Section 7.01, or the Indenture Trustee receives the resignation of the Servicer evidenced by an Opinion of Counsel pursuant to Section 5.21, or the Servicer is
removed as Servicer pursuant to this Article VII, in which event the Indenture Trustee shall promptly notify the Rating Agencies, and except as otherwise provided in this Section 7.02, the Indenture Trustee (provided the Indenture Trustee
receives 20 days’ prior written notice) or another successor servicer shall be the successor in all respects to the Servicer in its capacity as servicer under this Agreement and the transactions set forth or provided for in this Agreement, and
shall be subject to all the responsibilities, restrictions, duties, liabilities and termination provisions relating thereto placed on the Servicer by the terms and provisions of this Agreement. The Indenture Trustee or another successor servicer
shall take such action, consistent with this Agreement, as shall be necessary to effect any such succession. If the Indenture Trustee or any other successor servicer is acting as Servicer hereunder, it shall be subject to termination under
Section 7.01 upon the occurrence or continuation of a Servicer Event of Default applicable to it as Servicer. The Indenture Trustee hereby agrees to act as successor servicer pursuant to the terms of this Agreement upon the termination or
resignation of the Servicer as provided in this Section 7.02, provided that the Indenture Trustee receives all of the necessary documents relating to the Mortgage Loans and computer records reflecting the status of the Mortgage Loans as of the
date of such transfer of servicing. The Indenture Trustee and any successor servicer will not be obligated to incur any expenses or costs (including, without limitation, legal fees and the preparation and recording of all intervening assignments of
mortgage) in connection with the transfer of servicing of the Mortgage Loans to the Indenture Trustee, as successor servicer, or any other successor servicer, as applicable, or to compel the performance of any obligations by any party to this
Agreement. Any successor servicer and the Indenture Trustee prior to its becoming the successor servicer shall not be liable for any actions, omissions or defaults of any servicer prior to it or breaches of representations and warranties of the
servicer prior to it. The Indenture Trustee or any other successor servicer, as successor servicer, shall be obligated to pay Compensating Interest pursuant to Section 6.05 in any event and to make Delinquency Advances pursuant to
Section 5.18 unless, and only to the extent the successor servicer determines reasonably and in good faith that such advances would not be recoverable from the proceeds of the related Mortgage Loan pursuant to Section 5.03, such
determination to be evidenced by a certification of a Responsible Officer of the successor servicer delivered to the Indenture Trustee. Furthermore, neither the Indenture Trustee nor any successor servicer shall be obligated to fund any resulting
discrepancy or shortfall in the Collection Account. Upon the transfer of the servicing of the Mortgage Loans, the Indenture Trustee shall provide the successor servicer with an officer’s certificate that contains: (i) a complete
description of all Events of Default by the Servicer under the Agreement of which a Responsible Officer of the Indenture Trustee has actual knowledge, which have not been fully cured and (ii) confirmation that the Servicer Remittance Report and
the reports described in Sections 5.09 and 5.10 have been timely filed by the Servicer with the Indenture Trustee. 
  
 (i) In the event that any successor servicer is terminated or resigns pursuant to this Agreement or otherwise becomes unable to perform
its obligations under this Agreement, the Indenture Trustee will appoint a successor servicer in accordance with the provisions of this Section 7.02; provided, that any successor servicer, shall satisfy the requirements set forth in
Section 7.02(b) and shall be approved by the Rating Agencies. 
  

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 (b) Any successor servicer hereunder (other than the Indenture Trustee) shall be a housing and home
finance institution, bank or mortgage servicing institution which has been designated as an approved seller-servicer by Fannie Mae or Freddie Mac, having equity of not less than $5,000,000 as determined in accordance with GAAP, as the successor to
the Servicer hereunder in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer hereunder. 
  
 (c) In the event the Indenture Trustee is the successor servicer, it shall be entitled to the same Servicing Compensation (including the Servicing Fee as
adjusted pursuant to the definition thereof) and other funds pursuant to Section 5.08 hereof as the Servicer if the Servicer had continued to act as servicer hereunder. 
  
 (d) The Indenture Trustee and any successor servicer shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession. The Servicer agrees to cooperate with the Indenture Trustee and any successor servicer in effecting the termination of the Servicer’s servicing responsibilities and rights hereunder and shall
promptly provide the Indenture Trustee, or such successor servicer, as applicable, at the Servicer’s cost and expense, all documents and records reasonably requested by it to enable it to assume the Servicer’s functions hereunder and shall
promptly also transfer to the Indenture Trustee, or such successor servicer, as applicable, all amounts that then have been or should have been deposited in the Collection Account by the Servicer or that are thereafter received with respect to the
Mortgage Loans, including without limitation all Liquidation Proceeds and Insurance Proceeds, and payments of insurance deductible amounts by the Servicer pursuant to Section 5.04(b) with respect to all insurance claims arising during the
Servicer’s tenure. Any collections received by the Servicer after such removal or resignation shall be endorsed by it to the Indenture Trustee or a successor servicer, as applicable, and remitted directly to the Indenture Trustee (or, at the
direction of the Indenture Trustee, to any other successor servicer). Neither the Indenture Trustee nor any other successor servicer shall be held liable by reason of any failure to make, or any delay in making, any payment hereunder or any portion
thereof caused by (i) the failure of the Servicer to deliver, or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by any regulatory authority having jurisdiction over the Servicer hereunder. The
Servicer shall not resign as Servicer until a successor servicer has been appointed. 
  
 (e) In the event that the Servicer is terminated hereunder and no successor servicer has been appointed hereunder, the Indenture Trustee may appoint a successor servicer (which may be an affiliate of the Indenture
Trustee) or petition a court of competent jurisdiction to appoint a successor servicer. Pending appointment of such a successor servicer hereunder, the Indenture Trustee shall be the successor servicer and act in such capacity; provided, however,
that the Indenture Trustee, in its capacity as successor servicer pending appointment of another successor servicer, (i) shall be obligated to make Delinquency Advances or Servicing Advances only to the extent that the Indenture Trustee deems
such advances to be recoverable, (ii) shall be obligated to make Compensating Interest payments in respect of any Payment Date only to the extent of any Servicing Fee received by the Indenture Trustee in respect of such Payment Date,
(iii) shall not be obligated to perform any other duties or obligations of the Servicer hereunder until the Indenture Trustee has received all servicing records and files from the predecessor servicer and in no event later than 90 days
following the termination of the Servicer; provided, 
  

 51 

 however, the Indenture Trustee shall use its reasonable efforts to perform the duties and obligations of the Servicer
prior to the end of such 90 day period, (iv) shall not be obligated to perform any of the administrative duties specified in Section 5.23 hereof, and (v) shall be entitled to payment of all Servicing Compensation. In connection with
any appointment and assumption of duties of a successor servicer, the Indenture Trustee may make such arrangements for the compensation of such successor servicer out of payments on Mortgage Loans; provided, however, that such compensation may not
be in excess of that permitted the Servicer pursuant to Section 5.08, together with other Servicing Compensation. The Servicer, the Indenture Trustee and such successor Servicer shall take such action, consistent with this Agreement, as shall
be necessary to effectuate any such succession. 
  
 (f) In the
event the Indenture Trustee, or any successor servicer incurs out-of-pocket expenses other than Servicing Advances or Delinquency Advances in connection with the transfer of servicing hereunder, which expenses are required to be borne by the
Servicer hereunder, and such expenses are not promptly reimbursed by the Servicer or recoverable out of amounts reimbursable to the Servicer out of the Collection Account, the Indenture Trustee shall make such reimbursement to the applicable party
out of funds in the Payment Account on any Payment Date after all Payments to Noteholders on such Payment Date have been made but before any distribution to the Certificateholders. The right of the Indenture Trustee to reimbursement from the Payment
Account for any of the Indenture Trustee’s costs and expenses in connection with the transfer of any servicing hereunder shall be in addition to any rights of the Indenture Trustee to indemnification and reimbursement under the Indenture.

  
 (g) In the event that the Servicer is terminated or resigns
hereunder, and at such time the Servicer has made unreimbursed Delinquency Advances or Servicing Advances out of its own funds, 
  
 (i) any such Delinquency Advances or Servicing Advances shall be allocated by the successor servicer in whole or in part to specific
Mortgage Loans which are delinquent at the time of the transfer of servicing, which allocation shall be based on loan-level accounts of the portion of each Delinquency Advance or Servicing Advance which has been funded by the Servicer from its own
funds consistently maintained by the former Servicer, or, if no such accounts exist, then in the successor servicer’s discretion; 
  
 (ii) following the transfer of servicing, the successor servicer shall reimburse the former Servicer for such Delinquency Advances and
Servicing Advances in accordance with the allocations determined in accordance with clause (i) above only out of the proceeds of the Mortgage Loans to which they relate and otherwise subject to Section 5.03, or, to the extent the successor
servicer determines any such Delinquency Advance or Servicing Advance to be a Nonrecoverable Advance, out of any funds in the Collection Account. 
  
 (h) In connection with the termination or resignation of the Servicer hereunder, the successor Servicer shall represent and warrant that it is a member of
MERS in good standing and shall agree to comply in all material respects with the rules and procedures of MERS in connection with the servicing of the Mortgage Loans that are registered with MERS, in which case the predecessor Servicer shall
cooperate with the successor Servicer in causing the MERS System to be revised to reflect the transfer of servicing to the successor Servicer as necessary under MERS’ rules and regulations. 
  

 52 

 Section 7.03. Waiver of Defaults. The Majority Noteholders may, on behalf of all Noteholders,
waive any events permitting removal of the Servicer as servicer pursuant to this Article VII; provided, however, that the Majority Noteholders may not waive a default in making a required payment on a Note without the consent of the
Holder of such Note. Upon any waiver of a past default, such default shall cease to exist, and any Servicer Event of Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereto except to the extent expressly so waived. Notice of any such waiver shall be given by the Indenture Trustee to the Rating Agencies. 
  
 ARTICLE VIII 
  
 TERMINATION 
  
 Section 8.01. Termination. (a) Subject to Section 8.02,
this Agreement shall terminate upon notice to the Indenture Trustee of either: (i) the disposition of all funds with respect to the last Mortgage Loan and the remittance of all funds due hereunder and the payment of all amounts due and payable
to the Indenture Trustee or (ii) mutual consent of the Owner Trustee, on behalf of the Issuer, at the direction of all the Certificateholders, the Indenture Trustee, the Servicer, the Swap Provider (if the Swap Agreement is still outstanding)
and all Noteholders in writing. 
  
 (b) In addition, subject to
Section 8.02, the Sponsor may, at its sole option, cost and expense, terminate the Issuer in accordance with the terms of Section 10.01 of the Indenture. 
  
 (c) If on any date, the Servicer determines that there are no outstanding Mortgage Loans and no other funds or assets in the
Trust Estate other than funds in the Payment Account, the Servicer shall send a final payment notice promptly to the Indenture Trustee, who shall forward notice to each Noteholder in accordance with Section 8.01(d). 
  
 (d) Notice of any termination, specifying the Payment Date upon which the
Issuer will terminate and the Noteholders shall surrender their Notes to the Indenture Trustee for final payment and cancellation, shall be given promptly by the Servicer to the Indenture Trustee, who shall forward the notice by letter to
Noteholders mailed during the month of such final payment before the Servicer Remittance Date in such month, specifying (i) the Payment Date upon which final payment of the Notes will be made upon presentation and surrender of Notes at the
office of the Indenture Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Payment Date is not applicable, payments being made only upon presentation and
surrender of the Notes at the office of the Indenture Trustee therein specified. 
  
 (e) In the event that all of the Noteholders do not surrender their Notes for cancellation within six (6) months after the time specified in the above-mentioned written notice, 
  

 53 

 the Indenture Trustee shall give a second written notice to the remaining Noteholders to surrender their Notes for
cancellation and receive the final payment with respect thereto. If within six (6) months after the second notice, all of the Notes shall not have been surrendered for cancellation, the Indenture Trustee may take appropriate steps, or may
appoint an agent to take appropriate steps, to contact the remaining Noteholders concerning surrender of their Notes and the cost thereof shall be paid out of the funds and other assets which remain subject hereto. If within nine (9) months
after the second notice all the Notes shall not have been surrendered for cancellation, the Certificateholders shall be entitled to all unclaimed funds and other assets which remain subject hereto and the Indenture Trustee upon transfer of such
funds shall be discharged of any responsibility for such funds and the Noteholders shall look only to the Certificateholders for payment. Such funds shall remain uninvested. 
  
 Section 8.02. Additional Termination Requirements. By their acceptance of the Notes, the Holders thereof hereby
agree to appoint the Servicer as their attorney in fact to: (i) adopt a plan of complete liquidation (and the Noteholders hereby appoint the Indenture Trustee as their attorney in fact to sign such plan) as appropriate and (ii) to take
such other action in connection therewith as may be reasonably required to carry out such plan of complete liquidation all in accordance with the terms hereof. 
  

Section 8.03. Accounting Upon Termination of Servicer. Upon termination of the Servicer, the Servicer shall, at its expense: 
  
 (a) deliver to the successor servicer or, if none shall yet have been
appointed, to the Indenture Trustee, the funds in any Account administered by the Servicer; 
  
 (b) deliver to the successor servicer or, if none shall yet have been appointed, to the Indenture Trustee all Mortgage Files and related documents and statements held by it hereunder and a Mortgage Loan portfolio
computer tape; 
  
 (c) deliver to the successor servicer, or, if
none shall yet have been appointed, to the Indenture Trustee a full accounting of all funds, including a statement showing the Monthly Payments collected by it and a statement of monies held in trust by it for the payments or charges with respect to
the Mortgage Loans; and 
  
 (d) execute and deliver such
instruments and perform all acts reasonably requested in order to effect the orderly and efficient transfer of servicing of the Mortgage Loans to the successor servicer and to more fully and definitively vest in such successor all rights, powers,
duties, responsibilities, obligations and liabilities of the Servicer under this Agreement. 
  

 54 

 ARTICLE IX 
  
 [RESERVED] 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 10.01. Limitation on Liability. (a) None of the Issuer, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee or any of the directors, officers, employees or
agents of such Persons shall be under any liability to the Issuer, the Noteholders for any action taken, or for refraining from the taking of any action, in good faith pursuant to this Agreement, or for errors in judgment; provided,
however, that this provision shall not protect the Issuer, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee or any such Person against liability for any breach of warranties or representations made herein by
such party, or against any specific liability imposed on each such party pursuant to this Agreement or against any liability which would otherwise be imposed upon such party by reason of willful misfeasance, bad faith or negligence in the
performance of duties or by reason of failure to perform its obligations or duties hereunder. The Issuer, the Owner Trustee, the Depositor, the Sponsor, the Servicer, the Indenture Trustee and any director, officer, employee or agent of such Person
may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any appropriate Person respecting any matters arising hereunder. 
  
 (b) It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by
U.S. Bank Trust National Association, not individually or personally but solely as Owner Trustee under the Trust Agreement, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the
representations, undertakings and agreements herein made on the part of the Issuer is made and intended not as personal representations, undertakings and agreements by U.S. Bank Trust National Association but is made and intended for the purpose for
binding only the Issuer, (iii) nothing herein contained shall be construed as creating any liability on U.S. Bank Trust National Association, individually or personally, to perform any covenant either expressed or implied contained herein, all
such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto and (iv) under no circumstances shall U.S. Bank Trust National Association be personally liable for the
payment of any indebtedness or expenses of the Issuer or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Issuer under this Agreement or any other related documents. 
  
 Section 10.02. Acts of Noteholders. (a) Subject to
Section 7.04 and except as otherwise specifically provided herein, whenever Noteholder action, consent or approval is required under this Agreement, such action, consent or approval shall be deemed to have been taken or given on behalf of, and
shall be binding upon, all Noteholders if the Majority Noteholders agree to take such action or give such consent or approval. 
  
 (b) The death or incapacity of any Noteholder shall not operate to terminate this Agreement or the Issuer, nor entitle such Noteholder’s legal
representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of the Issuer, nor otherwise affect the rights, obligations and liabilities of the parties hereto or any of them.

  

 55 

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

  
 (c) It shall not be necessary for the consent of Holders under
this Section 10.03 to approve the particular form of any proposed amendment, but it shall be sufficient if such consent shall approve the substance thereof. 
  
 (d) In executing, or accepting the additional trusts created by, any supplemental indenture permitted by Article IX of the
Indenture or the modifications thereby of the trusts created by the Indenture, the Indenture Trustee shall be entitled to receive, and (subject to Section 6.01 of the Indenture) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or permitted by the 
  

 56 

 Indenture. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that
affects the Indenture Trustee’s own rights, duties or immunities under the Indenture or otherwise. The Servicer, on behalf of the Issuer, shall cause executed copies of any supplemental indentures to be delivered to the Rating Agencies.

  
 Section 10.04. Recordation of Agreement. To the
extent permitted by applicable law, this Agreement, or a memorandum thereof if permitted under applicable law, is subject to recordation in all appropriate public offices for real property records in all of the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are situated, and in any other appropriate public recording office or elsewhere, such recordation to be effected by the Servicer at the Noteholders’ expense on
direction and at the expense of Majority Noteholders requesting such recordation, but only when accompanied by an Opinion of Counsel to the effect that such recordation materially and beneficially affects the interests of the Noteholders or is
necessary for the administration or servicing of the Mortgage Loans. 
  
 Section 10.05. Duration of Agreement. This Agreement shall continue in existence and effect until terminated as herein provided. 
  
 Section 10.06. Notices. All demands, notices and communications hereunder shall be in writing and shall be deemed to have been duly given when
delivered to (i) in the case of the Servicer, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Director of Operations with a copy to General Counsel; (ii) in the case of the Issuer, Accredited
Mortgage Loan Trust 2005-4, c/o the Owner Trustee at its Corporate Trust Office, Attention: Corporate Trust Administration; (iii) in the case of the Indenture Trustee, Deutsche Bank National Trust Company, 1761 East St. Andrew Place, Santa Ana,
CA 92705-4934, Attn: Trust Administration – AC0504; (iv) in the case of the Sponsor, Accredited Home Lenders, Inc., 15090 Avenue of Science, San Diego, California 92128, Attention: Investor Reporting; (v) in the case of the
Underwriter, Goldman, Sachs & Co., 85 Broad Street, New York, New York 10004, (vi) in the case of Standard & Poor’s Rating Services, 55 Water Street, New York, New York 10004, Attention: Residential Mortgage Surveillance
Group; (vii) in the case of Moody’s Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention: RMBS Monitoring Department, 4th Floor; (viii) in the case of Dominion Bond Rating Service 55 Broadway, 15th Floor, New
York, New York 10006; (ix) in the case of the Depositor, Accredited Mortgage Loan REIT Trust, 15090 Avenue of Science, San Diego, California 92128, Attention: General Counsel; (x) in the case of the Swap Provider, Barclays Bank PLC, 200
Park Avenue, 4th Floor, New York, New York 10166, Attention: General Counsel and (xi) in the case of the Noteholders, as set forth in the Note Register. Any such notices shall be deemed to be effective with respect to any party hereto upon the
receipt of such notice by such party, except that notices to the Noteholders shall be effective upon mailing or personal delivery. 
  
 Section 10.07. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be
held invalid for any reason whatsoever, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other covenants, agreements, provisions or terms of this Agreement. 
  

 57 

 Section 10.08. No Partnership. Nothing herein contained shall be deemed or construed to
create a co-partnership or joint venture between the parties hereto and the services of the Servicer shall be rendered as an independent contractor and not as agent for the Noteholders. 
  
 Section 10.09. Counterparts. This Agreement may be executed in one or more counterparts and by the different
parties hereto on separate counterparts, each of which, when so executed, shall be deemed to be an original; such counterparts, together, shall constitute one and the same agreement. 
  
 Section 10.10. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the
Issuer, the Servicer, the Depositor, the Sponsor, the Indenture Trustee and the Noteholders and their respective successors and permitted assigns. 
  
 Section 10.11. Headings. The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall
not be deemed to be part of this Agreement. 
  
 Section 10.12. No Petition. The Servicer, by entering into this Agreement hereby covenants and agrees, and the Noteholders, by the acceptance of their Notes are deemed to covenant and agree, that they will not at any time
institute against the Issuer, or join in any institution against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy law in
connection with any obligations relating to the Certificates, the Notes, this Agreement or any of the other Basic Documents. 
  
 This Section 10.12 will survive for one year and one day following the termination of this Agreement. 
  
 Section 10.13. Third Party Beneficiary. The parties agree that
each of the Owner Trustee and the Swap Provider (if the Swap Agreement is still outstanding) is intended and shall have all rights of a third-party beneficiary of this Agreement. 
  
 Section 10.14. Intent of the Parties. It is the intent of the parties hereto and Noteholders that, for federal
income taxes, state and local income or franchise taxes and other taxes imposed on or measured by income, the Notes be treated as debt. The parties to this Agreement and the Holder of each Note, by acceptance of its Note, and each Beneficial Owner
thereof, agree to treat, and to take no action inconsistent with the treatment of, the related Notes in accordance with the preceding sentence for purposes of federal income taxes, state and local income and franchise taxes and other taxes imposed
on or measured by income. 
  
 Section 10.15. GOVERNING
LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK. 
  
 (b) THE TRUST, THE SERVICER, THE DEPOSITOR, THE SPONSOR, THE INDENTURE
TRUSTEE HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED 
  

 58 

 STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY, AND WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO THE ADDRESS SET FORTH IN SECTION 10.06 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN
DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER AND THE INDENTURE TRUSTEE EACH HEREBY WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER
AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION 10.15 SHALL AFFECT THE RIGHT OF THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER OR THE INDENTURE TRUSTEE TO SERVE
LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT ANY OF THEIR RIGHTS TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION. 
  
 (c) THE ISSUER, THE DEPOSITOR, THE SPONSOR, THE SERVICER, THE INDENTURE TRUSTEE AND THE SWAP PROVIDER EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR IN CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

  
 [Remainder of Page Intentionally Left Blank] 
  

 59 

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

			
	 ACCREDITED HOME LENDERS, INC.,
 as Sponsor and Servicer

		
	 By:
	 	  

	 Name:
	 	 Charles O. Ryan

	 Title:
	 	 Securitization Coordinator

	
	 ACCREDITED MORTGAGE LOAN TRUST 2005-4

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

	 Name:
	 	 
	 Title:
	 	 
	
	 ACCREDITED MORTGAGE LOAN REIT TRUST
 as Depositor

		
	 By:
	 	  

	 Name:
	 	 Melissa Dant

	 Title:
	 	Senior Secondary Markets Counsel, Ass’t Vice President, and Ass’t Secretary
	
	 DEUTSCHE BANK NATIONAL TRUST COMPANY,
 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Sale and Servicing Agreement] 
  

 60 

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

 A-1 

 APPENDIX I 
  
 DEFINED TERMS 
  
 [See Appendix I to Indenture] 

 EXHIBIT A 
  
 CONTENTS OF THE MORTGAGE FILE 
  
 With respect to each Mortgage Loan, the Mortgage File shall include each of the following items (copies to the extent the originals have been delivered to
the Indenture Trustee for the benefit of the Noteholders, pursuant to Section 2.05 of the Sale and Servicing Agreement), all of which shall be available for inspection by the Noteholders, to the extent required by applicable laws: 

 
 1. the original Mortgage Note, endorsed without recourse in blank from
the last endorsee thereof, including all intervening endorsements showing a complete chain of endorsement; 
  
 2. the related original Mortgage with evidence of recording indicated thereon or a copy thereof certified by the applicable recording office and if the
Mortgage Loan is registered on the MERS System, such Mortgage or an assignment of the Mortgage shall reflect MERS as the mortgagee of record and shall include the MIN for such Mortgage Loan; 
  
 3. each intervening mortgage assignment, with evidence of recording indicated
thereon or if the original is not available, a copy thereof certified by the applicable recording office, if any, showing a complete chain of assignment from the last assignee thereof of the related Mortgage Loan to the Sponsor (or to MERS, if the
Mortgage Loan is registered on the MERS System), and noting the presence of a MIN (if the Mortgage Loan is registered on the MERS System) (which assignment may, at the Sponsor’s option, be combined with the assignment referred to in subpart
(4) hereof, in which case it must be in recordable form, but need not have been previously recorded); 
  
 4. unless the Mortgage Loan is recorded on the MERS System, a mortgage assignment in recordable form (which, if acceptable for recording in the relevant
jurisdiction as evidenced by an Opinion of Counsel addressed to the Indenture Trustee, may be included in a blanket assignment or assignments) of each Mortgage from the Sponsor to the Indenture Trustee; 
  
 5. originals of all assumption, modification and substitution agreements in
those instances where the terms or provisions of a Mortgage or Mortgage Note have been modified or such Mortgage or Mortgage Note has been assumed (if any); and 
  

6. an original title insurance policy or title opinion (or (A) a copy of the title insurance policy or title opinion, or (B) the related
binder, commitment or preliminary report, or copy thereof in which case the Sponsor hereby certifies that the original Mortgage has been delivered to the title insurance company that issued such binder, commitment or preliminary report). 

 
 In instances where the original recorded Mortgage or any intervening
mortgage assignment or a completed assignment of the Mortgage in recordable form cannot be delivered by the Sponsor to the Indenture Trustee prior to or concurrently with the execution and delivery of this Agreement, due to a delay in connection
with recording, the Sponsor may: 
  
 (a) with respect to item
(3) above, in lieu of delivering such original recorded Mortgage or intervening mortgage assignment, deliver to the Indenture Trustee, a copy thereof; provided, that the Sponsor certifies that the original Mortgage has been delivered to a title
insurance company for recordation after receipt of its policy of title insurance or the related binder, commitment or preliminary report; and 
  

 A-1 

 (b) in lieu of delivering the completed assignment in recordable form, deliver to the Indenture Trustee,
the assignment in recordable form, otherwise complete except for recording information. 
  

 A-2 

 EXHIBIT B 
  
 [RESERVED] 
  

 B-1 

 EXHIBIT C 
  
 INDENTURE TRUSTEE’S ACKNOWLEDGEMENT OF RECEIPT 
  
 November 23, 2005 
  

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

  
 Accredited Mortgage Loan REIT Trust 
 15090 Avenue of Science 
 San Diego, California 92128 
  

			
	 Re:
	  	Sale and Servicing Agreement, dated as of November 1, 2005 among Accredited Home Lenders, Inc., as Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited
Mortgage Loan Trust 2005-4, and Deutsche Bank National Trust Company, as Indenture Trustee

  
 Ladies and Gentlemen:

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

 C-1 

 The Mortgage Loan Schedule is attached to this Receipt. 
  
 Capitalized words and phrases used herein shall have the respective meanings
assigned to them in Appendix I to the Indenture, dated as of November 1, 2005, by and between Accredited Mortgage Loan Trust 2005-4 and the Indenture Trustee. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 C-2 

 EXHIBIT D 
  
 INITIAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                     , 2005 
  

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

  
 Accredited Mortgage Loan REIT Trust 
 15090 Avenue of Science 
 San Diego, California 92128 
  

			
	 Re:
	  	Sale and Servicing Agreement, dated as of November 1, 2005 among Accredited Home Lenders, Inc., as Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited
Mortgage Loan Trust 2005-4, and Deutsche Bank National Trust Company, as Indenture Trustee

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

 D-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 D-2 

 EXHIBIT E 
  
 FINAL CERTIFICATION OF INDENTURE TRUSTEE 
  
                     , 2005 
  

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

  
 Accredited Mortgage Loan REIT Trust 
 15090 Avenue of Science 
 San Diego, California 92128 
  

			
	 Re:
	  	Sale and Servicing Agreement, dated as of November 1, 2005 among Accredited Home Lenders, Inc., as Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited
Mortgage Loan Trust 2005-4, and Deutsche Bank National Trust Company, as Indenture Trustee

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

  

 E-1 

 Capitalized words and phrases used herein shall have the respective meanings assigned to them in the
above-captioned Sale and Servicing Agreement. 
  

			
	DEUTSCHE BANK NATIONAL TRUST COMPANY,
	 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 E-2 

 EXHIBIT F 
  
 REQUEST FOR RELEASE OF DOCUMENTS 
  

							
	 To:
	  	 Deutsche Bank National Trust Company
	  	 
	 	  	 1761 East St. Andrew Place
	  	 
	 	  	 Santa Ana, CA 92705-4934
	  	 
	 	  	 Attn: Trust Administration – AC0504
	  	 
				
	 	  	 Re:
	 	Sale and Servicing Agreement, dated as of November 1, 2005 among Accredited Home Lenders, Inc., as Sponsor and Servicer, Accredited Mortgage Loan REIT Trust, as depositor, Accredited
Mortgage Loan Trust 2005-4, and Deutsche Bank National Trust Company, as Indenture Trustee (“Custodian/Indenture Trustee”)	  	 
	 	  	 	 	 	  	 

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

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

  
 Address to which Indenture Trustee should 
  

			
	 Deliver the Mortgage File:
	  	  

	 	  	  

	 	  	  

		
	 	  	 By: _______________________________________________________________

	 	  	(authorized signer)
		
	 	  	 Issuer: _____________________________________________________________

		
	 	  	 Address: ___________________________________________________________

		
	 	  	                  ___________________________________________________________
		
	 	  	 Date: ______________________________________________________________

  

 F-1 

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

	1.	I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of periods included in the year covered by
this annual report, of Accredited Mortgage Loan Trust 2005-4; 

  

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

  

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

  

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

  

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

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

  

	
	  

	 Name:

	 Title:

  

 G-1

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