Document:

EMPLOYMENT
      AGREEMENT

     

    EMPLOYMENT AGREEMENT
      (this
      "Agreement"),
      dated
      as of the 8th day of September, 2006, by and between Advanced Communication
      Technologies, Inc., a Florida corporation ("ACT"),
      and
      Steven J. Miller, an individual whose current address is 102 Steeplechase Lane,
      Winchester, Virginia 22602 ("Executive").
      ACT
      together with any and all of its respective subsidiaries shall be referred
      to
      collectively herein as the "Company."

     

    WITNESSETH

     

    WHEREAS,
      the
      Company desires to employ Executive, and Executive desires to accept employment
      by the Company, on the terms and conditions set forth herein. 

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and promises herein contained, and other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto agree as follows:

     

    1.  Employment.  

     

    (a) ACT
      hereby employs Executive, and Executive hereby accepts employment with ACT,
      as
      Chief Operating Officer, or such other executive position with similar
      responsibilities and duties of a chief operating officer of a company as may
      be
      determined by the Board of Directors of ACT (the "Board")
      from
      time to time during the Employment Period (as defined below).

     

    (b) In
      addition to his duties set forth in this Section 1 and in Section 3 below,
      Executive shall at the request of the ACT CEO (as defined below) or the Board
      serve as an officer or director of a subsidiary of ACT, without additional
      compensation and subject to any policy of the Compensation Committee of the
      Board (the "Compensation
      Committee")
      with
      respect to directors' fees.

     

    2.  Term.
      The
      initial term of this Agreement shall commence on September 25, 2006
      (the “Effective
      Date”)
      and
      expire on the second anniversary thereof (the "Initial
      Employment Period"),
      unless earlier terminated in accordance with its terms; provided,
      however,
      that
      the Company shall have the option of retaining the services of Executive, on
      the
      terms set forth in this Agreement, for an additional one-year period by
      providing Executive with written notice thereof not less than thirty (30) days
      prior to the expiration of the Initial Employment Period (the "Option
      Period"
      and
      together with the Initial Employment Period, the "Employment
      Period").
      Unless earlier terminated in accordance herewith, upon expiration of the Option
      Period, this Agreement shall be deemed to have been extended for additional
      terms of successive one year periods commencing on the day after the expiration
      of the then current Employment Period.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    3.  Employment
      and Duties.

     

    3.1    Duties
      and Responsibilities.
      

     

    (a) Executive’s
      area of responsibility during the Employment Period shall be that of Chief
      Operating Officer of ACT and any such other position as an officer or director
      of a subsidiary of ACT to which the ACT CEO or the Board may appoint him.
      Executive shall directly report to the Chief Executive Officer of ACT (the
      "ACT
      CEO"),
      or
      such other senior executive officer of ACT, as determined from time to time
      by
      the Company. The services to be rendered by Executive pursuant to this Agreement
      shall consist of such services as defined and directed by the Board or the
      ACT
      CEO.

     

    (b) During
      the Employment Period, Executive shall serve the Company faithfully and to
      the
      best of his ability; shall devote his entire working time, attention, energy
      and
      skill to his employment and the benefit and business of the Company; and shall
      use his best efforts, skills and ability to promote its interests and to perform
      such duties as from time to time may be reasonably assigned to him and are
      consistent with his titles and positions with the Company.

     

    (c) During
      the Employment Period, in addition to any other duties or responsibilities
      the
      Company gives to Executive, Executive shall be required to sign, and shall
      sign,
      all certifications and such other documents or instruments required of an
      executive of a public company or otherwise by (i) the Securities and Exchange
      Commission, (ii) any exchange or association on which the Company's shares
      of
      capital stock are listed, (iii) any federal, state or local authority, (iv)
      any
      other governmental, quasi-governmental or non-governmental entity or
      organization (foreign or domestic) that regulates or has authority over the
      Company, and/or (v) the Company in connection with any of the
      foregoing.

     

    (d) During
      the Employment Period, Executive shall be required to be physically present
      at
      ACT’s headquarters, currently located at 420 Lexington Avenue, New York, New
      York, on a regular basis and no less than four (4) days per month to ensure
      the
      efficient conduct of the Company’s business. 

     

    3.2    Relocation.
      Executive agrees that he will relocate his primary residence from Winchester,
      Virginia to the vicinity of Longwood, Florida (the current location of the
      principal offices of Cyber-Test, Inc.), within six (6) months from the Effective
      Date. Executive will be entitled to reimbursement in accordance with the
      relocation policy then offered by the Company which reimbursement shall be
      for
      not less than Executive’s reasonable out-of-pocket costs and expenses of
      relocating from Winchester, Virginia to the vicinity of Longwood, Florida.
      Until
      Executive relocates, the Company will reimburse Executive each month in the
      manner dictated by the Company’s payroll policies and for procedures for his
      reasonable temporary living and travel expenses between Winchester Virginia
      and
      the vicinity of Longwood, Florida.

     

    3.3    Observance
      of Rules and Regulations.
      Executive agrees to observe and comply with all applicable laws and regulations,
      as well as the rules and regulations of the Company, with respect to the
      performance of his duties.

     

    
      
        
        

      

      
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    3.4    Resignation
      from Other Positions.
      On or
      prior to the date hereof, Executive shall resign from any and all other
      positions he may hold as an officer or director with any other
      company.

     

    4.  Compensation;
      Benefits and Expenses.

     

    4.1    Restricted
      Stock Award.
      Upon
      the Effective Date, ACT shall grant to Executive an award of 50,000,000
      restricted shares of common stock, no par value, of ACT, priced at the Fair
      Market Value per share as of the date of grant, of which (i) 10,000,000 shares
      shall be vested immediately upon the Effective Date, (ii) 15,000,000 shares
      will
      fully vest on September 26, 2007, and (iii) 25,000,000 shares will
      fully vest on September 26, 2008 (together, the "ACT
      Shares");
      provided, as to each vesting tranche, that Executive is then employed by the
      Company; and provided further that the number of ACT Shares shall be adjusted
      accordingly for stock splits, reverse stock splits and other recapitalizations
      effected by ACT. The Fair Market Value per share shall be determined as follows:
      (x) if the principal trading market for the common stock of ACT is a national
      securities exchange, the closing price thereof on the relevant date or (if
      there
      were no trades on that date) the latest preceding date upon which a sale was
      reported, or (y) if the common stock of ACT is not principally traded on such
      exchange, the mean between the last reported “bid” and “asked” prices of the
      common stock of ACT on the relevant date, as reported by the NASDAQ OTC Bulletin
      Board, the National Daily Quotation Bureau, Inc. or as reported in a customary
      financial reporting service, as applicable and as the Board determines. If
      the
      common stock of ACT is not publicly traded or, if publicly traded, is not
      subject to reported transactions or “bid” or “asked” quotations as set forth
      above, the Fair Market Value per share shall be as determined by the
      Board.

     

    4.2    Base
      Salary.
      As
      compensation for the services to be rendered hereunder, during the Initial
      Employment Period, the Company shall pay to Executive an annual base salary
      (the
      "Base
      Salary")
      of
      $175,000 during the first year of the Initial Employment Period, and $200,000
      during the second year of the Initial Employment Period; and during the Option
      Period, the Base Salary shall be $225,000. The Base Salary shall be payable
      in
      accordance with usual payroll practices of the Company. 

     

    4.3    Bonus.

    

    (a) For
      each
      fiscal year or portion thereof after the Effective Date and during the
      Employment Period, the Company shall pay to Executive an annual performance
      bonus, in cash, options to purchase shares of ACT’s common stock and/or
      restricted shares of ACT’s common stock, in an amount determined at the sole
      discretion of the Compensation Committee, taking into account such factors
      as it
      considers appropriate, including but not necessarily limited to, Executive's
      contribution to ACT's consolidated net earnings and stock appreciation during
      such fiscal year (the "Performance
      Bonus").
      

    

    (b) In
      addition to the Performance Bonus, the Company may grant cash bonuses, options
      to purchase shares of ACT’s common stock and/or restricted shares of ACT’s
      common stock to Executive, with a vesting schedule and other terms established
      by the Compensation Committee, in its sole discretion (the "Incentive
      Bonus").

    

    
      
        
        

      

      
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    (c) Executive
      acknowledges that the amount of the Performance Bonus, if any, and the amount
      of
      the Incentive Bonus, if any, shall at all times be determined by the
      Compensation Committee, in its sole discretion. The Company shall pay each
      of
      the Performance Bonus and the Incentive Bonus to Executive within thirty (30)
      days after the Company's audited results for the applicable fiscal year are
      delivered to the Company, but in no event later than September 15th of the
      immediately following fiscal year. 

    

    4.4    Life
      Insurance.
      

     

    (a) During
      the Employment Period, the Company shall provide Executive with term life
      insurance with a death benefit equal to $1,000,000, provided that Executive
      is
      insurable. The Company shall pay all premiums with respect to such life
      insurance. Such life insurance may be provided either through the Company's
      group life insurance programs, by an individual policy, or by a combination
      of
      both group and individual policies. Executive shall at all times designate
      the
      beneficiary(ies) of such life insurance.

     

    (b) In
      addition to Section 4.4(a) above, the Company shall maintain "key man" life
      insurance on the life of Executive with a death benefit equal to $2,000,000.
      The
      Company shall pay all premiums with respect to such life insurance. The Company
      shall at all times designate the beneficiary(ies) of such "key man" life
      insurance.

     

    4.5    Other
      Benefits.
      Executive shall also be eligible to participate in any life and health insurance
      programs that the Company makes available to all of its executives of similar
      seniority. Executive shall also be eligible to receive discretionary performance
      based bonuses as approved and authorized by the Compensation Committee,
      including any incentive stock programs approved by ACT’s
      shareholders.

     

    4.6    Business
      Expenses.
      Executive will be reimbursed, in accordance with the Company’s expense
      reimbursement policy, for travel and lodging expenses as contemplated by Section
      3.1(d) and Section 3.2 hereof and for business expenses that have been
      pre-approved by the Board or the ACT CEO upon presentation of vouchers or other
      documents reasonably necessary to verify the expenditures and sufficient, in
      form and substance, to satisfy Internal Revenue Service requirements for such
      expenses.

     

    4.7    Automobile
      Allowance.
      Executive will receive an automobile allowance of Seven Hundred Fifty Dollars
      ($750.00) per month, payable at the time and in the manner dictated by the
      Company’s payroll policies and procedures, but not less frequently than monthly.
      Executive shall provide his own automobile and pay all operating expenses of
      any
      nature whatsoever with regard to such automobile.

     

    4.8    Vacation.  Executive
      shall be entitled to take up to four (4) weeks of vacation per calendar year,
      which shall be taken in accordance with the Company’s vacation policy in effect
      from time to time for executives of comparable seniority. 

     

    
      
        
        

      

      
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    5.  No
      Competitive Activities; Confidentiality; Invention

     

    5.1    General
      Restriction.
      During
      the Employment Period and for a period of two (2) years thereafter (the
      "Restricted
      Period"),
      Executive covenants and agrees that, except on behalf of the Company, he will
      not, directly or indirectly:

     

    (a) Competing
      Business.
      Own,
      manage, operate, control, participate in the ownership, management, operation
      or
      control of, be employed by, or provide services as a consultant to, any
      individual or business that is involved in business activities that are the
      same
      as, similar to or in competition with, directly or indirectly, with any business
      activities conducted, or actively being planned, by the Company during the
      Restricted Period (it being acknowledged that the Company's business is national
      in scope). The ownership of less than one percent (1%) of the outstanding stock
      of any public corporation shall not be deemed a violation of this
      provision.

     

    (b) Soliciting
      Customers.
      Attempt
      in any manner to contact or solicit any individual, firm, corporation or other
      entity (i) that is or has been, a customer of the Company at any time during
      the
      Restricted Period, (ii) to which a proposal has been made by the Company during
      the Restricted Period or (iii) appearing on the Company's new business target
      list on the date of Executive's termination (as such list has been prepared
      and
      maintained in accordance with the Company's past practice), for the purpose
      of
      providing services or products similar to the services and products provided
      by
      the Company, or engaging in any activity which could be, directly or indirectly,
      competitive with the business of the Company. 

     

    (c) Interfering
      with Other Relations.
      Persuade or attempt to persuade any supplier, vendor, licensor or other entity
      or individual doing business with the Company to discontinue or reduce its
      business with the Company or otherwise interfere in any way with the business
      relationships and activities of the Company. 

     

    (d) Employees.
      Attempt
      in any manner to solicit any individual, who is at the time of such attempted
      solicitation, or at any time during the one (1) year period preceding the
      termination of Executive's employment, an employee or consultant of the Company,
      to terminate his or her employment or relationship with the Company, or engage
      such individual, as an employee or consultant. Cooperate with any other person
      in persuading, enticing or aiding, or attempting to persuade, entice or aid,
      any
      employee of or consultant to the Company to terminate his or her employment
      or
      business relationship with the Company, or to become employed as an employee
      or
      retained as a consultant by any person other than the Company.

     

    
      
        
        

      

      
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    5.2    Confidentiality
      Agreement.
      Executive shall not, either during the Employment Period or at any time
      thereafter, use or disclose to any third person any Confidential Information
      of
      the Company, other than at the direction of the Company, or pursuant to a court
      order or subpoena, provided that Executive will give notice of such court order
      or subpoena to the Company prior to such disclosure. Upon the termination of
      Executive’s employment with the Company for any reason, Executive shall return
      any notes, records, charts, formulae or other materials (whether in hard copy
      or
      computer readable form) containing Confidential Information, and will not make
      or retain any copies of such materials. Without limiting the generality of
      the
      foregoing, the parties acknowledge that the Company from time to time may be
      subject to agreements with its customers, suppliers or licensors to maintain
      the
      confidence of such other persons’ confidential information. The terms of such
      agreements may require that the Company's employees, including Executive, be
      bound by such agreements, and Executive shall be deemed so bound upon notice
      to
      him of the terms of such agreements. The term "Confidential
      Information"
      as used
      herein shall mean any confidential or proprietary information of the Company
      whether of a technical, engineering, operational, financial or economic nature,
      including, without limitation, all prices, discounts, terms and conditions
      of
      sale, trade secrets, know-how, customers, inventions, business affairs or
      practices, systems, products, product specifications, designs, plans,
      manufacturing and other processes, data, ideas, details and other information
      of
      the Company. Confidential Information shall not include information which can
      be
      proven by Executive to have been developed by his own work as of the Effective
      Date completely independent of its disclosure by the Company or which is in
      the
      public domain, provided such information did not become available to the general
      public as a result of Executive's breach of this Section 5.2.

     

    5.3    Disclosure
      of Innovations.
      Executive shall make prompt and full written disclosure to the Company and
      solely the Company of all writings, inventions, processes, methods, plans,
      developments, improvements, procedures, techniques and other innovations of
      any
      kind that Executive may make, develop or reduce to practice, alone or jointly
      with others, at any time during the Employment Period and for a period of one
      (1) year thereafter, whether during working hours or at any other time and
      whether at the request or upon the suggestion of the Company or otherwise,
      and
      whether or not they are eligible for patent, copyright, trademark, trade secret
      or other legal protection (collectively, "Innovations").
      Examples of Innovations shall include, but are not limited to, discoveries,
      research, formulas, tools, know-how, marketing plans, new product plans,
      production processes, advertising, packaging and marketing techniques and
      improvements to computer hardware or software. The written disclosures provide
      for herein shall be made to the ACT CEO or the Board.

     

    5.4    Assignment
      of Ownership of Innovations.
      All
      Innovations shall be the sole and exclusive property of the Company. Executive
      hereby assigns all rights, title or interest in and to the Innovations to the
      Company. At the Company's request and expense, during the Employment Period
      and
      at any time thereafter, Executive will assist and cooperate with the Company
      in
      all respects and will execute documents and give testimony to obtain, maintain,
      perfect and enforce for the Company any and all patent, copyright, trademark,
      trade secret and other legal protections for the Innovations.

     

    5.5    Remedies.
      Executive acknowledges that the restrictions contained in the foregoing Sections
      5.1 through 5.4, in view of the nature of the business in which the Company
      is
      engaged, are reasonable and necessary in order to protect the legitimate
      interests of the Company, and that the legal remedies for a breach of any of
      the
      provisions of this Section 5 will be inadequate and that such provisions may
      be
      enforced by restraining order, injunction, specific performance or other
      equitable relief. Such equitable remedies shall be cumulative and in addition
      to
      any other remedies which the injured party or parties may have under applicable
      law, equity, this Agreement or otherwise. Executive shall not, in any action
      or
      proceeding to enforce any of the provisions of this Section 5, assert the claim
      or defense that an adequate remedy at law exists. The prevailing party shall
      be
      entitled to recover its legal fees and expenses in any action or proceeding
      for
      breach of this Section 5.

     

    
      
        
        

      

      
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    5.6    Company
      Property.
      All
      Confidential Information; all Innovations; and all correspondence, files,
      documents, advertising, sales, manufacturers' and other materials or articles
      or
      other information of any kind, in any media, form or format furnished to
      Executive by the Company, which may not deemed confidential, shall be and remain
      the sole property of the Company ("Company
      Property").
      Upon
      termination or at the Company's request, whichever is earlier, Executive shall
      immediately deliver to the Company all such Company Property.

     

    5.7    Public
      Policy/Severability.
      The
      parties do not wish to impose any undue or unnecessary hardship upon Executive
      following his departure from the Company's employment. The parties have
      attempted to limit the provisions of this Section 5 to achieve such a result,
      and the parties expressly intend that all provisions of this Section 5 be
      construed to achieve such result. If, contrary to the effort and intent of
      the
      parties, any covenant or other obligation contained in this Section 5 shall
      be
      found not to be reasonably necessary for the protection of the Company, to be
      unreasonable as to duration, scope or nature of restrictions, or to impose
      an
      undue hardship on Executive, then it is the desire of the parties that such
      covenant or obligation not be rendered invalid thereby, but rather that the
      duration, scope or nature of the restrictions be deemed reduced or modified,
      with retroactive effect, to render such covenant or obligation reasonable,
      valid
      and enforceable. The parties further agree that in the event a court, despite
      the efforts and intent of the parties, declares any portion of the covenants
      or
      obligations in this Section 5 invalid, the remaining provisions of this Section
      5 shall nonetheless remain valid and enforceable. 

     

    6.  Termination.

     

    6.1    Termination
      For Cause.
      Notwithstanding anything to the contrary contained herein, this Agreement may
      be
      terminated prior to the expiration of the Employment Period upon seven (7)
      days'
      prior written notice from the Company to Executive for "cause," at which time
      the Company shall have no further obligations or liabilities to Executive
      whether under this Agreement or otherwise and Executive's right to further
      compensation and benefits hereunder (including, but not limited to, unvested
      stock) shall immediately cease, other than payment to Executive of Base Salary
      accrued, and reimbursement of expenses incurred in accordance with Section
      4.6,
      prior to the effective date of termination of this Agreement (the "Termination
      Date").
      As
      used herein and throughout this Agreement, the term “cause” shall mean (i) any
      act or omission by Executive that constitutes malfeasance, misfeasance or
      nonfeasance in the course of Executive’s duties hereunder, or in the judgment of
      the Board or the ACT CEO, Executive has been grossly negligent (including
      habitual neglect of duties), incompetent or insubordinate in carrying out his
      duties hereunder, (ii) a material breach of this Agreement that is not cured
      within ten (10) days of receipt of notice thereof, (iii) Executive's breach
      of a
      fiduciary duty owed to the Company or its affiliates, or (iv) Executive’s
      conviction of, or pleading nolo contendere to, a criminal offense or crime
      constituting a misdemeanor or felony, or conviction in respect to any act
      involving fraud, dishonesty or moral turpitude (other than minor traffic
      infractions or similar minor offenses).

     

    
      
        
        

      

      
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    6.2    Termination
      without Cause.
      

     

    (a) Without
      Cause.
      This
      Agreement may be terminated by the Company without cause and for any reason
      or
      no reason prior to the expiration of the Employment Period upon thirty (30)
      days' prior written notice from the Company to Executive. In the event that
      the
      Company terminates Executive’s employment without cause (other than in
      connection with a “Change in Control” as described in Section 6.2(c) and (d)
      below), the Company shall pay to Executive (i) Base Salary accrued, and expenses
      incurred in accordance with Section 4.6, prior to the Termination Date, (ii)
      any
      earned and accrued unpaid bonus owed to Executive for the current and prior
      fiscal years ((i) and (ii) together, the "Accrued
      Payments"),
      which
      Accrued Payments shall be paid to Executive in accordance with Sections 4.2,
      4.3
      and 4.6, as applicable, and (iii) an additional amount of Base Salary which
      would have been payable to Executive during the six (6) month period immediately
      following the Termination Date (the "Severance
      Payment"),
      which
      Severance Payment shall be payable in cash to Executive in a lump sum no later
      than 30 days after the Termination Date. Notwithstanding the foregoing sentence,
      if the Executive’s Severance Payment under this Section 6.2(a) exceeds the
      exempt amount under Section 409A of the Internal Revenue Code (the “Code”) for
      an involuntary separation pay arrangement, any amount in excess of the exempt
      amount for involuntary separation pay arrangements will be paid to the Executive
      in a lump sum on the first business day of the seventh month following the
      Termination Date. If it is determined that the payment of the amount in excess
      of the exempt amount in this manner nonetheless violates Code Section 409A,
      then
      such provision shall be deemed void and all Severance Payments under this
      Section 6.2(a) shall be paid to the Executive in a lump sum on the first
      business day of the seventh month following the Termination Date. Except as
      provided in the preceding sentences, the Company shall have no further
      obligations or liabilities to Executive whether under this Agreement or
      otherwise and Executive's right to further compensation and benefits hereunder
      (including, but not limited to, unvested stock) shall immediately
      cease.

     

    (b) Good
      Reason.
      This
      Agreement may be terminated upon seven (7) days' prior written notice from
      Executive to the Company for “Good Reason,” which notice must be given within
      thirty (30) days after the occurrence of the event giving rise to the “Good
      Reason.” As used herein, Good Reason shall mean the occurrence of any of the
      following without Executive’s consent: (i) a material reduction in Executive’s
      duties or authority, or a change in reporting relationship which requires
      Executive to report to any person or persons other than the ACT CEO, or such
      other senior executive officer of ACT, as determined from time to time by the
      Company; (ii) a requirement that Executive be relocated to an office outside
      of
      the New York City metropolitan area; (iii) a reduction in Base Salary; or (iv)
      the Company is a party to a merger or consolidation in which it is not the
      surviving entity, and the surviving or new entity does not undertake to assume
      and perform the Company’s obligations under this Agreement. In the event that
      the Executive terminates this Agreement for Good Reason (other than in
      connection with a “Change in Control” as described in Sections 6.2(c) and (d)
      below), the Company shall pay to Executive Accrued Benefits, which shall be
      payable in accordance with Sections 4.2, 4.3 and 4.6, as applicable, and
      Severance Payments in a lump-sum on the first business day of the seventh month
      following the Termination Date. Except as provided in the preceding sentence,
      the Company shall have no further obligations or liabilities to Executive
      whether under this Agreement or otherwise and Executive's right to further
      compensation and benefits hereunder (including, but not limited to, unvested
      stock) shall immediately cease.

    

    
      
        
        

      

      
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    (c) Change
      in Control.
      

     

    (i) In
      the
      event that within three months prior to a Change in Control (as defined below),
      the Company terminates this Agreement without cause (including the Company’s
      refusal or failure to exercise the Option Period), or Executive terminates
      this
      Agreement with Good Reason under clause (iii) or (iv) of Section 6.2(b) within
      three months prior to, or 12 months following a Change in Control, the Severance
      Payment shall be increased to an amount which, when added to the Base Salary
      paid to Executive from the date of Change of Control to the Termination Date,
      if
      any, equals 299% of the amount of Base Salary which would have been payable
      to
      Executive during the twelve (12) month period immediately following the
      Termination Date (the “Change
      in Control Benefit”).
      In
      addition, upon a termination described in this subsection (c)(i) or (c)(ii),
      all
      unvested stock options or stock awards held by Executive shall immediately
      become accelerated and vested. Any payment due pursuant to this subsection
      (c)
      shall be paid in a lump sum on the first business day of the seventh month
      following the last to occur of the termination or Change in
      Control.

     

    (ii) In
      the
      event that within 12 months following a Change in Control (as defined below),
      the Company terminates this Agreement without cause (including the Company’s
      refusal or failure to exercise the Option Period), the Severance Payment shall
      be increased to an amount which equals the Change in Control Benefit. Any
      payment due under this subsection (c)(ii) shall be paid in a lump sum no later
      than 30 days following the termination.

     

    (d) Definition.
      As used
      in this Agreement, “Change in Control” means any one of the
      following:

     

    (i) The
      date
      a “change in ownership” of the Company occurs. For purposes of this Section
      6.2(d)(i), the term “change in ownership” shall be determined under the Treasury
      Regulations promulgated under Code Section 409A; 

     

    (ii) The
      date
      a “change in effective control” occurs. For purposes of this Section 6.2(d)(ii),
      the term “change in effective control” shall be determined under the Treasury
      Regulations promulgated under Code Section 409A; or

     

    (iii) The
      date
      a “change in ownership of a substantial portion of the corporation’s assets”
occurs. For purposes of this Section 6.2(d)(iii), the term “change in ownership
      of a substantial portion of the corporation’s assets” shall be determined under
      the Treasury Regulations promulgated under Code Section 409A. However, a change
      in ownership of a substantial portion of the corporation’s assets will not occur
      unless a person or group acquires (or has acquired during the 12-month period
      ending on the date of the most recent acquisition) assets from the Company
      that
      have a total gross fair market value equal to or more than 40 percent of the
      total gross fair market value of all of the assets of the Company immediately
      prior to such acquisition or acquisitions.

     

    Notwithstanding
      the foregoing, a Change in Control shall not include any transaction under
      subparagraphs (i) or (ii) unless Executive has voted his shares of the Company
      against such transaction.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.3    Termination
      of Other Positions.
      Upon
      the Termination Date, Executive hereby resigns as Chief Operating Officer of
      ACT
      and any and all other positions as officer or director Executive may then hold
      with the Company, and as fiduciary of any benefit plan of the Company. Executive
      shall promptly execute any further documentation as requested by the Company
      and, if Executive is to receive any payments from the Company, execution of
      such
      further documentation shall be a condition thereof.

     

    7.    Disability
      or Death.

     

    7.1    Disability.
      If,
      during the Employment Period, Executive becomes disabled or incapacitated as
      determined under the Company's Long Term Disability Policy ("Permanently
      Disabled"),
      the
      Company shall have the right at any time thereafter (but in no event less than
      120 days after the event causing such disability or incapacity), so long as
      Executive is then still Permanently Disabled, to terminate this Agreement upon
      thirty (30) days' prior written notice to Executive. In the event the Company
      does not have a Long Term Disability Policy at the time of the event causing
      the
      Executive to become Permanently Disabled, "Permanently
      Disabled"
      shall
      mean Executive's inability to fully perform his duties and responsibilities
      hereunder to the full extent required by the Company by reason of illness,
      injury or incapacity for 120 consecutive days or for more than six (6) months
      during any twelve (12) month period. If the Company elects to terminate this
      Agreement in the event that Executive becomes Permanently Disabled, the Company
      shall have no further obligations or liabilities to Executive, whether under
      this Agreement or otherwise (including, but not limited to, unvested stock),
      other than payment to Executive of the Accrued Payments, which Accrued Payments
      shall be paid to Executive in accordance with Sections 4.2, 4.3 and 4.6, as
      applicable.

     

    7.2    Death.
      If
      Executive dies during the Employment Period, this Agreement shall automatically
      terminate as of the date of Executive's death, and the Company shall have no
      further obligations or liabilities to Executive, whether under this Agreement
      or
      otherwise (including, but not limited to, unvested stock), other than payment
      to
      Executive's estate of the Accrued Payments, which Accrued Payments shall be
      paid
      to Executive in accordance with Sections 4.2, 4.3 and 4.6, as
      applicable.

     

    8.    Gross-Up
      Payment.
      If
      any
      payments to be made to Executive pursuant to Section 6.2(c) or otherwise under
      this Agreement would be deemed to be “parachute payments” as defined in Section
      280G of the Code, and subject to excise taxes under Section 4999 of the Code,
      the Company shall, to the extent lawfully permitted under the Code, pay
      Executive additional
      compensation so as to make Executive whole on an after-tax basis with respect
      to
      all such excise taxes, including any tax attributable to such additional
      compensation. The amount of the payments under this Section 8 (the
“Parachute Gross-Up”) shall be computed by the Company’s accountants (or by
      another certified public accounting firm of national reputation mutually
      agreeable to the Company and Executive). If either the Company or Executive
      desires to dispute the computation rendered by such accounting firm, the
      disputing party may select an alternative certified public accounting firm
      of
      national reputation to perform the applicable computations. If the two
      accounting firms cannot agree upon the computations, Executive and the Company
      will jointly appoint a third certified public accounting firm of national
      reputation, reasonably acceptable to Executive and the Company, within ten
      (10)
      calendar days after the two conflicting computations have been rendered. Such
      third accounting firm shall be asked to determine within thirty (30) calendar
      days the computation of the Parachute Gross-Up to be paid to Executive. The
      Parachute Gross-Up payment, if any, shall be paid to Executive in a lump-sum
      on
      the first business day of the seventh month following a Change in
      Control.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    9.    Indemnification.  Each
      of
      the Company and Executive shall indemnify the other for any losses, damages,
      liabilities, judgments, claims, costs, penalties and expenses incurred by such
      other party (including, without limitation, costs and reasonable attorneys’ fees
      and costs), resulting from the indemnifying party’s failure to perform any of
      their obligations contained in this Agreement. The Company shall be obligated
      to
      indemnify Executive against those liabilities incurred by him in connection
      with
      any proceeding to which he is made a party as the result of his performing
      his
      duties hereunder solely in accordance with, and as permitted by, the Company’s
      bylaws. 

     

    10.   Governing
      Law.  This
      Agreement shall be governed by the internal laws of the State of Delaware.
      Any
      action to enforce any term hereof shall be brought exclusively within the state
      or federal courts of Delaware to which jurisdiction and venue all parties hereby
      submit themselves.

     

    11.   Binding
      Effect.  Except
      as
      otherwise herein expressly provided, this Agreement shall be binding upon,
      and
      shall inure to the benefit of the parties hereto, their respective heirs, legal
      representatives, successors and assigns.

     

    12.   Assignment.
      Any
      assignee of the Company shall have the right to enforce the restrictive
      covenants set forth in this Agreement, and the Company shall have the right
      to
      assign this Agreement and the right to enforce such covenants to any successor
      or assign of the Company.

     

    13.   Notices.  All
      notices, designations, consents, offers, acceptances, waivers or any other
      communication provided for herein, or required hereunder, shall be sufficient
      if
      in writing and if sent by registered or certified mail, return receipt
      requested, overnight courier, or delivered by hand to (i) Executive at his
      last
      known address on the books of ACT or (ii) ACT at its principal place of
      business.

     

    14.   Additional
      Documents.  Each
      of
      the parties hereto agrees to execute and deliver, without cost or expense to
      any
      other party, any and all such further instruments or documents and to take
      any
      and all such further action reasonably requested by such other of the parties
      hereto as may be necessary or convenient in order to effectuate this Agreement
      and the intents and purposes thereof. 

     

    15.   Counterparts.  This
      Agreement may be executed simultaneously in several counterparts, each of which
      shall be deemed an original, but all of which together shall constitute one
      and
      the same instrument, and such counterparts may be delivered by facsimile
      transmission, which facsimile copies shall be deemed originals. 

     

    16.   Entire
      Agreement.  This
      Agreement contains the sole and entire agreement and understanding of the
      parties and supersedes any and all prior agreements, discussions, negotiations,
      commitments and understandings among the parties hereto with respect to the
      subject matter hereof.  There are no representations, agreements,
      arrangements or understandings, oral or written, between or among the parties
      concerning the subject matter hereto, which are not fully expressed herein
      or in
      any supplemental written agreements of even or subsequent date
      hereof.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    17.   Severability.  If
      any
      provision of this Agreement, or the application thereof to any person or
      circumstances, shall, for any reason and to any extent, be invalid or
      unenforceable, the remainder of this Agreement and the application of such
      provision to other persons or circumstances shall not be affected thereby,
      but
      rather shall be enforced to the greatest extent permitted by
      law. 

     

    18.   Modification.  This
      Agreement cannot be changed, modified or discharged orally, but only if
      consented to in writing by both parties.

     

    19.   Contract
      Headings.  All
      headings of the Sections of this Agreement have been inserted for convenience
      of
      reference only, are not to be considered a part of this Agreement, and shall
      in
      no way affect the interpretation of any of the provisions of this
      Agreement.

     

    20.   Waiver.  Failure
      to insist upon strict compliance with any of the terms, covenants, or conditions
      hereof shall not be deemed a waiver of such term, covenant, or condition, nor
      shall any waiver or relinquishment of any right or power hereunder at any one
      time or more times be deemed a waiver or relinquishment of such right or power
      at any other time or times. 

     

    21.   Representation
      of Executive.  Executive,
      with the full knowledge that the Company is relying thereon, represents and
      warrants that he has not made any commitment inconsistent with the provisions
      hereof and that he is not under any disability which would prevent him from
      entering into this Agreement and performing all of his obligations
      hereunder.

     

    22.   Joint
      Participation in Drafting.
      Each
      party to this Agreement participated in the drafting of this Agreement. As
      such,
      the language used herein shall be deemed to be the language chosen by the
      parties hereto to express their mutual intent, and no rule of strict
      construction shall be applied against any party to this Agreement.

     

      

     

    [SIGNATURE
      PAGE FOLLOWS]

     

     

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF
      the
      parties hereto have executed this Agreement as of the day and year first above
      written.

     

    
      
        	 	 	 
	 	ADVANCED
                COMMUNICATIONS TECHNOLOGIES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Wayne
                I. Danson
	 	Chief
                Executive Officer 

        	 	 	 
	 	       	 
	 	EXECUTIVE:
	 
 	 
 	 
	 	
                
                  

                
STEVEN J. MILLER
	 	
              
	 	 

      

      
 

    

    
      
        
        

      

      
        13Popular
      ABS, Inc.

    

    Depositor

    

    Equity
      One, Inc., a Delaware corporation

    

    A
      Seller
      and the Servicer

    

    Equity
      One, Incorporated 

    Equity
      One, Inc., a Minnesota corporation

    Equity
      One Consumer Loan Company, Inc., a New Hampshire corporation 

    and
      

    Popular
      Financial Services, LLC

    Sellers

    

    and

    

    JPMorgan
      Chase Bank, N.A.

    

    Trustee

     

    
      
        

      

    

    POOLING
      AND SERVICING AGREEMENT

    Dated
      as
      of September 1, 2006

    

    
      
MORTGAGE
      PASS-THROUGH CERTIFICATES, SERIES 2006-D

     

    
      

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    

      
        	 	
                Page

              
	
                PRELIMINARY
                  STATEMENT

              	
                1

              
	 	 
	
                ARTICLE
                  I DEFINITIONS

              	
                10

              
	 	 
	
                40/30
                  LOANS

              	
                10

              
	
                40
                  YEAR LOANS

              	
                10

              
	
                60+
                  DAY DELINQUENT LOAN

              	
                10

              
	
                ADJUSTED
                  MORTGAGE RATE

              	
                10

              
	
                ADJUSTED
                  NET MORTGAGE RATE

              	
                10

              
	
                ADVANCE

              	
                10

              
	
                AGGREGATE
                  CLASS B EARLY DISTRIBUTION AMOUNT

              	
                10

              
	
                AGREEMENT

              	
                10

              
	
                AMOUNT
                  HELD FOR FUTURE DISTRIBUTION

              	
                10

              
	
                APPLIED
                  REALIZED LOSS AMOUNT

              	
                11

              
	
                AVAILABLE
                  FUNDS

              	
                11

              
	
                AVM

              	
                11

              
	
                BALLOON
                  LOANS

              	
                11

              
	
                BANKRUPTCY
                  CODE

              	
                11

              
	
                BASIC
                  PRINCIPAL DISTRIBUTION AMOUNT

              	
                11

              
	
                BENEFICIAL
                  OWNER

              	
                11

              
	
                BOOK-ENTRY
                  CERTIFICATES

              	
                11

              
	
                BORROWER
                  RETENTION LOAN

              	
                11

              
	
                BUSINESS
                  DAY

              	
                11

              
	
                CAP
                  ACCOUNT

              	
                11

              
	
                CAP
                  AGREEMENT

              	
                12

              
	
                CAP
                  CLASS B-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS B-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS B-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-4 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-5 REALIZED LOSS AMORTIZATION AMOUNT

              	
                12

              
	
                CAP
                  CLASS M-6 REALIZED LOSS AMORTIZATION AMOUNT

              	
                13

              
	
                CAP
                  COUNTERPARTY

              	
                13

              
	
                CAP
                  DISTRIBUTION AMOUNT

              	
                13

              
	
                CAP
                  EXTRA PRINCIPAL DISTRIBUTION AMOUNT

              	
                13

              
	
                CAP
                  NOTIONAL BALANCE

              	
                13

              
	
                CAP
                  STATED TERMINATION

              	
                13

              
	
                CAP
                  UNPAID REALIZED LOSS AMOUNT

              	
                13

              
	
                CERTIFICATES

              	
                13

              
	
                CERTIFICATE
                  ACCOUNT

              	
                13

              
	
                CERTIFICATE
                  BALANCE

              	
                13

              
	
                CERTIFICATEHOLDER
                  OR HOLDER

              	
                14

              
	
                CERTIFICATE
                  REGISTER

              	
                14

              
	
                CERTIFICATE
                  REGISTRAR

              	
                14

              
	
                CLASS

              	
                14

              
	
                CLASS
                  A-1 CERTIFICATE

              	
                14

              
	
                CLASS
                  A-2 CERTIFICATE

              	
                14

              
	
                CLASS
                  A-3 CERTIFICATE

              	
                14

              
	
                CLASS
                  B-1 APPLIED REALIZED LOSS AMOUNT

              	
                14

              

      

    

    

    
      
        
        

      

      
        i

        
          

        

      

       

    

     

    
      
        	
                CLASS
                  B-1 CERTIFICATE

              	
                14

              
	
                CLASS
                  B-1 PRINCIPAL DISTRIBUTION AMOUNT

              	
                15

              
	
                CLASS
                  B-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                15

              
	
                CLASS
                  B-2 APPLIED REALIZED LOSS AMOUNT

              	
                15

              
	
                CLASS
                  B-2 CERTIFICATE

              	
                15

              
	
                CLASS
                  B-2 PRINCIPAL DISTRIBUTION AMOUNT

              	
                15

              
	
                CLASS
                  B-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                16

              
	
                CLASS
                  B-3 APPLIED REALIZED LOSS AMOUNT

              	
                16

              
	
                CLASS
                  B-3 CERTIFICATE

              	
                16

              
	
                CLASS
                  B-3 PRINCIPAL DISTRIBUTION AMOUNT

              	
                16

              
	
                CLASS
                  B-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                16

              
	
                CLASS
                  CERTIFICATE BALANCE

              	
                16

              
	
                CLASS
                  I SHORTFALLS

              	
                17

              
	
                CLASS
                  INTEREST SHORTFALL

              	
                17

              
	
                CLASS
                  M-1 APPLIED REALIZED LOSS AMOUNT

              	
                17

              
	
                CLASS
                  M-1 CERTIFICATE

              	
                17

              
	
                CLASS
                  M-1 PRINCIPAL DISTRIBUTION AMOUNT

              	
                17

              
	
                CLASS
                  M-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                17

              
	
                CLASS
                  M-2 APPLIED REALIZED LOSS AMOUNT

              	
                17

              
	
                CLASS
                  M-2 CERTIFICATE

              	
                18

              
	
                CLASS
                  M-2 PRINCIPAL DISTRIBUTION AMOUNT

              	
                18

              
	
                CLASS
                  M-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                18

              
	
                CLASS
                  M-3 APPLIED REALIZED LOSS AMOUNT

              	
                18

              
	
                CLASS
                  M-3 CERTIFICATE

              	
                18

              
	
                CLASS
                  M-3 PRINCIPAL DISTRIBUTION AMOUNT

              	
                18

              
	
                CLASS
                  M-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                18

              
	
                CLASS
                  M-4 APPLIED REALIZED LOSS AMOUNT

              	
                19

              
	
                CLASS
                  M-4 CERTIFICATE

              	
                19

              
	
                CLASS
                  M-4 PRINCIPAL DISTRIBUTION AMOUNT

              	
                19

              
	
                CLASS
                  M-4 REALIZED LOSS AMORTIZATION AMOUNT

              	
                19

              
	
                CLASS
                  M-5 APPLIED REALIZED LOSS AMOUNT

              	
                19

              
	
                CLASS
                  M-5 CERTIFICATE

              	
                19

              
	
                CLASS
                  M-5 PRINCIPAL DISTRIBUTION AMOUNT

              	
                19

              
	
                CLASS
                  M-5 REALIZED LOSS AMORTIZATION AMOUNT

              	
                20

              
	
                CLASS
                  M-6 APPLIED REALIZED LOSS AMOUNT

              	
                20

              
	
                CLASS
                  M-6 CERTIFICATE

              	
                20

              
	
                CLASS
                  M-6 PRINCIPAL DISTRIBUTION AMOUNT

              	
                20

              
	
                CLASS
                  M-6 REALIZED LOSS AMORTIZATION AMOUNT

              	
                20

              
	
                CLASS
                  R CERTIFICATES

              	
                21

              
	
                CLASS
                  UNPAID INTEREST AMOUNTS

              	
                21

              
	
                CLASS
                  X CERTIFICATE

              	
                21

              
	
                CLOSING
                  DATE

              	
                21

              
	
                CLOSING
                  PLACE

              	
                21

              
	
                CODE

              	
                21

              
	
                COLLATERAL

              	
                21

              
	
                COLLATERAL
                  VALUE

              	
                21

              
	
                COMBINED
                  LOAN-TO-VALUE RATIO

              	
                22

              
	
                COMMISSION

              	
                22

              
	
                CORPORATE
                  TRUST OFFICE

              	
                22

              
	
                CORRESPONDING
                  CLASS

              	
                22

              
	
                CUSTODIAL
                  AGREEMENT

              	
                22

              
	
                CUSTODIAN

              	
                22

              
	
                CUT-OFF
                  DATE

              	
                22

              

      

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

     

    
      
        	
                CUT-OFF
                  DATE POOL PRINCIPAL BALANCE

              	
                22

              
	
                CUT-OFF
                  DATE PRINCIPAL BALANCE

              	
                22

              
	
                DEFECTIVE
                  LOAN

              	
                22

              
	
                DEFICIENT
                  VALUATION

              	
                22

              
	
                DEFINITIVE
                  CERTIFICATES

              	
                22

              
	
                DELETED
                  LOAN

              	
                23

              
	
                DENOMINATION

              	
                23

              
	
                DEPOSITOR

              	
                23

              
	
                DEPOSITORY

              	
                23

              
	
                DEPOSITORY
                  PARTICIPANT

              	
                23

              
	
                DETERMINATION
                  DATE

              	
                23

              
	
                DISTRIBUTION
                  ACCOUNT

              	
                23

              
	
                DISTRIBUTION
                  ACCOUNT DEPOSIT DATE

              	
                23

              
	
                DISTRIBUTION
                  DATE

              	
                23

              
	
                DUE
                  DATE

              	
                23

              
	
                DUE
                  PERIOD

              	
                23

              
	
                ELIGIBLE
                  ACCOUNT

              	
                23

              
	
                EQUITY
                  ONE-DELAWARE

              	
                24

              
	
                EQUITY
                  ONE-MINNESOTA

              	
                24

              
	
                EQUITY
                  ONE-NEW HAMPSHIRE

              	
                24

              
	
                EQUITY
                  ONE-PENNSYLVANIA

              	
                24

              
	
                ERISA

              	
                24

              
	
                ERISA
                  QUALIFYING UNDERWRITING

              	
                24

              
	
                ERISA-RESTRICTED
                  CERTIFICATE

              	
                24

              
	
                ESCROW
                  ACCOUNT

              	
                24

              
	
                EVENT
                  OF DEFAULT

              	
                24

              
	
                EXCESS
                  CASHFLOW REALIZED LOSS AMORTIZATION AMOUNT

              	
                24

              
	
                EXCHANGE
                  ACT

              	
                25

              
	
                EXCESS
                  PROCEEDS

              	
                25

              
	
                EXCLUDED
                  TRUST ASSETS

              	
                25

              
	
                EXPENSE
                  RATE

              	
                25

              
	
                EXTERNAL
                  TRUST

              	
                25

              
	
                EXTRA
                  PRINCIPAL DISTRIBUTION AMOUNT

              	
                25

              
	
                FDIC

              	
                25

              
	
                FHLMC

              	
                25

              
	
                FINAL
                  MATURITY DEFICIENCY

              	
                25

              
	
                FINAL
                  MATURITY RESERVE FUND

              	
                25

              
	
                FINAL
                  MATURITY RESERVE FUND ADDITION AMOUNT

              	
                25

              
	
                FINAL
                  MATURITY RESERVE FUND ADDITION RATE

              	
                26

              
	
                FIRREA

              	
                26

              
	
                FIXED
                  SWAP PAYMENT

              	
                26

              
	
                FLOATING
                  SWAP PAYMENT

              	
                26

              
	
                FMRF
                  DISTRIBUTION AMOUNT

              	
                26

              
	
                FNMA

              	
                26

              
	
                INDIRECT
                  PARTICIPANT

              	
                26

              
	
                INITIAL
                  CERTIFICATE ACCOUNT DEPOSIT

              	
                26

              
	
                INSURANCE
                  POLICY

              	
                26

              
	
                INSURANCE
                  PROCEEDS

              	
                26

              
	
                INSURED
                  EXPENSES

              	
                26

              
	
                INTEREST
                  ACCRUAL PERIOD

              	
                26

              
	
                INTEREST
                  DISTRIBUTION AMOUNT

              	
                27

              
	
                INTEREST
                  REMITTANCE AMOUNT

              	
                27

              
	
                INVESTMENT
                  LETTER

              	
                27

              

      

    

    

    
      
        
        

      

      
        iii

        
          

        

      

       

    

    

      
        	
                LATEST
                  POSSIBLE MATURITY DATE

              	
                27

              
	
                LAST
                  SCHEDULED DISTRIBUTION DATE

              	
                27

              
	
                LIBOR

              	
                27

              
	
                LIBOR
                  DETERMINATION DATE

              	
                27

              
	
                LIQUIDATED
                  LOAN

              	
                27

              
	
                LIQUIDATION
                  PROCEEDS

              	
                28

              
	
                LOANS

              	
                28

              
	
                LOAN
                  SCHEDULE

              	
                28

              
	
                MAJORITY
                  IN INTEREST

              	
                28

              
	
                MERS
                  (R)

              	
                28

              
	
                MERS
                  (R) SYSTEM

              	
                28

              
	
                MIN

              	
                28

              
	
                MOM
                  LOAN

              	
                29

              
	
                MONTHLY
                  EXCESS CASHFLOW AMOUNT

              	
                29

              
	
                MONTHLY
                  EXCESS INTEREST AMOUNT

              	
                29

              
	
                MONTHLY
                  STATEMENT

              	
                29

              
	
                MOODY’S

              	
                29

              
	
                MORTGAGE

              	
                29

              
	
                MORTGAGED
                  PROPERTY

              	
                29

              
	
                MORTGAGE
                  FILE

              	
                29

              
	
                MORTGAGE
                  NOTE

              	
                29

              
	
                MORTGAGE
                  RATE

              	
                29

              
	
                MORTGAGOR

              	
                29

              
	
                NET
                  PREPAYMENT INTEREST SHORTFALLS

              	
                29

              
	
                NET
                  REALIZED LOSSES

              	
                29

              
	
                NET
                  RECOVERY REALIZED LOSSES

              	
                30

              
	
                NET
                  SWAP PAYMENT

              	
                30

              
	
                NET
                  WAC CAP

              	
                30

              
	
                NET
                  WAC CAP ACCOUNT

              	
                30

              
	
                NET
                  WAC CAP CARRYOVER

              	
                30

              
	
                NET
                  WAC RATE

              	
                30

              
	
                NONRECOVERABLE
                  ADVANCE

              	
                30

              
	
                NOTICE
                  OF FINAL DISTRIBUTION

              	
                30

              
	
                OFFERED
                  CERTIFICATES

              	
                30

              
	
                OFFICER’S
                  CERTIFICATE

              	
                30

              
	
                OPINION
                  OF COUNSEL

              	
                31

              
	
                OPTIONAL
                  TERMINATION DATE

              	
                31

              
	
                OPTIONAL
                  TERMINATION

              	
                31

              
	
                ORIGINAL
                  LOAN

              	
                31

              
	
                OTS

              	
                31

              
	
                OUTSTANDING

              	
                31

              
	
                OUTSTANDING
                  LOAN

              	
                31

              
	
                OVERCOLLATERALIZATION
                  AMOUNT

              	
                31

              
	
                OVERCOLLATERALIZATION
                  DEFICIENCY

              	
                31

              
	
                OVERCOLLATERALIZATION
                  RELEASE AMOUNT

              	
                32

              
	
                OWNERSHIP
                  INTEREST

              	
                32

              
	
                PASS-THROUGH
                  RATE

              	
                32

              
	
                PAYING
                  AGENT

              	
                32

              
	
                PERCENTAGE
                  INTEREST

              	
                32

              
	
                PERMITTED
                  INVESTMENTS

              	
                32

              
	
                PERMITTED
                  TRANSFEREE

              	
                33

              
	
                PERSON

              	
                33

              
	
                PLAN

              	
                34

              

      

    

     

    
      
        
        

      

      
        iv

        
          

        

      

       

    

     

    
      
        	
                POOL
                  PRINCIPAL BALANCE

              	
                34

              
	
                POPULAR
                  FINANCIAL

              	
                34

              
	
                PRELIMINARY
                  PROSPECTUS SUPPLEMENT

              	
                34

              
	
                POST-STEPDOWN
                  REMAINING PRINCIPAL DISTRIBUTION AMOUNT

              	
                34

              
	
                PRE-STEPDOWN
                  REMAINING PRINCIPAL DISTRIBUTION AMOUNT

              	
                34

              
	
                PREPAYMENT
                  INTEREST EXCESS

              	
                34

              
	
                PREPAYMENT
                  INTEREST SHORTFALL

              	
                34

              
	
                PREPAYMENT
                  PERIOD

              	
                34

              
	
                PRIMARY
                  MORTGAGE INSURANCE POLICY

              	
                34

              
	
                PRINCIPAL
                  DISTRIBUTION AMOUNT

              	
                34

              
	
                PRINCIPAL
                  PREPAYMENT

              	
                34

              
	
                PRINCIPAL
                  PREPAYMENT IN FULL

              	
                35

              
	
                PRINCIPAL
                  REMITTANCE AMOUNT

              	
                35

              
	
                PROSPECTUS
                  SUPPLEMENT

              	
                35

              
	
                PUBLICLY
                  OFFERED CERTIFICATES

              	
                35

              
	
                PURCHASE
                  PRICE

              	
                35

              
	
                PTCE

              	
                35

              
	
                RATING
                  AGENCY

              	
                35

              
	
                REALIZED
                  LOSS AMOUNT

              	
                35

              
	
                REALIZED
                  LOSSES

              	
                36

              
	
                REALIZED
                  LOSS AMORTIZATION AMOUNT

              	
                36

              
	
                RECORD
                  DATE

              	
                36

              
	
                RECOVERY

              	
                36

              
	
                REFERENCE
                  BANKS

              	
                36

              
	
                REGULATION
                  AB

              	
                36

              
	
                REFINANCE
                  LOAN

              	
                37

              
	
                RELIEF
                  ACT

              	
                37

              
	
                RELIEF
                  ACT REDUCTIONS

              	
                37

              
	
                REMAINING
                  EXCESS INTEREST AMOUNT

              	
                37

              
	
                REMAINING
                  INTEREST REMITTANCE AMOUNT

              	
                37

              
	
                REMAINING
                  OVERCOLLATERALIZATION RELEASE AMOUNT

              	
                37

              
	
                REMAINING
                  PRINCIPAL DISTRIBUTION AMOUNT

              	
                37

              
	
                REMIC

              	
                37

              
	
                REMIC
                  1

              	
                37

              
	
                REMIC
                  1 REGULAR INTEREST

              	
                37

              
	
                REMIC
                  2

              	
                37

              
	
                REMIC
                  2 NET WAC CAP

              	
                37

              
	
                REMIC
                  2 REGULAR INTEREST

              	
                38

              
	
                REMIC
                  3

              	
                38

              
	
                REMIC
                  3 REGULAR INTEREST

              	
                38

              
	
                REMIC
                  CHANGE OF LAW

              	
                38

              
	
                REMIC
                  PROVISIONS

              	
                38

              
	
                REO
                  PROPERTY

              	
                38

              
	
                REQUEST
                  FOR RELEASE

              	
                38

              
	
                REQUIRED
                  INSURANCE POLICY

              	
                38

              
	
                RESPONSIBLE
                  OFFICER

              	
                38

              
	
                RULE
                  144A LETTER

              	
                38

              
	
                SCHEDULED
                  PAYMENT

              	
                38

              
	
                SECOND
                  LIEN LOAN

              	
                39

              
	
                SECURITIES
                  ACT

              	
                39

              
	
                SELLERS

              	
                39

              
	
                SENIOR
                  CERTIFICATES

              	
                39

              
	
                SENIOR
                  ENHANCEMENT PERCENTAGE

              	
                39

              

      

    

     

    
      
        
        

      

      
        v

        
          

        

      

       

    

    

    

      
        	
                SENIOR
                  PRINCIPAL DISTRIBUTION AMOUNT

              	
                39

              
	
                SENIOR
                  SPECIFIED ENHANCEMENT PERCENTAGE

              	
                39

              
	
                SERVICER

              	
                39

              
	
                SERVICER
                  ADVANCE DATE

              	
                39

              
	
                SERVICING
                  ADVANCES

              	
                39

              
	
                SERVICING
                  AMOUNT

              	
                39

              
	
                SERVICING
                  CRITERIA

              	
                40

              
	
                SERVICING
                  FEE

              	
                40

              
	
                SERVICING
                  FEE RATE

              	
                40

              
	
                SERVICING
                  OFFICER

              	
                40

              
	
                S&P

              	
                40

              
	
                STARTUP
                  DAY

              	
                40

              
	
                STATED
                  PRINCIPAL BALANCE

              	
                40

              
	
                STEPDOWN
                  DATE

              	
                40

              
	
                SUBORDINATE
                  CERTIFICATES

              	
                40

              
	
                SUBSERVICER

              	
                40

              
	
                SUBSTITUTE
                  LOAN

              	
                40

              
	
                SUBSTITUTION
                  ADJUSTMENT AMOUNT

              	
                41

              
	
                SWAP
                  ACCOUNT

              	
                41

              
	
                SWAP
                  AGREEMENT

              	
                41

              
	
                SWAP
                  CLASS B-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                41

              
	
                SWAP
                  CLASS B-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                41

              
	
                SWAP
                  CLASS B-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                41

              
	
                SWAP
                  CLASS M-1 REALIZED LOSS AMORTIZATION AMOUNT

              	
                41

              
	
                SWAP
                  CLASS M-2 REALIZED LOSS AMORTIZATION AMOUNT

              	
                41

              
	
                SWAP
                  CLASS M-3 REALIZED LOSS AMORTIZATION AMOUNT

              	
                42

              
	
                SWAP
                  CLASS M-4 REALIZED LOSS AMORTIZATION AMOUNT

              	
                42

              
	
                SWAP
                  CLASS M-5 REALIZED LOSS AMORTIZATION AMOUNT

              	
                42

              
	
                SWAP
                  CLASS M-6 REALIZED LOSS AMORTIZATION AMOUNT

              	
                42

              
	
                SWAP
                  COUNTERPARTY

              	
                42

              
	
                SWAP
                  COUNTERPARTY TRIGGER EVENT

              	
                42

              
	
                SWAP
                  DISTRIBUTION AMOUNT

              	
                42

              
	
                SWAP
                  EARLY TERMINATION

              	
                42

              
	
                SWAP
                  EXTRA PRINCIPAL DISTRIBUTION AMOUNT

              	
                42

              
	
                SWAP
                  LIBOR

              	
                43

              
	
                SWAP
                  NOTIONAL BALANCE

              	
                43

              
	
                SWAP
                  REALIZED LOSS AMORTIZATION AMOUNT

              	
                43

              
	
                SWAP
                  STATED TERMINATION

              	
                43

              
	
                SWAP
                  UNPAID REALIZED LOSS AMOUNT

              	
                43

              
	
                SWAP
                  TERMINATION PAYMENT

              	
                43

              
	
                TARGETED
                  OVERCOLLATERALIZATION AMOUNT

              	
                43

              
	
                TAX
                  MATTERS PERSON

              	
                43

              
	
                TAX
                  MATTERS PERSON CERTIFICATE

              	
                44

              
	
                TERMINATION
                  PRICE

              	
                44

              
	
                TRANSFER

              	
                44

              
	
                TRANSFER
                  AFFIDAVIT

              	
                44

              
	
                TRANSFEROR
                  CERTIFICATE

              	
                44

              
	
                TRIGGER
                  EVENT

              	
                44

              
	
                TRUSTEE

              	
                45

              
	
                TRUSTEE
                  FEE

              	
                45

              
	
                TRUSTEE
                  FEE RATE

              	
                46

              
	
                TRUST
                  FUND

              	
                46

              
	
                TRUSTEE
                  PERMITTED WITHDRAWAL AMOUNT

              	
                46

              

      

    

     

    
      
        
        

      

      
        vi

        
          

        

      

       

    

     

    
      
        	
                UNPAID
                  REALIZED LOSS AMOUNT

              	
                46

              
	
                UNDERWRITER
                  EXEMPTION

              	
                46

              
	
                UNDERWRITERS

              	
                46

              
	
                VOTING
                  RIGHTS

              	
                46

              
	
                ARTICLE
                  II CONVEYANCE OF LOANS; REPRESENTATIONS AND
                  WARRANTIES

              	
                47

              
	
                SECTION
                  2.01. CONVEYANCE OF LOANS

              	
                47

              
	
                SECTION
                  2.02. ACCEPTANCE BY TRUSTEE OF THE TRUST FUND

              	
                49

              
	
                SECTION
                  2.03. REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SELLERS
                  AND THE
                  SERVICER

              	
                51

              
	
                SECTION
                  2.03A. ADDITIONAL OBLIGATIONS OF EQUITY ONE-DELAWARE

              	
                53

              
	
                SECTION
                  2.04. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR AS TO THE
                  LOANS

              	
                53

              
	
                SECTION
                  2.05. DELIVERY OF OPINION OF COUNSEL IN CONNECTION WITH
                  SUBSTITUTIONS

              	
                53

              
	
                SECTION
                  2.06. EXECUTION AND DELIVERY OF CERTIFICATES

              	
                54

              
	
                SECTION
                  2.07. REMIC MATTERS

              	
                54

              
	
                SECTION
                  2.08. COVENANTS OF THE SERVICER

              	
                55

              
	
                ARTICLE
                  III ADMINISTRATION AND SERVICING OF LOANS

              	
                55

              
	
                SECTION
                  3.01. SERVICER TO SERVICE LOANS

              	
                55

              
	
                SECTION
                  3.02. SUBSERVICING; ENFORCEMENT OF THE OBLIGATIONS OF
                  SERVICERS

              	
                56

              
	
                SECTION
                  3.03. RIGHTS OF THE DEPOSITOR AND THE TRUSTEE IN RESPECT OF THE
                  SERVICER

              	
                56

              
	
                SECTION
                  3.04. TRUSTEE TO ACT AS SERVICER

              	
                57

              
	
                SECTION
                  3.05. COLLECTION OF LOAN PAYMENTS; CERTIFICATE ACCOUNT; DISTRIBUTION
                  ACCOUNT

              	
                57

              
	
                SECTION
                  3.06. PAYMENT OF TAXES, ASSESSMENTS, HAZARD INSURANCE PREMIUMS
                  AND SIMILAR
                  ITEMS; ESCROW ACCOUNTS

              	
                59

              
	
                SECTION
                  3.07. ACCESS TO CERTAIN DOCUMENTATION AND INFORMATION REGARDING
                  THE
                  LOANS

              	
                60

              
	
                SECTION
                  3.08. PERMITTED WITHDRAWALS FROM THE CERTIFICATE ACCOUNT AND DISTRIBUTION
                  ACCOUNT

              	
                60

              
	
                SECTION
                  3.09. MAINTENANCE OF HAZARD INSURANCE; MAINTENANCE OF PRIMARY INSURANCE
                  POLICIES

              	
                61

              
	
                SECTION
                  3.10. ENFORCEMENT OF DUE-ON-SALE CLAUSES; ASSUMPTION
                  AGREEMENTS

              	
                62

              
	
                SECTION
                  3.11. REALIZATION UPON DEFAULTED LOANS; REPURCHASE AND SALE OF
                  CERTAIN
                  LOANS

              	
                63

              
	
                SECTION
                  3.12. DOCUMENTS, RECORDS AND FUNDS IN POSSESSION OF SERVICER TO
                  BE HELD
                  FOR THE TRUSTEE

              	
                65

              
	
                SECTION
                  3.13. SERVICING COMPENSATION

              	
                65

              
	
                SECTION
                  3.14. ACCESS TO CERTAIN DOCUMENTATION

              	
                66

              
	
                SECTION
                  3.15. ANNUAL STATEMENT AS TO COMPLIANCE

              	
                66

              
	
                SECTION
                  3.16. SERVICER’S ANNUAL SERVICING STATEMENT; INDEPENDENT PUBLIC
                  ACCOUNTANTS’ ATTESTATION

              	
                66

              
	
                SECTION
                  3.17. ERRORS AND OMISSIONS INSURANCE; FIDELITY BONDS

              	
                67

              
	
                SECTION
                  3.18. ENGAGEMENT BY SERVICER OF AFFILIATES OR THIRD PARTY
                  VENDORS

              	
                67

              
	
                SECTION
                  3.19. DELINQUENT LOANS

              	
                68

              
	
                ARTICLE
                  IIIA RESERVE FUNDS AND EXTERNAL TRUST

              	
                68

              
	
                SECTION
                  3A.01. SWAP ACCOUNT AND SWAP AGREEMENT

              	
                68

              
	
                SECTION
                  3A.02. CAP ACCOUNT AND CAP AGREEMENT

              	
                69

              
	
                SECTION
                  3A.03. THE FINAL MATURITY RESERVE FUND

              	
                70

              
	
                SECTION
                  3A.04. NET WAC CAP ACCOUNT

              	
                71

              
	
                SECTION
                  3A.05. EXTERNAL TRUST

              	
                71

              

      

    

     

    
      
        
        

      

      
        vii

        
          

        

      

       

    

     

    
      
        	
                ARTICLE
                  IV DISTRIBUTIONS AND ADVANCES BY THE SERVICER

              	
                72

              
	
                SECTION
                  4.01. ADVANCES

              	
                72

              
	
                SECTION
                  4.02. PRIORITIES OF DISTRIBUTION AND ALLOCATION

              	
                72

              
	
                SECTION
                  4.02A. RECOVERIES

              	
                85

              
	
                SECTION
                  4.03. MONTHLY STATEMENTS TO CERTIFICATEHOLDERS

              	
                86

              
	
                SECTION
                  4.04. REPORTING

              	
                89

              
	
                SECTION
                  5.01. THE CERTIFICATES

              	
                89

              
	
                SECTION
                  5.02. CERTIFICATE REGISTER; REGISTRATION OF TRANSFER AND EXCHANGE
                  OF
                  CERTIFICATES

              	
                90

              
	
                SECTION
                  5.03. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES

              	
                94

              
	
                SECTION
                  5.04. PERSONS DEEMED OWNERS

              	
                94

              
	
                SECTION
                  5.05. ACCESS TO LIST OF CERTIFICATEHOLDERS’ NAMES AND
                  ADDRESSES

              	
                94

              
	
                SECTION
                  5.06. MAINTENANCE OF OFFICE OR AGENCY

              	
                94

              
	
                ARTICLE
                  VI THE DEPOSITOR AND THE SERVICER

              	
                95

              
	
                SECTION
                  6.01. RESPECTIVE LIABILITIES OF THE DEPOSITOR AND THE
                  SERVICER

              	
                95

              
	
                SECTION
                  6.02. MERGER OR CONSOLIDATION OF THE DEPOSITOR OR THE
                  SERVICER

              	
                95

              
	
                SECTION
                  6.03. LIMITATION ON LIABILITY OF THE DEPOSITOR, THE SELLERS, THE
                  SERVICER
                  AND OTHERS

              	
                95

              
	
                SECTION
                  6.04. LIMITATION ON RESIGNATION OF SERVICER

              	
                96

              
	
                SECTION
                  6.05. INDEMNIFICATION

              	
                96

              
	
                ARTICLE
                  VII DEFAULT

              	
                96

              
	
                SECTION
                  7.01. EVENTS OF DEFAULT

              	
                96

              
	
                SECTION
                  7.02. TRUSTEE TO ACT; APPOINTMENT OF SUCCESSOR

              	
                98

              
	
                SECTION
                  7.03. NOTIFICATION TO CERTIFICATEHOLDERS

              	
                99

              
	
                SECTION
                  7.04. SURVIVABILITY OF SERVICER LIABILITIES

              	
                99

              
	
                ARTICLE
                  VIII CONCERNING THE TRUSTEE

              	
                99

              
	
                SECTION
                  8.01. DUTIES OF TRUSTEE

              	
                99

              
	
                SECTION
                  8.02 CERTAIN MATTERS AFFECTING THE TRUSTEE

              	
                100

              
	
                SECTION
                  8.03. TRUSTEE NOT LIABLE FOR CERTIFICATES OR LOANS

              	
                102

              
	
                SECTION
                  8.04. TRUSTEE MAY OWN CERTIFICATES

              	
                102

              
	
                SECTION
                  8.05. TRUSTEE’S FEES AND EXPENSES

              	
                102

              
	
                SECTION
                  8.06. ELIGIBILITY REQUIREMENTS FOR TRUSTEE

              	
                103

              
	
                SECTION
                  8.07. RESIGNATION AND REMOVAL OF TRUSTEE

              	
                103

              
	
                SECTION
                  8.08. SUCCESSOR TRUSTEE

              	
                104

              
	
                SECTION
                  8.09. MERGER OR CONSOLIDATION OF TRUSTEE

              	
                104

              
	
                SECTION
                  8.10. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE

              	
                104

              
	
                SECTION
                  8.11. TAX MATTERS

              	
                105

              
	
                SECTION
                  8.12. PERIODIC FILINGS

              	
                107

              
	
                SECTION
                  8.13. APPOINTMENT OF CUSTODIANS

              	
                107

              
	
                SECTION
                  8.14. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
                  CERTIFICATES

              	
                107

              
	
                SECTION
                  8.15. SUITS FOR ENFORCEMENT

              	
                108

              
	
                SECTION
                  8.16. TRUSTEE’S ANNUAL SERVICING STATEMENT; INDEPENDENT PUBLIC
                  ACCOUNTANTS’ ATTESTATION

              	
                108

              
	
                SECTION
                  8.17. ENGAGEMENT BY TRUSTEE OF AFFILIATES OR THIRD PARTIES

              	
                109

              
	
                SECTION
                  8.18. REPRESENTATIONS AND WARRANTIES OF THE TRUSTEE

              	
                109

              
	
                ARTICLE
                  IX TERMINATION

              	
                109

              
	
                SECTION
                  9.01. TERMINATION UPON LIQUIDATION OR PURCHASE OF ALL
                  LOANS

              	
                110

              
	
                SECTION
                  9.02. FINAL DISTRIBUTION ON THE CERTIFICATES

              	
                110

              
	
                SECTION
                  9.03. ADDITIONAL TERMINATION REQUIREMENTS

              	
                111

              

      

    

     

    
      
        
        

      

      
        viii

        
          

        

      

       

    

     

    
      
        	
                ARTICLE
                  X MISCELLANEOUS PROVISIONS

              	
                111

              
	
                SECTION
                  10.01. AMENDMENT.

              	
                112

              
	
                SECTION
                  10.02. RECORDATION OF AGREEMENT; COUNTERPARTS.

              	
                113

              
	
                SECTION
                  10.03. GOVERNING LAW.

              	
                113

              
	
                SECTION
                  10.04. INTENTION OF PARTIES.

              	
                113

              
	
                SECTION
                  10.05. NOTICES.

              	
                115

              
	
                SECTION
                  10.06. SEVERABILITY OF PROVISIONS.

              	
                116

              
	
                SECTION
                  10.07. ASSIGNMENT.

              	
                116

              
	
                SECTION
                  10.08. LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.

              	
                116

              
	
                SECTION
                  10.09. INSPECTION AND AUDIT RIGHTS.

              	
                116

              
	
                SECTION
                  10.10. CERTIFICATES NONASSESSABLE AND FULLY PAID.

              	
                117

              
	
                SECTION
                  10.11. THE CLOSING.

              	
                117

              
	
                SECTION
                  10.12. INTERPRETATION.

              	
                117

              
	
                SECTION
                  10.13. MATERIAL LITIGATION; AFFILIATIONS.

              	
                117

              
	
                SECTION
                  10.14. NO PARTNERSHIP.

              	
                117

              
	
                SECTION
                  10.15. PROTECTION OF ASSETS.

              	
                118

              
	
                SECTION
                  10.16. EXECUTION OF SWAP AGREEMENT AND CAP AGREEMENT.

              	
                118

              
	 	 
	
                SCHEDULE
                  I

              	
                S-I-1

              
	 	 
	
                SCHEDULE
                  IIA

              	
                S-IIA-1

              
	 	 
	
                SCHEDULE
                  IIB

              	
                S-IIB-1

              
	 	 
	
                SCHEDULE
                  IIC

              	
                S-IIC-1

              
	 	 
	
                SCHEDULE
                  IID

              	
                S-IID-1

              
	 	 
	
                SCHEDULE
                  IIE

              	
                S-IIE-1

              
	 	 
	
                SCHEDULE
                  IIF

              	
                S-IIF-1

              
	 	 
	
                SCHEDULE
                  IIX

              	
                S-IIX-1

              
	 	 
	
                SCHEDULE
                  IIIA

              	
                S-IIIA-1

              
	 	 
	
                SCHEDULE
                  IIIB

              	
                S-IIIB-1

              
	 	 
	
                SCHEDULE
                  IIIC

              	
                S-IIIC-1

              
	 	 
	
                SCHEDULE
                  IIID

              	
                S-IIID-1

              
	 	 
	
                SCHEDULE
                  IIIE

              	
                S-IIIE-1
                  

              
	 	 
	
                SCHEDULE
                  IIIF

              	
                S-IIIF-1

              
	 	 
	
                SCHEDULE
                  IV

              	
                IV-1

              
	 	 
	
                SCHEDULE
                  V

              	
                V-1

              
	 	 
	
                SCHEDULE
                  VI

              	
                VI-1

              

      

    

     

    
      
        
        

      

      
        ix

        
          

        

      

      
        
        

      

    

     

    
      	
              SCHEDULE
                VII

            	
              VII-1

            
	 	 
	
              EXHIBIT
                A-1

            	
              A-1-1

            
	 	 
	
              EXHIBIT
                A-2

            	
              A-2-1

            
	 	 
	
              EXHIBIT
                A-3 

            	
              A-3-1

            
	 	 
	
              EXHIBIT
                A-4 

            	
              A-4-1

            
	 	 
	
              EXHIBIT
                B-1

            	
              B-1-1

            
	 	 
	
              EXHIBIT
                B-2 

            	
              B-2-1

            
	 	 
	
              EXHIBIT
                C

            	
              C-1

            
	 	 
	
              EXHIBIT
                D

            	
              D-1

            
	 	 
	
              EXHIBIT
                E

            	
              E-1

            
	 	 
	
              EXHIBIT
                F

            	
              F-1

            
	 	 
	
              EXHIBIT
                G

            	
              G-1

            
	 	 
	
              EXHIBIT
                H

            	
              H-1

            
	 	 
	
              EXHIBIT
                I

            	
              I-1

            
	 	 
	
              EXHIBIT
                J

            	
              J-1

            
	 	 
	
              EXHIBIT
                K

            	
              K-1

            
	 	 
	
              EXHIBIT
                L

            	
              L-1

            
	 	 
	
              EXHIBIT
                M

            	
              M-1

            
	 	 
	
              EXHIBIT
                N

            	
              N-1

            
	 	 
	
              EXHIBIT
                O

            	
              O-1

            

    

     

    
      
        
        

      

      
        x

        
          

        

      

       

    

    THIS
      POOLING AND SERVICING AGREEMENT, dated as of September 1, 2006, by and among
      Popular ABS, Inc., a Delaware corporation, as depositor (the “Depositor”),
      Equity One, Inc., a Delaware corporation, as a seller (in such capacity,
“Equity
      One-Delaware”)
      and as
      servicer (in such capacity, the “Servicer”),
      Equity One, Incorporated, a Pennsylvania corporation (“Equity
      One-Pennsylvania”),
      Popular Financial Services, LLC, a Delaware limited liability company
      (“Popular
      Financial”),
      Equity One Consumer Loan Company, Inc. a New Hampshire corporation
      (“Equity
      One-New Hampshire”),
      Equity One, Inc., a Minnesota corporation (“Equity
      One-Minnesota”
and,
      together with Equity One-Delaware, Equity One-Pennsylvania and Popular
      Financial, the “Sellers”),
      and
      JPMorgan Chase Bank, National Association, a banking association organized
      under
      the laws of the United States, as trustee (the “Trustee”).

    

    WITNESSETH
      THAT

    

    In
      consideration of the mutual agreements herein contained, the parties hereto
      agree as follows:

     

    PRELIMINARY
      STATEMENT

    

    The
      Depositor is the owner of the Trust Fund that is hereby conveyed to the Trustee
      in return for the Certificates. As provided herein, an election shall be made
      that the Trust Fund (exclusive of (i) the Swap Agreement, (ii) the Swap Account,
      (iii) the Net WAC Cap Account, (iv) the Cap Agreement, (v) the Cap Account,
      (vi)
      the Final Maturity Reserve Fund, and (vii) the External Trust (collectively,
      the
“Excluded Trust Assets”)) be treated for federal income tax purposes as
      comprising three real estate mortgage investment conduits under Section 860D
      of
      the Code (each a “REMIC” or, in the alternative “REMIC 1,” “REMIC 2,” and “REMIC
      3”). Any inconsistencies or ambiguities in this Agreement or in the
      administration of this Agreement shall be resolved in a manner that preserves
      the validity of such REMIC elections.

     

    Each
      Offered Certificate represents ownership of a regular interest in the REMIC
      for
      purposes of the REMIC Provisions. In addition, each Offered Certificate
      represents (i) the right to receive payments with respect to any Net WAC Cap
      Carryover and (ii) the obligation to pay Class I Shortfalls. 

     

    The
      Class
      R Certificate represents ownership of the sole Class of residual interest in
      each of REMIC 1, REMIC 2, and REMIC 3.

     

    The
      Class
      X Certificate represents ownership of four regular interests in REMIC 3 as
      described in footnote (14) as well as ownership of the Excluded Trust Assets
      and
      the obligation to make Net Swap Payments to the Swap Counterparty and the
      obligation to make payments in respect of Net WAC Cap Carryover. 

     

    REMIC
      3
      shall hold as assets the uncertificated lower tier interests in REMIC 2, other
      than the Class R-2 interest, and each such lower tier interest is hereby
      designated as a regular interest in REMIC 2. REMIC 2 shall hold as its assets
      the uncertificated lower tier interests in REMIC 1, other than the Class R-1
      interest, and each such lower tier interest is hereby designated as a regular
      interest in REMIC 1. REMIC 1 shall hold as its assets the property of the Trust
      Fund other than the lower tier interests in REMIC 1 and REMIC 2 and the Excluded
      Trust Assets.

     

    The
      startup day for each REMIC created hereby for purposes of the REMIC Provisions
      is the Closing Date. In addition, for purposes of the REMIC Provisions, the
      latest possible maturity date for each regular interest in each REMIC created
      hereby is the Latest Possible Maturity Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    REMIC
      1

     

    The
      following table sets forth the designations, initial principal balances, and
      interest rates for each interest in REMIC 1, each of which (other than the
      Class
      R-1 Interest) is hereby designated as a regular interest in REMIC 1 (the “REMIC
      1 Regular Interests”):

     

    
      	
              Class
                Designation

            	 	
              Initial
                Principal Balance

            	 	
              Interest
                Rate

            	 
	
              LT-F1

            	 	
              $

            	
              4,265,898.50

            	 	 	
              (1

            	
              )

            
	
              LT-V1

            	 	
              $

            	
              4,265,898.50

            	 	 	
              (2

            	
              )

            
	
              LT-F2

            	 	
              $

            	
              4,145,461.50

            	 	 	
              (1

            	
              )

            
	
              LT-V2

            	 	
              $

            	
              4,145,461.50

            	 	 	
              (2

            	
              )

            
	
              LT-F3

            	 	
              $

            	
              4,168,152.50

            	 	 	
              (1

            	
              )

            
	
              LT-V3

            	 	
              $

            	
              4,168,152.50

            	 	 	
              (2

            	
              )

            
	
              LT-F4

            	 	
              $

            	
              4,140,318.50

            	 	 	
              (1

            	
              )

            
	
              LT-V4

            	 	
              $

            	
              4,140,318.50

            	 	 	
              (2

            	
              )

            
	
              LT-F5

            	 	
              $

            	
              4,140,814.00

            	 	 	
              (1

            	
              )

            
	
              LT-V5

            	 	
              $

            	
              4,140,814.00

            	 	 	
              (2

            	
              )

            
	
              LT-F6

            	 	
              $

            	
              4,170,144.00

            	 	 	
              (1

            	
              )

            
	
              LT-V6

            	 	
              $

            	
              4,170,144.00

            	 	 	
              (2

            	
              )

            
	
              LT-F7

            	 	
              $

            	
              4,145,422.00

            	 	 	
              (1

            	
              )

            
	
              LT-V7

            	 	
              $

            	
              4,145,422.00

            	 	 	
              (2

            	
              )

            
	
              LT-F8

            	 	
              $

            	
              4,171,692.00

            	 	 	
              (1

            	
              )

            
	
              LT-V8

            	 	
              $

            	
              4,171,692.00

            	 	 	
              (2

            	
              )

            
	
              LT-F9

            	 	
              $

            	
              4,147,249.50

            	 	 	
              (1

            	
              )

            
	
              LT-V9

            	 	
              $

            	
              4,147,249.50

            	 	 	
              (2

            	
              )

            
	
              LT-F10

            	 	
              $

            	
              4,067,953.50

            	 	 	
              (1

            	
              )

            
	
              LT-V10

            	 	
              $

            	
              4,067,953.50

            	 	 	
              (2

            	
              )

            
	
              LT-F11

            	 	
              $

            	
              3,946,101.50

            	 	 	
              (1

            	
              )

            
	
              LT-V11

            	 	
              $

            	
              3,946,101.50

            	 	 	
              (2

            	
              )

            
	
              LT-F12

            	 	
              $

            	
              3,848,920.00

            	 	 	
              (1

            	
              )

            
	
              LT-V12

            	 	
              $

            	
              3,848,920.00

            	 	 	
              (2

            	
              )

            
	
              LT-F13

            	 	
              $

            	
              3,774,716.00

            	 	 	
              (1

            	
              )

            
	
              LT-V13

            	 	
              $

            	
              3,774,716.00

            	 	 	
              (2

            	
              )

            
	
              LT-F14

            	 	
              $

            	
              3,662,105.00

            	 	 	
              (1

            	
              )

            
	
              LT-V14

            	 	
              $

            	
              3,662,105.00

            	 	 	
              (2

            	
              )

            
	
              LT-F15

            	 	
              $

            	
              3,591,591.50

            	 	 	
              (1

            	
              )

            
	
              LT-V15

            	 	
              $

            	
              3,591,591.50

            	 	 	
              (2

            	
              )

            
	
              LT-F16

            	 	
              $

            	
              3,484,755.00

            	 	 	
              (1

            	
              )

            
	
              LT-V16

            	 	
              $

            	
              3,484,755.00

            	 	 	
              (2

            	
              )

            
	
              LT-F17

            	 	
              $

            	
              3,399,418.50

            	 	 	
              (1

            	
              )

            
	
              LT-V17

            	 	
              $

            	
              3,399,418.50

            	 	 	
              (2

            	
              )

            
	
              LT-F18

            	 	
              $

            	
              3,335,193.50

            	 	 	
              (1

            	
              )

            
	
              LT-V18

            	 	
              $

            	
              3,335,193.50

            	 	 	
              (2

            	
              )

            
	
              LT-F19

            	 	
              $

            	
              3,235,372.00

            	 	 	
              (1

            	
              )

            
	
              LT-V19

            	 	
              $

            	
              3,235,372.00

            	 	 	
              (2

            	
              )

            
	
              LT-F20

            	 	
              $

            	
              3,173,266.00

            	 	 	
              (1

            	
              )

            
	
              LT-V20

            	 	
              $

            	
              3,173,266.00

            	 	 	
              (2

            	
              )

            
	
              LT-F21

            	 	
              $

            	
              3,079,620.00

            	 	 	
              (1

            	
              )

            
	
              LT-V21

            	 	
              $

            	
              3,079,620.00

            	 	 	
              (2

            	
              )

            
	
              LT-F22

            	 	
              $

            	
              3,020,574.50

            	 	 	
              (1

            	
              )

            
	
              LT-V22

            	 	
              $

            	
              3,020,574.50

            	 	 	
              (2

            	
              )

            
	
              LT-F23

            	 	
              $

            	
              47,763,529.00

            	 	 	
              (1

            	
              )

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

       

    

     

    
      	
              Class
                Designation

            	 	
              Initial
                Principal Balance

            	 	
              Interest
                Rate

            	 
	
              LT-V23

            	 	
              $

            	
              47,763,529.00

            	 	 	
              (2

            	
              )

            
	
              LT-F24

            	 	
              $

            	
              1,135,952.50

            	 	 	
              (1

            	
              )

            
	
              LT-V24

            	 	
              $

            	
              1,135,952.50

            	 	 	
              (2

            	
              )

            
	
              LT-F25

            	 	
              $

            	
              1,111,167.00

            	 	 	
              (1

            	
              )

            
	
              LT-V25

            	 	
              $

            	
              1,111,167.00

            	 	 	
              (2

            	
              )

            
	
              LT-F26

            	 	
              $

            	
              1,086,937.00

            	 	 	
              (1

            	
              )

            
	
              LT-V26

            	 	
              $

            	
              1,086,937.00

            	 	 	
              (2

            	
              )

            
	
              LT-F27

            	 	
              $

            	
              1,063,252.00

            	 	 	
              (1

            	
              )

            
	
              LT-V27

            	 	
              $

            	
              1,063,252.00

            	 	 	
              (2

            	
              )

            
	
              LT-F28

            	 	
              $

            	
              1,040,097.50

            	 	 	
              (1

            	
              )

            
	
              LT-V28

            	 	
              $

            	
              1,040,097.50

            	 	 	
              (2

            	
              )

            
	
              LT-F29

            	 	
              $

            	
              1,017,461.50

            	 	 	
              (1

            	
              )

            
	
              LT-V29

            	 	
              $

            	
              1,017,461.50

            	 	 	
              (2

            	
              )

            
	
              LT-F30

            	 	
              $

            	
              995,333.50

            	 	 	
              (1

            	
              )

            
	
              LT-V30

            	 	
              $

            	
              995,333.50

            	 	 	
              (2

            	
              )

            
	
              LT-F31

            	 	
              $

            	
              973,699.50

            	 	 	
              (1

            	
              )

            
	
              LT-V31

            	 	
              $

            	
              973,699.50

            	 	 	
              (2

            	
              )

            
	
              LT-F32

            	 	
              $

            	
              952,550.00

            	 	 	
              (1

            	
              )

            
	
              LT-V32

            	 	
              $

            	
              952,550.00

            	 	 	
              (2

            	
              )

            
	
              LT-F33

            	 	
              $

            	
              955,964.50

            	 	 	
              (1

            	
              )

            
	
              LT-V33

            	 	
              $

            	
              955,964.50

            	 	 	
              (2

            	
              )

            
	
              LT-F34

            	 	
              $

            	
              910,999.50

            	 	 	
              (1

            	
              )

            
	
              LT-V34

            	 	
              $

            	
              910,999.50

            	 	 	
              (2

            	
              )

            
	
              LT-F35

            	 	
              $

            	
              891,252.50

            	 	 	
              (1

            	
              )

            
	
              LT-V35

            	 	
              $

            	
              891,252.50

            	 	 	
              (2

            	
              )

            
	
              LT-F36

            	 	
              $

            	
              871,946.50

            	 	 	
              (1

            	
              )

            
	
              LT-V36

            	 	
              $

            	
              871,946.50

            	 	 	
              (2

            	
              )

            
	
              LT-F37

            	 	
              $

            	
              853,069.50

            	 	 	
              (1

            	
              )

            
	
              LT-V37

            	 	
              $

            	
              853,069.50

            	 	 	
              (2

            	
              )

            
	
              LT-F38

            	 	
              $

            	
              834,612.50

            	 	 	
              (1

            	
              )

            
	
              LT-V38

            	 	
              $

            	
              834,612.50

            	 	 	
              (2

            	
              )

            
	
              LT-F39

            	 	
              $

            	
              816,567.00

            	 	 	
              (1

            	
              )

            
	
              LT-V39

            	 	
              $

            	
              816,567.00

            	 	 	
              (2

            	
              )

            
	
              LT-F40

            	 	
              $

            	
              798,921.50

            	 	 	
              (1

            	
              )

            
	
              LT-V40

            	 	
              $

            	
              798,921.50

            	 	 	
              (2

            	
              )

            
	
              LT-F41

            	 	
              $

            	
              781,668.50

            	 	 	
              (1

            	
              )

            
	
              LT-V41

            	 	
              $

            	
              781,668.50

            	 	 	
              (2

            	
              )

            
	
              LT-F42

            	 	
              $

            	
              764,798.00

            	 	 	
              (1

            	
              )

            
	
              LT-V42

            	 	
              $

            	
              764,798.00

            	 	 	
              (2

            	
              )

            
	
              LT-F43

            	 	
              $

            	
              748,301.50

            	 	 	
              (1

            	
              )

            
	
              LT-V43

            	 	
              $

            	
              748,301.50

            	 	 	
              (2

            	
              )

            
	
              LT-F44

            	 	
              $

            	
              732,171.00

            	 	 	
              (1

            	
              )

            
	
              LT-V44

            	 	
              $

            	
              732,171.00

            	 	 	
              (2

            	
              )

            
	
              LT-F45

            	 	
              $

            	
              716,397.00

            	 	 	
              (1

            	
              )

            
	
              LT-V45

            	 	
              $

            	
              716,397.00

            	 	 	
              (2

            	
              )

            
	
              LT-F46

            	 	
              $

            	
              700,972.00

            	 	 	
              (1

            	
              )

            
	
              LT-V46

            	 	
              $

            	
              700,972.00

            	 	 	
              (2

            	
              )

            
	
              LT-F47

            	 	
              $

            	
              685,888.50

            	 	 	
              (1

            	
              )

            
	
              LT-V47

            	 	
              $

            	
              685,888.50

            	 	 	
              (2

            	
              )

            
	
              LT-F48

            	 	
              $

            	
              671,138.50

            	 	 	
              (1

            	
              )

            
	
              LT-V48

            	 	
              $

            	
              671,138.50

            	 	 	
              (2

            	
              )

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

       

    

    

    
      	
              Class
                Designation

            	 	
              Initial
                Principal Balance

            	 	
              Interest
                Rate

            	 
	
              LT-F49

            	 	
              $

            	
              656,713.00

            	 	 	
              (1

            	
              )

            
	
              LT-V49

            	 	
              $

            	
              656,713.00

            	 	 	
              (2

            	
              )

            
	
              LT-F50

            	 	
              $

            	
              642,607.00

            	 	 	
              (1

            	
              )

            
	
              LT-V50

            	 	
              $

            	
              642,607.00

            	 	 	
              (2

            	
              )

            
	
              LT-F51

            	 	
              $

            	
              628,811.00

            	 	 	
              (1

            	
              )

            
	
              LT-V51

            	 	
              $

            	
              628,811.00

            	 	 	
              (2

            	
              )

            
	
              LT-F52

            	 	
              $

            	
              615,319.50

            	 	 	
              (1

            	
              )

            
	
              LT-V52

            	 	
              $

            	
              615,319.50

            	 	 	
              (2

            	
              )

            
	
              LT-F53

            	 	
              $

            	
              602,124.50

            	 	 	
              (1

            	
              )

            
	
              LT-V53

            	 	
              $

            	
              602,124.50

            	 	 	
              (2

            	
              )

            
	
              LT-F54

            	 	
              $

            	
              589,220.00

            	 	 	
              (1

            	
              )

            
	
              LT-V54

            	 	
              $

            	
              589,220.00

            	 	 	
              (2

            	
              )

            
	
              LT-F55

            	 	
              $

            	
              576,599.50

            	 	 	
              (1

            	
              )

            
	
              LT-V55

            	 	
              $

            	
              576,599.50

            	 	 	
              (2

            	
              )

            
	
              LT-F56

            	 	
              $

            	
              564,255.50

            	 	 	
              (1

            	
              )

            
	
              LT-V56

            	 	
              $

            	
              564,255.50

            	 	 	
              (2

            	
              )

            
	
              LT-F57

            	 	
              $

            	
              552,183.00

            	 	 	
              (1

            	
              )

            
	
              LT-V57

            	 	
              $

            	
              552,183.00

            	 	 	
              (2

            	
              )

            
	
              LT-F58

            	 	
              $

            	
              540,375.50

            	 	 	
              (1

            	
              )

            
	
              LT-V58

            	 	
              $

            	
              540,375.50

            	 	 	
              (2

            	
              )

            
	
              LT-F59

            	 	
              $

            	
              25,081,904.00

            	 	 	
              (1

            	
              )

            
	
              LT-V59

            	 	
              $

            	
              25,081,904.00

            	 	 	
              (2

            	
              )

            
	
              LT-A

            	 	
              $

            	
              4,663,242.26

            	 	 	
              (3

            	
              )

            
	
              R-1

            	 	 	
              (4

            	
              )

            	 	
              (4

            	
              )

            

    

     

    
      

    

    
      	(1)  	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these REMIC 1 Regular Interests shall be
                the
                lesser of (i) the product of (a) the Fixed Rate, as that term is
                defined
                in the Swap Agreement, multiplied by (b) in the case of the first
                Distribution Date only, the quotient of 54 divided by 30, and for
                each
                Distribution Date thereafter, two, and (ii) the product of (a) the
                Net WAC
                Rate (without adjustment for the Final Maturity Reserve Fund Addition
                Rate) multiplied by (b) two.

            

    

     

    
      	(2)  	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these REMIC 1 Regular Interests shall be
                the
                excess, if any, of (i) the product of (a) the Net WAC Rate (without
                adjustment for the Final Maturity Reserve Fund Addition Rate) multiplied
                by (b) two, over (ii) the product of (a) the Fixed Rate, as that
                term is
                defined in the Swap Agreement, multiplied by (b) for the first
                Distribution Date only, the quotient of 54 divided by 30, and for
                each
                Distribution Date thereafter, two.

            

    

     

    
      	(3)  	
              For
                any Distribution Date (and the related Interest Accrual Period),
                the Net
                WAC Rate (without adjustment for the Final Maturity Reserve Fund
                Addition
                Rate). 

            

    

     

    
      	(4)  	
              The
                Class R-1 interest shall not have a principal amount and shall not
                bear
                interest. The Class R-1 interest is hereby designated as the sole
                class of
                residual interest in REMIC 1.

            

    

     

    On
      each
      Distribution Date, the Trustee shall distribute the aggregate Interest
      Remittance Amount first to pay fees and expenses of the trust, other than any
      Net Swap Payment owed to the Counterparty, and then with respect to each of
      the
      REMIC 1 Regular Interests based on the above-described interest
      rates.

     

    On
      each
      Distribution Date, the Trustee shall distribute the Principal Remittance Amount
      sequentially to the REMIC 1 Regular Interests, first to the LT- A Interest
      until
      its principal balance is reduced to zero, and then in ascending order of their
      numerical designation, and, with respect to each pair of REMIC 1 Regular
      Interests having the same numerical designation, in equal amounts to each such
      interest, until the principal balance of each such interest is reduced to zero.
      All losses on the Mortgage Loans shall be allocated among the REMIC 1 Regular
      Interests in the same manner that principal distributions are
      allocated.

    
      
        
        

      

      
        4

        
          

        

      

       

    

     

    REMIC
      2

     

    The
      following table sets forth the designations, principal balances and interest
      rates for each interest in REMIC 2, each of which (other than the Class R-2
      interest) is hereby designated as a regular interest in REMIC 2 (the “REMIC 2
      Regular Interests”):

     

    
      	
              REMIC
                3

              Lower
                Tier 

              Class
                Designation

            	 	
              REMIC
                3

              Lower
                Tier

              Interest
                Rate

            	 	
              Initial
                Class 

              Principal
                Amount

            	 	
              Corresponding
                Class of Certificate(s)

            	 
	
              Class
                LT-A1

            	 	 	
              (1

            	
              )

            	
              $

            	
              84,244,500.00

            	 	 	
              Class
                A1

            	 
	
              Class
                LT-A2

            	 	 	
              (1

            	
              )

            	
              $

            	
              30,331,000.00

            	 	 	
              Class
                A2

            	 
	
              Class
                LT-A3

            	 	 	
              (1

            	
              )

            	
              $

            	
              16,257,000.00

            	 	 	
              Class
                A3

            	 
	
              Class
                LT-M1

            	 	 	
              (1

            	
              )

            	
              $

            	
              20,780,000.00

            	 	 	
              Class
                M1

            	 
	
              Class
                LT-M2

            	 	 	
              (1

            	
              )

            	
              $

            	
              11,555,000.00

            	 	 	
              Class
                M2

            	 
	
              Class
                LT-M3

            	 	 	
              (1

            	
              )

            	
              $

            	
              3,075,000.00

            	 	 	
              Class
                M3

            	 
	
              Class
                LT-M4

            	 	 	
              (1

            	
              )

            	
              $

            	
              3,075,000.00

            	 	 	
              Class
                M4

            	 
	
              Class
                LT-M5

            	 	 	
              (1

            	
              )

            	
              $

            	
              1,863,500.00

            	 	 	
              Class
                M5

            	 
	
              Class
                LT-M6

            	 	 	
              (1

            	
              )

            	
              $

            	
              2,702,000.00

            	 	 	
              Class
                M6

            	 
	
              Class
                LT-B1

            	 	 	
              (1

            	
              )

            	
              $

            	
              3,075,000.00

            	 	 	
              Class
                B1

            	 
	
              Class
                LT-B2

            	 	 	
              (1

            	
              )

            	
              $

            	
              2,609,000.00

            	 	 	
              Class
                B2

            	 
	
              Class
                LT-B3

            	 	 	
              (1

            	
              )

            	
              $

            	
              4,472,500.00

            	 	 	
              Class
                B3

            	 
	
              Class
                LT-Accrual

            	 	 	
              (1

            	
              )

            	
              $

            	
              188,702,742.26

            	 	 	
              N/A

            	 
	
              Class
                LT-Reserve-IO

            	 	 	
              (2

            	
              )

            	 	
              (2

            	
              )

            	 	
              N/A

            	 
	
              Class
                LT-Swap-IO

            	 	 	
              (3

            	
              )

            	 	
              (3

            	
              )

            	 	
              N/A

            	 
	
              Class
                R-2

            	 	 	
              (4

            	
              )

            	 	
              (4

            	
              )

            	 	
              N/A

            	 

    

     

    
      

    

    
      	(1)  	
              For
                any Distribution Date (and the related Interest Accrual Period) the
                interest rate for each of these REMIC 2 Regular Interests is a per
                annum
                rate equal to the weighted average of the interest rates on the REMIC
                1
                Regular Interests, weighted on the basis of their principal balances
                as of
                the first day of the related Interest Accrual Period, provided,
                however, that:
                (i) for any Distribution Date on which the Class LT-Swap-IO Interest
                is
                entitled to a portion of the interest accruals on a REMIC 1 Regular
                Interest having an “F” in its class designation, as described in footnote
                three below, such weighted average shall be computed by first subjecting
                the rate on such REMIC 1 Regular Interest to a cap equal to the product
                of
                (a) Swap LIBOR (determined pursuant to the Swap Agreement) multiplied
                by
                (b) 2 multiplied by (c) the quotient of the actual number of days
                in the
                Interest Accrual Period divided by 30; and (ii) for each Distribution
                Date
                on and after the Distribution Date in October 2016, the interest
                rate on
                each REMIC 1 Regular Interest shall be first reduced by the product
                of (i)
                the Final Maturity Reserve Fund Addition Rate multiplied by (ii)
                the
                quotient of (a) the Cut-off Date Principal Balance of the 40-Year
                Loans
                divided by (b) the aggregate Cut-off Date Pool Principal Balance.
                

            

    

     

    
      	(2)  	
              The
                Class LT-Reserve-IO is and interest-only class that does not have
                a
                principal balance. The Class LT-Reserve-IO has a notional balance
                that
                will at all times equal the sum of the principal balances of the
                REMIC 1
                Regular Interests and it shall accrue interest at a fixed rate of
                0.00%
                for each Distribution Date (and the related Interest Accrual Period)
                on or
                before the Distribution Date in October 2016, and for each Distribution
                Date on and after the Distribution Date in October 2016, shall accrue
                interest at a fixed rate equal to the product of (i) the Final Maturity
                Reserve Fund Addition Rate multiplied by (ii) the quotient of (a)
                the
                Cut-off Date Principal Balance of the 40-Year Loans divided by (b)
                the
                aggregate Cut-off Date Pool Principal Balance. .
                

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

       

    

     

    
      	(3)  	
              The
                Class LT-Swap-IO is an interest-only class that does not have a principal
                balance. For only those Distribution Dates listed in the first column
                in
                the table below, the Class LT-Swap-IO shall be entitled to interest
                accrued on the REMIC 1 Regular Interests listed in second column
                in the
                table below at a per annum rate equal to the excess, if any, of (i)
                the
                interest rate for such REMIC 1 Regular Interest for such Distribution
                Date
                over (ii) the product of (a) Swap LIBOR (determined pursuant to the
                Swap
                Agreement) multiplied by (b) 2 multiplied by (c) the quotient of
                the
                actual number of days in the Interest Accrual Period divided by
                30.

            

    

     

    
      	
              Distribution
                Dates*

            	 	
              REMIC
                1 Class Designation

            
	
              1

            	 	
              Class
                LT-F1

            
	
              1-2

            	 	
              Class
                LT-F2

            
	
              1-3

            	 	
              Class
                LT-F3

            
	
              1-4

            	 	
              Class
                LT-F4

            
	
              1-5

            	 	
              Class
                LT-F5

            
	
              1-6

            	 	
              Class
                LT-F6

            
	
              1-7

            	 	
              Class
                LT-F7

            
	
              1-8

            	 	
              Class
                LT-F8

            
	
              1-9

            	 	
              Class
                LT-F9

            
	
              1-10

            	 	
              Class
                LT-F10

            
	
              1-11

            	 	
              Class
                LT-F11

            
	
              1-12

            	 	
              Class
                LT-F12

            
	
              1-13

            	 	
              Class
                LT-F13

            
	
              1-14

            	 	
              Class
                LT-F14

            
	
              1-15

            	 	
              Class
                LT-F15

            
	
              1-16

            	 	
              Class
                LT-F16

            
	
              1-17

            	 	
              Class
                LT-F17

            
	
              1-18

            	 	
              Class
                LT-F18

            
	
              1-19

            	 	
              Class
                LT-F19

            
	
              1-20

            	 	
              Class
                LT-F20

            
	
              1-21

            	 	
              Class
                LT-F21

            
	
              1-22

            	 	
              Class
                LT-F22

            
	
              1-23

            	 	
              Class
                LT-F23

            
	
              1-24

            	 	
              Class
                LT-F24

            
	
              1-25

            	 	
              Class
                LT-F25

            
	
              1-26

            	 	
              Class
                LT-F26

            
	
              1-27

            	 	
              Class
                LT-F27

            
	
              1-28

            	 	
              Class
                LT-F28

            
	
              1-29

            	 	
              Class
                LT-F29

            
	
              1-30

            	 	
              Class
                LT-F30

            
	
              1-31

            	 	
              Class
                LT-F31

            
	
              1-32

            	 	
              Class
                LT-F32

            
	
              1-33

            	 	
              Class
                LT-F33

            
	
              1-34

            	 	
              Class
                LT-F34

            
	
              1-35

            	 	
              Class
                LT-F35

            
	
              1-36

            	 	
              Class
                LT-F36

            
	
              1-37

            	 	
              Class
                LT-F37

            
	
              1-38

            	 	
              Class
                LT-F38

            
	
              1-39

            	 	
              Class
                LT-F39

            
	
              1-40

            	 	
              Class
                LT-F40

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	
              Distribution
                Dates*

            	 	
              REMIC
                1 Class Designation

            
	
              1-41

            	 	
              Class
                LT-F41

            
	
              1-42

            	 	
              Class
                LT-F42

            
	
              1-43

            	 	
              Class
                LT-F43

            
	
              1-44

            	 	
              Class
                LT-F44

            
	
              1-45

            	 	
              Class
                LT-F45

            
	
              1-46

            	 	
              Class
                LT-F46

            
	
              1-47

            	 	
              Class
                LT-F47

            
	
              1-48

            	 	
              Class
                LT-F48

            
	
              1-49

            	 	
              Class
                LT-F49

            
	
              1-50

            	 	
              Class
                LT-F50

            
	
              1-51

            	 	
              Class
                LT-F51

            
	
              1-52

            	 	
              Class
                LT-F52

            
	
              1-53

            	 	
              Class
                LT-F53

            
	
              1-54

            	 	
              Class
                LT-F54

            
	
              1-55

            	 	
              Class
                LT-F55

            
	
              1-56

            	 	
              Class
                LT-F56

            
	
              1-57

            	 	
              Class
                LT-F57

            
	
              1-58

            	 	
              Class
                LT-F58

            
	
              1-59

            	 	
              Class
                LT-F59

            

    

    

    *Refers
      to the Distribution Date set forth in the second column of the Swap Maximum
      Notional Balance Schedule set forth at Exhibit L attached hereto.

    

    
      	(4)  	
              The
                Class R-2 interest is the sole class of residual interests in REMIC
                2. It
                does not have an interest rate or a principal
                balance.

            

    

     

    On
      each
      Distribution Date, interest shall be distributed on the REMIC 2 Regular
      Interests based on the above-described interest rates,
      provided,
      however,
      that
      interest that accrues on the Class LT-Accrual Interest shall be deferred in
      the
      amount required to make distributions under priority (a) below. Any interest
      so
      deferred shall itself bear interest at the interest rate for the Class
      LT-Accrual Interest. An amount equal to the interest so deferred shall be
      distributed as additional principal on the other REMIC 2 Regular Interests
      having a principal balance in the manner described under priority (a)
      below.

     

    On
      each
      Distribution Date principal shall be distributed, and Realized Losses shall
      be
      allocated, among the Lower Tier Interests in REMIC 2 in the following order
      of
      priority:

     

    
      	 	
              (a)
                

            	
              First,
                to the Class LT-A1, Class LT-A2, Class LT-A3, Class LT-M1, Class
                LT-M2, Class LT-M3, Class LT-M4, Class LT-M5, Class LT-M6, Class
                LT-B1,
                Class LT-B2, and Class LT-B3 Interests until the principal balance
                of each
                such REMIC 2 Regular Interest equals one-half of the Class Certificate
                Balance of the Corresponding Class of Certificates immediately after
                such
                Distribution Date; and

            

    

     

    
      	 	
              (b)
                

            	
              Second,
                to the Class LT-Accrual Interests, any remaining
                amounts.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

       

    

     

    REMIC
      3

    

    The
      following table sets forth characteristics of the Certificates, each of which,
      except for the Class R Certificates, represents ownership of a “regular
      interest” in REMIC 3 as well as certain contractual rights and obligations,
      together with the minimum denominations and integral multiples in excess thereof
      in which such Classes shall be issuable (except that one Certificate of each
      Class of Certificates may be issued in a different amount and, in addition,
      one
      Class R Certificate representing the Tax Matters Person Certificate may be
      issued in a different amount):

    

    
      	 	 	
              Initial
                Class Certificate Balance

            	 	
              Pass-Through
                Rate(1)

            	 	
              Minimum
                Denomination

            	 	
              Integral
                Multiples in Excess of Minimum

            	 
	
              Class
                A-1

            	 	
              $

            	
              168,489,000.00

            	 	 	
              LIBOR
                + 0.060% (2

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                A-2

            	 	
              $

            	
              60,662,000.00

            	 	 	
              LIBOR
                + 0.160% (3

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                A-3

            	 	
              $

            	
              32,514,000.00

            	 	 	
              LIBOR
                + 0.260% (4

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-1

            	 	
              $

            	
              41,560,000.00

            	 	 	
              LIBOR
                + 0.310% (5

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-2

            	 	
              $

            	
              23,110,000.00

            	 	 	
              LIBOR
                + 0.380% (6

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-3

            	 	
              $

            	
              6,150,000.00

            	 	 	
              LIBOR
                + 0.440% (7

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-4

            	 	
              $

            	
              6,150,000.00

            	 	 	
              LIBOR
                + 0.730% (8

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-5

            	 	
              $

            	
              3,727,000.00

            	 	 	
              LIBOR
                + 0.820% (9

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                M-6

            	 	
              $

            	
              5,404,000.00

            	 	 	
              LIBOR
                + 1.570% (10

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                B-1

            	 	
              $

            	
              6,150,000.00

            	 	 	
              LIBOR
                + 2.000%
                (11

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                B-2

            	 	
              $

            	
              5,218,000.00

            	 	 	
              LIBOR
                + 2.000% (12

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                B-3

            	 	
              $

            	
              8,945,000.00

            	 	 	
              LIBOR
                + 2.000% (13

            	
              )

            	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 
	
              Class
                X

            	 	 	
              (14

            	
              )

            	 	
              (14

            	
              )

            	 	
              N/A

            	 	 	
              N/A

            	 
	
              Class
                R

            	 	
              $

            	
              0

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 

    

    

    
      	 	
              (1)

            	
              As
                to any Distribution Date, this rate shall equal the lesser of (a)
                the
                lesser of (i) the rate per annum set forth above and (ii) 14.00%,
                and (b)
                the Net WAC Cap. For purposes of the REMIC Provisions, the reference
                to
                Net WAC Cap in the preceding sentence shall be deemed to be a reference
                to
                the REMIC 2 Net WAC Cap. For any Distribution Date on which the
                Pass-Through Rate for any Class of Certificates is based on the Net
                WAC
                Cap, the amount of interest that would have been distributable on
                such
                Class if the REMIC 2 Net WAC Cap had been substituted for the Net
                WAC Cap
                shall be treated as having actually been paid to the Holders of such
                Class
                and then deposited by such Holders into the Swap Account. If for
                any
                Distribution Date, the Pass-Through Rate for any Class of Certificates
                exceeds the REMIC 2 Net WAC Cap, payments based on such excess shall
                be
                deemed to have been made from the Net WAC Cap
                Account.

            

    

     

    
      	
            	(2)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.120%.

            

    

    

    
      	
            	(3)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.320%.

            

    

    

    
      	
            	(4)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.520%.

            

    

    

    
      	
            	(5)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.465%.

            

    

    

    
      	
            	(6)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.570%.

            

    

    
      
        
        

      

      
        8

        
          

        

      

       

    

    

    
      	
            	(7)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                0.660%.

            

    

    

    
      	
            	(8)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                1.095%.

            

    

    

    
      	
            	(9)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                1.230%.

            

    

    

    
      	
            	(10)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                2.355%.

            

    

    

    
      	
            	(11)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                3.000%.

            

    

    

    
      	
            	(12)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                3.000%.

            

    

    

    
      	
            	(13)	
              After
                the Optional Termination Date, this rate will increase to LIBOR +
                3.000%.

            

    

    

    
      	 	
              (14)

            	
              For
                purposes of the REMIC Provisions, the Class X Certificates shall
                have an
                initial principal balance of $4,663,242.26 (initial overcollateralization
                amount), and the right to receive distributions of such amount in
                the form
                of Overcollateralization Release Amounts represents a regular interest
                in
                the REMIC 3. The Class X Certificate shall also comprise 3 notional
                components, each of which represents a regular interest in REMIC
                3. The
                first such component has a notional balance that will at all times
                equal
                the aggregate of the principal balances of the REMIC 2 Regular Interests,
                and, for each Distribution Date (and the related Accrual Period)
                this
                notional component shall bear interest at a per annum rate equal
                to the
                excess, if any, of (i) (a) the weighted average of the interest rates
                on
                the REMIC 2 Regular Interests (other than the Class LT-Reserve-IO
                interest
                and the LT-Swap-IO interest), over (ii) the product of (a) the weighted
                average of the interest rates on the REMIC 2 Regular Interests (other
                than
                the Class LT-Reserve-IO and LT-Swap-IO), computed for this purpose
                by
                subjecting the rate on the Class LT-Accrual interest to a cap of
                0.00%,
                and by subjecting the rate on each of the other REMIC 2 Regular Interests
                to a cap equal to the pass through rate on its Corresponding Class
                of
                Certificates (assuming that REMIC 2 Net WAC Cap was substituted for
                Net
                WAC Cap in the definition of Pass-Through Rate for such Class) multiplied
                by (b) two (2) multiplied by (c) the quotient of the actual number
                of days
                in the Interest Accrual Period divided by thirty (30). The second
                notional
                component represents the right to receive all distributions in respect
                of
                the Class LT-Reserve-IO interest in REMIC 2. The third notional component
                represent the right to receive all distributions in respect of the
                Class
                LT-Swap IO in REMIC 2. For purposes of the REMIC Provisions, the
                Class X
                Certificate shall represent beneficial ownership of the Excluded
                Trust
                Assets.

            

    

    

    In
      calculating interest accrued for any Interest Accrual Period on any Class of
      Certificates, other than the Class X Certificates, an actual/360 day-count
      convention shall be used. In calculating interest accrued on the Class X
      Certificates and any REMIC 1 Regular Interest or any REMIC 2 Regular Interest,
      a
      30/360 day-count convention shall be used.

     

    
      
        
        

      

      
        9

        
          

        

      

       

    

     

    ARTICLE
      I

    

    DEFINITIONS

    

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

     

    40/30
      Loans

    Loans
      that are intended to have the principal balance thereof amortize over a term
      of
      forty (40) years with a required balloon payment thirty (30) years after
      origination. 

     

    40
      Year Loans

    Loans
      that have forty (40) year original terms to maturity.

     

    60+
      Day Delinquent Loan

    As
      of any
      Distribution Date, each Loan with respect to which any portion of a Scheduled
      Payment is, as of the last day of the calendar month immediately preceding
      that
      Distribution Date, 60 days or more contractually past due (assuming 30 day
      months), each Loan in foreclosure, all REO Property and each Loan for which
      the
      Mortgagor has filed for bankruptcy after the Closing Date. 

     

    Adjusted
      Mortgage Rate

    As
      to
      each Loan, and at any time, the per annum rate equal to the Mortgage Rate less
      the Servicing Fee Rate.

     

    Adjusted
      Net Mortgage Rate

    As
      to
      each Loan, and at any time, the per annum rate equal to the Mortgage Rate less
      the related Expense Rate.

     

    Advance

    The
      payment required to be made by the Servicer with respect to any Distribution
      Date pursuant to Section 4.01, the amount of any such payment being equal to
      the
      aggregate of payments of principal and interest (net of the Servicing Fee)
      on
      the Loans that were due on such Loans’ respective Due Dates in the related Due
      Period and not received as of the close of business on the Determination Date
      in
      the month of such Distribution Date, other than the aggregate amount of any
      such
      delinquent payments that the Servicer, in its good faith judgment, has
      determined would not be recoverable out of Insurance Proceeds, Liquidation
      Proceeds or otherwise from the related Loans.

     

    Aggregate
      Class B Early Distribution Amount

    As
      of any
      Distribution Date, the aggregate sum of all amounts paid to the Class B-1,
      Class
      B-2 and Class B-3 Certificates on prior Distribution Dates pursuant to clauses
      (xxxii) through (xxxvii) of Section 4.02(d).

     

    Agreement

    This
      Pooling and Servicing Agreement, together with all of the exhibits and schedules
      hereto, and all amendments or supplements of any of the foregoing.

     

    Amount
      Held for Future Distribution

    As
      to any
      Distribution Date and the Offered Certificates, the aggregate amount held in
      the
      Certificate Account at the close of business on the related Determination Date
      on account of (a) Principal Prepayments, Liquidation Proceeds and Recoveries
      received after the Prepayment Period corresponding to such Distribution Date
      and
      (b) all Scheduled Payments due after the Loans’ respective Due Dates in the
      related Due Period.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Applied
      Realized Loss Amount

    With
      respect to (a) the Class M-1 Certificates, the Class M-1 Applied Realized Loss
      Amount, (b) the Class M-2 Certificates, the Class M-2 Applied Realized Loss
      Amount, (c) the Class M-3 Certificates, the Class M-3 Applied Realized Loss
      Amount, (d) the Class M-4 Certificates, the Class M-4 Applied Realized Loss
      Amount, (e) the Class M-5 Certificates, the Class M-5 Applied Realized Loss
      Amount, (f) the Class M-6 Certificates, the Class M-6 Applied Realized Loss
      Amount, (g) the Class B-1 Certificates, the Class B-1 Applied Realized Loss
      Amount, (h) the Class B-2 Certificates, the Class B-2 Applied Realized Loss
      Amount and (i) the Class B-3 Certificates, the Class B-3 Applied Realized Loss
      Amount.

     

    Available
      Funds

    As
      to any
      Distribution Date, the sum of (a) the aggregate amount held in the Certificate
      Account at the close of business on the related Determination Date net of the
      Amount Held for Future Distribution and net of amounts permitted to be withdrawn
      from the Certificate Account pursuant to clauses (i)-(viii), inclusive, of
      Section 3.08(a) and amounts permitted to be withdrawn from the Distribution
      Account pursuant to clauses (i) and (ii) of Section 3.08(b), (b) the amount
      of
      the related Advance, if any, and (c) the aggregate of the Purchase Prices and
      Substitution Adjustment Amounts received on or before the related Distribution
      Account Deposit Date and (d) with respect to the initial Distribution Date,
      the
      Initial Certificate Account Deposit.

     

    AVM

    Automated
      Valuation Model.

     

    Balloon
      Loans

    Loans
      with balloon payments.

    

    Bankruptcy
      Code

    The
      United States Bankruptcy Reform Act of 1978, as amended, and related rules
      promulgated thereunder.

     

    Basic
      Principal Distribution Amount

    With
      respect to any Distribution Date, the amount by which (a) the Principal
      Remittance Amount for that Distribution Date exceeds (b) the
      Overcollateralization Release Amount, if any, for that Distribution
      Date.

     

    Beneficial
      Owner

    With
      respect to any Book-Entry Certificate, the Person who is the beneficial owner
      of
      such Book-Entry Certificate.

     

    Book-Entry
      Certificates

    The
      Offered Certificates.

     

    Borrower
      Retention Loan

    A
      Refinance Loan, which is not a Second Lien Loan, for which a Seller obtained
      at
      the origination of such Loan a title search in lieu of a title insurance
      policy.

     

    Business
      Day

    Any
      day
      other than (a) a Saturday or a Sunday or (b) a day on which banking institutions
      in New York City, or in the city where the chief executive office of the
      Servicer is located, are authorized or obligated by law or executive order
      to be
      closed.

     

    Cap
      Account

    The
      account established and maintained by the Trustee pursuant to Section
      3A.02.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Cap
      Agreement

    The
      Master Agreement dated as of September 28, 2006 (including the Schedule thereto
      and the Transaction (as defined in the Cap Agreement) thereunder evidenced
      by
      the Confirmation (as defined in the Cap Agreement) bearing the reference number
      N512432N dated as of September 28, 2006), relating to the Transaction, by and
      between the Cap Counterparty and the Trustee not in its individual capacity,
      but
      solely as trustee of the External Trust relating to the Popular ABS, Inc.
      Mortgage Pass-Through Certificates, Series 2006-D.

     

    Cap
      Class B-1 Realized Loss Amortization Amount

    As
      to the
      Class B-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class B-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxviii) of the
      Section 4.02(f) for that Distribution Date.

     

    Cap
      Class B-2 Realized Loss Amortization Amount

    As
      to the
      Class B-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class B-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxix) of Section
      4.02(f) for that Distribution Date. 

    

    Cap
      Class B-3 Realized Loss Amortization Amount 

    As
      to the
      Class B-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class B-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxx) of the
      Section 4.02(f) for that Distribution Date. 

    

    Cap
      Class M-1 Realized Loss Amortization Amount

    As
      to the
      Class M-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i)
      through (xxii)
      of the
      Section 4.02(f) for that Distribution Date. 

    

    Cap
      Class M-2 Realized Loss Amortization Amount

    As
      to the
      Class M-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxiii) of the
      Section 4.02(f) for that Distribution Date. 

    

    Cap
      Class M-3 Realized Loss Amortization Amount

    As
      to the
      Class M-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxiv) of the
      Section 4.02(f) for that Distribution Date.

    

    Cap
      Class M-4 Realized Loss Amortization Amount

    As
      to the
      Class M-4 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-4 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxv) of the
      Section 4.02(f) for that Distribution Date. 

    

    Cap
      Class M-5 Realized Loss Amortization Amount

    As
      to the
      Class M-5 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-5 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxvi) of the
      Section 4.02(f) for that Distribution Date. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    Cap
      Class M-6 Realized Loss Amortization Amount

    As
      to the
      Class M-6 Certificates and as of any Distribution Date, the lesser of (a) the
      Cap Unpaid Realized Loss Amount for the Class M-6 Certificates as of that
      Distribution Date and (b) the excess of (i) the Cap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxvii) of the
      Section 4.02(f) for that Distribution Date. 

    

    Cap
      Counterparty

    Deutsche
      Bank AG, New York Branch.

     

    Cap
      Distribution Amount

    As
      defined in Section 4.02(f).

    

    Cap
      Extra Principal Distribution Amount

    As
      of any
      Distribution Date, the lesser of (a) the remaining Cap Distribution Amount
      after
      making all of the distributions in clauses (i) through (xx) of Section 4.02(f),
      (b) the Overcollateralization Deficiency for that Distribution Date, calculated
      after giving effect to the funding of the Extra Principal Distribution Amount
      pursuant to clause (iii) of Section 4.02(d) and the funding of the Swap Extra
      Principal Distribution Amount pursuant to clause (xxiii) of Section 4.02(e)
      and
      (c) the excess of (i) the aggregate amount of Realized Losses for that
      Distribution Date and Realized Losses for all prior Distribution Dates (other
      than Realized Losses applied in reduction of the Class Certificate Balance
      of
      one or more classes of Subordinate Certificates) over (ii) the aggregate amount
      distributed pursuant to clause (xxiii) of Section 4.02(e) and clause (xxi)
      of
      Section 4.02(f) on all prior Distribution Dates.

    

    Cap
      Notional Balance

    As
      of any
      Distribution Date, the notional balance specified under the Cap Agreement for
      that Distribution Date.

    

    Cap
      Stated Termination

    August
      25, 2013, subject to the Following Business Day Convention (as such term is
      defined in the Cap Agreement).

     

    Cap
      Unpaid Realized Loss Amount

    For
      any
      class of Subordinate Certificates and as to any Distribution Date, the excess
      of
      (a) the Unpaid Realized Loss Amount with respect to that class for that
      Distribution Date over (b) the sum of (i) the Excess Cashflow Realized Loss
      Amortization Amount paid to that Class pursuant to Section 4.02(d) on that
      Distribution Date and (ii) the Swap Realized Loss Amortization Amount paid
      to
      that Class pursuant to Section 4.02(e) on that Distribution Date.

     

    Certificates

    The
      Offered Certificates, the Class R Certificates and the Class X
      Certificates.

     

    Certificate
      Account

    The
      separate Eligible Account created and maintained by the Servicer pursuant to
      Section 3.05 with a depository institution in the name of the Servicer for
      the benefit of the Trustee on behalf of the Certificateholders and designated
      “Certificate Account, Equity One, Inc., as trustee for the registered holders
      of
      Popular ABS, Inc., Mortgage Pass-Through Certificates Series
      2006-D.”

     

    Certificate
      Balance

    With
      respect to any Offered Certificate at any time, the maximum dollar amount of
      principal to which the Holder thereof is then entitled hereunder, such amount
      being equal to the Denomination thereof reduced by the sum of (a) all amounts
      previously distributed to that Offered Certificate as payments of principal,
      and
      (b) with respect to any Subordinate Certificate, that Subordinate Certificate’s
      pro rata share of the cumulative amount of Applied Realized Loss Amounts with
      respect to such Class for all prior Distribution Dates.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Certificateholder
      or Holder

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

     

    Certificate
      Register

    The
      register maintained pursuant to Section 5.02.

     

    Certificate
      Registrar

    JPMorgan
      Chase Bank, N.A. and its successors and, if a successor certificate registrar
      is
      appointed hereunder, such successor.

     

    Class

    All
      Certificates bearing the same class designation as set forth in the Preliminary
      Statement.

     

    Class
      A-1 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-1 and designated as a Class A-1
      Certificate.

     

    Class
      A-2 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-1 and designated as a Class A-2
      Certificate.

     

    Class
      A-3 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-1 and designated as a Class A-3
      Certificate.

     

    Class
      B-1 Applied Realized Loss Amount

    As
      to the
      Class B-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class B-1 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class B-2 Applied Realized Loss
      Amount and the Class B-3 Applied Realized Loss Amortization Amount, in each
      case
      as of that Distribution Date.

    

    Class
      B-1 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-4 and designated as a Class B-1
      Certificate.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Class
      B-1 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the Class M-2
      Certificates (after taking into account the payment of the Class M-2 Principal
      Distribution Amount on that Distribution Date), (iv) the Class Certificate
      Balance of the Class M-3 Certificates (after taking into account the payment
      of
      the Class M-3 Principal Distribution Amount on that Distribution Date), (v)
      the
      Class Certificate Balance of the Class M-4 Certificates (after taking into
      account the payment of the Class M-4 Principal Distribution Amount on that
      Distribution Date), (vi) the Class Certificate Balance of the Class M-5
      Certificates (after taking into account the payment of the Class M-5 Principal
      Distribution Amount on that Distribution Date), (vii) the Class Certificate
      Balance of the Class M-6 Certificates (after taking into account the payment
      of
      the Class M-6 Principal Distribution Amount on that Distribution Date) and
      (viii) the Class Certificate Balance of the Class B-1 Certificates immediately
      prior to that Distribution Date over (b) the lesser of (i) the product of (A)
      89.90% and (B) the Pool Principal Balance as of the last day of the related
      Due
      Period and (ii) the Pool Principal Balance as of the last day of the related
      Due
      Period minus the product of (A) 0.50% and (B) the Cut-off Date Pool Principal
      Balance.

     

    Class
      B-1 Realized Loss Amortization Amount

    As
      to the
      Class B-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class B-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xxiii) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      B-2 Applied Realized Loss Amount

    As
      to the
      Class B-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class B-2 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the Class B-3 Applied Realized Loss Amortization
      Amount as of that Distribution Date.

    

    Class
      B-2 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-4 and designated as a Class B-2
      Certificate.

     

    Class
      B-2 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the Class M-2
      Certificates (after taking into account the payment of the Class M-2 Principal
      Distribution Amount on that Distribution Date), (iv) the Class Certificate
      Balance of the Class M-3 Certificates (after taking into account the payment
      of
      the Class M-3 Principal Distribution Amount on that Distribution Date), (v)
      the
      Class Certificate Balance of the Class M-4 Certificates (after taking into
      account the payment of the Class M-4 Principal Distribution Amount on that
      Distribution Date), (vi) the Class Certificate Balance of the Class M-5
      Certificates (after taking into account the payment of the Class M-5 Principal
      Distribution Amount on that Distribution Date), (vii) the Class Certificate
      Balance of the Class M-6 Certificates (after taking into account the payment
      of
      the Class M-6 Principal Distribution Amount on that Distribution Date), (viii)
      the Class Certificate Balance of the Class B-1 Certificates (after taking into
      account the payment of the Class B-1 Principal Distribution Amount on that
      Distribution Date) and (ix) the Class Certificate Balance of the Class B-2
      Certificates immediately prior to that Distribution Date over (b) the lesser
      of
      (i) the product of (A) 92.70% and (B) the Pool Principal Balance as of the
      last
      day of the related Due Period and (ii) the Pool Principal Balance as of the
      last
      day of the related Due Period minus the product of (A) 0.50% and (B) the Cut-off
      Date Pool Principal Balance.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Class
      B-2 Realized Loss Amortization Amount

    As
      to the
      Class B-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class B-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xxvi) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      B-3 Applied Realized Loss Amount

    As
      to the
      Class B-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class B-3 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the Realized Loss Amount as of that Distribution
      Date.

    

    Class
      B-3 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-4 and designated as a Class B-3
      Certificate.

     

    Class
      B-3 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the Class M-2
      Certificates (after taking into account the payment of the Class M-2 Principal
      Distribution Amount on that Distribution Date), (iv) the Class Certificate
      Balance of the Class M-3 Certificates (after taking into account the payment
      of
      the Class M-3 Principal Distribution Amount on that Distribution Date), (v)
      the
      Class Certificate Balance of the Class M-4 Certificates (after taking into
      account the payment of the Class M-4 Principal Distribution Amount on that
      Distribution Date), (vi) the Class Certificate Balance of the Class M-5
      Certificates (after taking into account the payment of the Class M-5 Principal
      Distribution Amount on that Distribution Date), (vii) the Class Certificate
      Balance of the Class M-6 Certificates (after taking into account the payment
      of
      the Class M-6 Principal Distribution Amount on that Distribution Date), (viii)
      the Class Certificate Balance of the Class B-1 Certificates (after taking into
      account the payment of the Class B-1 Principal Distribution Amount on that
      Distribution Date), (ix) the Class Certificate Balance of the Class B-2
      Certificates (after taking into account the payment of the Class B-2 Principal
      Distribution Amount on that Distribution Date) and (x) the Class Certificate
      Balance of the Class B-3 Certificates immediately prior to that Distribution
      Date over (b) the lesser of (i) the product of (A) 97.50% and (B) the Pool
      Principal Balance as of the last day of the related Due Period and (ii) the
      Pool
      Principal Balance as of the last day of the related Due Period minus the product
      of (A) 0.50% and (B) the Cut-off Date Pool Principal Balance.

     

    Class
      B-3 Realized Loss Amortization Amount

    As
      to the
      Class B-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class B-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xxix) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      Certificate Balance

    With
      respect to any Class of Offered Certificates and as to any Distribution Date,
      the aggregate of the Certificate Balances of all Certificates of such Class
      as
      of such date. The Class Certificate Balance of the Class R Certificates shall
      be
      zero.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    Class
      I Shortfalls 

    As
      defined in Section 2.07 hereof. For purposes of clarity, the aggregate Class
      I
      Shortfall for any Distribution Date shall equal the amount payable to the Swap
      Counterparty on such Distribution Date in excess of the amount payable with
      respect to the Class LT-Swap-IO on such Distribution Date. With respect to
      any
      Class of Offered Certificates, such shortfall will on any Distribution Date
      equal the excess, if any, of the amount of interest that would have accrued
      on
      such Class for the related Interest Accrual Period had its Pass-Through Rate
      been determined by substituting the REMIC 2 Net WAC Cap for the Net WAC Cap
      over
      the amount of interest actually accrued on such Class for such Accrual Period.
      

     

    Class
      Interest Shortfall

    As
      to any
      Distribution Date and any Class of Offered Certificates, the amount by which
      the
      amount described in the definition of Interest Distribution Amount for such
      Class exceeds the amount of interest actually distributed on such Class on
      such
      Distribution Date.

     

    Class
      M-1 Applied Realized Loss Amount

    As
      to the
      Class M-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-1 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class M-2 Applied Realized Loss
      Amount, the Class M-3 Applied Realized Loss Amount, the Class M-4 Applied
      Realized Loss Amount, the Class M-5 Applied Realized Loss Amount, the Class
      M-6
      Applied Realized Loss Amount, the Class B-1 Applied Realized Loss Amount, the
      Class B-2 Applied Realized Loss Amount and the Class B-3 Applied Realized Loss
      Amount, in each case as of that Distribution Date.

     

    Class
      M-1 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-1
      Certificate.

     

    Class
      M-1 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date)
      and (ii) the Class Certificate Balance of the Class M-1 Certificates immediately
      prior to that Distribution Date over (b) the lesser of (i) the product of (A)
      62.70% and (B) the Pool Principal Balance as of the last day of the related
      Due
      Period and (ii) the Pool Principal Balance as of the last day of the related
      Due
      Period minus the product of (A) 0.50% and (B) the Cut-off Date Pool Principal
      Balance.

     

    Class
      M-1 Realized Loss Amortization Amount

    As
      to the
      Class M-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (v) of Section
      4.02(d) for that Distribution Date.

     

    Class
      M-2 Applied Realized Loss Amount

    As
      to the
      Class M-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-2 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class M-3 Applied Realized Loss
      Amount, the Class M-4 Applied Realized Loss Amount, the Class M-5 Applied
      Realized Loss Amount, the Class M-6 Applied Realized Loss Amount, the Class
      B-1
      Applied Realized Loss Amount, the Class B-2 Applied Realized Loss Amount and
      the
      Class B-3 Applied Realized Loss Amount, in each case as of that Distribution
      Date.

     

    
      
        
        

      

      
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    Class
      M-2 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-2
      Certificate.

     

    Class
      M-2 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date) and (iii) the Class Certificate Balance of the Class M-2
      Certificates immediately prior to that Distribution Date over (b) the lesser
      of
      (i) the product of (A) 75.10% and (B) the Pool Principal Balance as of the
      last
      day of the related Due Period and (ii) the Pool Principal Balance as of the
      last
      day of the related Due Period minus the product of (A) 0.50% and (B) the Cut-off
      Date Pool Principal Balance.

     

    Class
      M-2 Realized Loss Amortization Amount

    As
      to the
      Class M-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (viii) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      M-3 Applied Realized Loss Amount

    As
      to the
      Class M-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-3 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class M-4 Applied Realized Loss
      Amount, the Class M-5 Applied Realized Loss Amount, the Class M-6 Applied
      Realized Loss Amount, the Class B-1 Applied Realized Loss Amount, the Class
      B-2
      Applied Realized Loss Amount and the Class B-3 Applied Realized Loss Amount,
      in
      each case as of that Distribution Date.

     

    Class
      M-3 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-3
      Certificate.

     

    Class
      M-3 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on that Distribution Date) and (iv) the Class Certificate Balance of
      the
      Class M-3 Certificates immediately prior to that Distribution Date over (b)
      the
      lesser of (i) the product of (A) 78.40% and (B) the Pool Principal Balance
      as of
      the last day of the related Due Period and (ii) the Pool Principal Balance
      as of
      the last day of the related Due Period minus the product of (A) 0.50% and (B)
      the Cut-off Date Pool Principal Balance.

     

    Class
      M-3 Realized Loss Amortization Amount

    As
      to the
      Class M-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xi) of
      Section 4.02(d) for that Distribution Date.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Class
      M-4 Applied Realized Loss Amount

    As
      to the
      Class M-4 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-4 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class M-5 Applied Realized Loss
      Amount, the Class M-6 Applied Realized Loss Amount, the Class B-1 Applied
      Realized Loss Amount, the Class B-2 Applied Realized Loss Amount and the Class
      B-3 Applied Realized Loss Amount, in each case as of that Distribution
      Date.

     

    Class
      M-4 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-4
      Certificate.

     

    Class
      M-4 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on that Distribution Date), (iv) the Class Certificate Balance of the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on that Distribution Date) and (v) the Class
      Certificate Balance of the Class M-4 Certificates immediately prior to that
      Distribution Date over (b) the lesser of (i) the product of (A) 81.70% and
      (B)
      the Pool Principal Balance as of the last day of the related Due Period and
      (ii)
      the Pool Principal Balance as of the last day of the related Due Period minus
      the product of (A) 0.50% and (B) the Cut-off Date Pool Principal
      Balance.

     

    Class
      M-4 Realized Loss Amortization Amount

    As
      to the
      Class M-4 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-4 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xiv) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      M-5 Applied Realized Loss Amount

    As
      to the
      Class M-5 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-5 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class M-6 Applied Realized Loss
      Amount, the Class B-1 Applied Realized Loss Amount, the Class B-2 Applied
      Realized Loss Amount and the Class B-3 Applied Realized Loss Amount, in each
      case as of that Distribution Date.

     

    Class
      M-5 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-5
      Certificate.

     

    Class
      M-5 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on that Distribution Date), (iv) the Class Certificate Balance of the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on that Distribution Date), (v) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on that Distribution
      Date) and (vi) the Class Certificate Balance of the Class M-5 Certificates
      immediately prior to that Distribution Date over (b) the lesser of (i) the
      product of (A) 83.70% and (B) the Pool Principal Balance as of the last day
      of
      the related Due Period and (ii) the Pool Principal Balance as of the last day
      of
      the related Due Period minus the product of (A) 0.50% and (B) the Cut-off Date
      Pool Principal Balance.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    Class
      M-5 Realized Loss Amortization Amount

    As
      to the
      Class M-5 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-5 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xvii) of
      Section 4.02(d) for that Distribution Date.

     

    Class
      M-6 Applied Realized Loss Amount

    As
      to the
      Class M-6 Certificates and as of any Distribution Date, the lesser of (a) the
      Class Certificate Balance thereof (after taking into account the distribution
      of
      the Principal Distribution Amount on that Distribution Date, but prior to the
      application of the Class M-6 Applied Realized Loss Amount, if any, on that
      Distribution Date) and (b) the excess of (i) the Realized Loss Amount as of
      that
      Distribution Date over (ii) the sum of the Class B-1 Applied Realized Loss
      Amount, the Class B-2 Applied Realized Loss Amount and the Class B-3 Applied
      Realized Loss Amount, in each case as of that Distribution Date.

     

    Class
      M-6 Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit A-3 and designated as a Class M-6
      Certificate.

     

    Class
      M-6 Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the excess of (a) the sum of (i) the sum of the Class
      Certificate Balances of the Senior Certificates (after taking into account
      the
      payment of the Senior Principal Distribution Amount on that Distribution Date),
      (ii) the Class Certificate Balance of the Class M-1 Certificates (after taking
      into account the payment of the Class M-1 Principal Distribution Amount on
      that
      Distribution Date), (iii) the Class Certificate Balance of the M-2 Certificates
      (after taking into account the payment of the Class M-2 Principal Distribution
      Amount on that Distribution Date), (iv) the Class Certificate Balance of the
      Class M-3 Certificates (after taking into account the payment of the Class
      M-3
      Principal Distribution Amount on that Distribution Date), (v) the Class
      Certificate Balance of the Class M-4 Certificates (after taking into account
      the
      payment of the Class M-4 Principal Distribution Amount on that Distribution
      Date), (vi) the Class Certificate Balance of the Class M-5 Certificates (after
      taking into account the payment of the Class M-5 Principal Distribution Amount
      on that Distribution Date) and (vii) the Class Certificate Balance of the Class
      M-6 Certificates immediately prior to that Distribution Date over (b) the lesser
      of (i) the product of (A) 86.60% and (B) the Pool Principal Balance as of the
      last day of the related Due Period and (ii) the Pool Principal Balance as of
      the
      last day of the related Due Period minus the product of (A) 0.50% and (B) the
      Cut-off Date Pool Principal Balance.

     

    Class
      M-6 Realized Loss Amortization Amount

    As
      to the
      Class M-6 Certificates and as of any Distribution Date, the lesser of (a) the
      Unpaid Realized Loss Amount for the Class M-6 Certificates as of that
      Distribution Date and (b) the excess of (i) the Monthly Excess Cashflow Amount
      over (ii) the sum of the amounts described in clauses (i) through (xx) of
      Section 4.02(d) for that Distribution Date.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Class
      R Certificates

    The
      certificates representing the single “residual interest” in each of REMIC 1,
      REMIC 2 and REMIC 3, substantially in the form attached hereto as Exhibit
      B-1.

     

    Class
      Unpaid Interest Amounts

    As
      to any
      Distribution Date and any Class of Offered Certificates, the amount by which
      the
      aggregate Class Interest Shortfalls for such Class on prior Distribution Dates
      exceeds the amount of Class Unpaid Interest Amounts distributed on such Class
      on
      prior Distribution Dates plus interest on such amount at the related
      Pass-Through Rate.

     

    Class
      X Certificate

    Any
      Certificate executed and authenticated by the Trustee substantially in the
      form
      attached hereto as Exhibit B-2 and designated as a Class X
      Certificate.

     

    Closing
      Date

    September
      28, 2006.

     

    Closing
      Place

    The
      offices of Stradley, Ronon, Stevens & Young, LLP, 2600 One Commerce Square,
      Philadelphia, Pennsylvania 19103.

     

    Code

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

     

    Collateral

    The
      assets constituting the Loans, the Mortgage Files, the Trust Fund and the
      External Trust, and any and all contractual, legal, equitable or other rights
      in
      connection therewith, and all proceeds thereof (but not including payments
      of
      interest and principal due and payable with respect to the Loans on or before
      the Cut-off Date).

     

    Collateral
      Value

    With
      respect to any Loan, other than Refinance Loans, an amount equal to the lesser
      of (a) the appraised value of the related Mortgaged Property based on an
      appraisal obtained by the originator from an independent fee appraiser at the
      time of the origination of such Loan, and (b) if the Loan was originated either
      in connection with the acquisition of the Mortgaged Property by the borrower
      or
      within one year after acquisition of the Mortgaged Property by the borrower,
      the
      purchase price paid by such borrower for the Mortgaged Property. In the case
      of
      Refinance Loans (a) that are not Borrower Retention Loans, the Collateral Value
      is the appraised value of the Mortgaged Property based upon the appraisal
      obtained at the time of refinancing and (b) that are Borrower Retention Loans,
      the Collateral Value is the value of the mortgaged property determined as
      follows (i) if the Refinance Loan is not a cash-out refinance mortgage loan,
      the
      value of the mortgaged property is typically determined using an existing
      appraisal that is no more than twenty-four months old; however, if the existing
      appraisal is more than twenty-four months old, the value of the mortgaged
      property based on the existing appraisal is validated through the use of an
      AVM
      at the time of the refinancing, and if the AVM evidences that the value of
      the
      mortgage property has materially declined, a new appraisal is required at the
      time of refinancing, and the value of the mortgaged property is determined
      using
      this new appraisal, and (ii) if the Refinance Loan is a cash-out refinance
      mortgage loan, the value of the mortgaged property is determined using an
      existing appraisal that is no more than twenty-four months old, and the existing
      appraisal value is validated through the use of an AVM at the time of the
      refinancing; if the AVM evidences that the value of the mortgaged property
      has
      materially declined, or if the existing appraisal is more than twenty-four
      months old, a new appraisal is required at the time of refinancing, and the
      value of the mortgaged property is determined using this new
      appraisal.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    Combined
      Loan-to-Value Ratio

    With
      respect to any Loan and as to any date of determination, the fraction, expressed
      as a percentage, the numerator of which is the principal balance of such Loan
      at
      the date of origination plus, in the case of a Second Lien Loan, the outstanding
      principal balance of the related first lien mortgage loan on the date of
      origination of such Second Lien Loan, and the denominator of which is the
      Collateral Value of the related Mortgaged Property.

     

    Commission

    The
      Securities and Exchange Commission.

    

    Corporate
      Trust Office

    The
      designated office of the Trustee in the State of New York at which (a) its
      corporate trust business with respect to this Agreement shall be administered
      is
      located at JPMorgan Chase Bank, 4 New York Plaza, 6th Floor, New York, New
      York
      10004, Attention: Worldwide Securities Services/Structured Finance Services,
      Popular ABS 2006-D and (b) Certificates may be presented for transfer and
      exchange and for purposes of presentment and surrender for the final
      distributions thereon is located at 2001 Bryan Street, 9th Floor, Dallas Texas
      75201 Attention: Structured Finance Transfer Department Popular ABS 2006-D,
      or
      such other address as the Trustee shall notify the Depositor, the Servicer,
      the
      Sellers and the Certificateholders. 

    

    Corresponding
      Class

    As
      defined in the Preliminary Statement.

     

    Custodial
      Agreement

    As
      defined in Section 8.13.

     

    Custodian

    As
      defined in Section 8.13.

     

    Cut-off
      Date

    September
      1, 2006.

     

    Cut-off
      Date Pool Principal Balance

    $372,742,242.26.

     

    Cut-off
      Date Principal Balance

    As
      to any
      Loan, the Stated Principal Balance thereof as of the close of business on August
      31, 2006 giving effect to scheduled payments of principal and interest due
      on
      September 1, 2006, whether or not those scheduled payments have been made.
      

     

    Defective
      Loan

    Any
      Loan
      which is required to be repurchased pursuant to Section 2.02 or
      2.03.

     

    Deficient
      Valuation

    With
      respect to any Loan, a valuation of the related Mortgaged Property by a court
      of
      competent jurisdiction in an amount less than the then outstanding principal
      balance of the Loan, which valuation results from a proceeding initiated under
      the Bankruptcy Code.

     

    Definitive
      Certificates

    Any
      Certificate issued in lieu of a Book-Entry Certificate pursuant to Section
      5.02(e).

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Deleted
      Loan

    As
      defined in Section 2.03(c).

     

    Denomination

    With
      respect to each Offered Certificate, Class X Certificate or Class R Certificate,
      the amount set forth on the face thereof as the “Initial Certificate Balance of
      this Certificate” or the “Percentage Interest.”

     

    Depositor

    Popular
      ABS, Inc., a Delaware corporation, or its successor in interest.

     

    Depository

    The
      initial Depository shall be The Depository Trust Company, the nominee of which
      is Cede & Co., as the registered Holder of the Book-Entry Certificates. The
      Depository shall at all times be a “clearing corporation” as defined in Section
      8-102(a)(5) of the Uniform Commercial Code of the State of New
      York.

     

    Depository
      Participant

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

     

    Determination
      Date

    As
      to any
      Distribution Date, the 21st day of each month or, if such day is not a Business
      Day, the next preceding Business Day; provided, however, that the Determination
      Date in each month will be at least two Business Days preceding the related
      Distribution Date.

     

    Distribution
      Account

    The
      separate Eligible Account created and maintained by the Trustee pursuant to
      Section 3.05 in the name of the Trustee for the benefit of the
      Certificateholders and designated “Distribution Account, JPMorgan Chase Bank,
      N.A., as trustee for the registered holders of Popular ABS, Inc. Mortgage
      Pass-Through Certificates, Series 2006-D.” Funds in the Distribution Account
      shall be held uninvested in trust for the Certificateholders for the uses and
      purposes set forth in this Agreement.

     

    Distribution
      Account Deposit Date

    As
      to any
      Distribution Date, 9:00 a.m. New York City time on the Business Day immediately
      preceding such Distribution Date.

     

    Distribution
      Date

    The
      25th
      day of each calendar month after the initial issuance of the Certificates,
      or if
      such day is not a Business Day, the next succeeding Business Day, commencing
      on
      October 25, 2006.

     

    Due
      Date

    With
      respect to any Loan, the date on which scheduled payments of interest and/or
      principal are due thereon, which date is a set day, but not necessarily the
      first day, of each month.

     

    Due
      Period

    With
      respect to any Distribution Date, the period beginning on the second day of
      the
      calendar month preceding the calendar month in which that Distribution Date
      occurs and ending at the close of business on the first day of the month in
      which that Distribution Date occurs.

     

    Eligible
      Account

    Any
      of
      (a) an account or accounts maintained with a federal or state chartered
      depository institution or trust company, the short-term unsecured debt
      obligations of which (or, in the case of a depository institution or trust
      company that is the principal subsidiary of a holding company, the debt
      obligations of such holding company) have the highest short-term ratings of
      each
      Rating Agency at the time any amounts are held on deposit therein, or (b) an
      account or accounts in a depository institution or trust company in which such
      accounts are insured by the FDIC (to the limits established by the FDIC) and
      the
      uninsured deposits in which accounts are otherwise secured such that, as
      evidenced by an Opinion of Counsel delivered to the Trustee and to each Rating
      Agency, the Certificateholders have a claim with respect to the funds in such
      account or a perfected first priority security interest against any collateral
      (which shall be limited to Permitted Investments) securing such funds that
      is
      superior to claims of any other depositors or creditors of the depository
      institution or trust company in which such account is maintained, or (c) a
      trust
      account or accounts maintained with (i) the trust department of a federal or
      state chartered depository institution or (ii) a trust company, acting in its
      fiduciary capacity or (d) any other account acceptable to each Rating Agency,
      as
      evidenced by a letter from such Rating Agency to the Trustee, without reduction
      or withdrawal of the then current ratings of the Certificates. Eligible Accounts
      may bear interest, and may include, if otherwise qualified under this
      definition, accounts maintained with the Trustee.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    Equity
      One-Delaware

    Equity
      One, Inc., a Delaware corporation.

     

    Equity
      One-Minnesota

    Equity
      One, Inc., a Minnesota corporation.

     

    Equity
      One-New Hampshire

    Equity
      One Consumer Loan Company, Inc., a New Hampshire corporation.

     

    Equity
      One-Pennsylvania

    Equity
      One, Incorporated, a Pennsylvania corporation.

     

    ERISA

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

     

    ERISA
      Qualifying Underwriting

    A
      best
      efforts or firm commitment underwriting or private placement that meets the
      requirements (without regard to the ratings requirement or other requirements
      that the securities or the investor must satisfy) of the Underwriter Exemption,
      or any substantially similar administrative exemption granted by the U.S.
      Department of Labor.

     

    ERISA-Restricted
      Certificate

    Any
      of
      the Class B-2 Certificates, Class B-3 Certificates, Class X Certificates or
      Class R Certificates; any Certificate of a Class that ceases to satisfy the
      applicable rating requirements of the Underwriter Exemption.

     

    Escrow
      Account

    The
      Eligible Account or Eligible Accounts established and maintained by the Servicer
      pursuant to Section 3.06(a).

     

    Event
      of Default

    As
      defined in Section 7.01.

     

    Excess
      Cashflow Realized Loss Amortization Amount

    With
      respect to, (a) the Class M-1 Certificates, the Class M-1 Realized Loss
      Amortization Amount, (b) the Class M-2 Certificates, the Class M-2 Realized
      Loss
      Amortization Amount, (c) the Class M-3 Certificates, the Class M-3 Realized
      Loss
      Amortization Amount, (d) the Class M-4 Certificates, the Class M-4 Realized
      Loss
      Amortization Amount, (e) the Class M-5 Certificates, the Class M-5 Realized
      Loss
      Amortization Amount, (f) the Class M-6 Certificates, the Class M-6 Realized
      Loss
      Amortization Amount, (g) the Class B-1 Certificates, the Class B-1 Realized
      Loss
      Amortization Amount, (h) the Class B-2 Certificates, the Class B-2 Realized
      Loss
      Amortization Amount and (i) the Class B-3 Certificates, the Class B-3 Realized
      Loss Amortization Amount.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

    Exchange
      Act

    The
      Securities Exchange Act of 1934, as amended.

     

    Excess
      Proceeds

    With
      respect to any Liquidated Loan, the amount, if any, by which the sum of any
      Liquidation Proceeds of such Loan received in the calendar month in which such
      Loan became a Liquidated Loan, net of any amounts previously reimbursed to
      the
      Servicer as Nonrecoverable Advance(s) with respect to such Loan pursuant to
      Section 3.08(a)(iii), exceeds (a) the unpaid principal balance of such
      Liquidated Loan as of the Due Date in the calendar month in which such Loan
      became a Liquidated Loan plus (b) accrued interest at the Mortgage Rate from
      the
      Due Date as to which interest was last paid or advanced (and not reimbursed)
      to
      Certificateholders up to the Due Date in the calendar month in which such Loan
      became a Liquidated Loan.

     

    Excluded
      Trust Assets

    As
      defined in the Preliminary Statement.

     

    Expense
      Rate

    As
      to
      each Loan, the sum of (a) the Servicing Fee Rate, (b) the Trustee Fee Rate
      and
      (c) with respect to 40 Year Loans only, on the Distribution Date in October
      2016
      (the 121st Distribution Date) and each Distribution Date thereafter, if a Final
      Maturity Deficiency exists on that Distribution Date, the Final Maturity Reserve
      Fund Addition Rate.

     

    External
      Trust

    As
      defined in Section 3A.05.

    

    Extra
      Principal Distribution Amount

    As
      of any
      Distribution Date, the lesser of (a) the Monthly Excess Interest Amount for
      that
      Distribution Date and (b) the Overcollateralization Deficiency for that
      Distribution Date.

     

    FDIC

    The
      Federal Deposit Insurance Corporation, or any successor thereto.

     

    FHLMC

    The
      Federal Home Loan Mortgage Corporation, a corporate instrumentality of the
      United States created and existing under Title III of the Emergency Home Finance
      Act of 1970, as amended, or any successor thereto.

     

    Final
      Maturity Deficiency 

    With
      respect to any Distribution Date, if (a) the aggregate principal balance of
      40
      Year Loans as of the last day of the related Due Period exceeds (b) the notional
      balance for that Distribution Date set forth on the schedule attached hereto
      as
      Exhibit O.

     

    Final
      Maturity Reserve Fund

    The
      account established and maintained by the Trustee pursuant to Section
      3A.03.

     

    Final
      Maturity Reserve Fund Addition Amount

    (a)
      For
      any Distribution Date prior to the Distribution Date in October 2016 (the 121st
      Distribution Date), zero, and (b) for the Distribution Date in October 2016
      and
      each Distribution Date thereafter, if a Final Maturity Deficiency exists, an
      amount equal to the product of (i) one-twelfth of the Final Maturity Reserve
      Fund Addition Rate and (ii) the aggregate principal balance of the 40 Year
      Loans
      as of the first day of the related Due Period.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    

    Final
      Maturity Reserve Fund Addition Rate

    As
      to any
      Distribution Date, 0.80% per annum.

     

    FIRREA

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

     

    Fixed
      Swap Payment

    As
      to any
      Distribution Date, a fixed amount equal to the product of (a) the Fixed Rate
      (as
      defined in the Swap Agreement), (b) the Swap Notional Balance and (c) a
      fraction, the numerator of which is 30 (or, for the first Fixed Rate Payer
      Payment Date, the number of days elapsed from the Closing Date to but excluding
      the first Fixed Rate Payer Payment Date), and the denominator of which is
      360.

     

    Floating
      Swap Payment

    As
      to any
      Distribution Date, a floating amount equal to the product of (a) Swap LIBOR,
      (b)
      the Swap Notional Balance and (c) a fraction, the numerator of which is the
      actual number of days elapsed from and including the previous Floating Rate
      Payer Payment Date (as defined in the Swap Agreement) to but excluding the
      current Floating Rate Payer Payment Date (or, for the first Floating Rate Payer
      Payment Date, the actual number of days elapsed from the Closing Date to but
      excluding the first Floating Rate Payer Payment Date), and the denominator
      of
      which is 360.

     

    FMRF
      Distribution Amount

    As
      defined in Section 4.02(i).

    

    FNMA

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

     

    Indirect
      Participant

    A
      broker,
      dealer, bank or other financial institution or other Person that clears through
      or maintains a custodial relationship with a Depository
      Participant.

     

    Initial
      Certificate Account Deposit

    As
      defined in Section 2.01(a).

     

    Insurance
      Policy

    With
      respect to any Loan included in the Trust Fund, any insurance policy, and
      including all riders and endorsements thereto in effect, including any
      replacement policy or policies for any Insurance Policies.

     

    Insurance
      Proceeds

    Proceeds
      paid by an insurer pursuant to any Insurance Policy, in each case other than
      any
      amount included in such Insurance Proceeds in respect of Insured
      Expenses.

     

    Insured
      Expenses

    Expenses
      covered by an Insurance Policy.

     

    Interest
      Accrual Period

    With
      respect to the Offered Certificates and any Distribution Date, the period
      commencing on the Distribution Date in the calendar month prior to the month
      of
      such Distribution Date (or on the Closing Date with respect to the first
      Distribution Date) and ending on the day preceding such Distribution Date.
      With
      respect to the Class X Certificates and each of the REMIC 1 Regular Interests
      and REMIC 2 Regular Interests and any Distribution Date, the calendar month
      preceding such Distribution Date.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    Interest
      Distribution Amount

    With
      respect to any Distribution Date and each Class of the Offered Certificates,
      the
      amount of interest accrued during the related Interest Accrual Period at the
      Pass-Through Rate for such Class on the related Class Certificate Balance,
      reduced by such Class’ pro rata share of the amount of (a) Net Prepayment
      Interest Shortfalls and (b) Relief Act Reductions incurred on the Loans during
      the related Due Period (each such Class’ pro rata share to be based on the
      amount of interest to which such Class would have been entitled notwithstanding
      such Net Prepayment Interest Shortfalls and Relief Act Reductions).

     

    Interest
      Remittance Amount

    With
      respect to any Determination Date, the sum, without duplication, of (a) all
      interest collected or advanced on the Loans during the related Due Period and
      (b) the portion of any Substitution Adjustment Amount, Termination Price,
      Purchase Price, or Liquidation Proceeds, relating to interest and received
      during the related Prepayment Period.

    

    Investment
      Letter

    As
      defined in Section 5.02(b).

     

    Latest
      Possible Maturity Date

    The
      Distribution Date following the third anniversary of the scheduled maturity
      date
      of the Loan having the latest scheduled maturity date as of the Cut-off
      Date.

     

    Last
      Scheduled Distribution Date

    The
      Distribution Date in November 2036.

     

    LIBOR

    As
      of any
      LIBOR Determination Date, the London interbank offered rate for one-month United
      States dollar deposits which appears in the Moneyline Telerate Page 3750 as
      of
      11:00 a.m., London time, on that date. If the rate does not appear on Moneyline
      Telerate Page 3750, the rate for that day will be determined on the basis of
      the
      rates at which deposits in United States dollars are offered by the Reference
      Banks at approximately 11:00 a.m. (London time), on that day to prime banks
      in
      the London interbank market. The Trustee will request the principal London
      office of each of the Reference Banks to provide a quotation of its rate. If
      at
      least two quotations are provided, the rate for that day will be the arithmetic
      mean of the quotations (rounded upwards if necessary to the nearest whole
      multiple of 1/16%). If fewer than two quotations are provided as requested,
      the
      rate for that day will be the arithmetic mean of the rates quoted by major
      banks
      in New York City, selected by the Trustee in consultation with the Servicer,
      at
      approximately 11:00 a.m. (New York City time) on that day for loans in United
      States dollars to leading European banks.

     

    LIBOR
      Determination Date

    With
      respect to any Interest Accrual Period for the Offered Certificates, the second
      London business day preceding the commencement of such Interest Accrual Period.
      For purposes of determining LIBOR, a “London business day” is any day on which
      dealings in deposits of United States dollars are transacted in the London
      interbank market.

     

    Liquidated
      Loan

    With
      respect to any Distribution Date, a defaulted Loan (including any REO Property)
      that was liquidated in the related Prepayment Period Date and as to which the
      Servicer has determined (in accordance with this Agreement) that it has received
      all amounts it expects to receive in connection with the liquidation of such
      Loan, including the final disposition of an REO Property.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    Liquidation
      Proceeds

    Amounts,
      including Insurance Proceeds, received in connection with the partial or
      complete liquidation of defaulted Loans, whether through trustee’s sale,
      foreclosure sale or otherwise or amounts received in connection with any
      condemnation or partial release of a Mortgaged Property and any other proceeds
      received in connection with an REO Property other than Recoveries, less the
      Servicing Amount applicable to such defaulted Loans.

     

    Loans

    The
      mortgage loans identified on the Loan Schedule.

     

    Loan
      Schedule

    As
      of any
      date, the list of Loans included in the Trust Fund on such date, attached hereto
      as Schedule I (as from time to time amended by the Servicer to reflect the
      addition of Substitute Loans and the deletion of Deleted Loans pursuant to
      the
      provisions of this Agreement), setting forth the following information with
      respect to each Loan:

     

    
      	(a)  	
              the
                loan number;

            

    

    

    
      	(b)  	
              the
                Mortgagor’s name and the state in which the Mortgaged Property is located,
                including the zip code;

            

    

    

    
      	(c)  	
              the
                maturity date;

            

    

    

    
      	(d)  	
              the
                Cut-off Date Principal Balance;

            

    

    

    
      	(e)  	
              the
                first payment date of the Loan;

            

    

    

    
      	(f)  	
              lien
                position (either first or second);

            

    

    

    
      	(g)  	
              the
                Scheduled Payment in effect as of the Cut-off Date;
                

            

    

    

    
      	(h)  	
              the
                current Mortgage Rate; 

            

    

    

    
      	(i)  	
              the
                principal balance of the Loan at origination;
                and

            

    

    

    
      	(j)  	
              if
                applicable, the MIN assigned to such
                Loan.

            

    

    

    Majority
      in Interest

    As
      to
      each Class of Offered Certificates, the Holders of Certificates of such Class
      evidencing, in the aggregate, at least 51% of the Percentage Interests evidenced
      by all Certificates of such Class.

     

    MERS
      (R)

    Mortgage
      Electronic Registration Systems, Inc., or its successors in
      interest.

    

    MERS
      (R) System

    That
      certain electronic registry system maintained by MERSCORP, Inc., or its
      successors

    in
      interest.

    

    MIN

    The
      Mortgage Identification Number assigned by MERS (R) to a MOM Loan.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    

    MOM
      Loan

    Any
      Loan
      as to which MERS (R) is acting as mortgagee solely as nominee for the

    originator
      of such Loan and its successors and assigns.

    

    Monthly
      Excess Cashflow Amount

    The
      sum
      of the Monthly Excess Interest Amount, the Overcollateralization Release Amount
      and the Remaining Principal Distribution Amount.

     

    Monthly
      Excess Interest Amount 

    As
      to any
      Distribution Date, an amount equal to any Remaining Interest Remittance Amount
      remaining after the distributions set forth in clauses (ii)(A) through (ii)(I)
      of Section 4.02(a).

     

    Monthly
      Statement

    The
      statement prepared by the Trustee pursuant to Section 4.03.

     

    Moody’s

    Moody’s
      Investors Service, Inc., or any successor thereto. For purposes of Section
      10.05(b) the address for notices to Moody’s shall be Moody’s Investors Service,
      Inc., 99 Church Street, New York, New York 10007, Attention: Residential
      Mortgage Monitoring Department, or such other address as Moody’s may hereafter
      furnish to the Depositor or the Servicer.

     

    Mortgage

    The
      mortgage, deed of trust or other instrument creating a first lien on an estate
      in fee simple or leasehold interest in real property securing a Mortgage
      Note.

     

    Mortgaged
      Property

    The
      underlying property securing a Loan.

     

    Mortgage
      File

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

     

    Mortgage
      Note

    The
      original executed note or other evidence of indebtedness evidencing the
      indebtedness of a Mortgagor under a Loan, together with any amendment or
      modification thereto.

     

    Mortgage
      Rate

    The
      annual rate of interest borne by a Mortgage Note as set forth
      therein.

     

    Mortgagor

    The
      obligor(s) on a Mortgage Note.

     

    Net
      Prepayment Interest Shortfalls

    As
      to any
      Distribution Date, the amount by which the aggregate of Prepayment Interest
      Shortfalls during the related Prepayment Period exceeds an amount equal to
      the
      aggregate Servicing Fee for such Distribution Date before reduction of the
      Servicing Fee in respect of such Prepayment Interest Shortfalls.

     

    Net
      Realized Losses 

    For
      any
      Class of Subordinated Certificates and any Distribution Date, the excess of
      (a)
      the amount of unreimbursed Realized Losses previously allocated to that Class
      over (b) the sum of (i) the amount of any increases to the Class Certificate
      Balance of that Class pursuant to Section 4.02A due to Recoveries and (ii)
      Realized Loss Amortization Amounts previously distributed to such
      Class.

     

    
      
        
        

      

      
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    Net
      Recovery Realized Losses

    For
      any
      Class of Subordinated Certificates and any Distribution Date, the excess of
      Net
      Realized Losses for such Distribution Date over the Realized Loss Amortization
      Amount distributed to that Class on that Distribution Date.

     

    Net
      Swap Payment

    As
      to any
      Distribution Date in the case of payments to be made by (a) the External Trust
      to the Swap Counterparty, the excess, if any, of, (i) the Fixed Swap Payment
      over (ii) the Floating Swap Payment and (b) the Swap Counterparty to the
      External Trust, the excess, if any, of (i) the Floating Swap Payment over (ii)
      the Fixed Swap Payment.

     

    Net
      WAC Cap

    As
      to any
      Distribution Date, the per annum rate equal to the product of (a) the excess
      if
      any, of (i) the Net WAC Rate, over (ii) the percentage equivalent of the
      quotient obtained by dividing (A) the product of (1) the sum of (x) the Net
      Swap
      Payment, if any, owed to the Swap Counterparty for that Distribution Date and
      (y) the Swap Termination Payment (other than any Swap Termination Payment
      resulting from a Swap Counterparty Trigger Event), if any, owed to the Swap
      Counterparty for that Distribution Date, and (2) 12, by (B) the aggregate
      principal balance of the Loans as of the first day of the related Due Period,
      and (b) the quotient obtained by dividing 30 by the actual number of days
      elapsed in the related Interest Accrual Period.

     

    Net
      WAC Cap Account

    The
      account established and maintained pursuant to Section 3A.04.

     

    Net
      WAC Cap Carryover

    With
      respect to any Class of the Offered Certificates and any Distribution Date,
      the
      sum of (a) the excess, if any, of the Interest Distribution Amount for such
      Class for such Distribution Date, calculated at its Pass-Through Rate (without
      regard to the Net WAC Cap), over the actual Interest Distribution Amount for
      such Class for such Distribution Date, and (b) any related Net WAC Cap Carryover
      remaining unpaid from the prior Distribution Date, together with interest
      accrued thereon at its Pass-Through Rate (without regard to the Net WAC Cap)
      during the related Interest Accrual Period.

     

    Net
      WAC Rate

    As
      to any
      Distribution Date, a rate equal to the weighted average of the Adjusted Net
      Mortgage Rates of all Outstanding Loans, such weighted average to be calculated
      based on the principal balances of such Outstanding Loans as of the first day
      of
      the related Due Period.

     

    Nonrecoverable
      Advance

    Any
      portion of an Advance previously made or proposed to be made by the Servicer
      that, in the good faith judgment of the Servicer, will not be ultimately
      recoverable by the Servicer from the related Mortgagor, related Liquidation
      Proceeds or otherwise.

     

    Notice
      of Final Distribution

    The
      notice to be provided pursuant to Section 9.02 to the effect that final
      distribution on any of the Certificates shall be made only upon presentation
      and
      surrender thereof.

     

    Offered
      Certificates

    The
      certificates representing “regular interests” in REMIC 3, which are designated
      as the Senior Certificates and the Subordinate Certificates.

    

    Officer’s
      Certificate

    A
      certificate (a) signed by the Chairman of the Board, the Vice Chairman of the
      Board, the President, a Managing Director, a Vice President (however
      denominated), an Assistant Vice President, the Treasurer, the Secretary, or
      one
      of the Assistant Treasurers or Assistant Secretaries of the Depositor or the
      Servicer, or (b), if provided for in this Agreement, signed by a Servicing
      Officer, as the case may be, and delivered to the Depositor and the Trustee,
      as
      the case may be, as required by this Agreement.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    Opinion
      of Counsel

    A
      written
      opinion of counsel, who may be counsel for the Depositor or the Servicer,
      including, in-house counsel, reasonably acceptable to the Trustee; provided,
      however,
      that
      with respect to the interpretation or application of the REMIC Provisions,
      such
      counsel must (a) in fact be independent of the Depositor and the Servicer,
      (b)
      not have any direct financial interest in the Depositor or the Servicer or
      in
      any affiliate of either, and (c) not be connected with the Depositor or the
      Servicer as an officer, employee, promoter, underwriter, trustee, partner,
      director or person performing similar functions.

     

    Optional
      Termination Date

    The
      first
      Distribution Date following the date on which the Optional Termination may
      be
      exercised by the Servicer.

     

    Optional
      Termination

    The
      termination of the trust created hereunder in connection with the purchase
      of
      the Loans pursuant to Section 9.01(a) hereof.

     

    Original
      Loan

    The
      mortgage loan refinanced in connection with the origination of a Refinance
      Loan.

     

    OTS

    The
      Office of Thrift Supervision.

     

    Outstanding

    With
      respect to the Certificates as of any date of determination, all Certificates
      theretofore executed and authenticated under this Agreement except (a)
      Certificates theretofore canceled by the Trustee or delivered to the Trustee
      for
      cancellation; and (b) Certificates in exchange for which or in lieu of which
      other Certificates have been executed and delivered by the Trustee pursuant
      to
      this Agreement.

     

    Outstanding
      Loan

    As
      of any
      Due Date, a Loan with a Stated Principal Balance greater than zero, which was
      not the subject of a Principal Prepayment in Full prior to such Due Date and
      which did not become a Liquidated Loan prior to such Due Date.

     

    Overcollateralization
      Amount

    As
      of any
      Distribution Date, (a) the Pool Principal Balance as of the last day of the
      immediately preceding Due Period minus (b) the aggregate Class Certificate
      Balance of all Classes of Offered Certificates (after taking into account all
      distributions of principal on that Distribution Date).

     

    Overcollateralization
      Deficiency

    As
      of any
      Distribution Date, the excess, if any, of (a) the Targeted Overcollateralization
      Amount for that Distribution Date over (b) the Overcollateralization Amount
      for
      that Distribution Date, calculated for this purpose after taking into account
      the reduction on that Distribution Date of the Class Certificate Balances of
      all
      Classes of Offered Certificates resulting from the distribution of the related
      Basic Principal Distribution Amount on that Distribution Date, but prior to
      taking into account any Applied Realized Loss Amounts on that Distribution
      Date.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Overcollateralization
      Release Amount

    With
      respect to any Distribution Date on or after the Stepdown Date on which a
      Trigger Event is not in effect, the lesser of (a) the Principal Remittance
      Amount for that Distribution Date and (b) the excess, if any, of (i) the
      Overcollateralization Amount for that Distribution Date, assuming that 100%
      of
      the Principal Remittance Amount is applied as a principal payment on the
      Certificates on that Distribution Date, over (ii) the Targeted
      Overcollateralization Amount for that Distribution Date. With respect to any
      Distribution Date before the Stepdown Date or on which a Trigger Event is in
      effect, the Overcollateralization Release Amount will be zero.

     

    Ownership
      Interest

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

     

    Pass-Through
      Rate

    With
      respect to each Class of Certificates, as set forth in the Preliminary
      Statement.

     

    Paying
      Agent

    JPMorgan
      Chase Bank, N.A. and its successors and, if a successor paying agent is
      appointed hereunder, such successor.

     

    Percentage
      Interest

    As
      to any
      Offered Certificate, the percentage interest evidenced thereby in distributions
      required to be made to such Offered Certificate, such percentage interest being
      set forth on the face thereof or equal to the percentage obtained by dividing
      the Denomination of such Certificate by the aggregate of the Denominations
      of
      all Certificates of the same Class. With respect to the Class X Certificates
      and
      the Class R Certificates, the “Percentage Interest” specified on the face
      thereof.

     

    Permitted
      Investments

    (a)
      obligations of the United States or any agency thereof, provided such
      obligations are backed by the full faith and credit of the United States;
      (b) general obligations of or obligations guaranteed by any state of the
      United States or the District of Columbia receiving the highest long-term debt
      rating of each Rating Agency rating the Offered Certificates, or such lower
      rating as will not result in the downgrading or withdrawal of the ratings then
      assigned to the Offered Certificates by each such Rating Agency;
      (c) commercial or finance company paper which is then receiving the highest
      commercial or finance company paper rating of each such Rating Agency, or such
      lower rating as will not result in the downgrading or withdrawal of the ratings
      then assigned to the Offered Certificates by each such Rating Agency;
      (d) certificates of deposit, demand or time deposits, or bankers’
acceptances issued by any depository institution or trust company incorporated
      under the laws of the United States or of any state thereof and subject to
      supervision and examination by federal and/or state banking authorities,
      provided that the commercial paper and/or long term unsecured debt obligations
      of such depository institution or trust company (or in the case of the principal
      depository institution in a holding company system, the commercial paper or
      long-term unsecured debt obligations of such holding company, but only if
      Moody’s is not a Rating Agency) are then rated one of the two highest long-term
      and the highest short-term ratings of each such Rating Agency for such
      securities, or such lower ratings as will not result in the downgrading or
      withdrawal of the rating then assigned to the Offered Certificates by any such
      Rating Agency; (e) demand or time deposits or certificates of deposit
      issued by any bank or trust company or savings institution to the extent that
      such deposits are fully insured by the FDIC; (f) guaranteed reinvestment
      agreements issued by any bank, insurance company or other corporation
      containing, at the time of the issuance of such agreements, such terms and
      conditions as will not result in the downgrading or withdrawal of the rating
      then assigned to the Offered Certificates by any such Rating Agency; (g)
      repurchase obligations with respect to any security described in clauses (a)
      and
      (b) above, in either case entered into with a depository institution or trust
      company (acting as principal) described in clause (d) above; (h) securities
      (other than stripped bonds, stripped coupons or instruments sold at a purchase
      price in excess of 115% of the face amount thereof) bearing interest or sold
      at
      a discount issued by any corporation incorporated under the laws of the United
      States or any state thereof which, at the time of such investment, have one
      of
      the two highest ratings of each such Rating Agency (except if the Rating Agency
      is Moody’s or S&P, the rating shall be the highest commercial paper rating
      of Moody’s or S&P, as applicable, for such securities), or such lower rating
      as will not result in the downgrading or withdrawal of the rating then assigned
      to the Offered Certificates by any such Rating Agency, as evidenced by a signed
      writing delivered by each such Rating Agency; (i) interests in any money market
      fund which at the date of acquisition of the interests in the fund and
      throughout the time those interests are held in the fund has the highest
      applicable rating of each such Rating Agency or such lower rating as will not
      result in the downgrading or withdrawal of the ratings then assigned to the
      Offered Certificates by each such Rating Agency; (j) short term investment
      funds
      sponsored by any trust company or national banking association incorporated
      under the laws of the United States or any state thereof which on the date
      of
      acquisition has been rated by each such Rating Agency in its highest applicable
      rating category or such lower rating as will not result in the downgrading
      or
      withdrawal of the ratings then assigned to the Offered Certificates by each
      such
      Rating Agency; and (k) such other investments having a specified stated
      maturity and bearing interest or sold at a discount acceptable to each such
      Rating Agency as will not result in the downgrading or withdrawal of the rating
      then assigned to the Offered Certificates by any Rating Agency, as evidenced
      by
      a signed writing to such effect delivered by each such Rating Agency;
provided
      that no
      such instrument shall be a Permitted Investment if such instrument evidences
      the
      right to receive interest only payments with respect to the obligations
      underlying such instrument.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    Permitted
      Transferee

    Any
      person other than (a) the United States, any State or political subdivision
      thereof, or any agency or instrumentality of any of the foregoing, (b) a foreign
      government, International Organization or any agency or instrumentality of
      either of the foregoing, (c) an organization (except certain farmers’
cooperatives described in section 521 of the Code) which is exempt from tax
      imposed by Chapter 1 of the Code (including the tax imposed by section 511
      of
      the Code on unrelated business taxable income) on any excess inclusions (as
      defined in section 860E(c)(l) of the Code) with respect to any Class R
      Certificate, (d) rural electric and telephone cooperatives described in section
      1381(a)(2)(C) of the Code, (e) a Person that is not (i) a citizen or resident
      of
      the United States, (ii) a corporation or partnership (or other entity properly
      treated as a corporation or partnership for U.S. federal income tax purposes)
      created or organized in or under the laws of the United States or any political
      subdivision thereof, (iii) an estate whose income from sources without the
      United States is includible in gross income for United States federal income
      tax
      purposes regardless of its connection with the conduct of a trade or business
      within the United States, or (iv) a trust if a court within the United States
      is
      able to exercise primary supervision over the administration of the trust and
      one or more United States Persons have authority to control all substantial
      decisions of the trust, unless such Person listed in clause (i), (ii), (iii)
      or
      (iv) above has furnished the transferor and the Trustee with a duly completed
      Internal Revenue Service Form W-8ECI and (f) any other Person so designated
      by
      the Depositor based upon an Opinion of Counsel that the Transfer of an Ownership
      Interest in a Class R Certificate to such Person may cause any REMIC hereunder
      to fail to qualify as one or more REMICs at any time that the Certificates
      are
      outstanding. The terms “United States,” “State” and “International Organization”
shall have the meanings set forth in section 7701 of the Code or successor
      provisions. A corporation will not be treated as an instrumentality of the
      United States or of any State or political subdivision thereof for these
      purposes if all of its activities are subject to tax and, with the exception
      of
      the Federal Home Loan Mortgage Corporation, a majority of its board of directors
      is not selected by such government unit.

     

    Person

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

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    Plan

    As
      defined in Section 5.02(a).

    

    Pool
      Principal Balance

    With
      respect to any Distribution Date, the aggregate of the Stated Principal Balances
      of the Loans that were Outstanding Loans (including Loans in foreclosure and
      REO
      Properties) on their Due Dates in the related Due Period.

     

    Popular
      Financial

    Popular
      Financial Services, LLC, a Delaware limited liability company.

    

    Preliminary
      Prospectus Supplement

    The
      Preliminary Prospectus Supplement dated September 13, 2006, relating to the
      Publicly Offered Certificates.

     

    Post-Stepdown
      Remaining Principal Distribution Amount

    With
      respect to any Distribution Date is an amount equal to the Principal
      Distribution Amount remaining after giving effect to the distributions set
      forth
      in clause (i) of Section 4.02(c) hereof.

    

    Pre-Stepdown
      Remaining Principal Distribution Amount

    With
      respect to any Distribution Date is an amount equal to the Principal
      Distribution Amount remaining after giving effect to the distributions set
      forth
      in clause (i) of Section 4.02(b) hereof.

    

    Prepayment
      Interest Excess

    As
      to any
      Principal Prepayment on a Loan received by the Servicer subsequent to its Due
      Date in the related Prepayment Period, all amounts paid by the related Mortgagor
      in respect of interest on such Principal Prepayment that are intended to cover
      the period on and after the Due Date. All Prepayment Interest Excess shall
      be
      paid to the Servicer as additional servicing compensation.

     

    Prepayment
      Interest Shortfall

    As
      to any
      Distribution Date and any Principal Prepayment on a Loan received by the
      Servicer on or before its Due Date in the related Prepayment Period, the amount,
      if any, by which one month’s interest at the related Adjusted Mortgage Rate on
      such Principal Prepayment, exceeds the amount of interest paid in connection
      with such Principal Prepayment.

     

    Prepayment
      Period

    With
      respect to any Distribution Date, the calendar month preceding the month of
      that
      Distribution Date.

     

    Primary
      Mortgage Insurance Policy

    Each
      policy of primary mortgage guaranty insurance or any replacement policy therefor
      with respect to any Loan.

     

    Principal
      Distribution Amount

    With
      respect to any Distribution Date, the sum of (a) the Basic Principal
      Distribution Amount for that Distribution Date, (b) the Extra Principal
      Distribution Amount for that Distribution Date, (c) the Swap Extra Principal
      Distribution Amount for that Distribution Date and (d) the Cap Extra Principal
      Distribution Amount for that Distribution Date.

    

    Principal
      Prepayment

    Any
      payment of principal by a Mortgagor on a Loan that is received in advance of
      its
      scheduled Due Date and is not accompanied by an amount representing scheduled
      interest due on any date or dates in any month or months subsequent to the
      month
      of prepayment. Partial Principal Prepayments shall be applied by the Servicer
      in
      accordance with the terms of the related Mortgage Note.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    Principal
      Prepayment in Full

    Any
      Principal Prepayment made by a Mortgagor of the entire principal balance of
      a
      Loan.

     

    Principal
      Remittance Amount

    As
      to any
      Distribution Date, the sum of (a) the principal portion of each Scheduled
      Payment due on each Loan on such Loan’s Due Date in the related Due Period and
      received by the Servicer on or prior to the related Determination Date,
      including any Advances with respect thereto, (b) the Stated Principal
      Balance of each Loan that was sold or repurchased by a Seller or the Servicer
      pursuant to this Agreement as of such Distribution Date, (c) the Substitution
      Adjustment Amount in connection with any Deleted Loan received with respect
      to
      such Distribution Date, (d) any Insurance Proceeds or Liquidation Proceeds
      allocable to recoveries of principal of the Loans that are not yet Liquidated
      Loans received during the related Prepayment Period, (e) with respect to each
      Loan that became a Liquidated Loan during the related Prepayment Period, the
      amount of Liquidation Proceeds allocable to principal received during the
      related Prepayment Period with respect to such Loan, (f) all Principal
      Prepayments on the Loans received during the related Prepayment Period, (g)
      on
      the Distribution Date on which the Trust Fund is to be terminated in accordance
      with Section 9.01 hereof that portion of the Termination Price allocable to
      principal of the Loans, and (h) all Recoveries relating to Liquidated Loans
      received during the related Prepayment Period, if any. 

    

    Prospectus
      Supplement

    The
      Prospectus Supplement dated September 22, 2006, relating to the Publicly Offered
      Certificates.

     

    Publicly
      Offered Certificates

    The
      Senior Certificates and the Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5 and Class M-6 Certificates. 

     

    Purchase
      Price

    With
      respect to any Loan required to be repurchased by a Seller pursuant to Section
      2.02 or 2.03 hereof, or purchased at the option of the Servicer pursuant to
      Section 3.11 hereof, an amount equal to the sum of (a) 100% of the Stated
      Principal Balance of the Loan on the date of such purchase, (b) accrued interest
      thereon at the applicable Mortgage Rate (or at the applicable Adjusted Mortgage
      Rate if (i) the purchaser is the Servicer or (ii) the purchaser is a Seller
      and
      Equity One-Delaware is the Servicer) from the date through which interest was
      last paid by the Mortgagor or advanced (and not reimbursed) by the Servicer
      to
      the Determination Date in the month in which the Purchase Price is to be
      distributed to Certificateholders, and (c) any costs and damages incurred by
      the
      Trust Fund in connection with such Loan.

     

    PTCE

    As
      defined in Section 5.02(a).

     

    Rating
      Agency

    Moody’s
      and S&P. If any of these organizations or a successor thereof is no longer
      in existence, “Rating Agency” shall be such nationally recognized statistical
      rating organization, or other comparable Person, as is designated by the
      Depositor, notice of which designation shall be given to the Trustee. References
      herein to a given rating category of a Rating Agency shall mean such rating
      category without giving effect to any modifiers.

     

    Realized
      Loss Amount

    With
      respect to each Distribution Date, the excess, if any, of (a) the aggregate
      of
      the Class Certificate Balances of the Offered Certificates (after giving effect
      to all distributions on such Distribution Date) over (b) the Pool Principal
      Balance at the end of the related Due Period. 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    Realized
      Losses

    With
      respect to any Distribution Date, the sum of (a) the aggregate amount, if any,
      by which (i) the outstanding principal balance of each Loan that became a
      Liquidated Loan during the related Prepayment Period (such principal balance
      determined immediately before such Loan became a Liquidated Loan) exceeds (ii)
      the Liquidation Proceeds allocable to principal received during the related
      Prepayment Period in connection with the liquidation of such Loan which have
      not
      theretofore been used to reduce the Stated Principal Balance of such Loan,
      and
      (b) any Deficient Valuations.

     

    Realized
      Loss Amortization Amount

    With
      respect to (a) the Class M-1 Certificates, the sum of the Class M-1 Realized
      Loss Amortization Amount, the Cap Class M-1 Realized Loss Amortization Amount
      and the Swap Class M-1 Realized Loss Amortization Amount, (b) the Class M-2
      Certificates, the sum of the Class M-2 Realized Loss Amortization Amount, the
      Cap Class M-2 Realized Loss Amortization Amount and the Swap Class M-2 Realized
      Loss Amortization Amount, (c) the Class M-3 Certificates, the sum of the Class
      M-3 Realized Loss Amortization Amount, the Cap Class M-3 Realized Loss
      Amortization Amount and the Swap Class M-3 Realized Loss Amortization Amount,
      (d) the Class M-4 Certificates, the sum of the Class M-4 Realized Loss
      Amortization Amount, the Cap Class M-4 Realized Loss Amortization Amount and
      the
      Swap Class M-4 Realized Loss Amortization Amount, (e) the Class M-5
      Certificates, the sum of the Class M-5 Realized Loss Amortization Amount, the
      Cap Class M-5 Realized Loss Amortization Amount and the Swap Class M-5 Realized
      Loss Amortization Amount, (f) the Class M-6 Certificates, the sum of the Class
      M-6 Realized Loss Amortization Amount, the Cap Class M-6 Realized Loss
      Amortization Amount and the Swap Class M-6 Realized Loss Amortization Amount,
      (g) the Class B-1 Certificates, the sum of the Class B-1 Realized Loss
      Amortization Amount, the Cap Class B-1 Realized Loss Amortization Amount and
      the
      Swap Class B-1 Realized Loss Amortization Amount, (h) the Class B-2
      Certificates, the sum of the Class B-2 Realized Loss Amortization Amount, the
      Cap Class B-2 Realized Loss Amortization Amount and the Swap Class B-2 Realized
      Loss Amortization Amount and (i) the Class B-3 Certificates, the sum of the
      Class B-3 Realized Loss Amortization Amount, the Cap Class B-3 Realized Loss
      Amortization Amount and the Swap Class B-3 Realized Loss Amortization
      Amount.

     

    Record
      Date

    With
      respect to the Offered Certificates and any Distribution Date, the close of
      business on the Business Day immediately preceding such Distribution
      Date.

     

    Recovery 

    With
      respect to any Distribution Date and Loan that became a Liquidated Loan in
      a
      month preceding the month prior to the Distribution Date, an amount received
      in
      respect of principal on such Loan which has previously been allocated as a
      Realized Loss to a Class or Classes of Certificates, net of reimbursable
      expenses.

    

    Reference
      Banks

    Any
      three
      (3) major banks engaged in transactions in Eurodollar deposits in the
      international Eurocurrency market selected by the Trustee after consultation
      with the Servicer.

     

    Regulation
      AB

    Subpart
      229.1100 - Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to
      such clarification and interpretation as have been provided by the Commission
      in
      the adopting release (Asset-Backed Securities, Securities Act Release No.
      33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the
      Commission, or as may be provided by the Commission or its staff from time
      to
      time.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    Refinance
      Loan

    Any
      Loan
      originated for the purpose of refinancing an existing mortgage
      loan.

     

    Relief
      Act

    The
      Servicemembers Civil Relief Act, as amended.

     

    Relief
      Act Reductions

    With
      respect to any Distribution Date and any Loan as to which there has been a
      reduction in the amount of interest collectible thereon for the most recently
      ended calendar month as a result of the application of the Relief Act, the
      amount, if any, by which (a) interest collectible on such Loan for the most
      recently ended calendar month is less than (b) interest accrued thereon for
      such
      month pursuant to the Mortgage Note without taking into account the application
      of the Relief Act.

     

    Remaining
      Excess Interest Amount

    With
      respect to any Distribution Date, the Monthly Excess Cashflow Amount remaining
      after giving effect to the distributions set forth in clauses (i) through
      (xxxiii) of Section 4.02(d) for that Distribution Date.

     

    Remaining
      Interest Remittance Amount

    With
      respect to any Distribution Date, an amount equal to the Interest Remittance
      Amount remaining after giving effect to the distributions set forth in clause
      (i) of Section 4.02(a).

    

    Remaining
      Overcollateralization Release Amount

    With
      respect to any Distribution Date, (a) on or after the Stepdown Date on which
      a
      Trigger Event is not in effect, the lesser of (i) the Monthly Excess Cashflow
      Amount remaining after giving effect to the distributions set forth in clauses
      (i) through (xxxi) of Section 4.02(d) for that Distribution Date and (ii) the
      Overcollateralization Release Amount for that Distribution Date or (b) before
      the Stepdown Date or on which a Trigger Event is in effect, zero.

    

    Remaining
      Principal Distribution Amount

    With
      respect to any Distribution Date, the sum of (a) the Pre-Stepdown Remaining
      Principal Distribution Amount remaining after the distributions set forth in
      clause (ii)(A)
      through (ii)(I) of
      Section 4.02(b) and (b) the Post-Stepdown Remaining Principal Distribution
      Amount remaining after the distributions set forth in clauses (ii)(A)
      through (ii)(I) of
      Section 4.02(c), each for that Distribution Date.

    

    REMIC

    A
“real
      estate mortgage investment conduit” within the meaning of section 860D of the
      Code.

     

    REMIC
      1

    As
      defined in the Preliminary Statement.

     

    REMIC
      1 Regular Interest

    As
      defined in the Preliminary Statement.

     

    REMIC
      2

    As
      defined in the Preliminary Statement.

     

    REMIC
      2 Net WAC Cap

    For
      any
      Distribution Date, a per annum rate equal to the product of (i) the weighted
      average of the interest rates on the REMIC 2 Regular Interests (other than
      the
      Class LT-Reserve-IO and Class LT-Swap-IO interests) multiplied by (ii) the
      quotient of thirty (30) divided by the actual number of days in the Interest
      Accrual Period for the Offered Certificates.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    REMIC
      2 Regular Interest

    As
      defined in the Preliminary Statement.

     

    REMIC
      3

    As
      defined in the Preliminary Statement. 

     

    REMIC
      3 Regular Interest

    With
      respect to each Class of Offered Certificates, all of the rights to
      distributions of principal and interest on such Class, provided, however, that
      the Pass-Through Rate for the regular interest component of each such Class
      of
      Offered Certificate shall be computed by substituting the REMIC 2 Net WAC Cap
      for the Net WAC Cap, and the rights of such Class to receive payments in respect
      of Net WAC Cap Carryover and the obligation to pay Class I Shortfalls shall
      not
      be treated as part of the regular interest component of such Class. With respect
      to the Class X Certificates, each of the four components described in footnote
      14 to the table for REMIC 3. 

     

    REMIC
      Change of Law

    Any
      proposed, temporary or final regulation, revenue ruling, revenue procedure
      or
      other official announcement or interpretation relating to REMICs and the REMIC
      Provisions issued after the Closing Date.

     

    REMIC
      Provisions

    Provisions
      of the federal income tax law relating to real estate mortgage investment
      conduits, which appear at sections 860A through 860G of part IV of subchapter
      M
      of chapter 1 of subtitle A of the Code, and related provisions, and regulations
      promulgated thereunder, as the foregoing may be in effect from time to time,
      as
      well as provisions of applicable state laws.

     

    REO
      Property

    A
      Mortgaged Property acquired by the Trust Fund through foreclosure or
      deed-in-lieu of foreclosure in connection with a defaulted Loan.

     

    Request
      for Release

    The
      Request for Release submitted by the Servicer to the Trustee, substantially
      in
      the form of Exhibit J.

     

    Required
      Insurance Policy

    With
      respect to any Loan, any insurance policy that is required to be maintained
      from
      time to time under this Agreement.

     

    Responsible
      Officer

    When
      used
      with respect to the Trustee, any officer assigned to the Corporate Trust
      Division of the Trustee (or any successor thereto), including any Vice
      President, any Assistant Vice President, the Secretary, any Assistant Secretary,
      any Trust Officer or any other officer of the Trustee customarily performing
      functions similar to those performed by any of the above designated officers
      and
      having direct responsibility for the administration of this
      Agreement.

     

    Rule
      144A Letter

    As
      defined in Section 5.02(b).

     

    Scheduled
      Payment

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

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    Second
      Lien Loan

    Any
      Loan
      secured by a mortgage that is second in lien priority.

     

    Securities
      Act

    The
      Securities Act of 1933, as amended.

     

    Sellers

    Collectively,
      the following entities, their successors and assigns, each in its capacity
      as a
      Seller of the Loans to the Depositor: Equity One-Delaware; Equity
      One-Pennsylvania; Equity One-Minnesota; Equity One-New Hampshire; and Popular
      Financial. 

     

    Senior
      Certificates

    The
      Class
      A-1, Class A-2 and Class A-3 Certificates.

     

    Senior
      Enhancement Percentage

    With
      respect to any Distribution Date, the percentage obtained by dividing (a) the
      sum of (i) the aggregate Class Certificate Balance of the Subordinate
      Certificates and (ii) the Overcollateralization Amount, in each case before
      taking into account the distribution of the Principal Distribution Amount on
      that Distribution Date by (b) the Pool Principal Balance as of the last day
      of
      the related Due Period.

     

    Senior
      Principal Distribution Amount

    As
      of any
      Distribution Date on or after the Stepdown Date and as long as a Trigger Event
      is not in effect, the lesser of (i) the Principal Distribution Amount for that
      Distribution Date and (ii) the excess, if any, of (A) the sum of the Class
      Certificate Balances of the Senior Certificates immediately prior to that
      Distribution Date over (B) the lesser of (1) the product of (x) 40.40% and
      (y)
      the Pool Principal Balance as of the last day of the related Due Period and
      (2)
      the Pool Principal Balance as of the last day of the related Due Period minus
      the product of (x) 0.50% and (y) the Cut-off Date Pool Principal
      Balance.

     

    Senior
      Specified Enhancement Percentage

    As
      of any
      date of determination thereof, 59.60%.

     

    Servicer

    Equity
      One, Inc., a Delaware corporation, and its successors and assigns, in its
      capacity as servicer hereunder.

     

    Servicer
      Advance Date

    As
      to any
      Distribution Date, the 18th day of the month in which such Distribution Date
      occurs, or if such day is not a Business Day, the next succeeding Business
      Day.

     

    Servicing
      Advances

    All
      customary, reasonable and necessary “out of pocket” costs and expenses incurred
      in the performance by the Servicer of its servicing obligations, including,
      but
      not limited to, the cost of (a) the preservation, restoration and protection
      of
      a Mortgaged Property, (b) the foreclosure, trustee’s sale, or other liquidation
      of any Mortgage or Mortgaged Property, (c) any expenses reimbursable to the
      Servicer pursuant to Section 3.11 and any enforcement or judicial proceedings,
      including foreclosures, (d) the management and liquidation of any REO Property,
      (e) compliance with the obligations described in Section 3.06 and (f) any
      payments made by the Servicer pursuant to Section 3.09.

     

    Servicing
      Amount

    The
      sum
      of (a) the Servicing Fee, (b) unreimbursed Advances and (c) unreimbursed
      Servicing Advances.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    Servicing
      Criteria

    The
      “servicing criteria” set forth in Item 1122(d) of Regulation AB.

    

    Servicing
      Fee

    As
      to
      each Loan and any Distribution Date, an amount payable out of each full payment
      of interest received on such Loan and equal to one-twelfth of the Servicing
      Fee
      Rate multiplied by the Stated Principal Balance of such Loan as of the Due
      Date
      in the month of such Distribution Date (prior to giving effect to any Scheduled
      Payments due on such Loan on such Due Date), subject to reduction as provided
      in
      Section 3.13.

     

    Servicing
      Fee Rate

    With
      respect to each Loan, 0.50% per annum.

     

    Servicing
      Officer

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

     

    S&P

    Standard
      & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. For
      purposes of Section 10.05(b) the address for notices to S&P shall be
      Standard & Poor’s Ratings Services, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention: Residential Mortgage Surveillance, or
      such
      other address as S&P may hereafter furnish to the Depositor and the
      Servicer.

     

    Startup
      Day

    The
      Closing Date.

     

    Stated
      Principal Balance

    As
      to any
      Loan, the unpaid principal balance of such Loan as of its most recent Due Date
      as specified in the amortization schedule at the time relating thereto (before
      any adjustment to such amortization schedule by reason of any moratorium or
      similar waiver or grace period) after giving effect to any previous partial
      Principal Prepayments and Liquidation Proceeds allocable to principal (other
      than with respect to any Liquidated Loan) and to the payment of principal due
      on
      such Due Date and irrespective of any delinquency in payment by the related
      Mortgagor.

     

    Stepdown
      Date

    The
      earlier of (a) the Distribution Date on which the Class Certificate Balances
      of
      the Senior Certificates have been reduced to zero or (b) the later to occur
      of
      (i) the Distribution Date in October 2009 (the 37th Distribution Date) or (ii)
      the first Distribution Date on which the Senior Enhancement Percentage is
      greater than or equal to the Senior Specified Enhancement
      Percentage.

    

    Subordinate
      Certificates

    The
      Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class B-1, Class
      B-2
      and Class B-3 Certificates.

     

    Subservicer

    Any
      person to whom the Servicer has contracted for the servicing of all or a portion
      of the Loans pursuant to Section 3.02. The Subservicer shall initially be
      Popular Mortgage Servicing, Inc., a Delaware corporation.

     

    Substitute
      Loan

    A
      Loan
      substituted by a Seller for a Deleted Loan(s) which must, on the date of such
      substitution, as confirmed in a Request for Release, substantially in the form
      of Exhibit J, (a) have a Stated Principal Balance not in excess of, and not
      more
      than 10% less than, the Stated Principal Balance(s) of the Deleted Loans (such
      Stated Principal Balances to be measured as of the respective Due Dates in
      the
      month of substitution); (b) have an interest rate that is determined in the
      same manner as that of the Deleted Loans(s); (c) have a Mortgage Rate not lower
      than, and not more than 1% per annum higher than, that of the Deleted Loan(s);
      (d) have a Combined Loan-to-Value Ratio not higher than that of the Deleted
      Loan(s); (e) have a debt to income ratio not higher than that of the Deleted
      Loan(s); (f) have been originated pursuant to the same underwriting standards
      as
      the Deleted Loan(s); (g) have a remaining term to maturity not greater than,
      and
      not more than one year less than, that of the Deleted Loan(s); and (h) comply,
      as of the date of substitution, with each representation and warranty set forth
      or referred to in Section 2.03.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    Substitution
      Adjustment Amount

    The
      meaning ascribed to such term pursuant to Section 2.03.

     

    Swap
      Account

    The
      account established and maintained by the Trustee pursuant to Section
      3A.01.

     

    Swap
      Agreement

    The
      Master Agreement dated as of September 28, 2006 (including the Schedule thereto
      and the Transaction (as defined in the Swap Agreement) thereunder evidenced
      by
      the Confirmation (as defined in the Swap Agreement) bearing the reference number
      N512429N dated as of September 28, 2006), relating to the Transaction, by and
      between the Swap Counterparty and the Trustee not in its individual capacity,
      but solely as trustee of the External Trust relating to the Popular ABS, Inc.
      Mortgage Pass-Through Certificates, Series 2006-D.

     

    Swap
      Class B-1 Realized Loss Amortization Amount

    As
      to the
      Class B-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class B-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxx) of Section
      4.02(e) for that Distribution Date.

     

    Swap
      Class B-2 Realized Loss Amortization Amount

    As
      to the
      Class B-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class B-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxxi) of Section
      4.02(e) for that Distribution Date. 

    

    Swap
      Class B-3 Realized Loss Amortization Amount

    As
      to the
      Class B-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class B-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxxii) of Section
      4.02(e) for that Distribution Date. 

    

    Swap
      Class M-1 Realized Loss Amortization Amount

    As
      to the
      Class M-1 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-1 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i)
      through (xxiv)
      of the
      Section 4.02(e) for that Distribution Date. 

    

    Swap
      Class M-2 Realized Loss Amortization Amount

    As
      to the
      Class M-2 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-2 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxv) of Section
      4.02(e) for that Distribution Date. 

    

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    Swap
      Class M-3 Realized Loss Amortization Amount

    As
      to the
      Class M-3 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-3 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxvi) of Section
      4.02(e) for that Distribution Date.

    

    Swap
      Class M-4 Realized Loss Amortization Amount

    As
      to the
      Class M-4 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-4 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxvii) of Section
      4.02(e) for that Distribution Date. 

    

    Swap
      Class M-5 Realized Loss Amortization Amount

    As
      to the
      Class M-5 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-5 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxviii) of Section
      4.02(e) for that Distribution Date. 

    

    Swap
      Class M-6 Realized Loss Amortization Amount

    As
      to the
      Class M-6 Certificates and as of any Distribution Date, the lesser of (a) the
      Swap Unpaid Realized Loss Amount for the Class M-6 Certificates as of that
      Distribution Date and (b) the excess of (i) the Swap Distribution Amount over
      (ii) the sum of the amounts described in clauses (i) through (xxix) of Section
      4.02(e) for that Distribution Date. 

    

    Swap
      Counterparty

    Deutsche
      Bank AG, New York Branch.

     

    Swap
      Counterparty Trigger Event

    A
      Swap
      Termination Payment that is triggered upon (a) an Event of Default (as defined
      in the Swap Agreement) with respect to which the Swap Counterparty is a
      Defaulting Party (as defined in the Swap Agreement), (b) a Termination Event
      (as
      defined in the Swap Agreement) with respect to which the Swap Counterparty
      is
      the sole Affected Party (as defined in the Swap Agreement) or (c) an Additional
      Termination Event (as defined in the Swap Agreement) with respect to which
      the
      Swap Counterparty is the sole Affected Party.

     

    Swap
      Distribution Amount

    As
      defined in Section 4.02(e).

    

    Swap
      Early Termination

    The
      occurrence of an Early Termination Date (as defined in the Swap Agreement)
      under
      the Swap Agreement.

    

    Swap
      Extra Principal Distribution Amount

    As
      of any
      Distribution Date, the lesser of (a) the remaining Swap Distribution Amount
      after making all of the distributions in clauses (i) through (xxii) of Section
      4.02(e), (b) the Overcollateralization Deficiency for that Distribution Date,
      calculated after giving effect to the funding of the Extra Principal
      Distribution Amount pursuant to clause (iii) of Section 4.02(d) and (c) the
      excess of (i) the aggregate amount of Realized Losses for that Distribution
      Date
      and Realized Losses for all prior Distribution Dates (other than Realized Losses
      applied in reduction of the Class Certificate Balance of one or more classes
      of
      Subordinate Certificates) over (ii) the aggregate amount distributed pursuant
      to
      clause (xxiii) of Section 4.02(e) on all prior Distribution Dates.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    Swap
      LIBOR

    The
      per
      annum rate equal to the floating rate payable by the Swap Counterparty under
      the
      Swap Agreement.

    

    Swap
      Notional Balance

    As
      of any
      Distribution Date, the notional balance specified under the Swap Agreement
      for
      that Distribution Date.

    

    Swap
      Realized Loss Amortization Amount

    With
      respect to, (a) the Class M-1 Certificates, the Swap Class M-1 Realized Loss
      Amortization Amount, (b) the Class M-2 Certificates, the Swap Class M-2 Realized
      Loss Amortization Amount, (c) the Class M-3 Certificates, the Swap Class M-3
      Realized Loss Amortization Amount, (d) the Class M-4 Certificates, the Swap
      Class M-4 Realized Loss Amortization Amount, (e) the Class M-5 Certificates,
      the
      Swap Class M-5 Realized Loss Amortization Amount, (f) the Class M-6
      Certificates, the Swap Class M-6 Realized Loss Amortization Amount, (g) the
      Class B-1 Certificates, the Swap Class B-1 Realized Loss Amortization Amount,
      (h) the Class B-2 Certificates, the Swap Class B-2 Realized Loss Amortization
      Amount and (i) the Class B-3 Certificates, the Swap Class B-3 Realized Loss
      Amortization Amount.

    

    Swap
      Stated Termination

    August
      25, 2011, subject to the Following Business Day Convention (as such term is
      defined in the Swap Agreement).

     

    Swap
      Unpaid Realized Loss Amount

    For
      any
      class of Subordinate Certificates and as to any Distribution Date, the excess
      of
      (a) the Unpaid Realized Loss Amount with respect to that class for that
      Distribution Date over (b) the Excess Cashflow Realized Loss Amortization Amount
      paid to that Class pursuant to Section 4.02(d) on that Distribution
      Date.

    

    Swap
      Termination Payment

    As
      to any
      Distribution Date, the amount, if any, owed by the External Trust or the Swap
      Counterparty upon a Swap Early Termination.

    

    Targeted
      Overcollateralization Amount

    As
      of any
      Distribution Date, (a) prior to the Stepdown Date, the sum of (i) 1.25% of
      the
      Cut-off Date Pool Principal Balance and (ii) the Aggregate Class B Early
      Distribution Amount, and (b) on and after the Stepdown Date, the lesser of
      (i)
      the sum of (A) 1.25% of the Cut-off Date Pool Principal Balance and (B) the
      Aggregate Class B Early Distribution Amount and (ii) the greater of (A) the
      excess of (1) 13.40% of the Pool Principal Balance as of the last day of the
      related Due Period over (2) the excess of (x) the sum of the Class Certificate
      Balances of the Class B-1, Class B-2 and Class B-3 Certificates as of the
      Closing Date over (y) the aggregate of distributions made in respect of
      principal to the Class B-1, Class B-2 and Class B-3 Certificates on all prior
      Distribution Dates and (B) 0.50% of the Cut-off Date Pool Principal Balance.
      With respect to any Distribution Date on which a Trigger Event is in effect,
      the
      Targeted Overcollateralization Amount will be equal to the Targeted
      Overcollateralization Amount for the immediately preceding Distribution Date
      (after taking into account any distributions of the Aggregate Class B Early
      Distribution Amount on the immediately preceding Distribution
      Date).

     

    Tax
      Matters Person

    The
      person designated as “tax matters person” in the manner provided under Treasury
      regulation §1.860F-4(d) and temporary Treasury regulation §301.6231(a)(7)-1T.
      Initially, the Tax Matters Person shall be the Trustee.

     

    
      
        
        

      

      
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    Tax
      Matters Person Certificate

    The
      Class
      R Certificate with a Denomination of .00001%.

     

    Termination
      Price

    As
      defined in Section 9.01.

     

    Transfer

    Any
      direct or indirect transfer or sale of any Ownership Interest in a Class R
      Certificate.

     

    Transfer
      Affidavit

    As
      defined in Section 5.02(c).

     

    Transferor
      Certificate

    As
      defined in Section 5.02(b).

     

    Trigger
      Event

    With
      respect to any Distribution Date, if (a) the six-month rolling average of 60+
      Day Delinquent Loans equals or exceeds 26.85% of the Senior Enhancement
      Percentage or (b) the aggregate amount of Realized Losses incurred since the
      Cut-off Date through the last day of the calendar month immediately preceding
      that Distribution Date divided by the Cut-off Date Pool Principal Balance
      exceeds the applicable percentages set forth below with respect to that
      Distribution Date:

    

    
      	
              Distribution
                Date Occurring In

            	 	
              Percentage

            
	
              October
                2008 - September 2009

            	 	
              1.20%
                (or 1.85% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized Losses) for the
                first
                month plus an additional 1/12th
                of
                1.55% (or 1/12th of 2.30% if the Class Certificate Balances of the
                Class
                B-1, Class B-2 and Class B-3 Certificates have been reduced to zero
                and no
                part of that reduction was due to the application of Realized Losses)
                for
                each month thereafter.

            
	 	 	 
	
              October
                2009 - September 2010

            	 	
              2.75%
                (or 4.15% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized Losses) for the
                first
                month plus an additional 1/12th
                of
                1.60% (or 1/12th of 2.50% if the Class Certificate Balances of the
                Class
                B-1, Class B-2 and Class B-3 Certificates have been reduced to zero
                and no
                part of that reduction was due to the application of Realized Losses)
                for
                each month thereafter.

            

    

     

    
      
        
        

      

      
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              October
                2010- September 2011

            	 	
              4.35%
                (or 6.65% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized Losses) for the
                first
                month plus an additional 1/12th
                of
                1.30% (or 1/12th of 1.95% if the Class Certificate Balances of the
                Class
                B-1, Class B-2 and Class B-3 Certificates have been reduced to zero
                and no
                part of that reduction was due to the application of Realized Losses)
                for
                each month thereafter.

            
	 	 	 
	
              October
                2011 - September 2012

            	 	
              5.65%
                (or 8.60% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized Losses) for the
                first
                month plus an additional 1/12th
                of
                0.75% (or 1/12th of 1.15% if the Class Certificate Balances of the
                Class
                B-1, Class B-2 and Class B-3 Certificates have been reduced to zero
                and no
                part of that reduction was due to the application of Realized Losses)
                for
                each month thereafter.

            
	 	 	 
	
              October
                2012 - September 2013

            	 	
              6.40%
                (or 9.75% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized Losses) for the
                first
                month plus an additional 1/12th
                of
                0.05% (or 1/12th of 0.05% if the Class Certificate Balances of the
                Class
                B-1, Class B-2 and Class B-3 Certificates have been reduced to zero
                and no
                part of that reduction was due to the application of Realized Losses)
                for
                each month thereafter.

            
	 	 	 
	
              October
                2013 and thereafter

            	 	
              6.45%
                (or 9.80% if the Class Certificate Balances of the Class B-1, Class
                B-2
                and Class B-3 Certificates have been reduced to zero and no part
                of that
                reduction was due to the application of Realized
                Losses).

            

    

    

    Trustee

    JPMorgan
      Chase Bank, N.A. and its successors and, if a successor trustee is appointed
      hereunder, such successor.

     

    Trustee
      Fee

    As
      to any
      Distribution Date, an amount equal to one-twelfth of the Trustee Fee Rate
      multiplied by the Pool Principal Balance as of such Distribution
      Date.

     

    
      
        
        

      

      
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    Trustee
      Fee Rate

    With
      respect to each Loan, 0.02% per annum.

     

    Trust
      Fund

    The
      corpus of the trust created hereunder and referred to in the Prospectus
      Supplement as the “Issuing Entity” consisting of (a) the Loans (including,
      without limitation, the Mortgage Files relating thereto), and all interest,
      principal and other amounts received, or receivable, on or with respect thereto
      on and after the Cut-off Date to the extent not applied in computing the Cut-off
      Date Principal Balance thereof and all interest and principal payments on such
      Loans received prior to the Cut-off Date in respect of installments of interest
      and principal due thereafter; (b) the Certificate Account, the Distribution
      Account, the Net WAC Cap Account and all amounts deposited therein pursuant
      to
      the applicable provisions of this Agreement; (c) property that secured a
      Loan and has been acquired by foreclosure, deed-in-lieu of foreclosure or
      otherwise; (d) such other rights and property as are held in trust hereunder
      by
      the Trustee for the benefit of the Certificateholders (excluding the Final
      Maturity Reserve Fund, the Cap Agreement, the Cap Account, the Swap Agreement
      and the Swap Account, all of which are assets of the External Trust and are
      not
      assets of the Trust Fund); and (e) all proceeds of the conversion, voluntary
      or
      involuntary, of any of the foregoing.

     

    Trustee
      Permitted Withdrawal Amount

    Means
      an
      aggregate amount not to exceed (a) with respect to costs associated with the
      transitioning of servicing, $75,000 per servicing transition event and (b)
      with
      respect to amounts (other than the Trustee Fee) which are payable to the Trustee
      pursuant to Section 8.05 hereof, $150,000 per annum.

    

    Unpaid
      Realized Loss Amount

    For
      any
      Class of Subordinate Certificates and as to any Distribution Date, the excess
      of
      (a) the cumulative amount of Applied Realized Loss Amounts with respect to
      that
      Class for all prior Distribution Dates over (b) the sum of (i) the cumulative
      amount of Realized Loss Amortization Amounts with respect to that Class for
      all
      prior Distribution Dates and (ii) the cumulative amount of Recoveries with
      respect to that Class for all prior Distribution Dates.

     

    Underwriter
      Exemption

    Prohibited
      Transaction Exemption 2002-41, 67 Fed Reg. 54487 (August 22, 2002), or any
      successor thereto.

    

    Underwriters

    Deutsche
      Bank Securities Inc. and Greenwich Capital Markets, Inc.

     

    Voting
      Rights

    The
      portion of the voting rights of all of the Certificates, which is allocated
      to
      any Certificate. With respect to any date of determination, the Offered
      Certificates shall be allocated 100% of all Voting Rights. The Voting Rights
      allocated to each Class of the Offered Certificates shall be the fraction,
      expressed as a percentage, the numerator of which is the Class Certificate
      Balance of such Class then outstanding and the denominator of which is the
      aggregate Stated Principal Balance of the Loans then outstanding. The Voting
      Rights allocated to each Class of Certificates shall be allocated among the
      Certificates of each such Class in accordance with their respective Percentage
      Interests. The Class X and the Class R Certificates will not have any Voting
      Rights.

     

    
      
        
        

      

      
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    ARTICLE
      II

    CONVEYANCE
      OF LOANS;

    REPRESENTATIONS
      AND WARRANTIES

    

    SECTION
      2.01.
      Conveyance of Loans.

    

    (a) Subject
      to its substitution and repurchase obligations hereunder, each Seller,
      concurrently with the execution and delivery hereof, hereby irrevocably sells,
      transfers, grants, bargains, assigns, sets over and otherwise conveys to the
      Depositor, without recourse, all the right, title and interest of such Seller
      in
      and to that portion of the Loans (including, without limitation, the Mortgage
      Files relating thereto) listed on the Loan Schedule that pertains to such
      Seller, including (i) all interest and principal received or receivable by
      such
      Seller on or with respect to such Loans after the Cut-off Date and all interest
      and principal payments on such Loans received on or prior to the Cut-off Date
      in
      respect of installments of interest and principal due thereafter, but not
      including payments of principal and interest due and payable on such Loans
      on or
      before the Cut-off Date, and (ii) all Principal Prepayments, Liquidation
      Proceeds and other unscheduled payments received or receivable on the Loans
      on
      the Cut-off Date. On or prior to the Closing Date, each Seller shall deliver
      to
      the Depositor or, at the Depositor’s direction, to the Trustee or other designee
      of the Depositor, the Mortgage File for each Loan listed in that portion of
      the
      Loan Schedule that pertains to such Seller. Such delivery of the Mortgage Files
      shall be made against payment by the Depositor of the purchase price, previously
      agreed to by such Seller and the Depositor, for the Loans listed on the Loan
      Schedule that pertain to such Seller. With respect to any Loan that does not
      require the first payment of principal or interest thereon to be made on or
      before such Loan’s Due Date in the month prior to the first Distribution Date,
      such Seller shall deposit into the Certificate Account on the Closing Date,
      an
      amount equal to one month’s interest at the related Mortgage Rate on the Cut-off
      Date Principal Balance of such Loan (the “Initial Certificate Account Deposit”).
      The Sellers, for the benefit of the Depositor, shall, in connection with the
      conveyance described in this Section 2.01(a), deliver to the Depositor on or
      prior to the Closing Date the financing statements described in
      Schedule VI. The Sellers shall also arrange for the delivery to the
      Depositor or its assignee, as applicable, of any appropriate Uniform Commercial
      Code continuation statements as may be necessary in connection with the
      financing statements referenced in the foregoing sentence.

    

    (b) The
      Depositor, concurrently with the execution and delivery hereof, hereby
      irrevocably sells, transfers, grants, bargains, assigns, sets over and otherwise
      conveys to the Trustee for the benefit of the Certificateholders, without
      recourse, all the right, title and interest of the Depositor in and to the
      Trust
      Fund and
      the
      External Trust, together with the Depositor’s right to require the Sellers (and
      Equity One-Delaware) to cure any breach of a representation or warranty made
      herein by the Sellers or to repurchase or substitute for any affected Loan
      in
      accordance with the provisions hereof. In addition, the Depositor, for the
      benefit of the Trustee and the Certificateholders, shall, in connection with
      the
      conveyance described in this Section 2.01(b), deliver to the Trustee on or
      prior
      to the Closing Date the financing statements described in Schedule VII. The
      Depositor shall also arrange for the delivery to the Trustee of any appropriate
      Uniform Commercial Code continuation statements as may be necessary in
      connection with the financing statements referenced in the foregoing
      sentence.

    

    (c) In
      connection with the sale, transfer and assignment set forth in clause (b) above,
      the Depositor has delivered or caused to be delivered to the Trustee or a
      Custodian for the Trustee on or before the Closing Date, or shall deliver or
      cause to be delivered to the Trustee or a Custodian for the Trustee on or before
      such later date as is set forth below, for the benefit of the Certificateholders
      the following documents or instruments with respect to each Loan so sold,
      transferred and assigned:

    

    (i) the
      original Mortgage Note endorsed (by manual or facsimile signature) as follows:
      “Pay to the order of JPMorgan Chase Bank, N.A. as trustee for the benefit of
      the
      Certificateholders of Popular ABS, Inc. Mortgage Pass-Through Certificates
      Series 2006-D without recourse,” with all intervening endorsements and all
      riders and modifications showing a complete chain of endorsement from the
      originator to the Person endorsing it to the Trustee (each such endorsement
      being sufficient to transfer all right, title and interest of the party so
      endorsing, as noteholder or assignee thereof, in and to that Mortgage
      Note);

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    (ii) except
      as
      provided below, the original recorded Mortgage;

    

    (iii) an
      original recorded assignment of the Mortgage (which may be included in a blanket
      assignment or assignments), duly executed by the appropriate Seller and the
      Depositor, which assignment will not be delivered on or before the Closing
      Date,
      but shall be delivered within the time period set forth in this Section 2.01,
      together with, except as provided below, all interim recorded assignments of
      such Mortgage, if any, all riders or modifications to such Mortgage, if any,
      (each such assignment to be in recordable form and sufficient to effect the
      assignment of and transfer to the assignee thereof, under the Mortgage to which
      the assignment relates, with the original to be recorded by the Servicer as
      follows: the Servicer shall promptly send such assignments for recording, and
      shall return the original recorded assignment to the Trustee once returned
      as
      recorded by the applicable recording office);

    

    (iv) the
      original of each assumption, modification, written assurance or substitution
      agreement, if any; and

    

    (v) except
      as
      provided below and with respect to Borrower Retention Loans, the original or
      duplicate original lender’s title policy and all riders thereto.

    

    Notwithstanding
      the foregoing, in lieu of providing the documents described in clause (iii)
      above, the Depositor may at its discretion provide evidence that the related
      Mortgage is held through the MERS (R) System. With respect to any MOM Loan,
      the
      original recorded Mortgage that is provided shall note the MIN of such MOM
      Loan.
      Certain Mortgages were or may be, at the sole discretion of the Servicer,
      originally recorded in the name of MERS (R), solely as nominee for the
      applicable Seller and its successors or assigns; furthermore, subsequent
      assignments of such Mortgages were or may be, at the sole discretion of the
      Servicer, registered electronically through the MERS (R) System. For certain
      other Loans, (i) the Mortgage was recorded in the name of the Seller, (ii)
      record ownership was later assigned to MERS (R), solely as nominee for that
      Seller, and (iii) subsequent assignments of the Mortgage were or may be, at
      the
      sole discretion of the Servicer, registered electronically through the MERS
      (R)
      System. For each of these Loans, MERS (R) serves as mortgagee of record on
      the
      Mortgage solely as a nominee in an administrative capacity on behalf of the
      Trustee, and does not have any beneficial interest in the Loan.

    

    In
      the
      event that in connection with any Loan the Depositor cannot deliver (a) the
      original recorded Mortgage, (b) all interim recorded assignments, if any,
      or (c) the lender’s title policy (together with all riders thereto) satisfying
      the requirements of clause (ii), (iii) or (v) above, respectively, concurrently
      with the execution and delivery hereof because such document or documents have
      not been returned from the applicable public recording office in the case of
      clause (ii) or (iii) above, or because the title policy has not been delivered
      to either the Servicer or the Depositor by the applicable title insurer in
      the
      case of clause (v) above, and, in the case of the assignments, if any, of the
      Mortgage to the Trustee as required under (iii) above, the Depositor shall
      promptly deliver to the Trustee, in the case of clause (ii) or (iii) above,
      such
      original recorded Mortgage or such original recorded assignment, if any, as
      the
      case may be, with evidence of recording indicated thereon upon receipt thereof
      from the public recording office, or a copy thereof, certified, if appropriate,
      by the relevant recording office, but in no event shall any such delivery of
      the
      original recorded Mortgage and each such original recorded assignment, if any,
      or a copy thereof, certified, if appropriate, by the relevant recording office,
      and each title policy as required by clause (v) above be made later than one
      year following the Closing Date; provided,
      however,
      in the
      event the Depositor is unable to deliver within one year following the Closing
      Date, each original recorded Mortgage, and each such original recorded
      assignment, if any, or each such title policy by reason of the fact that any
      such documents have not been returned by the appropriate recording office,
      or,
      in the case of each such assignment, if any, because the related original
      recorded Mortgage or any related interim recorded assignment have not been
      returned by the appropriate recording office or, in the case of each title
      policy, because the title insurer has not received the recording information
      from the appropriate recording office for such original recorded Mortgage or
      original recorded assignment, if any, has not been returned by the appropriate
      recording office, the Depositor shall deliver such documents to the Trustee
      as
      promptly as possible upon receipt thereof and, in any event, within 720 days
      following the Closing Date. The Depositor shall forward or cause to be forwarded
      to the Trustee (a) from time to time additional original documents evidencing
      an
      assumption or modification of a Loan and (b) any other documents required to
      be
      delivered by the Depositor or the Servicer to the Trustee. In the event that
      the
      original recorded Mortgage is not delivered and, in connection with the payment
      in full of the related Loan, the public recording office requires the
      presentation of a “lost instruments affidavit and indemnity” or any equivalent
      document, because only a copy of the Mortgage can be delivered with the
      instrument of satisfaction or reconveyance, the Servicer shall execute and
      deliver or cause to be executed and delivered such a document to the public
      recording office. In the case where a public recording office retains the
      original recorded Mortgage or in the case where an original recorded Mortgage
      is
      lost after recordation in a public recording office, the appropriate Seller
      shall deliver to the Trustee a copy of such Mortgage certified by such public
      recording office to be a true and complete copy of the original recorded
      Mortgage.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    As
      promptly as practicable subsequent to such transfer and assignment, and in
      any
      event, within thirty (30) days thereafter, the Servicer shall (i) affix the
      Trustee’s name to each assignment of Mortgage, if any, as the assignee thereof
      as Trustee for the benefit of the Certificateholders, (ii) cause such
      assignment, if any, to be in proper form for recording in the appropriate public
      office for real property records and (iii) cause to be delivered for recording
      in the appropriate public office for real property records the assignments,
      if
      any, of the Mortgages to the Trustee, except that, with respect to any
      assignments of Mortgages as to which the information required to prepare such
      assignment in recordable form has not yet been received, the Servicer’s
      obligation to do so and to deliver the same for such recording shall be as
      soon
      as practicable after receipt of such information and in any event within thirty
      (30) days after receipt thereof.

    

    In
      the
      case of Loans that have been prepaid in full as of the Closing Date, the
      Depositor, in lieu of delivering the above documents to the Trustee, will
      deposit in the Certificate Account the portion of such payment that is required
      to be deposited in the Certificate Account pursuant to Section 3.05
      hereof.

    

    (d)
       The
      Depositor, the Sellers, the Servicer and the Trustee understand and agree that
      it is not intended that any Loan be included in the Trust Fund that is a
“High-Cost Home Loan” as defined by the Homeownership and Equity Protection Act
      of 1994 or any other applicable predatory or abusive lending laws.

    

    SECTION
      2.02.
      Acceptance by Trustee of the Trust Fund.

     

    The
      Trustee acknowledges receipt of the documents identified in the initial
      certification in the form annexed hereto as Exhibit D and declares that it
      holds
      and will hold such documents and the other documents delivered to it
      constituting the Mortgage Files, and that it holds or will hold such other
      assets as are included in the Trust Fund, in trust for the exclusive use and
      benefit of all present and future Certificateholders. The Trustee acknowledges
      that it will maintain possession of the Mortgage Notes in the State of Texas,
      unless otherwise permitted by the Rating Agencies. In the event that the Trustee
      desires to maintain possession of the Mortgage Notes in a state (other than
      the
      State of Texas) constituting one of the United States of America, the Trustee
      shall, at least thirty (30) days prior to discontinuing possession of the
      Mortgage Notes in the State of Texas, provide (i) a notice of such intention
      to
      the Rating Agencies and the Sellers and (ii) an Opinion of Counsel stating
      that
      such relocation of the Mortgage Notes and the possession by the Trustee of
      the
      Mortgage Notes in such other state will not (a) destroy or impair the perfection
      by the Trustee of the security interests assigned and granted to the Trustee
      pursuant to the provisions of Section 10.04 or (b) subject any REMIC to any
      state tax. 

     

    
      
        
        

      

      
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    The
      Trustee agrees to execute and deliver on the Closing Date to the Depositor,
      the
      Servicer and the Sellers an initial certification in the form annexed hereto
      as
      Exhibit D. Based on its review and examination, and only as to the documents
      identified in such initial certification, the Trustee shall acknowledge that
      such documents appear regular on their face and relate to the Loans listed
      in
      the Loan Schedule or shall indicate any noted deviations. The Trustee, at the
      time of delivery of the initial certification, shall be under no duty or
      obligation (i) to inspect, review or examine said documents, instruments,
      certificates or other papers to determine that the same are genuine, enforceable
      or appropriate for the represented purpose or that they have actually been
      recorded in the real estate records or that they are other than what they
      purport to be on their face or (ii) to determine whether the Mortgage File
      shall
      include any of the documents listed in Section 2.01(c), except for the Mortgage
      Note. Should there be any exceptions to the Trustee’s initial certification as
      to the Mortgage Notes, the appropriate Seller shall have thirty (30) days from
      the Closing Date to cure such exception or deliver a Mortgage File or Mortgage
      Files for a Substitute Loan or Substitute Loans in accordance with Section
      2.03(c). A Seller may cure an exception based on absence of a Mortgage Note
      for
      a Loan by delivering an executed copy of an Affidavit of Lost Note in the form
      attached as Annex I to Exhibit D hereto to the Trustee.

    

    Not
      later
      than 90 days after the Closing Date, the Trustee shall deliver to the Depositor,
      the Servicer and the Sellers a final certification in the form annexed hereto
      as
      Exhibit E, with any applicable exceptions noted thereon. At any time upon
      request (but not more frequently than once per calendar month), the Trustee
      shall deliver to the Depositor, the Servicer and the Sellers, an updated
      schedule of open exceptions in electronic or written format.

    

    If
      the
      Trustee finds any document constituting a part of a Mortgage File which does
      not
      meet the requirements of Section 2.01, the Trustee shall list such as an
      exception in the final certification; provided, however that the Trustee shall
      not make any determination as to whether (i) any endorsement is sufficient
      to
      transfer all right, title and interest of the party so endorsing, as noteholder
      or assignee thereof, in and to that Mortgage Note or (ii) any assignment is
      in
      recordable form or is sufficient to effect the assignment of and transfer to
      the
      assignee thereof under the mortgage to which the assignment relates. In
      performing any such review, the Trustee may conclusively rely on the Depositor
      as to the purported genuineness of any such document and any signature thereon.
      It is understood that the scope of the Trustee’s review of the Mortgage Files is
      limited solely to confirming that the documents listed in Section 2.01(c)
      have been received and further confirming that any and all documents delivered
      pursuant to Section 2.01(c) have been executed and relate to the Loans
      identified in the Loan Schedule. The Trustee shall have no responsibility for
      determining whether any document is valid and binding, whether the text of
      any
      assignment or endorsement is in proper or recordable form, whether any document
      has been recorded in accordance with the requirements of any applicable
      jurisdiction, or whether a blanket assignment is permitted in any applicable
      jurisdiction. The appropriate Seller shall promptly correct or cure such defect
      within 90 days from the date it was so notified of such defect and, if such
      Seller does not correct or cure such defect within such period, such Seller
      shall either (a) substitute for the related Loan a Substitute Loan, which
      substitution shall be accomplished in the manner and subject to the conditions
      set forth in Section 2.03, or (b) purchase such Loan from the Trustee within
      90
      days from the date such Seller was notified of such defect in writing at the
      Purchase Price of such Loan; provided,
      however,
      that in
      no event shall such substitution or purchase occur more than 540 days from
      the
      Closing Date, except that if the substitution or purchase of a Loan pursuant
      to
      this provision is required by reason of a delay in delivery of any comments
      by
      the appropriate recording office, and there is a dispute between either the
      Servicer or such Seller and the Trustee over the location or status of the
      recorded document, then such substitution or purchase shall occur within 720
      days from the Closing Date; provided,
      that
      any Loan that does not constitute a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code shall be subject to a substitution or repurchase
      as provided in Section 2.05(b) of this Agreement. The Trustee shall deliver
      a
      report to each Rating Agency within 720 days from the Closing Date indicating
      a
      list of all documents in each Mortgage File in the possession of the Trustee.
      Any such substitution pursuant to (a) above or purchase pursuant to (b) above
      shall not be effected prior to the delivery to the Trustee of the Opinion of
      Counsel required by Section 2.05 hereof, if any, and any substitution pursuant
      to (a) above shall not be effected prior to the additional delivery to the
      Trustee of a Request for Release substantially in the form of Exhibit J. No
      substitution is permitted to be made in any calendar month after the
      Determination Date for such month. The Purchase Price for any such Loan shall
      be
      deposited by such Seller in the Certificate Account on or prior to the
      Distribution Account Deposit Date for the Distribution Date in the month
      following the month of repurchase and, upon receipt of such deposit and
      certification with respect thereto in the form of Exhibit J, the Trustee shall
      release the related Mortgage File to such Seller and shall execute and deliver
      at such Seller’s request such instruments of transfer or assignment prepared by
      such Seller, in each case without recourse, as shall be necessary to vest in
      such Seller, or a designee, the Trustee’s interest in any Loan released pursuant
      hereto.

     

    
      
        
        

      

      
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    If,
      pursuant to the foregoing provisions, a Seller repurchases a Loan that is
      registered on the MERS (R) System, the Servicer shall cause MERS (R) to execute
      and deliver an assignment of the related Mortgage in recordable form to transfer
      the Mortgage from MERS (R) to such Seller and shall cause such Mortgage to
      be
      removed from registration on the MERS (R) System in accordance with MERS’ (R)
      rules and regulations or (ii) cause MERS (R) to designate on the MERS (R) System
      the Seller as the beneficial holder of such Loan.

    

    The
      Trustee shall retain possession and custody of each Mortgage File in accordance
      with and subject to the terms and conditions set forth herein. The Servicer
      shall promptly deliver to the Trustee, upon the execution or receipt thereof,
      the originals of such other documents or instruments constituting the Mortgage
      File as come into the possession of the Servicer from time to time.

    

    It
      is
      understood and agreed that the obligation of the appropriate Seller to
      substitute for or to purchase any Loan which does not meet the requirements
      of
      Section 2.01 above shall constitute the sole and exclusive remedy respecting
      such defect available to the Trustee, the Depositor and any Certificateholder
      against any Seller.

    

    SECTION
      2.03.
      Representations, Warranties and Covenants of the Sellers and the
      Servicer.

    

    (a)           (i) The
      Sellers hereby make the representations and warranties set forth in
      Schedules IIA through IIE, as applicable and by this reference incorporated
      herein, to the Depositor and the Trustee, as of the Closing Date or if so
      specified therein, as of the Cut-off Date; and

    

    (ii) The
      Servicer hereby makes the representations and warranties set forth in Schedule
      IIX, and by this reference incorporated herein, to the Depositor and the
      Trustee, as of the Closing Date or if so specified therein, as of the Cut-off
      Date.

    

    (b) The
      Sellers hereby make the representations and warranties set forth in Schedules
      IIIA through IIIE, as applicable and by this reference incorporated herein,
      to
      the Depositor and the Trustee, as of the Closing Date or if so specified
      therein, as of the Cut-off Date.

    

    (c) Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty made pursuant to Section 2.03(b) that materially and adversely
      affects the interests of the Certificateholders in any Loan, the party
      discovering such breach shall give prompt notice thereof to the other parties.
      Each Seller, for itself and not jointly and severally for all other Sellers,
      hereby covenants that within 90 days of the earlier of its discovery or its
      receipt of written notice from any party of a breach of any representation
      or
      warranty made pursuant to Section 2.03(b) with respect to any Loan listed
      on the Loan Schedule that pertains to such Seller, such Seller may, and if
      such
      breach materially and adversely affects the interests of the Certificateholders
      such Seller shall, cure such breach in all material respects, and if such breach
      is not so cured, may or shall, as the case may be, (i) if such 90-day period
      expires prior to the second anniversary of the Closing Date, remove such Loan
      (a
“Deleted
      Loan”)
      from
      the Trust Fund and substitute in its place a Substitute Loan, in the manner
      and
      subject to the conditions set forth in this Section or (ii) repurchase the
      affected Loan or Loans from the Trustee at the Purchase Price in the manner
      set
      forth below; provided,
      however,
      that
      any such substitution pursuant to (i) above shall not be effected prior to
      the
      delivery to the Trustee of the Opinion of Counsel required by Section 2.05
      hereof, if any, and any such substitution pursuant to (i) above shall not be
      effected prior to the additional delivery to the Trustee of a Request for
      Release substantially in the form of Exhibit J and the Mortgage File for any
      such Substitute Loan. Notwithstanding the preceding sentence, any Loan that
      does
      not constitute a “qualified mortgage” within the meaning of Section 860G(a)(3)
      of the Code shall be subject to substitution or repurchase as provided in
      Section 2.05(b) of this Agreement. The appropriate Seller shall promptly
      reimburse the Servicer and the Trustee for any expenses reasonably incurred
      by
      the Servicer or the Trustee in respect of enforcing the remedies for such
      breach. With respect to the representations and warranties described in this
      Section which are made to the best of a Seller’s knowledge, if it is discovered
      by either the Depositor, the appropriate Seller or the Trustee that the
      substance of such representation and warranty is inaccurate and such inaccuracy
      materially and adversely affects the value of the related Loan or the interests
      of the Certificateholders therein, notwithstanding such Seller’s lack of
      knowledge with respect to the substance of such representation or warranty,
      such
      inaccuracy shall be deemed a breach by such Seller of the applicable
      representation or warranty.

     

    
      
        
        

      

      
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    With
      respect to any Substitute Loan or Loans, such Seller shall deliver to the
      Trustee for the benefit of the Certificateholders, the Mortgage Note, the
      Mortgage, the related assignment of the Mortgage, if any, and such other
      documents and agreements as are required by Section 2.01, with the Mortgage
      Note
      endorsed and the Mortgage assigned as required by Section 2.01. No substitution
      is permitted to be made in any calendar month after the Determination Date
      for
      such month. Scheduled Payments due with respect to Substitute Loans in the
      month
      of substitution shall not be part of the Trust Fund and will be retained by
      the
      appropriate Seller on the next succeeding Distribution Date. For the month
      of
      substitution, distributions to the relevant Class will include the monthly
      payment due on any Deleted Loan for such month and thereafter the appropriate
      Seller shall be entitled to retain all amounts received in respect of such
      Deleted Loan. The Servicer shall amend the Loan Schedule for the benefit of
      the
      Certificateholders to reflect the removal of such Deleted Loan and the
      substitution of the Substitute Loan or Loans and the Servicer shall deliver
      the
      amended Loan Schedule to the Trustee. Upon such substitution, the Substitute
      Loan or Loans shall be subject to the terms of this Agreement in all respects,
      and the appropriate Seller shall be deemed to have made with respect to such
      Substitute Loan or Loans, as of the date of substitution, the representations
      and warranties made pursuant to Section 2.03(b). Upon any such substitution
      and
      the deposit to the Certificate Account of the amount required to be deposited
      therein in connection with such substitution as described in the following
      paragraph, the Trustee shall release the Mortgage File held for the benefit
      of
      the Certificateholders relating to such Deleted Loan to the appropriate Seller
      and shall execute and deliver at the appropriate Seller’s direction such
      instruments of transfer or assignment prepared by such Seller, in each case
      without recourse, as shall be necessary to vest title in such Seller, or its
      designee, with respect to the Trustee’s interest in any Deleted Loan substituted
      for pursuant to this Section 2.03.

    

    For
      any
      month in which the appropriate Seller substitutes one or more Substitute Loans
      for one or more Deleted Loans, the Servicer will determine the amount (if any)
      by which the aggregate Stated Principal Balance of all such Substitute Loans
      is
      less than the aggregate Stated Principal Balance of all such Deleted Loans
      (such
      Stated Principal Balances to be measured as of the respective Due Dates in
      the
      month of substitution). The amount of such shortage (the “Substitution
      Adjustment Amount”)
      plus
      an amount equal to the sum of (a) the aggregate of any unreimbursed Advances
      with respect to such Deleted Loans and (b) any costs and damages incurred by
      the
      Trust Fund in connection with such Deleted Loan prior to the date of such
      substitution shall be deposited in the Certificate Account by such Seller on
      or
      before the Distribution Account Deposit Date for the Distribution Date in the
      month following the month during which the related Loan became required to
      be
      purchased or replaced hereunder.

     

    
      
        
        

      

      
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    In
      the
      event that the appropriate Seller shall have repurchased a Loan, the Purchase
      Price therefor shall be deposited in the Certificate Account pursuant to Section
      3.05 on or before the Distribution Account Deposit Date for the Distribution
      Date in the month following the month during which such Seller became obligated
      hereunder to repurchase or replace such Loan and upon such deposit of the
      Purchase Price, the delivery of the Opinion of Counsel required by Section
      2.05
      and receipt of a Request for Release in the form of Exhibit J, the Trustee
      shall
      release the related Mortgage File held for the benefit of the Certificateholders
      to such Seller, and the Trustee shall execute and deliver at such Seller’s
      direction such instruments of transfer or assignment prepared by such Seller,
      in
      each case without recourse, as shall be necessary to transfer title from the
      Trustee. It is understood and agreed that the obligation under this Agreement
      of
      any Seller to cure, repurchase or replace any Loan as to which a breach of
      a
      representation or warranty has occurred and is continuing shall constitute
      the
      sole and exclusive remedy against such Sellers respecting such breach of a
      representation and warranty available to Certificateholders, the Depositor
      or
      the Trustee on their behalf.

    

    (d)
       The
      representations and warranties made pursuant to this Section 2.03 shall survive
      delivery of the respective Mortgage Files to the Trustee for the benefit of
      the
      Certificateholders.

     

    SECTION
      2.03A. Additional Obligations of Equity One-Delaware.

    

    (a) In
      addition to the representations and warranties made by Equity One-Delaware
      in
      its capacity as a Seller, as described in Section 2.03 and set forth in
      Schedules IIA and IIIA, Equity One-Delaware hereby represents and warrants
      to
      the Depositor and the Trustee that all of the representations and warranties
      of
      the other Sellers described in Section 2.03 and set forth in Schedules IIB
      through IIE and IIIB through IIIE are true and accurate in all
      respects.

    

    (b) Equity
      One-Delaware hereby covenants that it shall comply with the repurchase and
      substitution obligations described in Section 2.02 and 2.03 in the event that
      (i) a breach of any of the representations and warranties set forth in Schedules
      IIIB through IIIE occurs and (ii) the related Seller defaults on its repurchase
      and substitution obligations under Sections 2.02 and 2.03.

    

    SECTION
      2.04.
      Representations and Warranties of the Depositor as to the Loans

    

    The
      Depositor hereby represents and warrants to the Trustee with respect to each
      Loan that as of the Closing Date, and following the transfer of the Loans to
      it
      by the Sellers, the Depositor had good title to the Loans and the Mortgage
      Notes
      were subject to no offsets, defenses or counterclaims.

    

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee. Upon
      discovery by the Depositor or the Trustee of a breach of any of the foregoing
      representations and warranties set forth in this Section 2.04, which breach
      materially and adversely affects the interest of the Certificateholders, the
      party discovering such breach shall give prompt written notice to the other
      parties and to each Rating Agency.

    

    SECTION
      2.05.
      Delivery of Opinion of Counsel in Connection with
      Substitutions.

    

    (a) Notwithstanding
      any contrary provision of this Agreement, no substitution pursuant to Section
      2.02 or Section 2.03 shall be made more than 90 days after the Closing Date
      unless the appropriate Seller delivers to the Trustee an Opinion of Counsel,
      which Opinion of Counsel shall not be at the expense of either the Trustee
      or
      the Trust Fund, addressed to the Trustee, to the effect that such substitution
      will not (i) result in the imposition of the tax on “prohibited transactions” on
      the Trust Fund or contributions after the Startup Day, as defined in Sections
      860F(a)(2) and 860G(d) of the Code, respectively, and/or (ii) cause the Trust
      Fund to fail to qualify as one or more REMICs at any time that any Certificates
      are outstanding.

     

    
      
        
        

      

      
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    (b) Upon
      discovery by the Depositor, the appropriate Seller, the Servicer or the Trustee
      that any Loan does not constitute a “qualified mortgage” within the meaning of
      Section 860G(a)(3) of the Code, the party discovering such fact shall promptly
      (and in any event within five (5) Business Days of discovery) give written
      notice thereof to the other parties. In connection therewith, the Trustee shall
      require the appropriate Seller, at such Seller’s option, to either (i)
      substitute, if the conditions in Section 2.03(c) with respect to substitutions
      are satisfied, a Substitute Loan for the affected Loan within 90 days from
      the
      discovery or (ii) repurchase the affected Loan within 90 days of such
      discovery in the same manner as it would repurchase a Loan for a breach of
      representation or warranty made pursuant to Section 2.03. The Trustee shall
      reconvey to such Seller the Loan to be released pursuant hereto in the same
      manner, and on the same terms and conditions, as it would release a Loan
      repurchased for breach of a representation or warranty contained in Section
      2.03.

    

    SECTION
      2.06.
      Execution and Delivery of Certificates.

    

    The
      Trustee acknowledges the transfer and assignment to it of the Trust Fund and,
      concurrently with such transfer and assignment and in payment therefor, has
      executed and delivered to or upon the order of the Depositor, the Certificates
      in authorized denominations evidencing directly or indirectly the entire
      ownership of the Trust Fund. The Trustee agrees to hold the Trust Fund and
      exercise the rights referred to above for the benefit of all present and future
      Certificateholders and to perform the duties set forth in this Agreement to
      the
      best of its ability, to the end that the interests of the Certificateholders
      may
      be adequately and effectively protected. 

    

    SECTION
      2.07.
      REMIC
      Matters.

    

    The
      Preliminary Statement sets forth the designations for federal income tax
      purposes of all interests created hereby. The “latest possible maturity date”
shall be the Latest Possible Maturity Date. The “Startup Day” for purposes of
      the REMIC Provisions shall be the Closing Date. The “tax matters person” with
      respect to each REMIC created hereunder shall be the Trustee and the Trustee
      shall hold the Tax Matters Person Certificate. The Trust Fund’s fiscal year
      shall be the calendar year and, for purposes of section 860C of the Code, the
      taxable income of each REMIC created hereunder shall be computed under an
      accrual method of accounting.

    

    The
      Trustee shall treat each of the Net WAC Cap Account, the Swap Account, the
      Cap
      Account and the Final Maturity Reserve Fund as a separate and distinct outside
      reserve fund within the meaning of §1.860G-2(h) of the Income Tax Regulations.
      None of the Net WAC Cap Account, the Swap Account, the Cap Account, the Final
      Maturity Reserve Fund, the Cap Agreement or the Swap Agreement shall be treated
      as an asset of any REMIC. The Holders of the Class X Certificates will own
      the
      Net WAC Cap Account, the Final Maturity Reserve Fund, the Cap Account and the
      Swap Account. 

    

    The
      Trustee shall treat the Holders of the Offered Certificates as having entered
      into a notional principal contract with the Holders of the Class X Certificates.
      Pursuant to each such notional principal contract, all Holders of the Offered
      Certificates shall be treated as having agreed to pay, on each Distribution
      Date, to the Holders of the Class X Certificates an aggregate amount equal to
      the excess, if any, of (i) the amount payable on such Distribution Date on
      the
      REMIC 3 Regular Interest corresponding to such Class of Certificates over (ii)
      the amount payable on such Class of Certificates on such Distribution Date
      (such
      excess, a “Class
      I Shortfall”).
      A
      Class I Shortfall shall be allocated to each Class of Offered Certificates
      to
      the extent that interest accrued on such Class for the related Interest Accrual
      Period at the Pass-Through Rate for such Class, computed by substituting “REMIC
      2 Net WAC Cap” for “Net WAC Cap” in the definition thereof, exceeds the amount
      of interest accrued for the related Interest Accrual Period. In addition,
      pursuant to such notional principal contract, the beneficial owner of the Class
      X Certificates shall be treated as having agreed to pay Net WAC Cap Carryover
      amounts to the owners of the Offered Certificates in accordance with the terms
      of this Agreement. Any payments to the Certificates in light of the foregoing
      shall not be payments with respect to a “regular interest” in a REMIC within the
      meaning of Code Section 860G(a)(1). However, any payment deemed made by the
      Holders of the Offered Certificates in respect of a Class I Shortfall shall
      be
      treated for tax purposes as having been received by the Holders of such Offered
      Certificates in respect of their REMIC 3 Regular Interests and as having been
      paid by such beneficial owners to the Holders of the Class X Certificates
      pursuant to the notional principal contract. Thus, each Offered Certificate
      shall be treated as representing not only ownership of regular interests in
      the
      REMIC 3, but also ownership of an interest in (and obligations with respect
      to)
      a notional principal contract. For tax purposes, the notional principal contract
      shall be deemed to have a value in favor of the Offered Certificates of $500
      as
      of the Closing Date.

     

    
      
        
        

      

      
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    In
      no
      event shall any payments of Net WAC Cap Carryover be treated as payments with
      respect to a “regular interest” in a REMIC within the meaning of Code Section
      860G(a)(1). 

    

    SECTION
      2.08.
      Covenants of the Servicer.

    

    The
      Servicer hereby covenants to the Depositor and the Trustee as
      follows:

    

    (a) the
      Servicer shall comply in the performance of its obligations under this Agreement
      with all reasonable rules and requirements of the insurer under each Required
      Insurance Policy; and

    

    (b) no
      written information, certificate of an officer, statement furnished in writing
      or written report delivered to the Depositor, any affiliate of the Depositor
      or
      the Trustee and prepared by the Servicer pursuant to this Agreement will contain
      any untrue statement of a material fact or omit to state a material fact
      necessary to make such information, certificate, statement or report not
      misleading. 

    

    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING

    OF
      LOANS

    

    SECTION
      3.01.
      Servicer to Service Loans.

    

    For
      and
      on behalf of the Certificateholders, the Servicer shall service and administer
      the Loans in accordance with the terms of this Agreement and customary and
      usual
      standards of practice of prudent mortgage loan servicers, and shall maintain
      all
      material licenses
      necessary for the conduct of its business.
      In
      connection with such servicing and administration, the Servicer shall have
      full
      power and authority, acting alone and/or through Subservicers as provided in
      Section 3.02 hereof, to do or cause to be done any and all things that it may
      deem necessary or desirable in connection with such servicing and
      administration, including but not limited to, the power and authority, subject
      to the terms hereof, (i) to execute and deliver, on behalf of the
      Certificateholders and the Trustee, customary consents or waivers and other
      instruments and documents, (ii) to consent to transfers of any Mortgaged
      Property and assumptions of the Mortgage Notes and related Mortgages (but only
      in the manner provided in this Agreement), (iii) to collect any Insurance
      Proceeds and other Liquidation Proceeds and Recoveries and (iv) to effectuate
      foreclosure or other conversion of the ownership of the Mortgaged Property
      securing any Loan; provided
      that the
      Servicer shall not take any action that is inconsistent with or prejudices
      the
      interests of the Trust Fund or the Certificateholders in any Loan or the rights
      and interests of the Depositor, the Trustee and the Certificateholders under
      this Agreement. The Servicer shall represent and protect the interests of the
      Trust Fund in the same manner as it protects its own interests in mortgage
      loans
      in its own portfolio in any claim, proceeding or litigation regarding a Loan,
      and shall not make or permit any modification, waiver or amendment of any Loan
      which would cause the Trust Fund to fail to qualify as one or more REMICs or
      result in the imposition of any tax under Section 860F(a) or Section 860G(d)
      of
      the Code. Without limiting the generality of the foregoing, the Servicer, in
      its
      own name or in the name of the Depositor and the Trustee, is hereby authorized
      and empowered by the Depositor and the Trustee, when the Servicer believes
      it
      appropriate in its reasonable judgment, to execute and deliver, on behalf of
      the
      Trustee, the Depositor, the Certificateholders or any of them, any and all
      instruments of satisfaction or cancellation, or of partial or full release
      or
      discharge and all other comparable instruments, with respect to the Loans,
      and
      with respect to the Mortgaged Properties held for the benefit of the
      Certificateholders. The Servicer shall prepare and deliver to the Depositor
      and/or the Trustee such documents requiring execution and delivery by either
      or
      both of them as are necessary or appropriate to enable the Servicer to service
      and administer the Loans to the extent that the Servicer is not permitted to
      execute and deliver such documents pursuant to the preceding sentence. Upon
      receipt of such documents, the Depositor and/or the Trustee shall execute such
      documents and deliver them to the Servicer. In addition, upon the request of
      the
      Servicer from time to time the Trustee shall execute and deliver to the Servicer
      one or more powers of attorney in the form attached hereto as Exhibit M.

     

    
      
        
        

      

      
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    SECTION
      3.02.
      Subservicing; Enforcement of the Obligations of Servicers.

    

    (a) The
      Servicer may arrange for the subservicing of any Loan by a Subservicer pursuant
      to a subservicing agreement; provided,
      however,
      that
      such subservicing arrangement and the terms of the related subservicing
      agreement must provide for the servicing of such Loans in a manner consistent
      with the servicing arrangements contemplated hereunder. Unless the context
      otherwise requires, references in this Agreement to actions taken or to be
      taken
      by the Servicer in servicing the Loans include actions taken or to be taken
      by a
      Subservicer on behalf of the Servicer. Notwithstanding the provisions of any
      subservicing agreement, any of the provisions of this Agreement relating to
      agreements or arrangements between the Servicer and a Subservicer or reference
      to actions taken through a Subservicer or otherwise, the Servicer shall remain
      obligated and liable to the Depositor, the Trustee and the Certificateholders
      for the servicing and administration of the Loans in accordance with the
      provisions of this Agreement without diminution of such obligation or liability
      by virtue of such subservicing agreements or arrangements or by virtue of
      indemnification from the Subservicer and to the same extent and under the same
      terms and conditions as if the Servicer alone were servicing and administering
      the Loans. All actions of each Subservicer performed pursuant to the related
      subservicing agreement shall be performed as an agent of the Servicer with
      the
      same force and effect as if performed directly by the Servicer. Each
      subservicing agreement, if any, shall provide that any successor servicer
      (including, without limitation, the Trustee acting in such capacity) shall
      have
      the right to terminate such subservicing agreement without the payment of any
      fees or other amounts to the subservicer.

    

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

    

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

    

    The
      Depositor may, but is not obligated to, enforce the obligations of the Servicer
      hereunder and may, but is not obligated to, perform, or cause a designee to
      perform, any defaulted obligation of the Servicer hereunder and in connection
      with any such defaulted obligation to exercise the related rights of the
      Servicer hereunder; provided
      that the
      Servicer shall not be relieved of any of its obligations hereunder by virtue
      of
      such performance by the Depositor or its designee. Neither the Trustee nor
      the
      Depositor shall have any responsibility or liability for any action or failure
      to act by the Servicer nor shall the Trustee or the Depositor be obligated
      to
      supervise the performance of the Servicer hereunder or otherwise.

     

    
      
        
        

      

      
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    SECTION
      3.04.
      Trustee
      to Act as Servicer.

    

    In
      the
      event that the Servicer shall for any reason no longer be the Servicer hereunder
      (including by reason of an Event of Default), the Trustee or its successor
      shall
      thereupon assume all of the rights and obligations of the Servicer hereunder
      arising thereafter (except that the Trustee shall not be (i) liable for
      losses of the Servicer pursuant to Section 3.09 hereof or any acts or omissions
      of the predecessor Servicer hereunder, (ii) obligated to make Advances if it
      is
      prohibited from doing so by applicable law, (iii) obligated to effectuate
      repurchases or substitutions of Loans hereunder including, but not limited
      to,
      repurchases or substitutions of Loans pursuant to Section 2.02 or 2.03 hereof,
      (iv) responsible for expenses of the Servicer pursuant to Section 2.03 or (v)
      deemed to have made any representations and warranties of the Servicer
      hereunder). Any such assumption shall be subject to Section 7.02 hereof. If
      the
      Servicer shall for any reason no longer be the Servicer (including by reason
      of
      any Event of Default), the Trustee or its successor shall succeed to any rights
      and obligations of the Servicer under each subservicing agreement.

    

    The
      Servicer shall, upon request of the Trustee, but at the expense of the Servicer,
      deliver to the assuming party all documents and records relating to each
      subservicing agreement or substitute subservicing agreement and the Loans then
      being serviced thereunder and an accounting of amounts collected or held by
      it
      and otherwise use its best efforts to effect the orderly and efficient transfer
      of the substitute subservicing agreement to the assuming party.

    

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

    

    (a) The
      Servicer shall make reasonable efforts in accordance with the customary and
      usual standards of practice of prudent mortgage servicers to collect all
      payments called for under the terms and provisions of the Loans to the extent
      such procedures shall be consistent with this Agreement and the terms and
      provisions of any related Required Insurance Policy. Consistent with the
      foregoing, the Servicer may in its discretion (i) waive any late payment charge
      or any prepayment charge or penalty interest in connection with the prepayment
      of a Loan and (ii) extend the due dates for payments due on a Mortgage Note
      for
      a period not greater than 180 days; provided,
      however,
      that
      the Servicer cannot extend the maturity of any such Loan past the date on which
      the final payment is due on the latest maturing Loan as of the Cut-off Date.
      In
      the event of any such arrangement, the Servicer shall make Advances on the
      related Loan in accordance with the provisions of Section 4.01 during the
      scheduled period in accordance with the amortization schedule of such Loan
      without modification thereof by reason of such arrangements. The Servicer shall
      not be required to institute or join in litigation with respect to collection
      of
      any payment (whether under a Mortgage, Mortgage Note or otherwise or against
      any
      public or governmental authority with respect to a taking or condemnation)
      if it
      reasonably believes that enforcing the provision of the Mortgage or other
      instrument pursuant to which such payment is required is prohibited by
      applicable law.

    

    (b) The
      Servicer shall establish and maintain a Certificate Account into which the
      Servicer shall deposit or cause to be deposited within one Business Day of
      receipt, except as otherwise specifically provided herein, the following
      payments and collections remitted by Subservicers or received by it in respect
      of the Loans subsequent to the Cut-off Date (other than in respect of principal
      and interest due on the Loans on or before the Cut-off Date) and the following
      amounts required to be deposited hereunder:

    

    (i) all
      payments on account of principal on the Loans, including Principal
      Prepayments;

    

    (ii) all
      payments on account of interest on the Loans, net of the related Servicing
      Fee;

     

    
      
        
        

      

      
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    (iii) all
      Insurance Proceeds and Liquidation Proceeds, other than proceeds to be applied
      to the restoration or repair of the Mortgaged Property or released to the
      Mortgagor in accordance with the Servicer’s normal servicing procedures, and all
      Recoveries;

    

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

    

    (v) any
      amounts required to be deposited by the Servicer pursuant to Section 3.09(c)
      and, in respect of net monthly rental income from REO Property, pursuant to
      Section 3.11 hereof;

    

    (vi) all
      Substitution Adjustment Amounts;

    

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

    

    (viii) all
      Principal Prepayments, Liquidation Proceeds and other unscheduled payments
      on
      the Loans received on the Cut-off Date; and

    

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

    

    The
      foregoing requirements for remittance by the Servicer shall be exclusive, it
      being understood and agreed that, without limiting the generality of the
      foregoing, payments in the nature of prepayment penalties, late payment charges
      or assumption fees, if collected, need not be remitted by the Servicer. In
      the
      event that the Servicer shall remit any amount not required to be remitted,
      it
      may at any time withdraw or direct the institution maintaining the Certificate
      Account to withdraw such amount from the Certificate Account, any provision
      herein to the contrary notwithstanding. Such withdrawal or direction may be
      accomplished by delivering written notice thereof to the Trustee or such other
      institution maintaining the Certificate Account which describes the amounts
      deposited in error in the Certificate Account. The Servicer shall maintain
      adequate records with respect to all withdrawals made pursuant to this Section.
      All funds deposited in the Certificate Account shall be held in trust for the
      Certificateholders until withdrawn in accordance with Section 3.08.

    

    (c) The
      Trustee shall establish and maintain, for the benefit of the Certificateholders,
      the Distribution Account. The Trustee shall, promptly upon receipt, deposit
      in
      the Distribution Account and retain therein the following:

    

    (i) the
      aggregate amount remitted by the Servicer to the Trustee pursuant to Section
      3.08(a)(ix); and

    

    (ii) any
      other
      amounts deposited hereunder which are required to be deposited in the
      Distribution Account.

    

    In
      the
      event that the Servicer shall remit any amount not required to be remitted,
      it
      may at any time direct the Trustee to withdraw such amount from the Distribution
      Account, any provision herein to the contrary notwithstanding. Such direction
      may be accomplished by delivering an Officer’s Certificate to the Trustee which
      describes the amounts deposited in error in the Distribution Account. All funds
      deposited in the Distribution Account shall be held by the Trustee uninvested
      in
      trust for the Certificateholders until disbursed in accordance with this
      Agreement or withdrawn in accordance with Section 3.08. In no event shall the
      Trustee incur liability for withdrawals from the Distribution Account at the
      direction of the Servicer.

    

    (d) The
      Servicer may direct, in writing, each institution at which the Certificate
      Account is maintained to invest the funds therein in specified Permitted
      Investments, which shall mature not later than, the second Business Day next
      preceding the Distribution Account Deposit Date (except that if such Permitted
      Investment is an obligation of the institution that maintains such account
      or a
      fund for which such institution or affiliate thereof serves as an investment
      advisor, administrator, shareholder servicing agent and/or custodian or
      subcustodian, then such Permitted Investment shall mature not later than the
      Business Day next preceding such Distribution Account Deposit Date) and shall
      not be sold or disposed of prior to its maturity. All such Permitted Investments
      shall be made in the name of the Trustee, for the benefit of the
      Certificateholders. So long as no Event of Default shall have occurred and
      be
      continuing, all income earned on funds on deposit in the Certificate Account,
      net of any losses realized from any Permitted Investments made with such funds,
      shall be for the benefit of the Servicer as servicing compensation and shall
      be
      remitted to it monthly as provided herein. If an Event of Default has occurred
      and is continuing, all income earned on funds on deposit in the Certificate
      Account, net of any losses realized from any Permitted Investments made with
      such funds, shall be deposited into the Certificate Account without right of
      reimbursement. The amount of any realized losses in the Certificate Account
      in
      respect of any such Permitted Investments shall promptly be deposited by the
      Servicer (from its own funds) in the Certificate Account. The Trustee in its
      fiduciary capacity shall not be liable for the amount of any loss incurred
      in
      respect of any investment or lack of investment of funds held in the Certificate
      Account and made in accordance with this Section 3.05.

     

    
      
        
        

      

      
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    (e) The
      Servicer shall give notice to the Trustee, each Seller, each Rating Agency
      and
      the Depositor of any proposed change of the location of the Certificate Account
      prior to any change thereof. The Trustee shall give notice to the Servicer,
      each
      Seller, each Rating Agency and the Depositor of any proposed change of the
      location of the Distribution Account prior to any change thereof. 

    

    SECTION
      3.06.
      Payment
      of Taxes, Assessments, Hazard Insurance Premiums and Similar Items; Escrow
      Accounts.

    

    (a) The
      Servicer shall require Mortgagors to pay all taxes, assessments, hazard
      insurance premiums, flood insurance premiums, condominium association dues
      or
      comparable items for the account of the Mortgagors. To the extent required
      by
      the Seller at the time the related Loan was originated and not violative of
      current law, the Servicer shall establish and maintain one or more accounts
      (each, an “Escrow
      Account”)
      and
      deposit and retain therein all collections from the Mortgagors (or advances
      by
      the Servicer) for the payment of taxes, assessments, hazard insurance premiums,
      condominium association dues or comparable items for the account of the
      Mortgagors. Nothing herein shall require the Servicer to compel a Mortgagor
      to
      establish an Escrow Account in violation of applicable law or if the Seller
      of
      the related Loan did not require the establishment of an Escrow Account at
      the
      time the Loan was originated.

    

    Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      association dues, or comparable items, to reimburse the Servicer out of related
      collections for any payments made pursuant to Sections 3.01 hereof (with respect
      to taxes and assessments and insurance premiums) and 3.09 hereof (with respect
      to hazard insurance), to refund to any Mortgagors any sums determined to be
      overages, to pay interest, if required by law or the terms of the related
      Mortgage or Mortgage Note, to Mortgagors on balances in the Escrow Account
      or to
      clear and terminate the Escrow Account at the termination of this Agreement
      in
      accordance with Section 9.01 hereof. The Escrow Accounts shall not be a part
      of
      the Trust Fund.

    

    (b) The
      Servicer shall advance any payments referred to in Section 3.06(a) that are
      not
      timely paid by the Mortgagors on the date when the tax, premium or other cost
      for which such payment is intended is due, but the Servicer shall be required
      so
      to advance only to the extent that such advances, in the good faith judgment
      of
      the Servicer, are required to be made to protect the lien of the Mortgage and
      will be recoverable by the Servicer out of Insurance Proceeds, Liquidation
      Proceeds or otherwise. The amount of any such advances made by the Servicer
      for
      the purpose of maintaining any hazard or flood insurance shall not, for the
      purpose of calculating monthly distributions to the Certificateholders or
      remittances to the Trustee for their benefit, be added to the principal balance
      of the related Loan, notwithstanding that the terms of the Loan so permit.
      Any
      advance made by the Servicer pursuant to this Section 3.06 shall be recoverable
      as a Servicing Advance to the extent permitted by Section 3.08. 

     

    
      
        
        

      

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

    

    (a)  The
      Servicer shall afford the Depositor, the Trustee and each Rating Agency
      reasonable access to all records and documentation regarding the Loans and
      all
      accounts, insurance information and other matters relating to this Agreement,
      such access being afforded without charge, but only upon reasonable request
      and
      during normal business hours at the office designated by the
      Servicer.

    

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

    

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

    

    (a) The
      Servicer may from time to time make withdrawals from the Certificate Account
      for
      the following purposes:

    

    (i) to
      pay to
      the Servicer (to the extent not previously retained by the Servicer) the
      servicing compensation to which it is entitled pursuant to Section 3.13,
      and, subject to Section 3.05(d), to pay to the Servicer, as additional servicing
      compensation, earnings on or investment income with respect to funds in or
      credited to the Certificate Account;

    

    (ii) to
      reimburse the Servicer for unreimbursed Advances made by it, such right of
      reimbursement pursuant to this subclause (ii) being limited to amounts received
      on the Loan(s) in respect of which any such Advance was made, excluding any
      Purchase Price proceeds received from the Servicer pursuant to Section 3.11
      and
      subject to Section 9.01;

    

    (iii) to
      reimburse the Servicer for any Nonrecoverable Advance previously made, except
      that the Servicer shall no longer be entitled to reimbursement for any
      Nonrecoverable Advance on a Loan as of the date the Servicer purchases such
      Loan
      from the Trust Fund pursuant to Section 3.11 or Section 9.01;

    

    (iv) to
      reimburse the Servicer for Insured Expenses from the related Insurance
      Proceeds;

    

    (v) to
      reimburse the Servicer for (a) unreimbursed Servicing Advances, the Servicer’s
      right to reimbursement pursuant to this clause (a) with respect to any Loan
      being limited to amounts received on such Loan(s) which represent late
      recoveries of the payments for which such Servicing Advances were made pursuant
      to Section 3.01 or Section 3.06 and (b) for unpaid Servicing Fees as provided
      in
      Section 3.11 hereof;

    

    (vi) to
      pay to
      the purchaser, with respect to each Loan or property acquired in respect thereof
      that has been purchased pursuant to Section 2.02, 2.03 or 3.11, all amounts
      received thereon after the date of such purchase;

     

    
      
        
        

      

      
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    (vii) to
      (A)
      reimburse the Sellers, the Servicer or the Depositor for expenses incurred
      by
      any of them that are reimbursable pursuant to Section 6.03 hereof or (B) to
      pay
      to the Trustee any Trustee Permitted Withdrawal Amounts;

    

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

    

    (ix) on
      or
      prior to the Distribution Account Deposit Date, to withdraw an amount equal
      to
      the Available Funds for such Distribution Date and remit such amounts to the
      Trustee for deposit in the Distribution Account; and

    

    (x) to
      clear
      and terminate the Certificate Account upon termination of this Agreement
      pursuant to Section 9.01 hereof.

    

    The
      Servicer shall keep and maintain separate accounting, on a Loan by Loan basis,
      for the purpose of justifying any withdrawal from the Certificate Account
      pursuant to such subclauses (i), (ii), (iv), (v) and (vi). Prior to making
      any
      withdrawal from the Certificate Account pursuant to subclause (iii), the
      Servicer shall deliver to the Trustee an Officer’s Certificate of a Servicing
      Officer indicating the amount of any previous Advance determined by the Servicer
      to be a Nonrecoverable Advance and identifying the related Loans(s), and their
      respective portions of such Nonrecoverable Advance.

    

    (b) The
      Trustee shall withdraw funds from the Distribution Account to make the
      distributions specified in this Agreement (and to withhold from the amounts
      so
      withdrawn, the amount of any taxes that it is authorized to withhold pursuant
      to
      the last paragraph of Section 8.11). In addition, the Trustee may from time
      to
      time make withdrawals from the Distribution Account for the following
      purposes:

    

    (i) to
      the
      extent not remitted by the Servicer pursuant to Section 3.08(a)(vii)(B) above
      within a reasonable period of time after request by the Trustee, to remit (prior
      to making any other distributions from amounts held in the Distribution Account)
      to itself any Trustee Permitted Withdrawal Amounts;

    

    (ii) to
      withdraw and return to the Servicer any amount deposited in the Distribution
      Account and not required to be deposited therein; and

    

    (iii) to
      clear
      and terminate the Distribution Account upon termination of the Agreement
      pursuant to Section 9.01 hereof.

    

    SECTION
      3.09.
      Maintenance of Hazard Insurance; Maintenance of Primary Insurance
      Policies.

    

    (a) The
      Servicer shall require Mortgagors to maintain, for each Loan, hazard insurance
      with extended coverage (i) in the case of a Loan secured by a Mortgage creating
      a first lien on the related Mortgaged Property, in an amount that is at least
      equal to the original principal balance of such Loan or the maximum insurable
      value of the improvements on such Mortgaged Property, whichever is less, and
      (ii) in the case of a Second Lien Loan, in an amount equal to the lesser of
      the
      combined principal balance of such Second Lien Loan and the related first lien
      mortgage loan or the maximum insurable value of the improvements on the related
      Mortgaged Property. Each such policy of standard hazard insurance shall contain,
      or have an accompanying endorsement that contains, a standard mortgagee clause.
      Any amounts collected by the Servicer under any such policies (other than the
      amounts to be applied to the restoration or repair of the improvements on the
      related Mortgaged Property or amounts released to the Mortgagor in accordance
      with the Servicer’s normal servicing procedures) shall be deposited in the
      Certificate Account. It is understood and agreed that no earthquake or other
      additional insurance is to be required of any Mortgagor or maintained on
      property acquired in respect of a Mortgage other than pursuant to such
      applicable laws and regulations as shall at any time be in force and as shall
      require such additional insurance. If the Mortgaged Property is located at
      the
      time of origination of the Loan in a federally designated special flood hazard
      area and such area is participating in the national flood insurance program,
      the
      Servicer shall require the related Mortgagor to maintain flood insurance with
      respect to such Loan. Such flood insurance shall be in an amount equal to the
      original principal balance of the related Loan.

     

    
      
        
        

      

      
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    (b) The
      Servicer shall not be required to have Mortgagors maintain any Primary Mortgage
      Insurance Policy with respect to any Loan, but may do so as allowed by law,
      and
      shall allow the cancellation of any such Primary Mortgage Insurance Policy
      as
      required by law. The Servicer shall not take any action which would result
      in
      non-coverage under any applicable Primary Mortgage Insurance Policy of any
      loss
      which, but for the actions of the Servicer, would have been covered thereunder.
      If any Mortgagor fails to pay the premiums for its Primary Mortgage Insurance
      Policy, if any, the Servicer may, but shall not be required to, pay such
      premiums. Any payment made by the Servicer pursuant to this Section 3.09(b)
      shall be recoverable as a Servicing Advance to the extent permitted by Section
      3.08.

    

    (c) In
      connection with its activities as Servicer of the Loans, the Servicer agrees
      to
      present on behalf of itself, the Trustee and the Certificateholders, claims
      to
      the insurer under any Primary Mortgage Insurance Policies and, in this regard,
      to take such reasonable action as shall be necessary to permit recovery under
      any Primary Mortgage Insurance Policies respecting defaulted Loans. Any amounts
      collected by the Servicer under any Primary Mortgage Insurance Policies shall
      be
      deposited in the Certificate Account.

    

    SECTION
      3.10.
      Enforcement of Due-on-Sale Clauses; Assumption Agreements.

    

    (a) When
      any
      property subject to a Mortgage has been conveyed by the Mortgagor, the Servicer,
      to the extent that it has knowledge of such conveyance, may, at its discretion,
      but is not required to, enforce any due-on-sale clause contained in any Mortgage
      Note or Mortgage, to the extent permitted under applicable law and governmental
      regulations, but only to the extent that such enforcement will not adversely
      affect or jeopardize coverage under any Required Insurance Policy. The Servicer
      is authorized, subject to Section 3.10(b), to take or enter into an assumption
      and modification agreement from or with the Person to whom such property has
      been or is about to be conveyed, pursuant to which such Person becomes liable
      under the Mortgage Note and, unless prohibited by applicable state law, the
      Mortgagor remains liable thereon, provided that the Loan shall continue to
      be
      covered (if so covered before the Servicer enters such agreement) by the
      applicable Required Insurance Policies. The Servicer, subject to Section
      3.10(b), is also authorized with the prior approval of the insurers under any
      Required Insurance Policies to enter into a substitution of liability agreement
      with such Person, pursuant to which the original Mortgagor is released from
      liability and such Person is substituted as Mortgagor and becomes liable under
      the Mortgage Note. Notwithstanding the foregoing, the Servicer shall not be
      deemed to be in default under this Section by reason of any transfer or
      assumption which the Servicer reasonably believes it is restricted by law from
      preventing, for any reason whatsoever.

    

    (b) In
      any
      case in which a Mortgaged Property has been conveyed to a Person by a Mortgagor,
      and such Person is to enter into an assumption agreement or modification
      agreement or supplement to the Mortgage Note or Mortgage that requires the
      signature of the Trustee, or if an instrument of release signed by the Trustee
      is required releasing the Mortgagor from liability on the Loan, the Servicer
      shall prepare and deliver or cause to be prepared and delivered to the Trustee
      for signature and shall direct, in writing, the Trustee to execute the
      assumption agreement with the Person to whom the Mortgaged Property is to be
      conveyed and such modification agreement or supplement to the Mortgage Note
      or
      Mortgage or other instruments as are reasonable or necessary to carry out the
      terms of the Mortgage Note or Mortgage or otherwise to comply with any
      applicable laws regarding assumptions or the transfer of the Mortgaged Property
      to such Person. In connection with any such assumption, no material term of
      the
      Mortgage Note may be changed. In addition, the substitute Mortgagor and the
      Mortgaged Property must be acceptable to the Servicer in accordance with its
      underwriting standards as then in effect. Together with each such substitution,
      assumption or other agreement or instrument delivered to the Trustee for
      execution by it, the Servicer shall deliver an Officer’s Certificate signed by a
      Servicing Officer stating that the requirements of this subsection have been
      met
      in connection therewith. The Servicer shall notify the Trustee that any such
      substitution or assumption agreement has been completed by forwarding to the
      Trustee the original of such substitution or assumption agreement, which in
      the
      case of the original shall be added to the related Mortgage File and shall,
      for
      all purposes, be considered a part of such Mortgage File to the same extent
      as
      all other documents and instruments constituting a part thereof. Any fee
      collected by the Servicer for entering into an assumption or substitution of
      liability agreement will be retained by the Servicer as additional servicing
      compensation.

     

    
      
        
        

      

      
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    SECTION
      3.11.
      Realization Upon Defaulted Loans; Repurchase and Sale of Certain
      Loans.

    

    The
      Servicer shall use reasonable efforts to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the Loans as come into
      and
      continue in default and as to which no satisfactory arrangements can be made
      for
      collection of delinquent payments. In connection with such foreclosure or other
      conversion, the Servicer shall follow such practices and procedures as it shall
      deem necessary or advisable
      and
      as shall
      be normal and usual in its general mortgage servicing activities and meet the
      requirements of the insurer under any Required Insurance Policy; provided,
      however,
      that
      the Servicer shall not be required to expend its own funds in connection with
      any foreclosure or towards the restoration of any property unless it shall
      determine (i) that such restoration and/or foreclosure will increase the
      proceeds of liquidation of the Loan after reimbursement to itself of such
      expenses and (ii) that such expenses will be recoverable to it through
      Liquidation Proceeds (respecting which it shall have priority for purposes
      of
      withdrawals from the Certificate Account). The Servicer shall be responsible
      for
      all other costs and expenses incurred by it in any such proceedings;
provided,
      however,
      that it
      shall be entitled to reimbursement thereof from the liquidation proceeds with
      respect to the related Mortgaged Property, as provided in the definition of
      Liquidation Proceeds. If the Servicer has knowledge that a Mortgaged Property
      which the Servicer is contemplating acquiring in foreclosure or by deed in
      lieu
      of foreclosure is located within a one mile radius of any site with
      environmental or hazardous waste risks known to the Servicer, the Servicer
      will,
      prior to acquiring the Mortgaged Property, consider such risks and only take
      action in accordance with its established environmental review
      procedures.

    

    With
      respect to any REO Property, the deed or certificate of sale shall be taken
      in
      the name of the Trustee for the benefit of the Certificateholders, or its
      nominee, on behalf of the Certificateholders. The Trustee’s name shall be placed
      on the title to such REO Property solely as the Trustee hereunder and not in
      its
      individual capacity. The Servicer shall ensure that the title to such REO
      Property references this Agreement and the Trustee’s capacity thereunder. In
      order to facilitate sales of REO Properties by the Servicer, upon the Servicer’s
      request, the Trustee shall promptly provide the Servicer with appropriate
      limited durable powers of attorney or such other documentation as may reasonably
      be required by the Servicer or purchasers of REO Properties to consummate such
      sales. Pursuant to its efforts to sell such REO Property, the Servicer shall
      either itself or through an agent selected by the Servicer protect and conserve
      such REO Property in the same manner and to such extent as is customary in
      the
      locality where such REO Property is located and may, incident to its
      conservation and protection of the interests of the Certificateholders, rent
      the
      same, or any part thereof, as the Servicer
      deems
      to be in
      the best interest of the Certificateholders for the period prior to the sale
      of
      such REO Property. The Servicer shall prepare for and deliver to the Trustee
      a
      statement with respect to each REO Property that has been rented showing the
      aggregate rental income received and all expenses incurred in connection with
      the management and maintenance of such REO Property at such times as is
      necessary to enable the Trustee to comply with the reporting requirements of
      the
      REMIC Provisions. The net monthly income, if any, from such REO Property shall
      be deposited in the Certificate Account no later than the close of business
      on
      each Determination Date. The Servicer shall perform the tax reporting and
      withholding required by Sections 1445 and 6050J of the Code with respect to
      foreclosures and abandonments, the tax reporting required by Section 6050H
      of
      the Code with respect to the receipt of mortgage interest from individuals
      and
      any tax reporting required by Section 6050P of the Code with respect to the
      cancellation of indebtedness by certain financial entities, by preparing such
      tax and information returns as may be required, in the form required, and
      delivering the same to the Trustee for filing.

     

    
      
        
        

      

      
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    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or imminent default on a Loan, the
      Servicer shall dispose of such Mortgaged Property prior to the close of the
      third taxable year of the Trust Fund following the taxable year of the Trust
      Fund in which the Trust Fund acquired such Mortgaged Property, unless the
      Trustee shall have been supplied with an Opinion of Counsel (which Opinion
      of
      Counsel shall not be at the expense of the Trustee) to the effect that the
      holding by the Trust Fund of such Mortgaged Property subsequent to such
      three-year period will not result in the imposition of taxes on “prohibited
      transactions” of any REMIC hereunder as defined in section 860F of the Code or
      cause any REMIC to fail to qualify as one or more REMICs at any time that any
      Certificates are outstanding, in which case the Trust Fund may continue to
      hold
      such Mortgaged Property (subject to any conditions contained in such Opinion
      of
      Counsel). Notwithstanding any other provision of this Agreement, no Mortgaged
      Property acquired by the Trust Fund shall be rented (or allowed to continue
      to
      be rented) or otherwise used for the production of income by or on behalf of
      the
      Trust Fund in such a manner or pursuant to any terms that would (i) cause such
      Mortgaged Property to fail to qualify as “foreclosure property” within the
      meaning of section 860G(a)(8) of the Code or (ii) subject any REMIC to the
      imposition of any federal, state or local income taxes on the income earned
      from
      such Mortgaged Property under Section 860G(c) of the Code or otherwise, unless
      the Servicer has agreed to
      indemnify and hold harmless the Trust Fund with respect to the imposition of
      any
      such taxes.

    

    The
      decision of the Servicer to foreclose on a defaulted Loan shall be subject
      to a
      determination by the Servicer
      that
      the
      proceeds of such foreclosure would exceed the costs and expenses of bringing
      such a proceeding.

    

    The
      proceeds from any liquidation of a Loan, as well as any income from an REO
      Property, will be applied in the following order of priority: first, to
      reimburse the Servicer for any related unreimbursed Servicing Advances and
      Servicing Fees related to such Liquidated Loan; second, to reimburse the
      Servicer for any unreimbursed Advances; third, to accrued and unpaid interest
      (to the extent no Advance has been made for such amount or any such Advance
      has
      been reimbursed) on the Loan or related REO Property, at the Adjusted Net
      Mortgage Rate to the Due Date occurring in the calendar month preceding the
      month in which such amounts are required to be distributed; and fourth, as
      a
      recovery of principal of the Loan. Excess Proceeds, if any, from the liquidation
      of a Liquidated Loan will be retained by the Servicer as additional servicing
      compensation pursuant to Section 3.13.

    

    During
      the first full calendar month (but excluding the last Business Day thereof)
      following the calendar month in which a Loan became 91 days or more delinquent,
      the Servicer, in its sole discretion, shall have the right, but not the
      obligation, to purchase for its own account or for resale as set forth herein
      from the Trust Fund any Loan that is then still 91 days or more delinquent
      at a
      price equal to the Purchase Price. The Purchase Price for any Loan purchased
      hereunder shall be deposited in the Certificate Account and the Trustee, upon
      receipt of a Request for Release from the Servicer substantially in the form
      of
      Exhibit J, shall release or cause to be released to the Servicer the related
      Mortgage File and shall execute and deliver such instruments of transfer or
      assignment prepared by the purchaser, in each case without recourse, as shall
      be
      necessary to vest in the purchaser any Loan released pursuant hereto and the
      purchaser shall succeed to all the Trustee’s right, title and interest in and to
      such Loan and all security and documents related thereto. Such assignment shall
      be a sale and assignment outright and not for security. The purchaser shall
      thereupon own such Loan, and all security and documents, free of any further
      obligation to the Trustee or the Certificateholders with respect
      thereto.

     

    
      
        
        

      

      
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    If
      with
      respect to any delinquent Loan, the option of the Servicer set forth in the
      preceding paragraph shall have arisen but the Servicer shall have failed to
      exercise such option with respect to such Loan on or before the Business Day
      preceding the last Business Day of the calendar month following the calendar
      month during which such Loan first became 91 days or more delinquent, then
      such
      option shall automatically expire with respect to such Loan; provided,
      however,
      that if
      any such Loan shall cease to be 91 days or more delinquent but then subsequently
      shall again become 91 days or more delinquent, then the Servicer shall be
      entitled to another repurchase option with respect to such Loan as provided
      in
      the preceding paragraph. 

    

    SECTION
      3.12.
      Documents, Records and Funds in Possession of Servicer to be Held for the
      Trustee.

    

    Notwithstanding
      any other provisions of this Agreement, the Servicer shall transmit to the
      Trustee as required by this Agreement all documents and instruments in respect
      of a Loan coming into the possession of the Servicer from time to time and
      shall
      account fully to the Trustee for any funds received by the Servicer or which
      otherwise are collected by the Servicer as Liquidation Proceeds, Insurance
      Proceeds or Recoveries in respect of any Loan. All Mortgage Files and funds
      collected or held by, or under the control of, the Servicer in respect of any
      Loans, whether from the collection of principal and interest payments or from
      Liquidation Proceeds or Recoveries, including but not limited to, any funds
      on
      deposit in the Certificate Account, shall be held by the Servicer for and on
      behalf of the Trustee and shall be and remain the sole and exclusive property
      of
      the Trustee, subject to the applicable provisions of this Agreement. The
      Servicer also agrees that it shall not create, incur or subject any Mortgage
      File or any funds that are deposited in the Certificate Account, Distribution
      Account, or any funds that otherwise are or may become due or payable to the
      Trustee for the benefit of the Certificateholders, to any claim, lien, security
      interest, judgment, levy, writ of attachment or other encumbrance, or assert
      by
      legal action or otherwise any claim or right of setoff against any Mortgage
      File
      or any funds collected on, or in connection with, a Loan, except, however,
      that
      the Servicer shall be entitled to set off against and deduct from any such
      funds
      any amounts that are properly due and payable to the Servicer under this
      Agreement.

    

    SECTION
      3.13.
      Servicing Compensation.

    

    As
      compensation for its activities hereunder, the Servicer shall be entitled to
      retain or withdraw from the Certificate Account an amount equal to the Servicing
      Fee for each Loan, provided that the aggregate Servicing Fee for the Loans
      with
      respect to any Distribution Date shall be reduced (i) by an amount equal to
      the
      aggregate of the Prepayment Interest Shortfalls, if any, with respect to such
      Distribution Date, up to the full amount of the aggregate Servicing Fee, and
      (ii) with respect to the first Distribution Date, an amount equal to any amount
      to be deposited into the Certificate Account by the Sellers pursuant to Section
      2.01(a) and not so deposited. 

    

    Additional
      servicing compensation in the form of Excess Proceeds, Prepayment Interest
      Excess, prepayment penalties, assumption fees, late payment charges and all
      income earned on funds on deposit in the Certificate Account, net of any losses
      realized from any Permitted Investments made with such funds, shall be retained
      by the Servicer to the extent not required to be deposited in the Certificate
      Account pursuant to Section 3.05 hereof. The Servicer shall be required to
      pay
      all expenses incurred by it in connection with its servicing activities
      hereunder and shall not be entitled to reimbursement therefor except as
      specifically provided in this Agreement.

     

    
      
        
        

      

      
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    SECTION
      3.14.
      Access to Certain Documentation.

    

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

    

    SECTION
      3.15.
      Annual Statement as to Compliance.

    

    The
      Servicer shall deliver to the Depositor and the Trustee not later than March
      15
      of each calendar year commencing with the calendar year following the calendar
      year in which the Closing Date occurs, an annual compliance certificate pursuant
      to Item 1123 of Regulation AB, signed by an officer of the Servicer, stating
      that (i) a review of the activities of the Servicer during the preceding
      calendar year and of the performance of the Servicer under this Agreement has
      been made under such officer’s supervision and (ii) to the best of such
      officer’s knowledge, based on such review, the Servicer has fulfilled all its
      obligations under this Agreement in all material respects throughout such
      calendar year, or, if there has been a failure to fulfill any such obligation
      in
      any material respect, specifying each such failure known to such officer and
      the
      nature and status thereof. The Trustee shall forward a copy of each such
      statement to each Rating Agency. Copies of such compliance certificates shall
      be
      provided by the Servicer to any Certificateholder, without charge, upon the
      written request of such Certificateholder. 

    

    SECTION
      3.16.
      Servicer’s Annual Servicing Statement; Independent Public Accountants’
Attestation.

    

    (a) The
      Servicer shall deliver to the Depositor and the Trustee, not later than March
      15
      of each calendar year in which the Depositor is required to file an annual
      report on Form 10-K with respect to the Trust Fund, commencing with the calendar
      year following the calendar year in which the Closing Date occurs, a report
      regarding the Servicer’s assessment of its compliance with the Servicing
      Criteria. Copies of such report shall be provided by the Servicer, without
      charge, upon written request of such Certificateholder. Such report shall
      contain the following statements (which statements shall be based on the
      activities the Servicer performs with respect to asset-backed securities
      transactions taken as a whole involving the Servicer that are backed by the
      same
      asset type as the Loans):

    

    (i) a
      statement by the Servicer of its responsibility for assessing compliance with
      the Servicing Criteria applicable to the Servicer;

    

    (ii) a
      statement by the Servicer that it used the Servicing Criteria to assess
      compliance with the Servicing Criteria applicable to the Servicer;

     

    (iii) a
      statement by the Servicer as to which of the Servicing Criteria, if any, are
      not
      applicable to the Servicer;

    

    (iv) a
      statement by the Servicer assessing the Servicer’s compliance with the
      applicable Servicing Criteria as of the last day of the immediately preceding
      calendar year and covering the period of the preceding calendar year, which
      shall disclose any material instance of noncompliance with respect thereto;
      and

    

    (v) a
      statement by the Servicer that a registered public accounting firm has issued
      an
      attestation report on the Servicer’s assessment of compliance with the
      applicable Servicing Criteria as of the last day of the immediately preceding
      calendar year and covering the period of the preceding calendar
      year.

     

    
      
        
        

      

      
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    (b) Not
      later
      than March 15 of each calendar year in which the Depositor is required to file
      an annual report on Form 10-K with respect to the Trust Fund, commencing with
      the calendar year following the calendar year in which the Closing Date occurs,
      the Servicer, at its expense, shall cause a registered public accounting firm
      which is a member of the American Institute of Certified Public Accountants
      to
      furnish to the Depositor and Trustee a report by such accounting firm that
      attests to, and reports on, the assessment made by the Servicer pursuant to
      Section 3.16(a) hereof, meeting the requirements of Item 1122(b) of Regulation
      AB. Such attestation shall be in accordance with the Exchange Act and Regulation
      S-X under the Securities Act. Copies of such report shall be provided by the
      Servicer to any Certificateholder, without charge, upon the written request
      of
      such Certificateholder.

    

    SECTION
      3.17.
      Errors and Omissions Insurance; Fidelity Bonds.

    

    The
      Servicer shall, for so long as it acts as servicer under this Agreement, obtain
      and maintain in force (a) a policy or policies of insurance covering errors
      and
      omissions in the performance of its obligations as Servicer hereunder and (b)
      a
      fidelity bond in respect of its officers, employees and agents. Each such policy
      or policies and bond shall, together, comply with the requirements from time
      to
      time of FNMA or FHLMC for persons performing servicing for mortgage loans
      purchased by FNMA or FHLMC. In the event that any such policy or bond ceases
      to
      be in effect, the Servicer shall obtain a comparable replacement policy or
      bond
      from an insurer or issuer, meeting the requirements set forth above as of the
      date of such replacement.

    

    SECTION
      3.18.
      Engagement by Servicer of Affiliates or Third Party Vendors.

    

    Notwithstanding
      anything herein to the contrary, for so long as the Depositor is subject to
      Exchange Act reporting with respect to the Trust Fund:

    

    (i)
      to
      the
      extent the Servicer hereafter engages any affiliate or third party vendor,
      in
      connection with the performance of any of its material duties under this
      Agreement, the Servicer shall immediately notify the Depositor in writing of
      such engagement. To the extent the Depositor notifies the Servicer that it
      has
      determined that such affiliates or third party vendors are participating in
      the
      servicing function with respect to the Loans, within the meaning of Item 1122
      of
      Regulation AB, the Servicer shall cause such affiliates or third party vendors
      to prepare a separate annual assessment and attestation report, as contemplated
      by Section 3.16 of this Agreement, and deliver such report to the Servicer
      in
      accordance with Section 3.16 of this Agreement. In addition, to the extent
      that
      such affiliate or third party vendor meets the
      criteria in Item 1108(a)(2)(i), (ii) or (iii) of Regulation AB
      and the
      Depositor notifies the Servicer that it has determined that any such affiliate
      or third party vendor would be a “servicer” within the meaning of Item 1101 of
      Regulation AB, the Servicer shall cause such affiliate or third party vendor
      to
      prepare a separate annual compliance statement as contemplated by Section 3.15
      of this Agreement and deliver such statement to the Servicer as set forth in
      Section 3.15 of this Agreement. Furthermore, if such affiliate or third party
      vendor meets the criteria in Item 1108(a)(2)(i), (ii) or (iii) of Regulation
      AB
      and the Depositor determines any such affiliate or third party vendor would
      be a
“servicer” within the meaning of Item 1101 of Regulation AB, the Servicer shall
      cause such affiliate or third party vendor to provide the Servicer, the
      Depositor and the Trustee the information required by Item 1108(b) and 1108(c)
      of Regulation AB within two (2) Business Days following such
      engagement.

     

    
      
        
        

      

      
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    (ii)
      any
      Subservicer shall prepare a separate annual assessment and attestation report,
      as contemplated by Section 3.16 of this Agreement, and deliver such report
      to
      the Servicer in accordance with Section 3.16 of this Agreement. Furthermore,
      any
      Subservicer meeting the criteria in Item 1108(a)(2)(i), (ii) or (iii) of
      Regulation AB shall prepare a separate annual compliance statement as
      contemplated by Section 3.15 of this Agreement, and deliver such statement
      to
      the Servicer as set forth in Section 3.15 of this Agreement.

     

    SECTION
      3.19. Delinquent Loans.

     

    For
      all
      purposes in this Agreement and the Exhibits and Schedules attached hereto,
      the
      determination as to whether a Loan is delinquent shall be based on the number
      of
      days that payments on such Loan are contractually past due, assuming 30-day
      months. For example, a payment due on the first day of a month is not 30 days
      delinquent until the first day of the following month.

     

    ARTICLE
      IIIA

    RESERVE
      FUNDS AND EXTERNAL TRUST

    

    SECTION
      3A.01.
      Swap Account and Swap Agreement.

    

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust,
      for the benefit of the Certificateholders, the Swap Account and deposit therein
      the amount of $500 remitted to the Trustee by the Depositor. The Swap Account
      shall be an Eligible Account, and funds on deposit therein shall be held
      separate and apart from, and shall not be commingled with, any other moneys,
      including without limitation, other moneys held by the Trustee pursuant to
      this
      Agreement.

    

    (b) In
      addition, on the Closing Date, the Swap Agreement will be entered into by the
      Swap Counterparty and the Trustee on behalf of the External Trust. On each
      Distribution Date, the Trustee shall deposit into the Swap Account amounts
      received from the Swap Counterparty under the Swap Agreement and amounts to
      be
      deposited into the Swap Account pursuant to Sections 4.02(a)(i)(D),
      4.02(d)(xxxviii) and 4.02(j) of this Agreement. The Trustee shall collect
      payments due under and otherwise enforce the terms of the Swap Agreement. The
      Trustee shall make withdrawals from the Swap Account to make distributions
      pursuant to Section 4.02(e) and Section 4.02(j). Notwithstanding anything to
      the
      contrary contained herein, in no event shall the Trustee in its fiduciary
      capacity be liable to the Holders of the Certificates, be required to make
      any
      deposit from its own funds into the Swap Account, or be required to take any
      action against the Swap Counterparty in connection with any delay in payment
      of
      amounts due under the Swap Agreement caused by any government action as further
      described in clause (j)(ii) of Part I of the Schedule to the Swap Agreement
      during the grace period specified therein.

    

    (c) The
      Trustee may, but need not, invest the funds in the Swap Account as directed
      in
      writing by the Holders of the Class X Certificates in Permitted
      Investments,
      which shall mature not later than, the second Business Day preceding each
      Distribution Date and shall not be sold or disposed of prior to their maturity.
      In
      the
      absence of any such direction, funds in the Swap Account shall remain
      uninvested. All investments
      made with funds from the Swap Account shall be made in the name of the Trustee,
      on
      behalf
      of the External Trust
      for the benefit of the Certificateholders. All income earned on funds on deposit
      in the Swap Account, net of any losses realized from any Permitted Investments
      made with such funds, shall be deposited in the Swap Account. The Trustee in
      its
      fiduciary capacity shall not be liable for the amount of any loss incurred
      in
      respect of any investment or lack of investment of funds held in the Swap
      Account and made in accordance with this Section 3A.01.

     

    (d) Upon
      termination of the External Trust, any amounts remaining in the Swap Account
      shall be distributed first to the Swap Counterparty to the extent of any unpaid
      amounts owing to the Swap Counterparty under the Swap Agreement, and then to
      the
      Class X Certificates pursuant to Section 4.02(e)(xxxiv). 

     

    
      
        
        

      

      
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    (e) In
      the
      event that the Swap Agreement is terminated prior to the Swap Stated Termination
      and the Swap Counterparty has not obtained a replacement counterparty to assume
      its obligations thereunder pursuant to the terms of the Swap Agreement, or
      upon
      a Swap Early Termination, the Trustee, at the direction of the Depositor, will
      seek a replacement counterparty to enter into a replacement interest rate swap
      agreement or similar agreement. To the extent the External Trust receives a
      Swap
      Termination Payment from the Swap Counterparty, the External Trust will apply
      all or such portion of the Swap Termination Payment as may be required to the
      payment of amounts due to a replacement counterparty under a replacement
      interest rate swap agreement or similar agreement. Furthermore, to the extent
      the External Trust is required to pay a Swap Termination Payment to the Swap
      Counterparty, the External Trust will apply all or a portion of amounts received
      from a replacement counterparty upon entering into a replacement interest rate
      swap agreement or similar agreement to the Swap Termination Payment amount
      owing
      to the Swap Counterparty.

    

    (f)
       The
      Swap Account shall be treated as an “outside reserve fund” under applicable
      Treasury regulations and will not be part of any REMIC. Any investment earnings
      on funds on deposit in the Swap Account will be treated as owned by the Holders
      of the Class X Certificates. Distributions made to the Swap Account under this
      Agreement shall be treated as made to the Holders of the Class X Certificates
      and then deposited into the Swap Account.

    

    (g)
       Net
      Swap
      Payments and Swap Termination Payments payable by the Trust Fund will first
      be
      deposited into the Swap Account before payment to the Swap
      Counterparty. 

     

    SECTION
      3A.02.
      Cap Account and Cap Agreement.

    

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the Certificateholders, the Cap Account and deposit therein
      the
      amount of $500 remitted to the Trustee by the Depositor. The Cap Account shall
      be an Eligible Account, and funds on deposit in such fund shall be held separate
      and apart from, and shall not be commingled with, any other moneys, including
      without limitation, other moneys held by the Trustee pursuant to this Agreement.
      

    

    (b) In
      addition, on the Closing Date, the Cap Agreement will be entered into by the
      Cap
      Counterparty and the Trustee on behalf of the External Trust. On each
      Distribution Date, the Trustee shall deposit into the Cap Account amounts
      received from the Cap Counterparty pursuant to the Cap Agreement. The Trustee
      shall collect payments due under and otherwise enforce the terms of the Cap
      Agreement. The Trustee shall make withdrawals from the Cap Account to make
      distributions pursuant to Section 4.02(f). Notwithstanding anything to the
      contrary contained herein, in no event shall the Trustee in its fiduciary
      capacity be liable to the Holders of the Certificates, be required to make
      any
      deposit from its own funds into the Cap Account, or be required to take any
      action against the Cap Counterparty in connection with any delay in payment
      of
      amounts due under the Cap Agreement caused by any government action as further
      described in clause (j)(ii) of Part I of the Schedule to the Cap Agreement
      during the grace period specified therein.

    

    (c) The
      Trustee may, but need not, invest the funds in the Cap Account as
      directed in writing by the Holders of the Class X Certificates in
      Permitted Investments, which shall mature not later than, the second
      Business Day preceding each Distribution Date (except that if such Permitted
      Investment is an obligation of the institution that maintains such account
      or a
      fund for which such institution or affiliate thereof serves as an investment
      advisor, administrator, shareholder servicing agent and/or custodian or
      subcustodian, then such Permitted Investment shall mature not later than the
      Business Day next preceding such Distribution Date) and shall not be sold or
      disposed of prior to their maturity. All investments made with funds from
      the Cap Account shall be made in the name of the Trustee, on
      behalf
      of the External Trust
      for the benefit of the Certificateholders. All income earned
      on
      funds on deposit in the Cap Account, net of any losses realized from any
      Permitted Investments made with such funds, shall
      be deposited in the Cap Account. The Trustee in its fiduciary capacity shall
      not
      be liable for the amount of any loss incurred in respect of any investment
      or
      lack of investment of funds held in the Cap Account and made in accordance
      with
      this Section 3A.02.

     

    
      
        
        

      

      
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    (d) Upon
      termination of the External Trust, any amounts remaining in the Cap Account
      shall be distributed to the Class X Certificates pursuant to Section
      4.02(f)(xxxii). 

    

    (e) In
      the
      event that the Cap Agreement is terminated prior to the Cap Stated Termination
      and the Cap Counterparty has not obtained a replacement counterparty to assume
      its obligations thereunder pursuant to the terms of the Cap Agreement, the
      Trustee, at the direction of the Depositor, will seek a replacement counterparty
      to enter into a replacement interest rate cap agreement or similar agreement.
      The External Trust shall apply any amounts received from the Cap Counterparty
      under the Cap Agreement in connection with its termination, to the extent
      necessary, to obtain such replacement counterparty and replacement interest
      rate
      cap agreement. 

    

    (f) The
      Cap Account shall be treated as an “outside reserve fund” under applicable
      Treasury regulations and will not be part of any REMIC. Any investment earnings
      on funds on deposit in the Cap Account will be treated as owned by the Holders
      of the Class X Certificates. Distributions made to the Cap Account under this
      Agreement shall be treated as made to the Holders of the Class X Certificates
      and then deposited into the Cap Account.

    

    SECTION
      3A.03.
      The Final Maturity Reserve Fund.

    

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust,
      for the benefit of the Certificateholders, the Final Maturity Reserve Fund
      and
      deposit therein the amount of $500 remitted to the Trustee by the Depositor.
      The
      Final Maturity Reserve Fund shall be an Eligible Account, and funds on deposit
      therein shall be held separate and apart from, and shall not be commingled
      with,
      any other moneys, including without limitation, other moneys held by the Trustee
      pursuant to this Agreement. 

    

    (b) On
      each
      Distribution Date, the Trustee shall deposit amounts in the Final Maturity
      Reserve Fund pursuant to Section 4.02(a)(i)(C). The Trustee shall make
      withdrawals from the Final Maturity Reserve Fund pursuant to Section
      4.02(i).

    

    (c) The
      Trustee may, but need not, invest the funds in the Final Maturity Reserve Fund
      as directed in writing by the Holders of the Class X Certificates in Permitted
      Investments, which shall mature not later than, the second Business Day
      preceding each Distribution Date (except that if such Permitted Investment
      is an
      obligation of the institution that maintains such account or a fund for which
      such institution or affiliate thereof serves as an investment advisor,
      administrator, shareholder servicing agent and/or custodian or subcustodian,
      then such Permitted Investment shall mature not later than the Business Day
      next
      preceding such Distribution Date) and shall not be sold or disposed of prior
      to
      their maturity. In the absence of any such direction, funds in the Final
      Maturity Reserve Fund shall remain uninvested. All income earned on funds on
      deposit in the Final Maturity Reserve Fund, net any losses realized from any
      Permitted Investments made with such funds, shall be payable to the Holders
      of
      the Class X Certificates. The Trustee in its fiduciary capacity shall not be
      liable for the amount of any loss incurred in respect of any investment or
      lack
      of investment of funds held in the Final Maturity Reserve Fund and made in
      accordance with this Section 3A.03(c).

    

    (d) Upon
      termination of the External Trust, all amounts on deposit in the Final Maturity
      Reserve Fund shall be distributed pursuant to the priorities set forth in
      Section 4.02(i).

    

    (e) For
      federal income tax purposes, any Holder of an Offered Certificate that receives
      a principal payment from the Final Maturity Reserve Fund shall be treated as
      selling a portion of its Certificate to the Class X Certificateholder and as
      having received the amount of the principal payment from the Class X
      Certificateholder as the proceeds of the sale. The portion of the Offered
      Certificate that is treated as having been sold shall equal the amount of the
      corresponding reduction in the outstanding principal balance of such Offered
      Certificate. Principal payments received from the Final Maturity Reserve Fund
      shall not be treated as distributions from any REMIC created hereby. All
      principal distributions from the Final Maturity Reserve Fund shall be accounted
      for hereunder in accordance with this Section 3A.03(e).

     

    
      
        
        

      

      
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    (f) The
      Final Maturity Reserve Fund shall be treated as an “outside reserve fund” under
      applicable Treasury regulations and will not be part of any REMIC. Any
      investment earnings on the Final Maturity Reserve Fund will be treated as owned
      by the Holders of the Class X Certificates and will be taxable to the Holders
      of
      the Class X Certificates. The
      Holders of the Class X Certificates shall be treated as the owners of the Final
      Maturity Reserve Fund for federal tax purposes. Distributions
      made to the Final Maturity Reserve Fund under this Agreement shall be treated
      as
      made to the Class X Certificateholders. 

    

    SECTION
      3A.04. Net WAC Cap Account

    

    (a) On
      the
      Closing Date, the Trustee shall establish and maintain in its name, in trust
      for
      the benefit of the Certificateholders, the Net WAC Cap Account and deposit
      therein the amount of $500 remitted to the Trustee by the Depositor. The Net
      WAC
      Cap Account shall be an Eligible Account, and funds on deposit therein shall
      be
      held separate and apart from, and shall not be commingled with, any other
      moneys, including without limitation, other moneys held by the Trustee pursuant
      to this Agreement. The Net WAC Cap Account shall be treated as an “outside
      reserve fund” under applicable Treasury regulations and will not be part of any
      REMIC. Any investment earnings on the Net WAC Cap Account will be treated as
      owned by the Holders of the Class X Certificates and will be taxable to the
      Holders of the Class X Certificates. Distributions made to the Net WAC Cap
      Account under this document shall be treated as made to the Class X
      Certificateholders.

    

    (b) On
      each
      Distribution Date, the Trustee shall deposit amounts in the Net WAC Cap Account
      pursuant to Section 4.02(d)(xxxi). The Trustee shall make withdrawals from
      the
      Net WAC Cap Account to make distributions pursuant to Section
      4.02(h).

    

    (c) The
      Trustee shall invest the funds in the Net WAC Cap Account as directed in writing
      by the Holders of the Class X Certificates in Permitted Investments, which
      shall
      mature not later than, the second Business Day preceding each Distribution
      Date
      (except that if such Permitted Investment is an obligation of the institution
      that maintains such account or a fund for which such institution or affiliate
      thereof serves as an investment advisor, administrator, shareholder servicing
      agent and/or custodian or subcustodian, then such Permitted Investment shall
      mature not later than the Business Day next preceding such Distribution Date)
      and shall not be sold or disposed of prior to their maturity. Any investment
      earnings on such amounts shall be payable to the Holders of the Class X
      Certificates. The Holders of the Class X Certificates shall be treated as the
      owners of the Net WAC Cap Account for federal tax purposes. The Trustee in
      its
      fiduciary capacity shall not be liable for the amount of any loss incurred
      in
      respect of any investment or lack of investment of funds held in the Net WAC
      Cap
      Account and made in accordance with this Section 3A.04(c).

    

    (d) Upon
      termination of the Trust Fund, any amounts remaining in the Net WAC Cap Account
      shall be distributed to the Holders of the Class X Certificates. 

    

    SECTION
      3A.05. External Trust

    

    (a) A
      separate trust is hereby established for the benefit of the Certificateholders
      (the “External
      Trust”),
      the
      corpus of which shall consist of the Swap Agreement, the Swap Account, the
      Cap
      Agreement, the Cap Account and the Final Maturity Reserve Fund and shall be
      held
      by the Trustee, in trust, for the benefit of the
      Certificateholders.

     

    
      
        
        

      

      
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    (b) The
      External Trust shall terminate on the earlier to occur of the Last Scheduled
      Distribution Date or the Distribution Date on which the Trust Fund is terminated
      pursuant to this Agreement.

    

    (c) It
      is the
      intention of the parties hereto that, for federal and state income and state
      and
      local franchise tax purposes, the External Trust be disregarded as an entity
      separate from the Holder of the Class X Certificates unless and until the date
      when either (i) there is more than one Class X Certificateholder or (ii) any
      Class of Offered Certificates in addition to the Class X Certificates is
      recharacterized as an equity interest in the External Trust for federal income
      tax purposes. The Trustee shall be responsible for any entity level tax
      reporting for the External Trust.

    

    ARTICLE
      IV

    DISTRIBUTIONS
      AND

    ADVANCES
      BY THE SERVICER

    

    SECTION
      4.01.
      Advances.

    

    The
      Servicer shall determine on or before each Servicer Advance Date whether it
      is
      required to make an Advance pursuant to the definition thereof. If the Servicer
      determines it is required to make an Advance, it shall, on or before the
      Servicer Advance Date, either (i) deposit into the Certificate Account an amount
      equal to the Advance or (ii) make an appropriate entry in its records relating
      to the Certificate Account that any Amount Held for Future Distribution has
      been
      used by the Servicer in discharge of its obligation to make any such Advance.
      Any funds so applied shall be replaced by the Servicer by deposit in the
      Certificate Account no later than the close of business on the next Servicer
      Advance Date. The Servicer shall be entitled to be reimbursed from the
      Certificate Account for all Advances of its own funds made pursuant to this
      Section as provided in Section 3.08. The obligation to make Advances with
      respect to any Loan shall continue if such Loan has been foreclosed or otherwise
      terminated and the Mortgaged Property has not been liquidated. 

    

    SECTION
      4.02.
      Priorities of Distribution and Allocation.

    

    
      	(a)  	
              Interest.
                On each Distribution Date, the Trustee will
                distribute:

            

    

    

    
      	(i)  	
              from
                the Interest Remittance Amount for that Distribution Date, in the
                following order of priority, to the extent
                available:

            

    

    

    
      	(A)  	
              first,
                to the Trustee, any amounts then due and owing representing fees
                of the
                Trustee based on the Pool Principal Balance, to the extent not paid
                by
                Trustee Permitted Withdrawal Amounts, expenses and indemnity amounts
                due
                and owing to the Trustee relating to the
                Loans;

            

    

    

    
      	(B)  	
              second,
                to the Servicer, an amount equal to the sum of (1) the Servicing
                Fee
                relating to the Loans, except to the extent previously paid with
                permitted
                withdrawals from the Certificate Account, and (2) any other amounts
                expended by the Servicer in connection with the Loans and reimbursable
                thereto under this Agreement but not previously reimbursed;
                

            

    

     

    
      
        
        

      

      
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      	(C)  	
              third,
                for deposit in the Final Maturity Reserve Fund, the Final Maturity
                Reserve
                Fund Addition Amount, if any, for that Distribution
                Date;

            

    

    

    
      	(D)  	
              fourth,
                for deposit in the Swap Account (to the extent not previously deposited
                pursuant to Section 4.02(j)), any Net Swap Payment or Swap Termination
                Payment (other than any Swap Termination Payment resulting from a
                Swap
                Counterparty Trigger Event) owed to the Swap Counterparty for that
                Distribution Date;

            

    

     

    
      	(E)  	
              fifth,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, the applicable Interest Distribution Amounts for that Distribution
                Date; and

            

    

     

    
      	(F)  	
              sixth,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, the applicable Class Unpaid Interest Amounts, if any.

            

    

    

    
      	(ii)  	
              from
                the Remaining Interest Remittance Amount for that Distribution Date,
                in
                the following order of priority, to the extent
                available:

            

    

    

    
      	(A)  	
              first,
                to the Class M-1 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(B)  	
              second,
                to the Class M-2 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(C)  	
              third,
                to the Class M-3 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(D)  	
              fourth,
                to the Class M-4 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date; 

            

    

    

    
      	(E)  	
              fifth,
                to the Class M-5 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(F)  	
              sixth,
                to the Class M-6 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date; 

            

    

    

    
      	(G)  	
              seventh,
                to the Class B-1 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date; 

            

    

    

    
      	(H)  	
              eighth,
                to the Class B-2 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date; 

            

    

    

    
      	(I)  	
              ninth,
                to the Class B-3 Certificates, the applicable Interest Distribution
                Amount
                for that Distribution Date; and 

            

    

    

    
      	(J)  	
              tenth,
                the Monthly Excess Interest Amount for that Distribution Date will
                be
                applied as described under Section 4.02(d)
                hereof.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              Principal
                (pre-Stepdown Date or Trigger Event).
                On each Distribution Date before the Stepdown Date or with respect
                to
                which a Trigger Event is in effect, the Trustee shall
                distribute:

            

    

    

    
      	 	
              (i)
                

            	
              from
                the Principal Distribution Amount, in the following order of priority,
                to
                the extent available, sequentially, to the Class A-1, Class A-2 and
                Class
                A-3 Certificates, in that order, until the respective Class Certificate
                Balances thereof have been reduced to zero; provided,
                however,
                that notwithstanding any provision to the contrary set forth herein,
                on
                any Distribution Date on which the sum of (1) the aggregate Class
                Certificate Balance of the Subordinate Certificates and (2) the
                Overcollateralization Amount is less than or equal to zero, all
                distributions of principal to the Senior Certificates will be made
                concurrently, on a pro rata basis, based on their respective Class
                Certificate Balances.

            

    

    

    
      	 	
              (ii)

            	
              from
                the Pre-Stepdown Remaining Principal Distribution Amount,
                in
                the following order of priority, to the extent
                available:

            

    

      

    
      	(A)  	
              first,
                to the Class M-1 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero;

            

    

    

    
      	(B)  	
              second,
                to the Class M-2 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero;

            

    

    

    
      	(C)  	
              third,
                to the Class M-3 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero;

            

    

    

    
      	(D)  	
              fourth,
                to the Class M-4 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero;

            

    

    

    
      	(E)  	
              fifth,
                to the Class M-5 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero; 

            

    

    

    
      	(F)  	
              sixth,
                to the Class M-6 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero; 

            

    

    

    
      	(G)  	
              seventh,
                to the Class B-1 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero; 

            

    

    

    
      	(H)  	
              eighth,
                to the Class B-2 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero; 

            

    

    

    
      	(I)  	
              ninth,
                to the Class B-3 Certificates, until the Class Certificate Balance
                thereof
                has been reduced to zero; and

            

    

    
      	 	 

    

    
      	(J)  	
              tenth,
                any amount of the Pre-Stepdown Remaining Principal Distribution Amount
                remaining after making all of the distributions in clauses (b)(ii)(A)
                through (b)(ii)(I) above will be applied as described in Section
                4.02(d)
                hereof. 

            

    

    

    
      	
              (c)

            	
              Principal
                (post-Stepdown Date and no Trigger Event).
                On each Distribution Date on or after the Stepdown Date and as long
                as a
                Trigger Event is not in effect, the Trustee shall
                distribute:

            

    

    

    
      	
            	(i)	
              from
                the Principal Distribution Amount,
                the Senior Principal Distribution Amount, in the following order
                of
                priority, to the extent available, sequentially, to the Class A-1,
                Class
                A-2 and Class A-3 Certificates, in that order, until the respective
                Class
                Certificate Balances thereof have been reduced to zero; provided,
                however,
                that notwithstanding any provision to the contrary set forth herein,
                on
                any Distribution Date on which the sum of (1) the aggregate Class
                Certificate Balance of the Subordinate Certificates and (2) the
                Overcollateralization Amount is less than or equal to zero, all
                distributions of principal to the Senior Certificates will be made
                concurrently, on a pro rata basis, based on their respective Class
                Certificate Balances.

            

    

     

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    
      	
            	(ii)	
              from
                the Post-Stepdown Remaining Principal Distribution Amount,
                in
                the following order of priority, to the extent available:

            

    

    

    
      	(A)  	
              first,
                to the Class M-1 Certificates, the Class M-1 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero;

            

    

    

    
      	(B)  	
              second,
                to the Class M-2 Certificates, the Class M-2 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero;

            

    

    

    
      	(C)  	
              third,
                to the Class M-3 Certificates, the Class M-3 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(D)  	
              fourth,
                to the Class M-4 Certificates, the Class M-4 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero; 

            

    

    

    
      	(E)  	
              fifth,
                to the Class M-5 Certificates, the Class M-5 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero;

            

    

    

    
      	(F)  	
              sixth,
                to the Class M-6 Certificates, the Class M-6 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero; 

            

    

    

    
      	(G)  	
              seventh,
                to the Class B-1 Certificates, the Class B-1 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero; 

            

    

    

    
      	(H)  	
              eighth,
                to the Class B-2 Certificates, the Class B-2 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero; 

            

    

    

    
      	(I)  	
              ninth,
                to the Class B-3 Certificates, the Class B-3 Principal Distribution
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero; and

            

    

    

    
      	(J)  	
              tenth,
                any amount of the Post-Stepdown Remaining Principal Distribution
                Amount
                remaining after making all of the distributions in clauses (c)(ii)(A)
                through (c)(ii)(I) above will be applied as described in Section
                4.02(d)
                hereof. 

            

    

     

    
      	
              (d)

            	
              Excess
                Cashflow.
                On each Distribution Date, the Trustee shall distribute: the Monthly
                Excess Cashflow Amount, to the extent available, to the parties,
                in the
                amounts and in the priorities
                indicated:

            

    

     

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              first,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining applicable Interest Distribution Amount for that
                Distribution Date;

            

    

    

    
      	(ii)  	
              second,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining Class Unpaid Interest Amounts for the Classes
                of
                Senior Certificates;

            

    

    

    
      	(iii)  	
              third,
                to fund the Extra Principal Distribution Amount for that Distribution
                Date
                for distribution in accordance with the priorities set forth under
                clauses
                (b) and (c) above;

            

    

    

    
      	(iv)  	
              fourth,
                to the Class M-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(v)  	
              fifth,
                to the Class M-1 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-1 Certificates;

            

    

    

    
      	(vi)  	
              sixth,
                to fund the Class M-1 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(vii)  	
              seventh,
                to the Class M-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(viii)  	
              eighth,
                to the Class M-2 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-2 Certificates;

            

    

    

    
      	(ix)  	
              ninth,
                to fund the Class M-2 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(x)  	
              tenth,
                to the Class M-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xi)  	
              eleventh,
                to the Class M-3 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-3 Certificates;

            

    

    

    
      	(xii)  	
              twelfth,
                to fund the Class M-3 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xiii)  	
              thirteenth,
                to the Class M-4 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xiv)  	
              fourteenth,
                to the Class M-4 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-4 Certificates;

            

    

    

    
      	(xv)  	
              fifteenth,
                to fund the Class M-4 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xvi)  	
              sixteenth,
                to the Class M-5 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xvii)  	
              seventeenth,
                to the Class M-5 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-5 Certificates;

            

    

    

    
      	(xviii)  	
              eighteenth,
                to fund the Class M-5 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

     

    
      
        
        

      

      
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      	(xix)  	
              nineteenth,
                to the Class M-6 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

     

    
      	(xx)  	
              twentieth,
                to the Class M-6 Certificates, any remaining Class Unpaid Interest
                amount
                for the Class M-6 Certificates;

            

    

    

    
      	(xxi)  	
              twenty-first,
                to fund the Class M-6 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxii)  	
              twenty-second,
                to the Class B-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

     

    
      	(xxiii)  	
              twenty-third,
                to the Class B-1 Certificates, any remaining Class Unpaid Interest
                amount
                for the Class B-1 Certificates;

            

    

    

    
      	(xxiv)  	
              twenty-fourth,
                to fund the Class B-1 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxv)  	
              twenty-fifth,
                to the Class B-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

     

    
      	(xxvi)  	
              twenty-sixth,
                to the Class B-2 Certificates, any remaining Class Unpaid Interest
                amount
                for the Class B-2 Certificates;

            

    

    

    
      	(xxvii)  	
              twenty-seventh,
                to fund the Class B-2 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxviii)  	
              twenty-eighth,
                to the Class B-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

     

    
      	(xxix)  	
              twenty-ninth,
                to the Class B-3 Certificates, any remaining Class Unpaid Interest
                amount
                for the Class B-3 Certificates;

            

    

    

    
      	(xxx)  	
              thirtieth,
                to fund the Class B-3 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxxi)  	
              thirty-first,
                for deposit into the Net WAC Cap Account, the amount equal to (a)
                the Net
                WAC Cap Carryover for that Distribution Date (the amount so deposited
                as
                limited by available funds) plus (b) the amount, if any, sufficient
                to
                increase the aggregate amount on deposit in the Net WAC Cap Account
                to
                $500 after giving effect to any payments of Net WAC Cap Carryover
                to the
                Offered Certificates on that Distribution
                Date;

            

    

    

    
      	(xxxii)  	
              thirty-second,
                to the Class B-3 Certificates as principal, any Remaining
                Overcollateralization Release Amount, until the Class Certificate
                Balance
                thereof has been reduced to zero; 

            

    

    

    
      	(xxxiii)  	
              thirty-third,
                to the Class B-2 Certificates as principal, any Remaining
                Overcollateralization Release Amount remaining after giving effect
                to the
                distribution set forth in clause (xxxii) above, until the Class
                Certificate Balance thereof has been reduced to zero;
                

            

    

     

    
      
        
        

      

      
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      	(xxxiv)  	
              thirty-fourth,
                to the Class B-1 Certificates as principal, any Remaining
                Overcollateralization Release Amount remaining after giving effect
                to the
                distribution set forth in clause (xxxiii) above, until the Class
                Certificate Balance thereof has been reduced to zero;
                

            

    

    

    
      	(xxxv)  	
              thirty-fifth,
                to the Class B-3 Certificates as principal, any Remaining Excess
                Interest
                Amount, until the Class Certificate Balance thereof has been reduced
                to
                zero;

            

    

    

    
      	(xxxvi)  	
              thirty-sixth,
                to the Class B-2 Certificates as principal, any Remaining Excess
                Interest
                Amount remaining after giving effect to the distribution set forth
                in
                clause (xxxv) above, until the Class Certificate Balance thereof
                has been
                reduced to zero;

            

    

    

    
      	(xxxvii)  	
              thirty-seventh,
                to the Class B-1 Certificates as principal, any Remaining Excess
                Interest
                Amount remaining after giving effect to the distribution set forth
                in
                clause (xxxvi) above, until the Class Certificate Balance thereof
                has been
                reduced to zero;

            

    

    

    
      	(xxxviii)  	
              thirty-eighth,
                for deposit in the Swap Account, any Swap Termination Payments resulting
                from Swap Counterparty Trigger Events owed to the Swap Counterparty
                for
                that Distribution Date; and

            

    

    

    
      	(xxxix)  	
              thirty-ninth,
                to the Class X Certificates, any remaining Monthly Excess Cashflow
                Amount.

            

    

    

    
      	
              (e)

            	
              Swap
                Account.
                On each Distribution Date, following all distributions and deposits
                made
                pursuant to subsections (a) through (d) above, the Trustee will withdraw
                all funds available in the Swap Account (the “Swap
                Distribution Amount”)
                to make the following payments in the following order of priority:
                

            

    

    

    
      	(i)  	
              first,
                to the Swap Counterparty, any Net Swap Payment owed to the Swap
                Counterparty pursuant to the Swap Agreement for such Distribution
                Date;

            

    

    

    
      	(ii)  	
              second,
                to the Swap Counterparty, any Swap Termination Payment owed to the
                Swap
                Counterparty not resulting from a Swap Counterparty Trigger Event
                pursuant
                to the Swap Agreement;

            

    

    

    
      	(iii)  	
              third,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining applicable Interest Distribution Amount for that
                Distribution Date;

            

    

    

    
      	(iv)  	
              fourth,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining Class Unpaid Interest Amounts for the classes
                of
                Senior Certificates;

            

    

    

    
      	(v)  	
              fifth,
                to the Class M-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(vi)  	
              sixth,
                to the Class M-1 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-1 Certificates;

            

    

    

    
      	(vii)  	
              seventh,
                to the Class M-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(viii)  	
              eighth,
                to the Class M-2 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-2 Certificates;

            

    

     

    
      
        
        

      

      
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      	(ix)  	
              ninth,
                to the Class M-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(x)  	
              tenth,
                to the Class M-3 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-3 Certificates;

            

    

    

    
      	(xi)  	
              eleventh,
                to the Class M-4 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xii)  	
              twelfth,
                to the Class M-4 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-4 Certificates;

            

    

    

    
      	(xiii)  	
              thirteenth,
                to the Class M-5 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xiv)  	
              fourteenth,
                to the Class M-5 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-5 Certificates;

            

    

    

    
      	(xv)  	
              fifteenth,
                to the Class M-6 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xvi)  	
              sixteenth,
                to the Class M-6 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-6 Certificates;

            

    

    

    
      	(xvii)  	
              seventeenth,
                to the Class B-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xviii)  	
              eighteenth,
                to the Class B-1 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-1 Certificates;

            

    

    

    
      	(xix)  	
              nineteenth,
                to the Class B-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xx)  	
              twentieth,
                to the Class B-2 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-2 Certificates;

            

    

    

    
      	(xxi)  	
              twenty-first,
                to the Class B-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxii)  	
              twenty-second,
                to the Class B-3 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-3 Certificates;

            

    

    

    
      	(xxiii)  	
              twenty-third,
                to fund the Swap Extra Principal Distribution Amount for that Distribution
                Date in accordance with the priorities set forth under subsections
                (b) and
                (c) above;

            

    

    

    
      	(xxiv)  	
              twenty-fourth,
                to pay to each Class of Offered Certificates, any remaining Net WAC
                Cap
                Carryover for that Class, after taking into account amounts deposited
                into
                the Net WAC Cap Account with respect to that Class of Offered Certificate
                pursuant to clause (xxxi) of subsection (d) above (with distributions
                of
                Net WAC Cap Carryover to the Offered Certificates to be made on a
                pro rata
                basis based on the related unpaid Net WAC Cap
                Carryover);

            

    

    

    
      	(xxv)  	
              twenty-fifth,
                to fund the Swap Class M-1 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

     

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

    
      	(xxvi)  	
              twenty-sixth,
                to fund the Swap Class M-2 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxvii)  	
              twenty-seventh,
                to fund the Swap Class M-3 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxviii)  	
              twenty-eighth,
                to fund the Swap Class M-4 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxix)  	
              twenty-ninth,
                to fund the Swap Class M-5 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxx)  	
              thirtieth,
                to fund the Swap Class M-6 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxxi)  	
              thirty-first,
                to fund the Swap Class B-1 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxxii)  	
              thirty-second,
                to fund the Swap Class B-2 Realized Loss Amortization Amount for
                that
                Distribution Date;

            

    

    

    
      	(xxxiii)  	
              thirty-third,
                to fund the Swap Class B-3 Realized Loss Amortization Amount for
                that
                Distribution Date; and

            

    

    

    
      	(xxxiv)  	
              thirty-fourth,
                to
                the Class X Certificates, any remaining Swap Distribution
                Amount.

            

    

     

    
      	
              (f)

            	
              Cap
                Account.
                On
                each Distribution Date, following all distributions and deposits
                made
                pursuant to subsections (a) through (e) above, the Trustee will withdraw
                all funds available in the Cap Account (the “Cap
                Distribution Amount”)
                to make the following payments in the following order of priority:
                

            

    

    

    
      	(i)  	
              first,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining applicable Interest Distribution Amount for that
                Distribution Date;

            

    

    

    
      	(ii)  	
              second,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining Class Unpaid Interest Amounts for the classes
                of
                Senior Certificates;

            

    

    

    
      	(iii)  	
              third,
                to the Class M-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(iv)  	
              fourth,
                to the Class M-1 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-1 Certificates;

            

    

    

    
      	(v)  	
              fifth,
                to the Class M-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(vi)  	
              sixth,
                to the Class M-2 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-2 Certificates;

            

    

    

    
      	(vii)  	
              seventh,
                to the Class M-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

     

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    
      	(viii)  	
              eight,
                to the Class M-3 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-3 Certificates;

            

    

    

    
      	(ix)  	
              ninth,
                to the Class M-4 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(x)  	
              tenth,
                to the Class M-4 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-4 Certificates;

            

    

    

    
      	(xi)  	
              eleventh,
                to the Class M-5 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xii)  	
              twelfth,
                to the Class M-5 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-5 Certificates;

            

    

    

    
      	(xiii)  	
              thirteenth,
                to the Class M-6 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xiv)  	
              fourteenth,
                to the Class M-6 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class M-6 Certificates;

            

    

    

    
      	(xv)  	
              fifteenth,
                to the Class B-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xvi)  	
              sixteenth,
                to the Class B-1 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-1 Certificates;

            

    

    

    
      	(xvii)  	
              seventeenth,
                to the Class B-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xviii)  	
              eighteenth,
                to the Class B-2 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-2 Certificates;

            

    

    

    
      	(xix)  	
              ninetieth,
                to the Class B-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xx)  	
              twentieth,
                to the Class B-3 Certificates, any remaining Class Unpaid Interest
                Amount
                for the Class B-3 Certificates;

            

    

    

    
      	(xxi)  	
              twenty-first,
                to fund the Cap Extra Principal Distribution Amount for that Distribution
                Date in accordance with the priorities set forth under subsections
                (b) and
                (c) above;

            

    

    

    
      	(xxii)  	
              twenty-second,
                to pay to each Class of Offered Certificates, any remaining Net WAC
                Cap
                Carryover for that Class, after taking into account (A) amounts deposited
                into the Net WAC Cap Account with respect to that Class of Offered
                Certificate pursuant to clause (xxxi) of subsection (d) above and
                (B)
                amounts paid pursuant to clause (xxiv) of subsection (e) above (with
                distributions of Net WAC Cap Carryover to the Offered Certificates
                to be
                made on a pro rata basis based on the related unpaid Net WAC Cap
                Carryover);

            

    

    

    
      	(xxiii)  	
              twenty-third,
                to fund the Cap Class M-1 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    
      	(xxiv)  	
              twenty-fourth,
                to fund the Cap Class M-2 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxv)  	
              twenty-fifth,
                to fund the Cap Class M-3 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxvi)  	
              twenty-sixth,
                to fund the Cap Class M-4 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxvii)  	
              twenty-seventh,
                to fund the Cap Class M-5 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxviii)  	
              twenty-eighth,
                to fund the Cap Class M-6 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxix)  	
              twenty-ninth,
                to fund the Cap Class B-1 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxx)  	
              thirtieth,
                to fund the Cap Class B-2 Realized Loss Amortization Amount for that
                Distribution Date;

            

    

    

    
      	(xxxi)  	
              thirty-first,
                to fund the Cap Class B-3 Realized Loss Amortization Amount for that
                Distribution Date; and

            

    

    

    
      	(xxxii)  	
              thirty-second,
                to
                the Class X Certificates, any remaining Cap Distribution
                Amount.

            

    

    

    
      	
              (g)

            	
              Realized
                Losses.
                Realized Losses shall be allocated first against the Overcollateralization
                Amount, until the Overcollateralization Amount has been reduced to
                zero.
                If, after giving effect to the distribution of all principal on any
                Distribution Date the aggregate Class Certificate Balance of the
                Offered
                Certificates exceeds the Pool Principal Balance as of the end of
                the
                related Due Period, such excess will be allocated against the Class
                B-3,
                Class B-2, Class B-1, Class M-6, Class M-5, Class M-4, Class M-3,
                Class
                M-2 and Class M-1 Certificates, in that order and until the respective
                Class Certificate Balances thereof are reduced to
                zero.

            

    

    

    
      	
              (h)
                

            	
              Net
                WAC Cap Carryover from Net WAC Cap Account.
                On each Distribution Date, following all distributions, deposits
                and
                allocations made pursuant to subsections (a) through (g) above, the
                Trustee shall distribute, pro rata, to the Offered Certificates,
                the Net WAC Cap Carryover for such Distribution Date, if any, from
                the Net
                WAC Cap Account (to the extent of available funds
                therein).

            

    

    

    
      	(i)	
              Final
                Maturity Reserve Fund.
                On
                the earlier to occur of the Last Scheduled Distribution Date or the
                Distribution Date on which the Trust Fund is terminated pursuant
                to this
                Agreement,
                after giving effect to all other distributions, deposits and allocations
                made pursuant to subsections (a) through (h) above, the Trustee will
                distribute all amounts available in the Final Maturity Reserve Fund
                (the
                “FMRF
                Distribution Amount”)
                in the order of priority and in the amounts set forth
                below:

            

    

    

    
      	(i)  	
              first,
                in payment of principal, sequentially, to the Class A-1, Class A-2
                and
                Class A-3 Certificates, in that order, until the respective Class
                Certificate Balances thereof have been reduced to zero; provided,
                however,
                that notwithstanding any provision to the contrary set forth herein,
                if
                the sum of (1) the aggregate Class Certificate Balance of the Subordinate
                Certificates and (2) the Overcollateralization Amount is less than
                or
                equal to zero, all distributions of principal to the Senior Certificates
                will be made concurrently, on a pro rata basis, based on their respective
                Class Certificate Balances;

            

    

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              second,
                in payment of principal, to the Class M-1 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(iii)  	
              third,
                in payment of principal, to the Class M-2 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(iv)  	
              fourth,
                in payment of principal, to the Class M-3 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(v)  	
              fifth,
                in payment of principal, to the Class M-4 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(vi)  	
              sixth,
                in payment of principal, to the Class M-5 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to zero;
                

            

    

    

    
      	(vii)  	
              seventh,
                in payment of principal, to the Class M-6 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(viii)  	
              eighth,
                in payment of principal, to the Class B-1 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(ix)  	
              ninth,
                in payment of principal, to the Class B-2 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(x)  	
              tenth,
                in payment of principal, to the Class B-3 Certificates, until the
                Class
                Certificate Balance thereof has been reduced to
                zero;

            

    

    

    
      	(xi)  	
              eleventh,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining applicable Interest Distribution Amount for that
                Distribution Date;

            

    

    

    
      	(xii)  	
              twelfth,
                concurrently, to the Class A-1, Class A-2 and Class A-3 Certificates,
                pro
                rata, any remaining Unpaid Interest Amounts for the classes of Senior
                Certificates;

            

    

    

    
      	(xiii)  	
              thirteenth,
                to the Class M-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xiv)  	
              fourteenth,
                to the Class M-1 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-1 Certificates;

            

    

    

    
      	(xv)  	
              fifteenth,
                to the Class M-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xvi)  	
              sixteenth,
                to the Class M-2 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-2 Certificates;

            

    

    

    
      	(xvii)  	
              seventeenth,
                to the Class M-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xviii)  	
              eighteenth,
                to the Class M-3 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-3 Certificates;

            

    

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    
      	(xix)  	
              nineteenth,
                to the Class M-4 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xx)  	
              twentieth,
                to the Class M-4 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-4 Certificates;

            

    

    

    
      	(xxi)  	
              twenty-first,
                to the Class M-5 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxii)  	
              twenty-second,
                to the Class M-5 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-5 Certificates;

            

    

    

    
      	(xxiii)  	
              twenty-third,
                to the Class M-6 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxiv)  	
              twenty-fourth,
                to the Class M-6 Certificates, any remaining Unpaid Interest Amount
                for
                the Class M-6 Certificates;

            

    

    

    
      	(xxv)  	
              twenty-fifth,
                to the Class B-1 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxvi)  	
              twenty-sixth,
                to the Class B-1 Certificates, any remaining Unpaid Interest Amount
                for
                the Class B-1 Certificates;

            

    

    

    
      	(xxvii)  	
              twenty-seventh,
                to the Class B-2 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxviii)  	
              twenty-eighth,
                to the Class B-2 Certificates, any remaining Unpaid Interest Amount
                for
                the Class B-2 Certificates;

            

    

    

    
      	(xxix)  	
              twenty-ninth,
                to the Class B-3 Certificates, any remaining Interest Distribution
                Amount
                for that Distribution Date;

            

    

    

    
      	(xxx)  	
              thirtieth,
                to the Class B-3 Certificates, any remaining Unpaid Interest Amount
                for
                the Class B-3 Certificates;

            

    

    

    
      	(xxxi)  	
              thirty-first,
                to pay to each class of Offered Certificates, any remaining Net WAC
                Cap
                Carryover relating to that class of Offered Certificates (distributions
                of
                Net WAC Cap Carryover to the Offered Certificates will be made on
                a pro
                rata basis based on the related unpaid Net WAC Cap Carryover);
                and

            

    

    

    
      	(xxxii)  	
              thirty-second,
                to the Class X Certificates, any remaining FMRF Distribution
                Amount.

            

    

    

    
      	
              (j)
                

            	
              Early
                Distribution of Net Swap Payments.
                Notwithstanding the provisions of Section 3A.01, 4.02(a) and 4.02(e),
                if,
                on the Business Day immediately preceding a Distribution Date, the
                Trustee
                has determined that (a) a Net Swap Payment will be due and owing
                to the
                Swap Counterparty on that Distribution Date and (b) after paying
                the Net
                Swap Payment for that Distribution Date to the Swap Counterparty,
                there
                would be sufficient funds remaining in the Distribution Account to
                make
                the distributions required to be made pursuant to clauses (a)(i)(A),
                (a)(i)(B) and (a)(i)(C) of this Section 4.02, then the Trustee shall,
                on
                that Business Day, transfer the appropriate amount of funds from
                the
                Distribution Account to the Swap Account and pay the Net Swap Payment
                for
                that Distribution Date to the Swap
                Counterparty.

            

    

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    SECTION
      4.02A. Recoveries.

    

    (a)
       With
      respect to any Class of Subordinate Certificates to which a Realized Loss has
      been allocated (including any such Class for which the related Class Certificate
      Balance has been reduced to zero), the Class Certificate Balance of such Class
      will be increased, up to the amount of related Recoveries for such Distribution
      Date as follows:

    

    
      	(i)  	
              first,
                the Class Certificate Balance of the Class M-1 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(ii)  	
              second,
                the Class Certificate Balance of the Class M-2 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(iii)  	
              third,
                the Class Certificate Balance of the Class M-3 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(iv)  	
              fourth,
                the Class Certificate Balance of the Class M-4 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(v)  	
              fifth,
                the Class Certificate Balance of the Class M-5 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(vi)  	
              sixth,
                the Class Certificate Balance of the Class M-6 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(vii)  	
              seventh,
                the Class Certificate Balance of the Class B-1 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; 

            

    

    

    
      	(viii)  	
              eighth,
                the Class Certificate Balance of the Class B-2 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class; and

            

    

    

    
      	(ix)  	
              ninth,
                the Class Certificate Balance of the Class B-3 Certificates will
                be
                increased, up to the amount of Net Recovery Realized Losses for such
                Class.

            

    

    

    (b) Any
      increase to the Class Certificate Balance of a Class of Certificates shall
      increase the Certificate Balance of each Certificate in the related Class pro
      rata in accordance with each Certificate’s Percentage Interest.

    

    SECTION
      4.03.
      Monthly Statements to Certificateholders.

    

    (a) Not
      later
      than each Distribution Date, the Trustee shall post on its website at
      www.jpmorgan.com/sfr, which posting shall be accessible to each
      Certificateholder, the Servicer, the Depositor and each Rating Agency, a
      statement setting forth with respect to the related distribution (provided,
      however, that each Certificateholder, upon request to the Trustee, shall be
      entitled to receive from the Trustee a paper copy of such statement if such
      Certificateholder is unable to access the Trustee’s website):

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    
      	(i)  	
              the
                applicable Record Date, Determination Date and Distribution
                Date;

            

    

    

    
      	(ii)  	
              the
                amount thereof allocable to principal, separately identifying the
                aggregate amount of any Principal Prepayments in full, partial Principal
                Prepayments and Liquidation Proceeds included
                therein;

            

    

    

    
      	(iii)  	
              the
                amount thereof allocable to interest, any Class Unpaid Interest Amount
                included in such distribution and any remaining Class Unpaid Interest
                Amount after giving effect to such
                distribution;

            

    

    

    
      	(iv)  	
              if
                the distribution to the Holders of a Class of Certificates is less
                than
                the full amount that would be distributable to such Holders if there
                were
                sufficient funds available therefor, the amount of the shortfall
                and the
                allocation thereof as between principal and
                interest;

            

    

    

    
      	(v)  	
              the
                Class Certificate Balance of each Class of Certificates after giving
                effect to the distribution of principal on such Distribution
                Date;

            

    

    

    
      	(vi)  	
              the
                Pool Principal Balance for the following Distribution
                Date;

            

    

    

    
      	(vii)  	
              the
                amount of the Servicing Fee paid to or retained by the Servicer with
                respect to such Distribution Date;

            

    

    

    
      	(viii)  	
              the
                Pass-Through Rate for each Class of Offered Certificates with respect
                to
                such Distribution Date;

            

    

    

    
      	(ix)  	
              the
                amount of Advances included in the distribution on such Distribution
                Date
                and the aggregate amount of Advances outstanding as of the close
                of
                business on such Distribution Date;

            

    

    

    
      	(x)  	
              the
                amount of the Trustee Fee paid to or retained by the Trustee with
                respect
                to such Distribution Date, any other fees or expenses paid from the
                assets
                of the Trust Fund, and the identity of the party receiving such fees
                or
                expenses;

            

    

    

    
      	(xi)  	
              the
                number and aggregate principal amounts of Loans (A) contractually
                past due
                (assuming 30 day months) (exclusive of Loans in foreclosure) (1)
                1 to 30
                days (2) 31 to 60 days (3) 61 to 90 days and (4) 91 or more days
                and (B)
                in foreclosure (1) 1 to 30 days (2) 31 to 60 days (3) 61 to 90 days
                and
                (4) 91 or more days, as of the close of business on the last day
                of
                calendar month immediately preceding such Distribution
                Date;

            

    

    

    
      	(xii)  	
              with
                respect to any Loan that became an REO Property during the preceding
                calendar month, the loan number and Stated Principal Balance of such
                Loan
                as of the close of business on the last day of the Prepayment Period
                preceding such Distribution Date and the date of acquisition
                thereof;

            

    

    

    
      	(xiii)  	
              (A)
                the total number and principal balance of any REO Properties (and
                market
                value, if available) as of the close of business on the last day
                of the
                Prepayment Period preceding such Distribution Date and (B) the total
                number and cumulative principal balance of any Liquidated Loans (prior
                to
                the reduction of the principal balance of any such Liquidated Loan
                to
                zero);

            

    

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    
      	(xiv)  	
              the
                amount equal to the sum of the Stated Principal Balances of the three
                Loans with the largest individual Stated Principal
                Balances;

            

    

    

    
      	(xv)  	
              with
                respect to each Class of Offered Certificates, the amount of the
                Net WAC
                Cap Carryover to be paid to such Class from the Net WAC Cap Account
                and
                the amount remaining unpaid;

            

    

    

    
      	(xvi)  	
              the
                aggregate principal balance of Balloon Loans with original terms
                less than
                or equal to 36 months which are 60 or more days contractually past
                due
                (assuming 30 day months) (including Loans in foreclosure and REO
                Properties) on the last day of the calendar month immediately preceding
                such Distribution Date;

            

    

    

    
      	(xvii)  	
              the
                cumulative aggregate amount of Realized Losses as of the last day
                of the
                Prepayment Period preceding such Distribution
                Date;

            

    

    

    
      	(xviii)  	
              the
                amount (a) if any, of Net Swap Payments and Swap Termination Payments
                and
                (b) of funds withdrawn from the Swap Account (for each Class of Offered
                Certificates) and included in such distribution and the outstanding
                balance of the Swap Account (and the amounts available for each Class
                of
                Offered Certificates), after giving effect to such
                distribution;

            

    

    

    
      	(xix)  	
              the
                number of Loans repurchased by Sellers during the Due Period related
                to
                such Distribution Date;

            

    

    

    
      	(xx)  	
              the
                weighted average Mortgage Rate of the Outstanding Loans, such weighted
                average to be calculated based on the principal balances of such
                Outstanding Loans on the first day of the Due Period related to such
                Distribution Date;

            

    

    

    
      	(xxi)  	
              the
                weighted average maturity date of the Outstanding
                Loans;

            

    

    

    
      	(xxii)  	
              the
                Targeted Overcollateralization Amount after giving effect to such
                distribution;

            

    

    

    
      	(xxiii)  	
              the
                amount of any Overcollateralization Release Amount included in the
                distribution on such Distribution
                Date;

            

    

    

    
      	(xxiv)  	
              the
                cumulative amount of Realized Losses from the Cut-off Date through
                the
                last day of the Due Period relating to such Distribution
                Date;

            

    

    

    
      	(xxv)  	
              any
                Overcollateralization Deficiency after giving effect to the distribution
                of principal on such Distribution
                Date;

            

    

    

    
      	(xxvi)  	
              whether
                a Trigger Event has occurred and is continuing, and the cumulative
                Realized Losses, as a percentage of the Cut-off Date Pool Principal
                Balance;

            

    

     

    
      
        
        

      

      
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      	(xxvii)  	
              the
                aggregate amount of 60+ Day Delinquent Loans as a percentage of the
                current Pool Principal Balance and the six-month rolling average
                of 60+
                Day Delinquent Loans;

            

    

    

    
      	(xxviii)  	
              the
                amount of funds deposited in or withdrawn from the Final Maturity
                Reserve
                Fund on such Distribution Date, and the outstanding balance of the
                Final
                Maturity Reserve Fund, after giving effect
                thereto;

            

    

    

    
      	(xxix)  	
              the
                amount of Recoveries collected during the Prepayment Period relating
                to
                such Distribution Date; 

            

    

    

    
      	(xxx)  	
              the
                cumulative amount of Recoveries collected as of such Distribution
                Date;

            

    

    

    
      	(xxxi)  	
              any
                material modifications, extensions or waivers to the terms of the
                Loans
                during the Due Period relating to such Distribution Date, or which
                have
                cumulatively become material over
                time;

            

    

    

    
      	(xxxii)  	
              any
                material breaches under this Agreement (including breaches of the
                representations and warranties set forth in Schedules IIA through
                IIE, IIX
                or IIIA through IIIE);

            

    

    

    
      	(xxxiii)  	
              whether
                the Optional Termination Date or the Stepdown Date has occurred;
                

            

    

    

    
      	(xxxiv)  	
              the
                Senior Enhancement Percentage for such Distribution Date;
                and

            

    

    

    
      	(xxxv)  	
              the
                amount of funds withdrawn from the Cap Account (for each Class of
                Offered
                Certificates) and included in such distribution and the outstanding
                balance of the Cap Account (and the amounts available for each Class
                of
                Offered Certificates), after giving effect to such
                distribution.

            

    

    

    (b) The
      Trustee’s responsibility for posting the above information on its website is
      limited to the availability, timeliness and accuracy of the information provided
      by the Servicer. On or before the 18th day of each calendar month, commencing
      in
      the month of the first Distribution Date hereunder, or if such day is not a
      Business Day, the next succeeding Business Day, the Servicer shall deliver
      to
      the Trustee a report, in a form acceptable to the Trustee, containing all of
      the
      necessary information for the Trustee to complete items (ii), (vi), (vii),
      (ix)-(xiv), (xvi), (xvii), (xix)-(xxi), (xxiv), (xxvii), (xxix) and
      (xxx)-(xxxii) of the statement described in (a) above. The Trustee shall be
      responsible for obtaining the necessary information to complete items (i),
      (iii), (iv), (v), (viii), (x), (xv), (xviii), (xxii), (xxiii), (xxv), (xxvi),
      (xxviii) and (xxxii)-(xxxv) of the statement described in (a) above.
      Notwithstanding the foregoing, (i) with respect to item (xxxii), each of the
      Servicer and the Trustee shall only be responsible for reporting the events
      described in such item with respect to itself and for which it has received
      notice thereof in compliance with the applicable provisions of this Agreement
      (including, without limitation, Sections 8.02(viii) and 10.05(b)) and (ii)
      with
      respect to item (x), the Servicer shall only be responsible for providing the
      specified information with respect to any amounts payable to it under this
      Agreement from assets of the Trust Fund.

    

    (c) Within
      a
      reasonable period of time after the end of each calendar year, but in no case
      later than the time prescribed by the Code and applicable Treasury regulations,
      the Trustee shall cause to be furnished to each Person who at any time during
      the calendar year was a Certificateholder, a statement containing the
      information set forth in clauses (a)(ii), (a)(iii), (a)(viii) and (a)(xx) of
      this Section 4.03 aggregated for such calendar year or applicable portion
      thereof during which such Person was a Certificateholder. Such obligation of
      the
      Trustee shall be deemed to have been satisfied to the extent that substantially
      comparable information shall be provided by the Trustee pursuant to any
      requirements of the Code as from time to time in effect.

     

    
      
        
        

      

      
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    (d) The
      Trustee shall report such other information on the statement described in (a)
      above as the Depositor, the Servicer and the Trustee may agree in writing from
      time to time in order to facilitate the Depositor’s compliance with Regulation
      AB. The Servicer and the Trustee shall cooperate in order to determine the
      appropriate party responsible for the provision of such other information within
      the time periods specified in clause (b) above.

    

    SECTION
      4.04.
      Reporting.

    

    On
      each
      Distribution Date, the Servicer shall provide to the Trustee current information
      of the type set forth in Schedule I hereto presented in a format substantially
      similar to Exhibit K attached hereto and the Trustee shall then forward such
      information to a reporting service mutually agreed upon by the Servicer and
      the
      Trustee.

    

    ARTICLE
      V

    THE
      CERTIFICATES

    

    SECTION
      5.01.
      The
      Certificates.

    

    The
      Certificates shall be substantially in the forms attached hereto as exhibits.
      The Certificates shall be issuable in the minimum denominations, integral
      multiples in excess thereof (except that one Certificate in each Class may
      be
      issued in a different amount which must be in excess of the applicable minimum
      denomination) and aggregate denominations per Class set forth in the Preliminary
      Statement.

    

    Subject
      to Section 9.02 hereof respecting the final distribution on the Certificates,
      on
      each Distribution Date the Trustee shall make distributions to each
      Certificateholder of record on the preceding Record Date either (a) by wire
      transfer in immediately available funds to the account of such Holder at a
      bank
      or other entity having appropriate facilities therefor, if (i) such Holder
      has
      so notified the Trustee at least five Business Days prior to the related Record
      Date and (ii) such Holder shall hold (A) 100% of the Class Certificate Balance
      or Percentage Interest of any Class of Certificates or (B) Certificates of
      any Class with an aggregate principal Denomination of not less than $1,000,000
      or (b) by check mailed by first class mail to such Certificateholder at the
      address of such Holder appearing in the Certificate Register.

    

    The
      Certificates shall be executed by manual or facsimile signature on behalf of
      the
      Trustee by an authorized officer. Certificates bearing the manual or facsimile
      signatures of individuals who were, at the time when such signatures were
      affixed, authorized to sign on behalf of the Trustee shall bind the Trustee,
      notwithstanding that such individuals or any of them have ceased to be so
      authorized prior to the countersignature and delivery of such Certificates
      or
      did not hold such offices at the date of such Certificate. No Certificate shall
      be entitled to any benefit under this Agreement, or be valid for any purpose,
      unless countersigned by the Trustee by manual signature, and such
      countersignature upon any Certificate shall be conclusive evidence, and the
      only
      evidence, that such Certificate has been duly executed and delivered hereunder.
      All Certificates shall be dated the date of their countersignature. On the
      Closing Date, the Trustee shall countersign the Certificates to be issued at
      the
      direction of the Depositor, or any affiliate thereof.

    

    The
      Depositor shall provide, or cause to be provided, to the Trustee on a continuous
      basis, an adequate inventory of Certificates to facilitate
      transfers.

     

    
      
        
        

      

      
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    SECTION
      5.02.
      Certificate Register; Registration of Transfer and Exchange of
      Certificates.

    

    (a) The
      Trustee shall maintain, or cause to be maintained in accordance with the
      provisions of Section 5.06 hereof, a Certificate Register for the Trust Fund
      in
      which, subject to the provisions of subsections (b) and (c) below and to such
      reasonable regulations as it may prescribe, the Trustee shall provide for the
      registration of Certificates and of transfers and exchanges of Certificates
      as
      herein provided. Upon surrender for registration of transfer of any Certificate,
      the Trustee shall execute and deliver, in the name of the designated transferee
      or transferees, one or more new Certificates of the same Class and aggregate
      Percentage Interest.

    

    At
      the
      option of a Certificateholder, Certificates may be exchanged for other
      Certificates of the same Class in authorized denominations and evidencing the
      same aggregate Percentage Interest upon surrender of the Certificates to be
      exchanged at the office or agency of the Trustee. Whenever any Certificates
      are
      so surrendered for exchange, the Trustee shall execute, authenticate, and
      deliver the Certificates which the Certificateholder making the exchange is
      entitled to receive. Every Certificate presented or surrendered for registration
      of transfer or exchange shall be accompanied by a written instrument of transfer
      in the form of Exhibit G duly executed by the Holder thereof or his attorney
      duly authorized in writing.

    

    No
      service charge to the Certificateholders shall be made for any registration
      of
      transfer or exchange of Certificates, but payment of a sum sufficient to cover
      any tax or governmental charge that may be imposed in connection with any
      transfer or exchange of Certificates may be required.

    

    All
      Certificates surrendered for registration of transfer or exchange shall be
      canceled and subsequently destroyed by the Trustee in accordance with the
      Trustee’s customary procedures.

    

    No
      transfer of a Certificate other than an ERISA-Restricted Certificate shall
      be
      made to a plan that is subject to ERISA or Section 4975 of the Code (a
“Plan”)
      unless
      the purchase and holding of such Certificate is eligible for the exemptive
      relief available under Department of Labor Prohibited Transaction Class
      Exemption (“PTCE”)
      84-14
      (for transactions by “qualified professional asset managers”), PTCE 90-1 (for
      transactions by insurance company pooled separate accounts), PTCE 91-38 (for
      transactions by bank collective investment funds), PTCE 95-60 (for transactions
      for insurance company separate accounts), PTCE 96-23 (for transactions effected
      by “in-house asset managers”) or under the statutory exemption in Section
      408(b)(17) of ERISA and Section 4975(d)(20) of the Code (for certain
      transactions with a service provider that is not a fiduciary, or an affiliate
      of
      a fiduciary, with respect to a Plan with assets involved in the transactions).
      Each Plan that is a Beneficial Owner of such a Certificate, or any interest
      therein, shall be deemed to have represented, by virtue of its acquisition
      or
      holding of the Certificate, or interest therein, that the acquisition or holding
      of such Certificate is eligible for the exemptive relief available under one
      of
      the five Prohibited Transaction Class Exemptions or the statutory exemption
      described immediately above. Any attempted or purported transfer of a such
      Certificate to a Plan in violation of the provisions of this paragraph shall
      be
      absolutely null and void and shall vest no rights in the purported transferee.
      

    

    (b) Except
      for the initial transfer of the Class X Certificates and Class R Certificates,
      no transfer of a Class X Certificate or Class R Certificate shall be made unless
      such transfer is made pursuant to an effective registration statement under
      the
      Securities Act and any applicable state securities laws or is exempt from the
      registration requirements under said Act and such state securities laws. In
      the
      event that a transfer is to be made in reliance upon an exemption from the
      Securities Act and such laws, in order to assure compliance with the Securities
      Act and such laws, (i) the Certificateholder desiring to effect such transfer
      and such Certificateholder’s prospective transferee shall each certify to the
      Trustee in writing the facts surrounding the transfer, the Certificateholder
      by
      delivering a certificate in substantially the form set forth in Exhibit G (the
      “Transferor
      Certificate”)
      and
      the Certificateholder’s prospective transferee by delivering a letter in
      substantially the form of either Exhibit H (the “Investment
      Letter”)
      or
      Exhibit I (the “Rule
      144A Letter”)
      or
      (ii) there shall be delivered to the Trustee at the expense of the transferor
      an
      Opinion of Counsel that such transfer may be made pursuant to an exemption
      from
      the Securities Act. The Depositor shall provide to any Holder of a Class X
      Certificate or Class R Certificate and any prospective transferee designated
      by
      any such Holder, information regarding the related Certificates and the Loans
      and such other information as shall be necessary to satisfy the condition to
      eligibility set forth in Rule 144A(d)(4) for transfer of any such Certificate
      without registration thereof under the Securities Act pursuant to the
      registration exemption provided by Rule 144A. The Trustee and the Servicer
      shall
      cooperate with the Depositor in providing the Rule 144A information referenced
      in the preceding sentence, including providing to the Depositor such information
      regarding the Certificates, the Loans and other matters regarding the Trust
      Fund
      as the Depositor shall reasonably request to meet its obligation under the
      preceding sentence. Each Holder of a Class X Certificate or Class R Certificate
      desiring to effect such transfer shall, and does hereby agree to, indemnify
      the
      Trustee and the Depositor, the Sellers and the Servicer against any liability
      that may result if the transfer is not so exempt or is not made in accordance
      with such federal and state laws.

     

    
      
        
        

      

      
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    No
      transfer of an ERISA-Restricted Certificate shall be made unless the Trustee
      shall have received (i) a representation letter from the transferee
      substantially in the form of Exhibit H or Exhibit I, to the effect that (x)
      such
      transferee is not an employee benefit plan or arrangement subject to Section
      406
      of ERISA or a plan or arrangement subject to Section 4975 of the Code, nor
      a
      person acting on behalf of any such plan or arrangement, nor using the assets
      of
      any such plan or arrangement to effect such transfer or (y) if the purchaser
      is
      an insurance company and the ERISA-Restricted Certificate is not a Class R
      Certificate and has been the subject of an ERISA Qualifying Underwriting, a
      representation that the purchaser is an insurance company which is purchasing
      such Certificates with funds contained in an “insurance company general account”
(as such term is defined in Section V(e) of PTCE 95-60) and that the purchase
      and holding of such Certificates are covered under Sections I and III of PTCE
      95-60 or (ii) in the case of any such ERISA-Restricted Certificate presented
      for
      registration in the name of an employee benefit plan subject to ERISA, or a
      plan
      or arrangement subject to Section 4975 of the Code (or comparable provisions
      of
      any subsequent enactments), or a trustee of any such plan or any other person
      acting on behalf of any such plan or arrangement, or using such plan’s or
      arrangement’s assets, an Opinion of Counsel satisfactory to the Trustee, which
      Opinion of Counsel shall not be an expense of either the Trustee or the Trust
      Fund, addressed to the Trustee to the effect that the purchase or holding of
      such ERISA-Restricted Certificate will not result in the assets of the Trust
      Fund and
      the
      External Trust
      being
      deemed to be “plan assets” and subject to the prohibited transaction provisions
      of ERISA and the Code and will not subject the Trustee to any obligation in
      addition to those expressly undertaken in this Agreement or to any liability.
      Notwithstanding anything else to the contrary herein, any purported transfer
      of
      an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
      subject to ERISA or to the Code without the delivery to the Trustee of an
      Opinion of Counsel satisfactory to the Trustee as described above shall be
      void
      and of no effect. 

    

    In
      the
      case of an ERISA-Restricted Certificate that is a Book-Entry Certificate, for
      purposes of clauses (i) or (ii) of the first sentence of the preceding
      paragraph, such representations shall be deemed to have been made to the
      Certificate Registrar and the Trustee by the transferee's acceptance of such
      ERISA-Restricted Certificate.

    

    To
      the
      extent permitted under applicable law (including, but not limited to, ERISA),
      the Trustee shall be under no liability to any Person for any registration
      of
      transfer of any ERISA-Restricted Certificate that is in fact not permitted
      by
      this Section 5.02(b) or for making any payments due on such Certificate to
      the Holder thereof or taking any other action with respect to such Holder under
      the provisions of this Agreement so long as the transfer was registered by
      the
      Trustee in accordance with the foregoing requirements.

    
      
        
        

      

      
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    (c) Each
      Person who has or who acquires any Ownership Interest in a Class R Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Class R Certificate are expressly
      subject to the following provisions:

    

    (i) Each
      Person holding or acquiring any Ownership Interest in a Class R Certificate
      shall be a Permitted Transferee and shall promptly notify the Trustee of any
      change or impending change in its status as a Permitted Transferee.

    

    (ii) No
      Ownership Interest in a Class R Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the Transfer
      of any Class R Certificate unless, in addition to the certificates required
      to
      be delivered to the Trustee under subparagraph (b) above, the Trustee shall
      have
      been furnished with an affidavit (a “Transfer
      Affidavit”)
      of the
      initial owner or the proposed transferee in the form attached hereto as
      Exhibit F.

    

    (iii) Each
      Person holding or acquiring any Ownership Interest in a Class R Certificate
      shall agree (A) to obtain a Transfer Affidavit from any other Person to whom
      such Person attempts to Transfer its Ownership Interest in a Class R
      Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such
      Person is acting as nominee, trustee or agent in connection with any Transfer
      of
      a Class R Certificate and (C) not to Transfer its Ownership Interest in a Class
      R Certificate or to cause the Transfer of an Ownership Interest in a Class
      R
      Certificate to any other Person if it has actual knowledge that such Person
      is
      not a Permitted Transferee.

    

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Class R
      Certificate in violation of the provisions of this Section 5.02(c) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Class R Certificate
      in
      violation of the provisions of this Section 5.02(c), then the last preceding
      Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such Class R Certificate.
      The Trustee shall be under no liability to any Person for any registration
      of
      Transfer of a Class R Certificate that is in fact not permitted by this Section
      or for making any payments due on such Certificate to the Holder thereof or
      taking any other action with respect to such Holder under the provisions of
      this
      Agreement so long as the Transfer was registered after receipt of the related
      Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter
      or
      the Investment Letter. The Trustee shall be entitled but not obligated to
      recover from any Holder of a Class R Certificate that was in fact not a
      Permitted Transferee at the time it became a Holder or, at such subsequent
      time
      as it became other than a Permitted Transferee, all payments made on such Class
      R Certificate at and after either such time. Any such payments so recovered
      by
      the Trustee shall be paid and delivered by the Trustee to the last preceding
      Permitted Transferee of such Certificate.

    

    (v) The
      Depositor shall use its best efforts to make available, upon receipt of written
      request from the Trustee, all information necessary to compute any tax imposed
      under Section 860E(e) of the Code as a result of a Transfer of an Ownership
      Interest in a Class R Certificate to any Holder who is not a Permitted
      Transferee.

    

    The
      restrictions on Transfers of a Class R Certificate set forth in this Section
      5.02(c) shall cease to apply (and the applicable portions of the legend on
      a
      Class R Certificate may be deleted) with respect to Transfers occurring after
      delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
      shall
      not be an expense of the Trust Fund, the Trustee, the Sellers or the Servicer,
      to the effect that the elimination of such restrictions will not cause the
      Trust
      Fund hereunder to fail to qualify as one or more REMICs at any time that the
      Certificates are outstanding or result in the imposition of any tax on the
      Trust
      Fund, a Certificateholder or another Person. Each Person holding or acquiring
      any Ownership Interest in a Class R Certificate hereby consents to any amendment
      of this Agreement which, based on an Opinion of Counsel furnished to the
      Trustee, is reasonably necessary (A) to ensure that the record ownership of,
      or
      any beneficial interest in, a Class R Certificate is not transferred, directly
      or indirectly, to a Person that is not a Permitted Transferee and (B) to provide
      for a means to compel the Transfer of a Class R Certificate which is held by
      a
      Person that is not a Permitted Transferee to a Holder that is a Permitted
      Transferee.

    
      
        
        

      

      
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    (d) The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 5.02 in connection with transfer shall be at the expense of
      the parties to such transfers.

    

    (e) Except
      as
      provided below, the Book-Entry Certificates shall at all times remain registered
      in the name of the Depository or its nominee and at all times: (i) registration
      of the Certificates may not be transferred by the Trustee except to another
      Depository; (ii) the Depository shall maintain book-entry records with respect
      to the Beneficial Owners and with respect to ownership and transfers of such
      Book-Entry Certificates; (iii) ownership and transfers of registration of
      the Book-Entry Certificates on the books of the Depository shall be governed
      by
      applicable rules established by the Depository; (iv) the Depository may collect
      its usual and customary fees, charges and expenses from its Depository
      Participants; (v) the Trustee shall deal with the Depository, Depository
      Participants and indirect participating firms as representatives of the
      Beneficial Owners of the Book-Entry Certificates for purposes of exercising
      the
      rights of Holders under this Agreement, and requests and directions for and
      votes of such representatives shall not be deemed to be inconsistent if they
      are
      made with respect to different Beneficial Owners; and (vi) the Trustee may
      rely
      and shall be fully protected in relying upon information furnished by the
      Depository with respect to its Depository Participants and furnished by the
      Depository Participants with respect to indirect participating firms and persons
      shown on the books of such indirect participating firms as direct or indirect
      Beneficial Owners.

    

    All
      transfers by Beneficial Owners of Book-Entry Certificates shall be made in
      accordance with the procedures established by the Depository Participant or
      brokerage firm representing such Beneficial Owner. Each Depository Participant
      shall only transfer Book-Entry Certificates of Beneficial Owners it represents
      or of brokerage firms for which it acts as agent in accordance with the
      Depository’s normal procedures.

    

    If
      (x)
      (i) the Depositor advises the Trustee in writing that the Depository is no
      longer willing or able to properly discharge its responsibilities as Depository,
      and (ii) the Trustee is unable to locate a qualified successor, (y) the
      Depositor, at its sole option with the consent of the Trustee, advises the
      Trustee in writing that it elects to terminate the book-entry system through
      the
      Depository or (z) after the occurrence of an Event of Default or the resignation
      or removal of the Servicer, Beneficial Owners representing at least 51% of
      the
      sum of the then outstanding Class Certificate Balance of all Book-Entry
      Certificates together advise the Depository, either directly or through the
      Depository Participants, and the Trustee in writing that the continuation of
      a
      book-entry system through the Depository is no longer in the best interests
      of
      the Beneficial Owners. Upon the occurrence of any of the events described in
      the
      immediately preceding sentence, the Trustee shall notify all Beneficial Owners
      of the occurrence of any such event and of the availability of definitive,
      fully-registered Certificates (the “Definitive
      Certificates”)
      to
      Beneficial Owners requesting the same. Upon surrender to the Trustee of the
      related Class of Certificates by the Depository, accompanied by the instructions
      from the Depository for registration, the Trustee shall issue the Definitive
      Certificates. Neither the Depositor nor the Trustee shall be liable for any
      delay in delivery of such instruction and each may conclusively rely on, and
      shall be protected in relying on, such instructions. The Depositor shall provide
      the Trustee with an adequate inventory of certificates to facilitate the
      issuance and transfer of Definitive Certificates. Upon the issuance of
      Definitive Certificates all references herein to obligations imposed upon or
      to
      be performed by the Depository shall be deemed to be imposed upon and performed
      by the Trustee, to the extent applicable with respect to such Definitive
      Certificates and the Trustee shall recognize the Holders of the Definitive
      Certificates as Certificateholders hereunder; provided
      that the
      Trustee shall not by virtue of its assumption of such obligations become liable
      to any party for any act or failure to act of the Depository.

    
      
        
        

      

      
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    SECTION
      5.03.
      Mutilated, Destroyed, Lost or Stolen Certificates.

    

    If
      (a)
      any mutilated Certificate is surrendered to the Trustee, or the Trustee receives
      evidence to its satisfaction of the destruction, loss or theft of any
      Certificate and (b) there is delivered to the Servicer and the Trustee such
      security or indemnity as may be required by them to save each of them harmless,
      then, in the absence of notice to the Trustee that such Certificate has been
      acquired by a bona fide purchaser, the Trustee shall execute, countersign and
      deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
      or
      stolen Certificate, a new Certificate of like Class, tenor and Percentage
      Interest. In connection with the issuance of any new Certificate under this
      Section 5.03, the Trustee may require the payment of a sum sufficient to cover
      any tax or other governmental charge that may be imposed in relation thereto
      and
      any other expenses (including the fees and expenses of the Trustee) connected
      therewith. Any replacement Certificate issued pursuant to this Section 5.03
      shall constitute complete and indefeasible evidence of ownership, as if
      originally issued, whether or not the lost, stolen or destroyed Certificate
      shall be found at any time.

    

    SECTION
      5.04.
      Persons
      Deemed Owners.

    

    The
      Servicer, the Trustee and any agent of the Servicer or the Trustee may treat
      the
      Person in whose name any Certificate is registered as the owner of such
      Certificate for the purpose of receiving distributions as provided in this
      Agreement and for all other purposes whatsoever, and neither the Servicer,
      the
      Trustee nor any agent of the Servicer or the Trustee shall be affected by any
      notice to the contrary.

    

    SECTION
      5.05.
      Access
      to List of Certificateholders’ Names and Addresses.

    

    If
      three
      or more Certificateholders (a) request such information in writing from the
      Trustee, (b) state that such Certificateholders desire to communicate with
      other
      Certificateholders with respect to their rights under this Agreement or under
      the Certificates and (c) provide a copy of the communication which such
      Certificateholders propose to transmit, or if the Depositor or Servicer shall
      request such information in writing from the Trustee, then the Trustee shall,
      within ten Business Days after the receipt of such request, provide the
      Depositor, the Servicer or such Certificateholders at such recipients’ expense
      the most recent list of the Certificateholders of such Trust Fund held by the
      Trustee, if any. The Depositor and every Certificateholder, by receiving and
      holding a Certificate, agree that the Trustee shall not be held accountable
      by
      reason of the disclosure of any such information as to the list of the
      Certificateholders hereunder, regardless of the source from which such
      information was derived.

    

    SECTION
      5.06.
      Maintenance of Office or Agency.

    

    The
      Trustee will maintain or cause to be maintained at its expense an office or
      offices or agency or agencies in New York City where Certificates may be
      surrendered for registration of transfer or exchange. The Trustee initially
      designates its Corporate Trust Office for such purposes. The Trustee will give
      prompt written notice to the Certificateholders of any change in such location
      of any such office or agency.

    
      
        
        

      

      
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    ARTICLE
      VI

    THE
      DEPOSITOR AND THE SERVICER

    

    SECTION
      6.01.
      Respective Liabilities of the Depositor and the Servicer.

    

    The
      Depositor and the Servicer shall each be liable in accordance herewith only
      to
      the extent of the obligations specifically and respectively imposed upon and
      undertaken by them herein.

    

    SECTION
      6.02.
      Merger
      or Consolidation of the Depositor or the Servicer.

    

    The
      Depositor and the Servicer will each keep in full effect their respective
      existence, rights and franchises as a corporation under the laws of the United
      States or under the laws of one of the states thereof and will each obtain
      and
      preserve their respective qualifications to do business as a foreign corporation
      in each jurisdiction in which such qualification is or shall be necessary to
      protect the validity and enforceability of this Agreement, or any of the Loans
      and to perform its respective duties under this Agreement.

    

    Any
      Person into which the Depositor or the Servicer may be merged or consolidated,
      or any Person resulting from any merger or consolidation to which the Depositor
      or the Servicer shall be a party, or any person succeeding to the business
      of
      the Depositor or the Servicer, shall be the successor of the Depositor or the
      Servicer, as the case may be, hereunder, without the execution or filing of
      any
      paper or any further act on the part of any of the parties hereto, anything
      herein to the contrary notwithstanding; provided,
      however,
      that
      the successor or surviving Person to the Servicer shall be qualified to sell
      mortgage loans to, and to service mortgage loans on behalf of, FNMA or
      FHLMC.

    

    SECTION
      6.03.
      Limitation on Liability of the Depositor, the Sellers, the Servicer and
      Others.

    

    None
      of
      the Depositor, the Sellers, the Servicer or any of the directors, officers,
      employees or agents of the Depositor, the Sellers or the Servicer shall be
      under
      any liability to the Certificateholders for any action taken or for refraining
      from the taking of any action in good faith pursuant to this Agreement, or
      for
      errors in judgment; provided,
      however,
      that
      this provision shall not protect the Depositor, the Sellers, the Servicer or
      any
      such Person against any breach of representations or warranties made by it
      herein or protect the Depositor, the Sellers, the Servicer or any such Person
      from any liability which would otherwise be imposed by reasons of willful
      misfeasance, bad faith or gross negligence in the performance of duties or
      by
      reason of reckless disregard of obligations and duties hereunder. The Depositor,
      the Sellers, the Servicer and any director, officer, employee or agent of the
      Depositor, the Sellers or the Servicer may rely in good faith on any document
      of
      any kind prima facie
      properly
      executed and submitted by any Person respecting any matters arising hereunder.
      The Depositor, the Sellers, the Servicer and any director, officer, employee
      or
      agent of the Depositor, the Sellers or the Servicer shall be indemnified by
      the
      Trust Fund and held harmless against any loss, liability or expense incurred
      in
      connection with any audit, controversy or judicial proceeding relating to a
      governmental taxing authority or any legal action relating to this Agreement
      or
      the Certificates, other than any loss, liability or expense related to any
      specific Loan or Loans (except as any such loss, liability or expense shall
      be
      otherwise reimbursable pursuant to this Agreement) and any loss, liability
      or
      expense incurred by reason of willful misfeasance, bad faith or gross negligence
      in the performance of duties hereunder or by reason of reckless disregard of
      obligations and duties hereunder. None of the Depositor, the Sellers or the
      Servicer shall be under any obligation to appear in, prosecute or defend any
      legal action that is not incidental to its respective duties hereunder and
      which
      in its opinion may involve it in any expense or liability; provided,
      however,
      that
      any of the Depositor, the Sellers or the Servicer may in its discretion
      undertake any such action that it may deem necessary or desirable in respect
      of
      this Agreement and the rights and duties of the parties hereto and interests
      of
      the Trustee and the Certificateholders hereunder. In such event, the legal
      expenses and costs of such action and any liability resulting therefrom shall
      be
      expenses, costs and liabilities of the Trust Fund, and the Depositor, the
      Sellers and the Servicer shall be entitled to be reimbursed therefor out of
      the
      Certificate Account.

    
      
        
        

      

      
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    SECTION
      6.04.
      Limitation on Resignation of Servicer.

    

    The
      Servicer shall not resign from the obligations and duties hereby imposed on
      it
      except (a) upon appointment of a successor servicer and receipt by the Trustee
      of a letter from each Rating Agency that such a resignation and appointment
      will
      not result in a downgrading of the rating of any of the Certificates or (b)
      upon
      determination that its duties hereunder are no longer permissible under
      applicable law. Any such determination under clause (b) permitting the
      resignation of the Servicer shall be evidenced by an Opinion of Counsel to
      such
      effect delivered to the Trustee. No such resignation shall become effective
      until the Trustee or a successor servicer shall have assumed the Servicer’s
      responsibilities, duties, liabilities and obligations hereunder. If the Servicer
      resigns for any of the foregoing reasons and the Trustee is unwilling or unable
      to assume responsibility for the Servicer’s duties under this Agreement, the
      Trustee may take action to appoint a successor servicer in accordance with
      Section 7.02 hereof.

    

    SECTION
      6.05.
      Indemnification.

    

    The
      Servicer agrees to indemnify and hold the Trustee, the Depositor and each
      Certificateholder harmless against any and all claims, losses, penalties, fines,
      forfeitures, legal fees and related costs, judgments, and any other costs,
      fees
      and expenses that the Trustee, the Depositor or any Certificateholder may
      sustain directly resulting from the gross negligence or willful misconduct
      of
      the Servicer in the performance of its duties hereunder or in the servicing
      of
      the Loans in compliance with the terms of this Agreement. The Servicer shall
      not
      be liable or responsible for any of the representations, covenants, warranties,
      responsibilities, duties or liabilities of any prior servicer. The Servicer
      shall immediately notify the Trustee, the Depositor and each Certificateholder
      if a claim is made by a third party for which any of such parties could require
      indemnification from the Servicer under this Section 6.05, and the Servicer
      shall assume (with the consent of the Trustee) the defense of any such claim
      and
      advance all expenses in connection therewith, including reasonable counsel
      fees,
      and promptly advance funds to pay, discharge and satisfy any non-appealable,
      final judgment or decree which may be entered against the Servicer, the Trustee,
      the Depositor and/or the Certificateholder in respect of such claim. The
      indemnity provided for in this Section 6.05 shall survive the termination of
      the
      Agreement.

    

    ARTICLE
      VII

    DEFAULT

    

    SECTION
      7.01.
      Events of Default.

    

    “Event
      of
      Default,” wherever used herein, means any one of the following
      events:

    

    (i) any
      failure by the Servicer to deposit in the Certificate Account or remit to the
      Trustee any payment (other than a payment required to be made under Section
      4.01
      hereof) required to be made with respect to any Class of Certificates under
      the
      terms of this Agreement, which failure shall continue unremedied for 5 days
      after the date upon which written notice of such failure shall have been given
      (a) to the Servicer by the Trustee or the Depositor or (b) to the Servicer,
      the
      Depositor and the Trustee by the Holders of Certificates of such Class
      evidencing not less than 25% of the Voting Rights allocated to such
      Class;

    

    (ii) any
      failure by the Servicer to duly observe or perform in any material respect
      any
      other of the covenants or agreements on the part of the Servicer contained
      in
      this Agreement, which failure shall continue unremedied for a period of 30
      days
      after the date on which written notice of such failure shall have been given
      (a)
      to the Servicer by the Trustee or the Depositor or (b) to the Servicer, the
      Depositor and the Trustee by the Holders of Certificates of any Class evidencing
      not less than 25% of the Voting Rights allocated to such Class;

    
      
        
        

      

      
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    (iii) a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises for the appointment of a receiver or liquidator in any insolvency,
      readjustment of debt, marshalling of assets and liabilities or similar
      proceeding, or for the winding-up or liquidation of its affairs, shall have
      been
      entered against the Servicer and such decree or order shall have remained in
      force undischarged or unstayed for a period of 60 consecutive days;

    

    (iv) the
      Servicer shall consent to the appointment of a receiver or liquidator in any
      insolvency, readjustment of debt, marshalling of assets and liabilities or
      similar proceedings of or relating to the Servicer or all or substantially
      all
      of the property of the Servicer;

    

    (v) the
      Servicer shall admit in writing its inability to pay its debts generally as
      they
      become due, file a petition to take advantage of, or commence a voluntary case
      under, any applicable insolvency or reorganization statute, make an assignment
      for the benefit of its creditors, or voluntarily suspend payment of its
      obligations; 

    

    (vi) so
      long
      as the Servicer is a Seller, any failure by any Seller to observe or perform
      in
      any material respect any of the other covenants or agreements on the part of
      any
      Seller contained in this Agreement, which failure shall continue unremedied
      for
      a period of 60 days after the date on which written notice of such failure
      shall
      have been given to such Seller by the Trustee or the Depositor, or to such
      Seller and the Trustee by the Holders of Certificates of any Class evidencing
      not less than 25% of the Voting Rights allocated to such Class; or

    

    (vii) any
      failure of the Servicer to make any Advance in the manner and at the time
      required to be made pursuant to Section 4.01 which continues unremedied for
      a
      period of 1 Business Day after the date of such failure.

    

    If
      an
      Event of Default described in clauses (i) to (vi) of this Section shall occur,
      then, and in each and every such case, so long as such Event of Default shall
      not have been remedied, the Trustee may, and at the direction of the Holders
      of
      Certificates of any Class evidencing not less than 25% of the Voting Rights
      allocated to such Class, by notice in writing to the Servicer (with a copy
      to
      each Rating Agency) shall, terminate all of the rights and obligations of the
      Servicer under this Agreement and in and to the Loans and the proceeds thereof,
      other than its rights as a Certificateholder hereunder. If an Event of Default
      described in clause (vii) of this Section shall occur, then, and in each and
      every such case, so long as such Event of Default shall not have been remedied,
      the Trustee shall, by telephonic notice to the Servicer, followed by notice
      in
      writing (with a copy to each Rating Agency), terminate all of the rights and
      obligations of the Servicer under this Agreement and in and to the Loans and
      the
      proceeds thereof, other than its rights as a Certificateholder hereunder. On
      and
      after the receipt by the Servicer of such telephonic notice, all authority
      and
      power of the Servicer hereunder, whether with respect to the Loans or otherwise,
      shall pass to and be vested in the Trustee, as successor Servicer. The Trustee
      shall, subject to 3.04 hereof, thereupon promptly make any Advance described
      in
      clause (vii) hereof. The Trustee is hereby authorized and empowered to execute
      and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, any
      and all documents and other instruments, and to do or accomplish all other
      acts
      or things necessary or appropriate to effect the purposes of such notice of
      termination, whether to complete the transfer and endorsement or assignment
      of
      the Loans and related documents, or otherwise. Unless expressly provided in
      such
      written notice, no such termination shall affect any obligation of the Servicer
      to pay amounts owed pursuant to Article VIII. The Servicer agrees to cooperate
      with the Trustee in effecting the termination of the Servicer’s responsibilities
      and rights hereunder, including, without limitation, the transfer to the Trustee
      of all cash amounts which shall at the time be credited to the Certificate
      Account, or thereafter be received with respect to the Loans.

    

    The
      Trustee shall be entitled to be reimbursed from the Servicer (or by the Trust
      Fund if the Servicer does not fulfill its obligations hereunder) for all costs
      associated with the transfer of servicing from the predecessor Servicer,
      including, without limitation, any costs or expenses associated with the
      complete transfer of all servicing data and the completion, correction or
      manipulation of such servicing data as may be required by the Trustee to correct
      any errors or insufficiencies in the servicing data or otherwise to enable
      the
      Trustee to service the Loans properly and effectively, costs reasonably
      allocable to specific employees and overhead, legal fees and expenses,
      accounting and financial consulting fees and expenses, costs or expenses
      associated with the transfer of all servicing files and costs of amending the
      Agreement, if necessary. If the terminated Servicer does not pay such
      reimbursement within thirty (30) days of its receipt of an invoice therefor,
      such reimbursement shall be an expense of the Trust Fund and the Trustee shall
      be entitled to receive such reimbursement from amounts on deposit in the
      Certificate Account pursuant to Section 3.08(a)(vii)(B) or from the Distribution
      Account pursuant to Section 3.08(b)(i), as applicable, in an amount not to
      exceed the Trustee Permitted Withdrawal Amount and to receive all amounts in
      excess of the Trustee Permitted Withdrawal Amount pursuant to Sections
      4.02(a)(i)(A).

    
      
        
        

      

      
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    Notwithstanding
      any termination of the activities of the Servicer hereunder, the Servicer shall
      be entitled to receive, out of any late collection of a Scheduled Payment on
      a
      Loan which was due prior to the notice terminating such Servicer’s rights and
      obligations as Servicer hereunder and received after such notice, that portion
      thereof to which such Servicer would have been entitled pursuant to Sections
      3.08(a)(i) through (viii), and any other amounts payable to such Servicer
      hereunder the entitlement to which arose prior to the termination of its
      activities hereunder.

    

    SECTION
      7.02.
      Trustee to Act; Appointment of Successor.

    

    On
      and
      after the time the Servicer receives a notice of termination pursuant to Section
      7.01 hereof, the Trustee shall, subject to and to the extent provided in Section
      3.04, be the successor to the Servicer in its capacity as servicer under this
      Agreement and the transactions set forth or provided for herein and shall be
      subject to all the responsibilities, duties and liabilities relating thereto
      placed on the Servicer by the terms and provisions hereof and applicable law
      including the obligation to make Advances pursuant to Section 4.01. As
      compensation therefor, the Trustee shall be entitled to all funds relating
      to
      the Loans that the Servicer would have been entitled to charge to the
      Certificate Account or Distribution Account if the Servicer had continued to
      act
      hereunder. Notwithstanding the foregoing, if the Trustee has become the
      successor to the Servicer in accordance with Section 7.01 hereof, the Trustee
      may, if it shall be unwilling to so act, or shall, if it is prohibited by
      applicable law from making Advances pursuant to Section 4.01 hereof or if it
      is
      otherwise unable to so act, appoint, or petition a court of competent
      jurisdiction to appoint, any established mortgage loan servicing institution
      the
      appointment of which does not adversely affect the then current rating of the
      Certificates by each Rating Agency as the successor to the Servicer hereunder
      in
      the assumption of all or any part of the responsibilities, duties or liabilities
      of the Servicer hereunder. Any successor to the Servicer shall be an institution
      which is a FNMA and FHLMC approved seller/servicer in good standing, which
      has a
      net worth of at least $10,000,000, and which is willing to service the Loans
      and
      executes and delivers to the Depositor and the Trustee an agreement accepting
      such delegation and assignment, which contains an assumption by such Person
      of
      the rights, powers, duties, responsibilities, obligations and liabilities of
      the
      Servicer (other than liabilities of the Servicer under Section 6.03 hereof
      incurred prior to termination of the Servicer under Section 7.01), with like
      effect as if originally named as a party to this Agreement; and provided further
      that no such delegation and assignment shall become effective unless each Rating
      Agency acknowledges that its rating of the Certificates in effect immediately
      prior to such delegation and assignment will not be qualified or reduced as
      a
      result of such delegation and assignment. Pending appointment of a successor
      to
      the Servicer hereunder, the Trustee, unless the Trustee is prohibited by law
      from so acting, shall, subject to Section 3.04 hereof, act in such capacity
      as
      hereinabove provided. In connection with such appointment and assumption, the
      Trustee may make such arrangements for the compensation of such successor out
      of
      payments on Loans as it and such successor shall agree; provided,
      however,
      that no
      such compensation shall be in excess of the Servicing Fee permitted the Servicer
      hereunder. The Trustee and such successor shall take such action, consistent
      with this Agreement, as shall be necessary to effectuate any such succession.
      Neither the Trustee nor any other successor servicer shall be deemed to be
      in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Servicer to deliver or provide, or any delay in
      delivering or providing, any cash, information, documents or records to
      it.

    
      
        
        

      

      
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    Any
      successor to the Servicer as servicer shall give notice to the Mortgagors of
      such change of servicer.

    

    SECTION
      7.03.
      Notification to Certificateholders.

    

    (a) Upon
      any
      termination or appointment of a successor to the Servicer, the Trustee shall
      give prompt written notice thereof to Certificateholders and to each Rating
      Agency.

    

    (b) Within
      60
      days after the occurrence of any Event of Default, the Trustee shall transmit
      by
      mail to all Certificateholders notice of each such Event of Default hereunder
      known to the Trustee, unless such Event of Default shall have been cured or
      waived.

    

    SECTION
      7.04. Survivability of Servicer Liabilities.

    

    Notwithstanding
      anything herein to the contrary, upon termination of the Servicer hereunder,
      any
      liabilities of the Servicer which accrued prior to such termination shall
      survive such termination.

    

    ARTICLE
      VIII 

    CONCERNING
      THE TRUSTEE

    

    SECTION
      8.01.
      Duties of Trustee.

    

    The
      Trustee, prior to the occurrence of an Event of Default of which a Responsible
      Officer of the Trustee shall have actual knowledge and after the curing of
      all
      Events of Default that may have occurred, shall undertake to perform such duties
      and only such duties as are specifically set forth in this Agreement. In case
      an
      Event of Default of which a Responsible Officer of the Trustee shall have actual
      knowledge has occurred and remains uncured or waived, the Trustee shall exercise
      such of the rights and powers vested in it by this Agreement, and use the same
      degree of care and skill in their exercise as a prudent Person would exercise
      or
      use under the circumstances in the conduct of such Person’s own
      affairs.

    

    The
      Trustee, upon receipt of all resolutions, certificates, statements, opinions,
      reports, documents, orders or other instruments furnished to the Trustee that
      are specifically required to be furnished pursuant to any provision of this
      Agreement shall examine them to determine whether they are in the form required
      by this Agreement; provided,
      however,
      that
      the Trustee shall not be responsible for the accuracy or content of any such
      resolution, certificate, statement, opinion, report, document, order or other
      instrument.

    

    Unless
      an
      Event of Default of which a Responsible Officer of the Trustee shall have actual
      knowledge shall have occurred and be continuing, the duties and obligations
      of
      the Trustee shall be determined solely by the express provisions of this
      Agreement, the Trustee shall not be liable except for the performance of such
      duties and obligations as are specifically set forth in this Agreement, no
      implied covenants or obligations shall be read into this Agreement against
      the
      Trustee and the Trustee may conclusively rely, as to the truth of the statements
      and the correctness of the opinions expressed therein, upon any certificates
      or
      opinions furnished to the Trustee and conforming to the requirements of this
      Agreement which it believed in good faith to be genuine and to have been duly
      executed by the proper authorities respecting any matters arising
      hereunder.

    
      
        
        

      

      
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    The
      Trustee shall not be liable for an error of judgment made in good faith by
      a
      Responsible Officer or other officers of the Trustee, unless it shall be finally
      proven that the Trustee was negligent in ascertaining the pertinent facts.
      

    

    The
      Trustee shall not be liable with respect to any action taken, suffered or
      omitted to be taken by it in good faith in accordance with this Agreement or
      with the direction of the Holders of Certificates evidencing not less than
      25%
      of the Voting Rights of the Certificates relating to the time, method and place
      of conducting any proceeding for any remedy available to the Trustee, or
      exercising any trust or power conferred upon the Trustee under this
      Agreement.

    

    Subject
      to the other provisions of this Agreement and without limiting the generality
      of
      this Section 8.01, the Trustee shall have no duty (A) to see to any recording,
      filing, or depositing of this Agreement or any agreement referred to herein
      or
      any financing statement or continuation statement evidencing a security
      interest, or to see to the maintenance of any such recording or filing or
      depositing or to any re-recording, refiling or redepositing of any thereof,
      (B)
      to see to any insurance, (C) to see to the payment or discharge of any tax,
      assessment, or other governmental charge or any lien or encumbrance of any
      kind
      owing with respect to, assessed or levied against any part of the Trust Fund
      other than from funds available in the Certificate Account or (D) to confirm
      or
      verify the contents of any reports or certificates of the Servicer delivered
      to
      the Trustee pursuant to this Agreement believed by the Trustee to be genuine
      and
      to have been signed or presented by the proper party or parties; provided,
      however,
      that
      the provisions of this Section 8.01(D) shall not apply during any period during
      which the Trustee is acting in the capacity of servicer.

    

    Notwithstanding
      anything contained in this Section 8.01 to the contrary, no provision of this
      Agreement shall be construed to relieve the Trustee from liability for its
      own
      negligent action, its own negligent failure to act or its own willful
      misconduct.

    

    SECTION
      8.02
      Certain Matters Affecting the Trustee.

    

    Except
      as
      otherwise provided in Section 8.01:

    

    (i) the
      Trustee (acting as Trustee, Tax Matters Person or as agent of the Tax Matters
      Person for any REMIC) may request and rely upon and shall be protected in acting
      or refraining from acting upon any resolution, Officers’ Certificate, Opinion of
      Counsel, certificate of auditors or any other certificate, statement,
      instrument, opinion, report, notice, request, consent, order, appraisal, bond
      or
      other paper or document believed by it to be genuine and to have been signed
      or
      presented by the proper party or parties and the Trustee shall have no
      responsibility to ascertain or confirm the genuineness of any signature of
      any
      such party or parties;

    

    (ii) the
      Trustee (acting as Trustee, Tax Matters Person or as agent of the Tax Matters
      Person for any REMIC) may consult with counsel, financial advisers or
      accountants and the advice of any such counsel, financial advisers or
      accountants and any Opinion of Counsel shall be full and complete authorization
      and protection in respect of any action taken or suffered or omitted by it
      hereunder in good faith and in accordance with such Opinion of
      Counsel;

    

    (iii) the
      Trustee shall not be liable for any action taken, suffered or omitted by it
      in
      good faith and believed by it to be authorized or within the discretion or
      rights or powers conferred upon it by this Agreement;

    

    (iv) the
      Trustee shall not be bound to make any investigation into the facts or matters
      stated in any resolution, certificate, statement, instrument, opinion, report,
      notice, request, consent, order, approval, bond or other paper or document,
      unless requested in writing so to do by Holders of Certificates evidencing
      not
      less than 25% of the Voting Rights allocated to each Class of Certificates;
      provided, however, that if the payment within a reasonable time to the Trustee
      of the costs, expenses or liabilities likely to be incurred by it in the making
      of such investigation is, in the opinion of the Trustee, not reasonably assured
      to the Trustee by the security afforded to it by the terms of this Agreement,
      the Trustee may require reasonable indemnity against such cost, expense or
      liability as a condition to taking any such action. The reasonable expense
      of
      every such examination shall be paid by the Trustee and shall be repaid pursuant
      to Sections 3.08(a)(vii)(B), 3.08(b)(i), and 4.02(a)(i)(A) hereof, as
      applicable;

    
      
        
        

      

      
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    (v) the
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or by or through agents, accountants, custodians
      or
      attorneys, and the Trustee shall not be responsible for any misconduct or
      negligence on the part of any such agent, accountant, custodian or attorney
      appointed by the Trustee with due care;

    

    (vi) the
      Trustee shall not be required to risk or expend its own funds or otherwise
      incur
      any financial liability in the performance of any of its duties or in the
      exercise of any of its rights or powers hereunder if it shall have reasonable
      grounds for believing that repayment of such funds or adequate indemnity against
      such risk or liability is not assured to it, and none of the provisions
      contained in this Agreement shall in any event require the Trustee to perform,
      or be responsible for the manner of performance of, any of the obligations
      of
      the Servicer under this Agreement except during such time, if any, as the
      Trustee shall be the successor to, and be vested with the rights, duties, powers
      and privileges of the Servicer in accordance with the terms of this
      Agreement;

    

    (vii) the
      Trustee shall not be liable for any loss on any investment of funds pursuant
      to
      this Agreement (other than as issuer of the investment security); 

    

    (viii) the
      Trustee shall not be required to take notice or be deemed to have knowledge
      of
      any Event of Default (except an event of nonpayment by the Servicer) until
      a
      Responsible Officer of the Trustee shall have received written notice thereof,
      and in the absence of receipt of such notice, the Trustee may conclusively
      assume that there is no default or Event of Default; 

    

    (ix) the
      Trustee shall be under no obligation to exercise any of the trusts, rights
      or
      powers vested in it by this Agreement or to institute, conduct or defend any
      litigation hereunder or in relation hereto at the request, order or direction
      of
      any of the Certificateholders, pursuant to the provisions of this Agreement,
      unless such Certificateholders shall have offered to the Trustee reasonable
      security or indemnity satisfactory to the Trustee against the costs, expenses
      and liabilities which may be incurred therein or thereby; 

    

    (x) the
      right
      of the Trustee to perform any discretionary act enumerated in this Agreement
      shall not be construed as a duty, and the Trustee shall not be answerable for
      other than its negligence or willful misconduct in the performance of such
      act;

    

    (xi) the
      Trustee shall not be required to give any bond or surety in respect of the
      execution of the Trust Fund created hereby or the powers granted hereunder;
      and

    

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

    
      
        
        

      

      
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    SECTION
      8.03.
      Trustee Not Liable for Certificates or Loans.

    

    The
      recitals contained herein and in the Certificates shall be taken as the
      statements of the Depositor or the Sellers, as the case may be, and the Trustee
      assumes no responsibility for their correctness. The Trustee makes no
      representations as to the validity or sufficiency of this Agreement or of the
      Certificates or of any Loan or related document other than with respect to
      the
      Trustee’s execution and counter-signature of the Certificates. The Trustee shall
      not be accountable for the use or application by the Depositor or the Servicer
      of any of the Certificates or of the proceeds of such Certificates or for the
      use and application of any funds paid to the Depositor or the Servicer in
      respect of the Loans or deposited in or withdrawn from the Certificate Account
      by the Depositor or the Servicer. The Trustee shall not be responsible for
      the
      legality or validity of this Agreement or the validity, priority, perfection
      or
      sufficiency of the security for the Certificates issued or intended to be issued
      hereunder; provided,
      however,
      that
      the foregoing language shall not apply to the Trustee’s obligations under this
      Agreement.

    

    SECTION
      8.04.
      Trustee May Own Certificates.

    

    The
      Trustee in its individual or any other capacity may become the owner or pledgee
      of Certificates, and may otherwise deal with the parties hereto with the same
      rights as it would have if it were not the Trustee.

    

    SECTION
      8.05.
      Trustee’s Fees and Expenses.

    

    The
      Trustee, as compensation for its activities hereunder, shall be entitled to
      withdraw from the Distribution Account on each Distribution Date an amount
      equal
      to the Trustee Fee (which shall not be limited by any provision of law in regard
      to the compensation of a trustee of an express trust) and expenses for such
      Distribution Date. The Trustee and any director, officer, employee or agent
      of
      the Trustee shall be indemnified by the Servicer and held harmless against
      any
      loss, liability or expense (including reasonable attorney’s fees) (i) incurred
      in connection with any claim or legal action relating to (a) this Agreement,
      (b)
      the Certificates or (c) the performance of any of the Trustee’s duties
      hereunder, other than any loss, liability or expense incurred by reason of
      willful misfeasance, bad faith or negligence in the performance of any of the
      Trustee’s duties hereunder, (ii) resulting from any error in any tax or
      information return prepared by the Servicer and (iii) incurred in connection
      with Section 2.01(d) hereof. Such indemnity shall survive the termination of
      this Agreement or the resignation or removal of the Trustee hereunder. Without
      limiting the foregoing, the Servicer covenants and agrees, except as otherwise
      agreed upon in writing by the Depositor and the Trustee, and except for any
      such
      expense, disbursement or advance as may arise from the Trustee’s negligence, bad
      faith or willful misconduct, to pay or reimburse the Trustee, for all reasonable
      expenses, disbursements and advances incurred or made by the Trustee in
      accordance with any of the provisions of this Agreement with respect to the
      following: (A) the reasonable compensation and the expenses and disbursements
      of
      its counsel not associated with the closing of the issuance of the Certificates,
      (B) the reasonable compensation, expenses and disbursements of any accountant,
      engineer or appraiser that is not regularly employed by the Trustee, to the
      extent that the Trustee must engage such persons to perform acts or services
      hereunder and (C) printing and engraving expenses in connection with preparing
      any Definitive Certificates. Except as otherwise provided herein, the Trustee
      shall not be entitled to payment or reimbursement for any routine ongoing
      expenses incurred by the Trustee in the ordinary course of its duties as
      Trustee, Certificate Registrar, Tax Matters Person or Paying Agent hereunder
      or
      for any other expenses.

    

    SECTION
      8.06.
      Eligibility Requirements for Trustee.

    

    The
      Trustee hereunder shall at all times be a corporation or association organized
      and doing business under the laws of a state or the United States of America,
      authorized under such laws to exercise corporate trust powers, having a combined
      capital and surplus of at least $50,000,000 subject to supervision or
      examination by federal or state authority and with a credit rating which would
      not cause any one of the Rating Agencies to reduce their respective then current
      ratings of the Certificates (or having provided such security from time to
      time
      as is sufficient to avoid such reduction). If such corporation or association
      publishes reports of condition at least annually, pursuant to law or to the
      requirements of the aforesaid supervising or examining authority, then for
      the
      purposes of this Section 8.06 the combined capital and surplus of such
      corporation or association shall be deemed to be its combined capital and
      surplus as set forth in its most recent report of condition so published. In
      case at any time the Trustee shall cease to be eligible in accordance with
      the
      provisions of this Section 8.06, the Trustee shall resign immediately in the
      manner and with the effect specified in Section 8.07 hereof. The entity serving
      as Trustee may have normal banking and trust relationships with the Depositor
      and its affiliates or the Servicer and its affiliates; provided,
      however,
      that
      such entity cannot be an affiliate of the Servicer other than the Trustee in
      its
      role as successor to the Servicer.

    
      
        
        

      

      
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    SECTION
      8.07.
      Resignation and Removal of Trustee.

    

    The
      Trustee may at any time resign and be discharged from the trusts hereby created
      by giving written notice of resignation to the Depositor and the Servicer and
      each Rating Agency not less than 60 days before the date specified in such
      notice when, subject to Section 8.08, such resignation is to take effect, and
      acceptance by a successor trustee in accordance with Section 8.08 meeting the
      qualifications set forth in Section 8.06. If no successor trustee meeting such
      qualifications shall have been so appointed and have accepted appointment within
      30 days after the giving of such notice or resignation, the resigning Trustee
      may petition any court of competent jurisdiction for the appointment of a
      successor trustee.

    

    If
      at any
      time the Trustee shall cease to be eligible in accordance with the provisions
      of
      Section 8.06 hereof and shall fail to resign after written request thereto
      by
      the Depositor, or if at any time the Trustee shall become incapable of acting,
      or shall be adjudged as bankrupt or insolvent, or a receiver of the Trustee
      or
      of its property shall be appointed, or any public officer shall take charge
      or
      control of the Trustee or of its property or affairs for the purpose of
      rehabilitation, conservation or liquidation, or a tax is imposed with respect
      to
      the Trust Fund by any state in which the Trustee or the Trust Fund is located
      and the imposition of such tax would be avoided by the appointment of a
      different trustee, then the Depositor or the Servicer may remove the Trustee,
      and shall, within 30 days after such removal, appoint a successor trustee by
      written instrument, in triplicate, one copy of which instrument shall be
      delivered to the Trustee, one copy of which shall be delivered to the Servicer
      and one copy to the successor trustee.

    

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee and appoint a successor trustee by written instrument
      or
      instruments, in triplicate, signed by such Holders or their attorneys-in-fact
      duly authorized, one complete set of which instruments shall be delivered by
      the
      successor trustee to the Servicer, one complete set to the Trustee so removed
      and one complete set to the successor so appointed. Notice of any removal of
      the
      Trustee shall be given to each Rating Agency by the successor
      trustee.

    

    Any
      resignation or removal of the Trustee and appointment of a successor trustee
      pursuant to any of the provisions of this Section 8.07 shall become effective
      upon acceptance of appointment by the successor trustee as provided in Section
      8.08 hereof.

    

    SECTION
      8.08.
      Successor Trustee.

    

    Any
      successor trustee appointed as provided in Section 8.07 hereof shall execute,
      acknowledge and deliver to the Depositor and to its predecessor trustee and
      the
      Servicer an instrument accepting such appointment hereunder and thereupon the
      resignation or removal of the predecessor trustee shall become effective and
      such successor trustee, without any further act, deed or conveyance, shall
      become fully vested with all the rights, powers, duties and obligations of
      its
      predecessor hereunder, with the like effect as if originally named as trustee
      herein. The Depositor, the Servicer and the predecessor trustee shall execute
      and deliver such instruments and do such other things as may reasonably be
      required for more fully and certainly vesting and confirming in the successor
      trustee all such rights, powers, duties, and obligations.

    
      
        
        

      

      
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    No
      successor trustee shall accept appointment as provided in this Section 8.08
      unless at the time of such acceptance such successor trustee shall be eligible
      under the provisions of Section 8.06 hereof and its appointment shall not
      adversely affect the then current rating of the Certificates.

    

    Upon
      acceptance of appointment by a successor trustee as provided in this Section
      8.08, the Depositor shall mail notice of the succession of such trustee
      hereunder to all Holders of Certificates at their addresses as shown in the
      Certificate Register. If the Depositor fails to mail such notice within 10
      days
      after acceptance of appointment by the successor trustee, the successor trustee
      shall cause such notice to be mailed at the expense of the
      Depositor.

    

    SECTION
      8.09.
      Merger or Consolidation of Trustee.

    

    Any
      corporation into which the Trustee may be merged or converted or with which
      it
      may be consolidated or any corporation resulting from any merger, conversion
      or
      consolidation to which the Trustee shall be a party, any corporation succeeding
      to the business of the Trustee or any corporation or association to which all
      or
      substantially all of the corporate trust business of the Trustee may be sold
      or
      otherwise transferred, shall be the successor of the Trustee hereunder, provided
      that such corporation shall be eligible under the provisions of Section 8.06
      hereof without the execution or filing of any paper or further act on the part
      of any of the parties hereto, anything herein to the contrary
      notwithstanding.

    

    SECTION
      8.10.
      Appointment of Co-Trustee or Separate Trustee.

    

    Notwithstanding
      any other provisions of this Agreement, at any time, for the purpose of meeting
      any legal requirements of any jurisdiction in which any part of the Trust Fund
      or property securing any Mortgage Note may at the time be located, the Servicer
      and the Trustee acting jointly shall have the power and shall execute and
      deliver all instruments to appoint one or more Persons approved by the Trustee
      to act as co-trustee or co-trustees jointly with the Trustee, or separate
      trustee or separate trustees, of all or any part of the Trust Fund, and to
      vest
      in such Person or Persons, in such capacity and for the benefit of the
      Certificateholders, such title to the Trust Fund, or any part thereof, whichever
      is applicable, and, subject to the other provisions of this Section 8.10, such
      powers, duties, obligations, rights and trusts as the Servicer and the Trustee
      may consider necessary or desirable. Any such co-trustee or separate trustee
      shall be subject to the prior written approval of the Servicer. If the Servicer
      shall not have joined in such appointment within 15 days after the receipt
      by it
      of a request to do so, or in the case an Event of Default shall have occurred
      and be continuing, the Trustee alone shall have the power to make such
      appointment. No co-trustee or separate trustee hereunder shall be required
      to
      meet the terms of eligibility as a successor trustee under Section 8.06 and
      no
      notice to Certificateholders of the appointment of any co-trustee or separate
      trustee shall be required under Section 8.08.

    

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

    

    (i) to
      the
      extent necessary to effectuate the purposes of this Section 8.10, all rights,
      powers, duties and obligations conferred or imposed upon the Trustee, except
      for
      the obligation of the Trustee under this Agreement to advance funds on behalf
      of
      the Servicer, shall be conferred or imposed upon and exercised or performed
      by
      the Trustee and such separate trustee or co-trustee jointly (it being understood
      that such separate trustee or co-trustee is not authorized to act separately
      without the Trustee joining in such act), except to the extent that under any
      law of any jurisdiction in which any particular act or acts are to be performed
      (whether as Trustee hereunder or as successor to the Servicer hereunder), the
      Trustee shall be incompetent or unqualified to perform such act or acts, in
      which event such rights, powers, duties and obligations (including the holding
      of title to the applicable Trust Fund or any portion thereof in any such
      jurisdiction) shall be exercised and performed singly by such separate trustee
      or co-trustee, but solely at the direction of the Trustee;

    
      
        
        

      

      
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    (ii) no
      trustee hereunder shall be held personally liable by reason of any act or
      omission of any other trustee hereunder and such appointment shall not, and
      shall not be deemed to, constitute any such separate trustee or co-trustee
      as
      agent of the Trustee; 

    

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

    

    (iv) the
      Servicer, and not the Trustee, shall be liable for the payment of reasonable
      compensation, reimbursement and indemnification to any such separate trustee
      or
      co-trustee.

    

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

    

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

    

    SECTION
      8.11.
      Tax
      Matters.

    

    It
      is
      intended that the assets with respect to which any REMIC election is to be
      made,
      as set forth in the Preliminary Statement, shall constitute, and that the
      conduct of matters relating to such assets shall be such as to qualify such
      assets as, one or more “real estate mortgage investment conduits” as defined in
      and in accordance with the REMIC Provisions. In furtherance of such intention,
      the Trustee covenants and agrees that it shall act as agent (and the Trustee
      is
      hereby appointed to act as agent) on behalf of each REMIC created hereunder
      and
      that in such capacity it shall: (a) prepare and file, or cause to be
      prepared and filed, in a timely manner, U.S. Real Estate Mortgage Investment
      Conduit Income Tax Returns (Forms 1066 or any successor form adopted by the
      Internal Revenue Service) and prepare and file or cause to be prepared and
      filed
      with the Internal Revenue Service and applicable state or local tax authorities
      income tax or information returns for each taxable year with respect to each
      REMIC created hereunder, containing such information and at the times and in
      the
      manner as may be required by the Code or regulations, rules or procedures issued
      under the Code, or state or local tax laws, regulations, or rules, and furnish
      or cause to be furnished to Certificateholders the schedules, statements or
      information at such times and in such manner as may be required thereby;
      (b) within thirty days of the Closing Date, furnish or cause to be
      furnished to the Internal Revenue Service, on Forms 8811 or as otherwise may
      be
      required by the Code, the name, title, address, and telephone number of the
      person that the Holders of the Certificates may contact for tax information
      relating thereto, together with such additional information as may be required
      by such Form, and update such information at the time or times in the manner
      required by the Code; (c) make or cause to be made elections that such
      assets be treated as a REMIC on the federal tax return for its first taxable
      year (and, if necessary, under applicable state law); (d) prepare and
      forward, or cause to be prepared and forwarded, to the Certificateholders and
      to
      the Internal Revenue Service and, if necessary, state tax authorities, all
      information returns and reports as and when required to be provided to them
      in
      accordance with the REMIC Provisions, including without limitation, the
      calculation of any original issue discount using the prepayment assumption
      described in the Prospectus Supplement; (e) provide information necessary
      for the computation of tax imposed on the transfer of a Class R Certificate
      to a
      Person that is not a Permitted Transferee, or an agent (including a broker,
      nominee or other middleman) of a non-Permitted Transferee, or a pass-through
      entity in which a non-Permitted Transferee is the record holder of an interest
      (the reasonable cost of computing and furnishing such information may be charged
      to the Person liable for such tax); (f) to the extent that they are under
      its control, conduct matters relating to such assets at all times that any
      Certificates are outstanding so as to maintain the REMIC status of each REMIC
      created hereunder under the REMIC Provisions; (g) not knowingly or
      intentionally take any action or omit to take any action that would cause the
      termination of the REMIC status of any of the REMICs created hereunder; (h)
      pay,
      from the sources specified in the last paragraph of this Section 8.11, the
      amount of any federal or state tax, including prohibited transaction taxes
      as
      described below, imposed on each REMIC created hereunder prior to its
      termination when and as the same shall be due and payable (but such obligation
      shall not prevent the Trustee or any other appropriate Person from contesting
      any such tax in appropriate proceedings and shall not prevent the Trustee from
      withholding payment of such tax, if permitted by law, pending the outcome of
      such proceedings); (i) ensure that federal, state or local income tax or
      information returns shall be signed by the Trustee or such other person as
      may
      be required to sign such returns by the Code or state or local laws, regulations
      or rules; (j) maintain records relating to each REMIC created hereunder,
      including, but not limited to, the income, expenses, assets, and liabilities
      thereof and the fair market value and adjusted basis of the assets determined
      at
      such intervals as may be required by the Code, as may be necessary to prepare
      the foregoing returns, schedules, statements or information; and (k) as and
      when
      necessary and appropriate, represent each REMIC created hereunder in any
      administrative or judicial proceedings relating to an examination or audit
      by
      any governmental taxing authority, request an administrative adjustment as
      to
      any taxable year of each REMIC created hereunder, enter into settlement
      agreements with any governmental taxing agency, extend any statute of
      limitations relating to any tax item of each REMIC created hereunder, and
      otherwise act on behalf of each REMIC created hereunder in relation to any
      tax
      matter or controversy involving it.

    
      
        
        

      

      
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    In
      order
      to enable the Trustee to perform its duties as set forth herein, the Depositor
      shall provide, or cause to be provided, to the Trustee within ten (10) days
      after the Closing Date all information or data that the Trustee requests in
      writing and determines to be relevant for tax purposes to the valuations and
      offering prices of the Certificates, including, without limitation, the price,
      yield, prepayment assumption and projected cash flows of the Certificates and
      the Loans. Thereafter, the Depositor shall provide to the Trustee promptly
      upon
      written request therefor, any such additional information or data that the
      Trustee may, from time to time, reasonably request to enable the Trustee to
      perform its duties as set forth herein. The Depositor hereby indemnifies the
      Trustee for any losses, liabilities, damages, claims or expenses of the Trustee
      arising from any errors or miscalculations of the Trustee that result from
      any
      failure of the Depositor to provide, or to cause to be provided, accurate
      information or data to the Trustee on a timely basis.

    

    If
      any
      tax is imposed on “prohibited transactions” of any REMIC created hereunder as
      defined in Section 860F(a)(2) of the Code, on the “net income from foreclosure
      property” of any REMIC created hereunder as defined in Section 860G(c) of the
      Code, on any contribution to any REMIC created hereunder after the Startup
      Day
      pursuant to Section 860G(d) of the Code, or any other tax is imposed, if not
      paid as otherwise provided for herein, such tax and all other related costs
      shall be paid by (i) the Trustee, if such tax arises out of or results from
      a
      breach by the Trustee of any of its obligations under this Agreement, (ii)
      the
      Servicer, or if such tax arises out of or results from a breach by the Servicer
      or a Seller of any of their obligations under this Agreement, (iii) the Sellers,
      if any tax arises out of or results from any Seller’s obligation to repurchase a
      Loan pursuant to Section 2.02 or 2.03 or (iv) in all other cases, or if the
      Trustee, the Servicer or a Seller fails to honor its obligations under the
      preceding clause (i),(ii) or (iii), such tax will be paid with amounts otherwise
      to be distributed to the Certificateholders, as provided in Section
      3.08(b).

    
      
        
        

      

      
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    SECTION
      8.12.
      Periodic Filings.

    

    The
      Depositor shall prepare, execute and file all periodic reports required under
      the Exchange Act. In connection with the preparation and filing of such periodic
      reports, the Servicer shall timely provide to the Depositor all material
      information available to it which is required to be included in such reports
      and
      not known to it to be in the possession of the Depositor and such other
      information as the Depositor reasonably may request from it and otherwise
      reasonably shall cooperate with the Depositor. The Depositor shall have no
      liability with respect to any failure to properly prepare or file such periodic
      reports resulting from or relating to the Depositor’s inability or failure to
      obtain any information not resulting from its own gross negligence or willful
      misconduct. The Servicer and the Trustee shall reasonably cooperate with the
      Depositor to enable the Depositor to satisfy its reporting requirements under
      the Exchange Act and its obligations under Regulation AB.

    

    SECTION
      8.13.
      Appointment of Custodians.

    

    The
      Trustee may, with the consent of the Servicer, appoint one or more custodians
      (each, a “Custodian”)
      to
      hold all or a portion of the Trustee’s Mortgage Files as agent for the Trustee,
      by entering into a custodial agreement (“Custodial
      Agreement”).
      The
      Trustee agrees to comply with the terms of each Custodial Agreement and to
      enforce the terms and provisions thereof against the Custodian for the benefit
      of the Certificateholders. The Trustee shall be liable for the fees of any
      Custodian appointed hereunder. Each Custodian shall be a depository institution
      subject to supervision by federal or state authority and shall be qualified
      to
      do business in the jurisdiction in which it holds any Trustee’s Mortgage File.
      In the event that the Trustee appoints a Custodian, it shall cause the Custodial
      Agreement to include a provision pursuant to which the Custodian agrees to
      deliver any attestations, certificates or reports or other information required
      for the Depositor to comply with Regulation AB.

    

    SECTION
      8.14.
      Trustee May Enforce Claims Without Possession of Certificates.

    

    All
      rights of action and claims under this Agreement or the Certificates may be
      prosecuted and enforced by the Trustee without the possession of any of the
      Certificates or the production thereof in any proceeding relating thereto,
      any
      such proceeding instituted by the Trustee shall be brought in its own name
      or in
      its capacity as Trustee. Any recovery of judgment shall, after provision for
      the
      payment of the reasonable compensation, expenses, disbursements and advances
      of
      the Trustee, its agents and counsel, be for the ratable benefit of the
      Certificateholders in respect of which such judgment has been
      recovered.

    

    The
      Trustee shall afford the Sellers, the Depositor, the Servicer and each
      Certificateholder, upon reasonable notice during normal business hours, access
      to all records maintained by the Trustee in respect of its duties hereunder
      and
      reasonable access to officers of the Trustee responsible for performing such
      duties, or such other employees who can provide the information required. Upon
      request, the Trustee shall furnish the Sellers, the Depositor, the Servicer
      and
      each Certificateholder with its most recent financial statements. The Trustee
      shall cooperate fully with the Sellers, the Servicer, the Depositor and such
      Certificateholder and shall make available to the Sellers, the Servicer, the
      Depositor and such Certificateholder for review and copying at the expense
      of
      the party requesting such copies, such books, documents or records as may be
      requested with respect to the Trustee’s duties hereunder. The Sellers, the
      Depositor, the Servicer and the Certificateholders shall not have any
      responsibility or liability for any action or failure to act by the Trustee
      and
      are not obligated to supervise the performance of the Trustee under this
      Agreement or otherwise.

    
      
        
        

      

      
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    SECTION
      8.15.
      Suits for Enforcement.

    

    In
      case
      an Event of Default or other default by the Servicer hereunder shall occur
      and
      be continuing, the Trustee, in its discretion, may proceed to protect and
      enforce its rights and the rights of the Certificateholders under this Agreement
      by a suit, action or proceeding in equity or at law or otherwise, whether for
      the specific performance of any covenant or agreement contained in this
      Agreement or in aid of the execution of any power granted in this Agreement
      or
      for the enforcement of any other legal, equitable or other remedy, as the
      Trustee, being advised by counsel, shall deem most effectual to protect and
      enforce any of the rights of the Trustee or the Certificateholders.

    

    SECTION
      8.16.
      Trustee’s Annual Servicing Statement; Independent Public Accountants’
Attestation. 

    

    (a) The
      Trustee shall deliver to the Depositor and the Servicer, not later than March
      15
      of each calendar year in which the Depositor is required to file an annual
      report on Form 10-K with respect to the Trust Fund, commencing with the calendar
      year following the calendar year in which the Closing Date occurs, a report
      regarding the Trustee’s assessment of its compliance with the Servicing
      Criteria, which assessment of compliance shall, at a minimum, address the
      criteria identified as applicable on Exhibit N attached hereto (as the same
      may
      be amended from time to time). Copies of such report shall be provided by the
      Servicer to any Certificateholder, without charge, upon the written request
      of
      such Certificateholder, provided such report is delivered by the Trustee to
      the
      Servicer. Such report shall contain the following statements (which statements
      shall be based on the activities the Trustee performs with respect to
      asset-backed securities transactions taken as a whole involving the Trustee
      that
      are backed by the same asset type as the Loans):

    

    (i) a
      statement by the Trustee of its responsibility for assessing compliance with
      the
      Servicing Criteria applicable to the Trustee;

    

    (ii) a
      statement by the Trustee that it used the Servicing Criteria to assess
      compliance with the Servicing Criteria applicable to the Trustee;

     

    (iii) a
      statement by the Trustee as to which of the Servicing Criteria, if any, are
      not
      applicable to the Trustee;

    

    (iv) a
      statement by the Trustee assessing the Trustee’s compliance with the applicable
      Servicing Criteria as of the last day of the immediately preceding calendar
      year
      and covering the period of the preceding calendar year, which shall disclose
      any
      material instance of noncompliance with respect thereto; and

    

    (v) a
      statement by the Trustee that a registered public accounting firm has issued
      an
      attestation report on the Trustee’s assessment of compliance with the applicable
      Servicing Criteria as of the last day of the immediately preceding calendar
      year
      and covering the period of the preceding calendar year.

    

    (b) Not
      later
      than March 15 of each calendar year in which the Depositor is required to file
      an annual report on Form 10-K with respect to the Trust Fund, commencing with
      the calendar year following the calendar year in which the Closing Date occurs,
      the Trustee, at its expense, shall cause a registered public accounting firm
      which is a member of the American Institute of Certified Public Accountants
      to
      furnish to the Depositor and the Servicer a report by such accounting firm
      that
      attests to, and reports on, the assessment made by the Trustee pursuant to
      Section 8.16(a) hereof, meeting the requirements of Item 1122(b) of Regulation
      AB. Such attestation shall be in accordance with the Exchange Act and Regulation
      S-X under the Securities Act. Copies of such report shall be provided by the
      Servicer to any Certificateholder, without charge, upon the written request
      of
      such Certificateholder, provided such report is delivered by the Trustee to
      the
      Servicer.

    
      
        
        

      

      
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    SECTION
      8.17.
      Engagement by Trustee of Affiliates or Third Parties.

    

    Notwithstanding
      anything herein to the contrary, for so long as the Depositor is subject to
      Exchange Act reporting with respect to the Trust Fund:

    

    to
      the
      extent the Trustee engages any affiliate or third party, in connection with
      the
      performance of any of its material duties under this Agreement (including,
      without limitation, any co-trustee or separate trustee pursuant to Section
      8.10
      hereof), the Trustee shall immediately notify the Depositor in writing of such
      engagement. To the extent the Depositor notifies the Trustee that it has
      determined that such affiliates or third parties are participating in the
      servicing function with respect to the Loans, within the meaning of Item 1122
      of
      Regulation AB, the Trustee shall cause such affiliates or third parties to
      prepare a separate annual assessment and attestation report, as contemplated
      by
      Section 8.16 of this Agreement, and deliver such report to the Trustee as set
      forth in Section 8.16 of this Agreement. In addition, to the extent the Trustee
      or such affiliate or third parties meet the criteria in Item 1108(a)(2)(i),
      (ii)
      or (iii) of Regulation AB and the Depositor notifies the Trustee that it has
      determined that the Trustee or such affiliate or third parties would be a
“servicer” within the meaning of Item 1101 of Regulation AB, the Trustee shall,
      and shall cause such affiliate or third parties to, prepare a separate annual
      compliance statement as contemplated by Section 3.15 of this Agreement and
      deliver such statement to the Depositor as set forth in Section 3.15 of this
      Agreement. Furthermore, if the Trustee or such affiliate or third parties meet
      the criteria in Item 1108(a)(2)(i), (ii) or (iii) of Regulation AB and the
      Depositor determines that the Trustee or such affiliate or third parties would
      be a “servicer” within the meaning of Item 1101 of Regulation AB, the Trustee
      shall cause such affiliate or third parties to provide the Depositor the
      information required by Item 1108(b) and 1108(c) of Regulation AB within two
      (2)
      Business Days following such engagement.

    

    SECTION
      8.18. Representations and Warranties of the Trustee.

    

    The
      Trustee hereby represent and warrants to the Depositor and the Servicer, as
      of
      the date of the Preliminary Prospectus Supplement, the Prospectus Supplement
      and
      the Closing Date that: 

    

    (a) there
      are
      no material
      pending legal or other proceedings against the Trustee, that, individually
      or in
      the aggregate, would have a material adverse impact on the
      Certificateholders;
      and

    

    (b)
       there
      are
      no affiliations, relationships or transactions relating to the Trustee and
      the
      Depositor, the Servicer, the Sellers, the Underwriters or the Swap Counterparty
      of a type described in Item 1119 of Regulation AB.

     

    ARTICLE
      IX

    TERMINATION

    

    SECTION
      9.01.
      Termination upon Liquidation or Purchase of all Loans.

    

    Subject
      to Section 9.03, the obligations and responsibilities of the Depositor, the
      Servicer and the Trustee created hereby with respect to the Trust Fund shall
      terminate upon the earlier of (a) the purchase by the Servicer of all Loans
      (and
      REO Properties) remaining in the Trust Fund at a price equal to the sum of
      (i)
      100% of the Stated Principal Balance of each Loan plus accrued and unpaid
      interest thereon at the applicable Mortgage Rate and (ii) 100% of the
      Stated Principal Balance of each Loan related to any REO Property plus accrued
      and unpaid interest thereon at the applicable Mortgage Rate (the “Termination
      Price”);
      provided,
      however,
      that in
      no event shall the Termination Price be less than (1) with respect to the
      Offered Certificates, 100% of their then outstanding principal balance, (2)
      with
      respect to the Offered Certificates, any accrued and unpaid interest thereon
      at
      the applicable Pass-Through Rate (including any Class Unpaid Interest Amounts),
      (3) with respect to the Offered Certificates, any accrued and unpaid Net
      WAC Cap Carryover as of such Distribution Date, and (4) with respect to the
      Offered Certificates, any Swap Termination Payment payable to the Swap
      Counterparty then remaining unpaid or which becomes due to the Swap Counterparty
      as a result of the exercise of the Optional Termination or (b) the later of
      (i)
      the maturity or other liquidation of the last Loan remaining in the Trust Fund
      (or any Advance with respect thereto) and the disposition of all REO Property
      and (ii) the distribution to Certificateholders of all amounts required to
      be
      distributed to them pursuant to this Agreement. In no event shall the trusts
      created hereby continue beyond the earlier of (i) the expiration of 21 years
      from the death of the survivor of the descendants of Joseph P. Kennedy, the
      late
      Ambassador of the United States to the Court of St. James, living on the date
      hereof or (ii) the Latest Possible Maturity Date. The right to purchase all
      Loans and REO Properties pursuant to clause (a) above shall be conditioned
      upon
      the Pool Principal Balance, at the time of any such repurchase, aggregating
      less
      than ten percent (10%) of the Cut-off Date Pool Principal Balance. If the
      Servicer elects to exercise its purchase right pursuant to clause
      (a) above, the Servicer’s right to reimbursement from the Trust Fund for
      any Advances previously made on the Loans being purchased shall terminate as
      of
      the date the purchase of the Loans and REO Properties is completed.

    
      
        
        

      

      
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    SECTION
      9.02.
      Final Distribution on the Certificates.

    

    If
      on any
      Determination Date, the Servicer determines that there are no Outstanding Loans
      and no other funds or assets in the Trust Fund other than the funds in the
      Certificate Account, the Servicer shall direct the Trustee in writing promptly
      to send a final distribution notice to each Certificateholder. If the Servicer
      elects to terminate the Trust Fund pursuant to clause (a) of Section 9.01,
      at
      least 20 days prior to the date notice is to be mailed to the affected
      Certificateholders, the Servicer shall notify in writing the Depositor and
      the
      Trustee of the date the Servicer intends to terminate the Trust Fund and of
      the
      applicable repurchase price of the Loans and REO Properties.

    

    Notice
      of
      any termination of the Trust Fund, specifying the Distribution Date on which
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Trustee by letter
      to Certificateholders mailed not earlier than the 10th day and not later than
      the 15th day of the month next preceding the month of such final distribution.
      Any such notice shall specify (a) the Distribution Date upon which final
      distribution on the Certificates will be made upon presentation and surrender
      of
      Certificates at the office therein designated, (b) the amount of principal
      to be
      included in such final distribution, (c) the location of the office or agency
      at
      which such presentation and surrender must be made, and (d) that the Record
      Date
      otherwise applicable to such Distribution Date is not applicable, distributions
      being made only upon presentation and surrender of the Certificates at the
      office therein specified. The Servicer will give such notice to each Rating
      Agency at the time such notice is given to Certificateholders.

    

    In
      the
      event such notice is given, the Servicer shall cause all funds in the
      Certificate Account to be remitted to the Trustee for deposit in the
      Distribution Account on the Business Day prior to the applicable Distribution
      Date in an amount equal to the final distribution in respect of the
      Certificates. Upon such final deposit with respect to the Trust Fund and the
      receipt by the Trustee of a Request for Release therefor, the Trustee shall
      promptly release to the Servicer the Mortgage Files for the Loans.

    

    Upon
      presentation and surrender of the Certificates, the Trustee shall cause to
      be
      distributed to Certificateholders of each Class, in the order set forth in
      Section 4.02 hereof, on the final Distribution Date and in proportion to their
      respective Percentage Interests, with respect to Certificateholders of the
      same
      Class, an amount equal to (i) as to the Offered Certificates, the Class
      Certificate Balance of each Class thereof plus accrued interest thereon and
      (ii)
      as to the Class R Certificates, the amount, if any, which remains on deposit
      in
      the Distribution Account (other than the amounts retained to meet claims) after
      application pursuant to clause (i) above.

    
      
        
        

      

      
        110

        
          

        

      

       

    

    

    In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six months after the date specified in the above mentioned
      written notice, the Trustee shall give a second written notice to the remaining
      Certificateholders to surrender their Certificates for cancellation and receive
      the final distribution with respect thereto. If within six months after the
      second notice all the applicable Certificates shall not have been surrendered
      for cancellation, the Trustee may take appropriate steps, or may appoint an
      agent to take appropriate steps, to contact the remaining Certificateholders
      concerning surrender of their Certificates, and the cost thereof shall be paid
      out of the funds and other assets which remain a part of the Trust Fund, on
      a
      pro-rata basis among the remaining Certificateholders. If within one year after
      the second notice all Certificates shall not have been surrendered for
      cancellation, the Class R Certificateholders shall be entitled to all unclaimed
      funds and other assets of the Trust Fund which remain subject
      hereto.

    

    SECTION
      9.03.
      Additional Termination Requirements.

    

    (a) In
      the
      event the Servicer exercises its purchase option as provided in Section 9.01,
      the Trust Fund shall be terminated in accordance with the following additional
      requirements, unless the Trustee has been supplied with an Opinion of Counsel,
      at the expense of the Servicer, to the effect that the failure to comply with
      the requirements of this Section 9.03 will not (i) result in the imposition
      of
      taxes on “prohibited transactions” on any REMIC created hereunder as defined in
      section 860F of the Code, or (ii) cause any REMIC created hereunder to fail
      to
      qualify as a REMIC at any time that any Certificates are
      outstanding:

    

    (1) Within
      90
      days prior to the final Distribution Date set forth in the notice given by
      the
      Servicer under Section 9.02, the Servicer shall prepare and the Trustee, at
      the
      expense of the Tax Matters Person, shall adopt a plan of complete liquidation
      within the meaning of section 860F(a)(4) of the Code which, as evidenced by
      an
      Opinion of Counsel (which opinion shall not be an expense of the Trustee or
      the
      Tax Matters Person), meets the requirements of a qualified liquidation;
      and

    

    (2) Within
      90
      days after the time of adoption of such a plan of complete liquidation, the
      Trustee shall sell all of the assets of the Trust Fund to the Servicer for
      cash
      in accordance with Section 9.01.

    

    (b) The
      Trustee as agent for each REMIC created hereunder hereby agrees to adopt and
      sign such a plan of complete liquidation upon the written request of the
      Servicer, and the receipt of the Opinion of Counsel referred to in Section
      9.03(a)(1) and to take such other action in connection therewith as may be
      reasonably requested by the Servicer.

    

    (c) By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the
      Servicer to prepare and the Trustee to adopt and sign a plan of complete
      liquidation.

    

    ARTICLE
      X

    MISCELLANEOUS
      PROVISIONS

    

    SECTION
      10.01.
      Amendment.

    

    This
      Agreement may be amended from time to time by the Depositor, the Sellers, the
      Servicer and the Trustee, without the consent of any of the Certificateholders,
      (a) to cure any ambiguity, (b) to correct or supplement any provisions herein
      which may be defective or inconsistent with any other provisions herein, (c)
      to
      conform this Agreement to the Prospectus Supplement or to facilitate compliance
      with Regulation AB, (d) to make any other revisions relating to matters or
      questions arising under this Agreement, provided that any such revisions shall
      not be inconsistent with the provisions of this Agreement or (e) to modify,
      eliminate or add to any of its provisions to such extent as shall be necessary
      or helpful to (i) maintain the qualification of the Trust Fund as one or more
      REMICs under the Code or (ii) avoid or minimize the risk of imposition of any
      tax on any REMIC; provided
      that,
      (x) in the case of clauses (a) - (d), that amendment will not adversely affect
      in any material respect the interests of any Certificateholders covered by
      this
      Agreement as evidenced either by an Opinion of Counsel to that effect or the
      delivery to the Trustee of written notification from each Rating Agency that
      provides, at the request of the Depositor, a rating for the Offered
      Certificates, of the related series to the effect that that amendment or
      supplement will not cause that Rating Agency to lower or withdraw the then
      current rating assigned to those Certificates, and (y) in the case of clause
      (e), the Trustee has received an Opinion of Counsel (which opinion shall not
      be
      an expense of the Trustee or the Trust Fund) to the effect that the amendment
      is
      necessary or helpful to (i) maintain the qualification of the Trust Fund as
      one
      or more REMICs under the Code or (ii) avoid or minimize the risk of imposition
      of any tax on any REMIC, as applicable.

    
      
        
        

      

      
        111

        
          

        

      

       

    

     

    This
      Agreement may also be amended from time to time by the Depositor, the Sellers,
      the Servicer and the Trustee with the consent of the Holders of Percentage
      Interests of at least 66% of each Class of Certificates affected thereby for
      the
      purpose of adding any provisions to or changing in any manner or eliminating
      any
      of the provisions of this Agreement or of modifying in any manner the rights
      of
      the Holders of Certificates; provided,
      however,
      that no
      such amendment shall (a) reduce in any manner the amount of, or delay the timing
      of, payments required to be distributed on any Certificate without the consent
      of the Holder of such Certificate or (b) reduce the aforesaid percentages of
      Certificates the Holders of which are required to consent to any such amendment,
      without the consent of the Holders of all such Certificates then outstanding.
      

    

    Notwithstanding
      any of the other provisions of this Section 10.01 to the contrary, none of
      the
      Depositor, the Sellers, the Servicer and the Trustee shall enter into any
      amendment to this Section 10.01 or Article I, Section 3A.01, Section 4.02(a),
      Section 4.02(d), Section 4.02(e), Section 4.02(j), Section 9.01(a) or Section
      10.16 of this Agreement, that adversely affects in any material respect the
      rights and interests hereunder of the Swap Counterparty without the prior
      written consent of the Swap Counterparty (which consent will not be unreasonably
      withheld, conditioned or delayed).

    

    Notwithstanding
      any contrary provision of this Agreement, the Trustee shall not consent to
      any
      amendment to this Agreement unless it shall have first received an Opinion
      of
      Counsel (which opinion shall not be an expense of the Trustee or the Trust
      Fund)
      to the effect that such amendment will not cause the Trust Fund to fail to
      qualify as one or more REMICs at any time that any Certificates are outstanding.
      Prior to the execution of any amendment to this Agreement, the Trustee shall
      be
      entitled to receive and rely upon an Opinion of Counsel (which opinion shall
      not
      be at the expense of the Trustee or the Trust Fund) stating that the execution
      of such amendment is authorized or permitted by this Agreement. The Trustee
      may,
      but shall not be obligated to, enter into any such amendment that affects the
      Trustee’s own rights, duties or immunities under this Agreement.

    

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Trustee shall furnish written notification of the
      substance or a copy of such amendment to each Certificateholder and each Rating
      Agency.

    

    It
      shall
      not be necessary for the consent of Certificateholders under this Section to
      approve the particular form of any proposed amendment, but it shall be
      sufficient if such consent shall approve the substance thereof. The manner
      of
      obtaining such consents and of evidencing the authorization of the execution
      thereof by Certificateholders shall be subject to such reasonable regulations
      as
      the Trustee may prescribe.

    
      
        
        

      

      
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    SECTION
      10.02.
      Recordation of Agreement; Counterparts.

    

    This
      Agreement is subject to recordation in all appropriate public offices for real
      property records in all the counties or other comparable jurisdictions in which
      any or all of the properties subject to the Mortgages are situated, and in
      any
      other appropriate public recording office or elsewhere, such recordation to
      be
      effected by the Servicer at its expense, but only upon direction by the Trustee
      accompanied by an Opinion of Counsel to the effect that such recordation
      materially and beneficially affects the interests of the
      Certificateholders.

    

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts, taken together, shall constitute one and the same
      instrument.

    

    SECTION
      10.03.
      Governing Law.

    

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES
(OTHER
      THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW)
AND
      THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HERETO AND THE
      CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS.

    

    SECTION
      10.04.
      Intention of Parties.

    

    It
      is the
      express intent of the parties hereto that the conveyance of the Loans by the
      Sellers to the Depositor pursuant to Article II of this Agreement be, and be
      construed as, an absolute sale thereof to the Depositor. It is, further, not
      the
      intention of the parties that such conveyance be deemed a pledge thereof by
      the
      Sellers to the Depositor to secure a borrowing by the Sellers from the
      Depositor. However, in the event that, notwithstanding the intent of the
      parties, such assets are held to be the property of the Sellers or any one
      of
      them, or if this Agreement is held or deemed to constitute or have created
      a
      loan, lending transaction or an extension of credit by the Depositor to the
      Sellers or any one of them, then and only then (i) this Agreement shall be
      deemed, effective as of September 1, 2006, to be a security agreement within
      the
      meaning of the Uniform Commercial Code of the State of New York and (ii) the
      conveyance by the Sellers to the Depositor provided for in this Agreement shall
      be deemed, effective as of September 1, 2006, to be an assignment and a grant
      by
      the Sellers to the Depositor, and each of the Sellers does hereby grant and
      assign to the Depositor, a security interest in, and lien upon, all of the
      assets that constitute the Collateral, whether now owned or hereafter
      acquired.

    

    The
      Sellers, for the benefit of the Depositor, shall, in connection with the
      perfection of the security interest described in the preceding paragraph of
      this
      Section 10.04, deliver to the Depositor on the Closing Date the financing
      statements described in Schedule IV. The Sellers shall also arrange for the
      delivery to the Depositor of any appropriate Uniform Commercial Code
      continuation statements as may be necessary or appropriate to continue the
      perfection of the security interest of the Depositor in the Collateral, whether
      now owned or hereafter acquired. The Sellers, for the benefit of the Depositor,
      shall, to the extent consistent with this Agreement, take such actions as may
      be
      necessary to ensure that, if this Agreement is held or deemed to constitute
      or
      have created a loan, lending transaction or an extension of credit by the
      Depositor to the Sellers or any one of them, then and only then (i) this
      Agreement shall be deemed, effective as of September 1, 2006, to be a security
      agreement within the meaning of the Uniform Commercial Code of the State of
      New
      York and (ii) the conveyance by the Sellers to the Depositor provided for in
      this Agreement shall be deemed, effective as of September 1, 2006, to be an
      assignment and a grant by the Sellers to the Depositor, and each of the Sellers
      does hereby grant and assign to the Depositor, a security interest in, and
      lien
      upon, all of the assets that constitute the Collateral, whether now owned or
      hereafter acquired, such security interest shall 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. The Sellers shall arrange for
      filing any appropriate Uniform Commercial Code financing statements,
      continuation statements or other appropriate forms, notices or documents in
      connection with any security interest granted or assigned to the Depositor.
      

    
      
        
        

      

      
        113

        
          

        

      

       

    

     

    The
      Depositor does hereby assign the security interest in and lien on the
      Collateral, whether now owned or hereafter acquired, to the Trustee for the
      benefit of the Certificateholders. The Depositor shall arrange for filing of
      such Uniform Commercial Code financing statements as are necessary to effect
      the
      assignment of the security interest and lien to the Trustee for the benefit
      of
      the Certificateholders. 

    

    It
      is the
      express intent of the parties hereto that the conveyance of the Trust Fund
      and
      the External Trust by the Depositor to the Trustee pursuant to Article II of
      this Agreement be, and be construed as, an absolute sale thereof to the Trustee.
      It is, further, not the intention of the parties that such conveyance be deemed
      a pledge thereof by the Depositor to the Trustee to secure a borrowing by the
      Depositor from the Trustee. However, in the event that, notwithstanding the
      intent of the parties, the assets constituting the Trust Fund and the External
      Trust are held to be the property of the Depositor, or if this Agreement is
      held
      or deemed to constitute or have created a loan, lending transaction or an
      extension of credit by the Trustee to the Depositor, then and only then (i)
      this
      Agreement shall be deemed, effective as of September 1, 2006, to be a security
      agreement within the meaning of the Uniform Commercial Code of the State of
      New
      York and (ii) the conveyance by the Depositor to the Trustee provided for in
      this Agreement shall be deemed, effective as of September 1, 2006, to be an
      assignment and a grant by the Depositor to the Trustee, and the Depositor does
      hereby grant and assign to the Trustee, for the benefit of the
      Certificateholders, a security interest in, and lien upon, all of the assets
      that constitute the Collateral, whether now owned or hereafter
      acquired.

    

    The
      Depositor, for the benefit of the Trustee and the Certificateholders, shall,
      in
      connection with the perfection of the security interest described in the
      preceding paragraph of this Section 10.04, deliver to the Trustee on the Closing
      Date the financing statements described in Schedule V. The Depositor shall
      also
      arrange for the delivery to the Trustee of any appropriate Uniform Commercial
      Code continuation statements as may be necessary or appropriate to continue
      the
      perfection of the security interest of the Trustee in the Trust Fund and the
      External Trust, and all of the proceeds thereof, whether now owned or hereafter
      acquired. The Depositor, for the benefit of the Trustee and the
      Certificateholders, shall, to the extent consistent with this Agreement, take
      such actions as may be necessary to ensure that, if this Agreement is held
      or
      deemed to constitute or have created a loan, lending transaction or an extension
      of credit by the Trustee to the Depositor, then and only then (i) this Agreement
      shall be deemed, effective as of September 1, 2006, to be a security agreement
      within the meaning of the Uniform Commercial Code of the State of New York
      and
      (ii) the conveyance by the Depositor to the Trustee provided for in this
      Agreement shall be deemed, effective as of September 1, 2006, to be an
      assignment and a grant by the Depositor to the Trustee, and the Depositor does
      hereby grant and assign to the Trustee, for the benefit of the
      Certificateholders, a security interest in, and lien upon, all of the assets
      that constitute the Collateral, whether now owned or hereafter acquired, such
      security interest shall 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. The Servicer shall, within ten (10) days of the Closing
      Date,
      present to the appropriate filing offices in the jurisdictions set forth on
      Schedules IV and V all of the financing statements delivered on the Closing
      Date
      by the Sellers to the Depositor, the assignments thereof delivered by the
      Depositor to the Trustee on the Closing Date and the financing statements
      delivered by the Depositor to the Trustee on the Closing Date. The Servicer
      shall arrange for filing any appropriate Uniform Commercial Code continuation
      statements or other appropriate forms, notices or documents in connection with
      any security interest granted or assigned to the Trustee. 

    
      
        
        

      

      
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    SECTION
      10.05.
      Notices.

    

    (a) The
      Trustee shall use its best efforts to promptly provide notice to each Rating
      Agency and the Underwriters with respect to each of the following of which
      it
      has actual knowledge:

    

    1. any
      material change or amendment to this Agreement;

    

    2. the
      occurrence of any Event of Default that has not been cured;

    

    3. the
      resignation or termination of the Servicer or the Trustee and the appointment
      of
      any successor;

    

    4. the
      repurchase or substitution of Loans pursuant to Section 2.03; and

    

    5. the
      final
      payment to Certificateholders.

    

    In
      addition, the Trustee shall promptly furnish to each Rating Agency and the
      Underwriters copies of the following:

    

    1. each
      report to Certificateholders described in Section 4.03;

    

    2. each
      annual statement as to compliance described in Section 3.15;

    

    3. each
      annual independent public accountants’ servicing report described in
      Section 3.16; and

    

    4. any
      notice of a purchase or sale of a Loan pursuant to Section 2.02, 2.03 or
      3.11.

    

    (b) Except
      as
      expressly provided otherwise in this Agreement, all directions, demands and
      notices hereunder shall be in writing and shall be deemed to have been duly
      given when delivered to the following addresses or such other addresses as
      may
      hereafter be furnished in writing to the Servicer and the Trustee: (a) in the
      case of the Depositor, Popular ABS, Inc., 103 Springer Building, 3411 Silverside
      Road, Wilmington, Delaware 19810, Attention: Chief Financial Officer, facsimile
      number: (302) 478-3667, (b) in the case of the Servicer, Equity One, Inc.,
      301 Lippincott Drive, Marlton, New Jersey 08053, Attention: Chief Financial
      Officer, facsimile number: (856) 396-2710, (c) in the case of any of the
      Sellers, to that Seller c/o Equity One, Inc., 301 Lippincott Drive, Marlton,
      New
      Jersey 08053, Attention: Chief Financial Officer, facsimile number: (856)
      396-2710, (d) in the case of the Trustee, JPMorgan Chase Bank, N.A., 4 New
      York
      Plaza, 6th Floor, New York, New York 10004, Attention: Worldwide Securities
      Services/Structured Finance Services, Popular ABS 2006-D, facsimile number:
      (212) 623-5930, (e) in the case of the Rating Agencies, the address specified
      therefor in the definition corresponding to the name of such Rating Agency,
      and
      (f) in the case of the Underwriters, (i) Greenwich Capital Markets, Inc., 600
      Steamboat Road, Greenwich, Connecticut 06830, Attention: General Counsel,
      facsimile number: (203) 422-4072 and (ii) Deutsche Bank Securities Inc., 60
      Wall
      Street, New York, New York 10005, Attention: Michael Ciuffo, facsimile number:
      (212) 797-2030. Notices to Certificateholders shall be deemed given when mailed,
      first class postage prepaid, to their respective addresses appearing in the
      Certificate Register. Telephonic notice to the Servicer pursuant to Section
      7.01
      hereof shall be deemed to have been duly given when the Trustee has delivered
      such notice via a direct, in-person telephone conversation with the Chief
      Financial Officer of the Servicer at (856) 396-3684 or such other telephone
      number as the Servicer may provide to the Trustee in writing in accordance
      with
      the notice provisions of this Section 10.05(b).

    
      
        
        

      

      
        115

        
          

        

      

       

    

    

    SECTION
      10.06.
      Severability of Provisions.

    

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

    

    SECTION
      10.07.
      Assignment.

    

    Notwithstanding
      anything to the contrary contained herein, except as provided in Section 6.02,
      this Agreement may not be assigned by the Servicer without the prior written
      consent of the Trustee and the Depositor.

    

    SECTION
      10.08.
      Limitation on Rights of Certificateholders.

    

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the trust created hereby, nor entitle such Certificateholder’s
      legal representative or heirs to claim an accounting or to take any action
      or
      commence any proceeding in any court for a petition or winding up of the trust
      created hereby, or otherwise affect the rights, obligations and liabilities
      of
      the parties hereto or any of them.

    

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third party by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

    

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee a written notice of an Event
      of Default and of the continuance thereof, as herein provided, and unless the
      Holders of Certificates evidencing not less than 25% of the Voting Rights
      evidenced by the Certificates shall also have made written request to the
      Trustee to institute such action, suit or proceeding in its own name as Trustee
      hereunder and shall have offered to the Trustee such reasonable indemnity as
      it
      may require against the costs, expenses, and liabilities to be incurred therein
      or thereby, and the Trustee, for 60 days after its receipt of such notice,
      request and offer of indemnity shall have neglected or refused to institute
      any
      such action, suit or proceeding; it being understood and intended, and being
      expressly covenanted by each Certificateholder with every other
      Certificateholder and the Trustee, that no one or more Holders of Certificates
      shall have any right in any manner whatever by virtue or by availing itself
      or
      themselves of any provisions of this Agreement to affect, disturb or prejudice
      the rights of the Holders of any other of the Certificates, or to obtain or
      seek
      to obtain priority over or preference to any other such Holder or to enforce
      any
      right under this Agreement, except in the manner herein provided and for the
      common benefit of all Certificateholders. For the protection and enforcement
      of
      the provisions of this Section 10.08, each and every Certificateholder and
      the
      Trustee shall be entitled to such relief as can be given either at law or in
      equity.

    

    SECTION
      10.09.
      Inspection and Audit Rights.

    

    The
      Servicer agrees that, on reasonable prior notice, it will permit and will cause
      each Subservicer to permit any representative of the Depositor or the Trustee
      during the Servicer’s normal business hours, to examine all the books of
      account, records, reports and other papers of the Servicer relating to the
      Loans, to make copies and extracts therefrom, to cause such books to be audited
      by independent certified public accountants selected by the Depositor or the
      Trustee and to discuss its affairs, finances and accounts relating to the Loans
      with its officers, employees and independent public accountants (and by this
      provision the Servicer hereby authorizes said accountants to discuss with such
      representative such affairs, finances and accounts), all at such reasonable
      times and as often as may be reasonably requested. Any out-of-pocket expense
      incident to the exercise by the Depositor or the Trustee of any right under
      this
      Section 10.09 shall be borne by the party requesting such inspection; all other
      such expenses shall be borne by the Servicer or the related
      Subservicer.

    
      
        
        

      

      
        116

        
          

        

      

       

    

    

    SECTION
      10.10.
      Certificates Nonassessable and Fully Paid.

    

    It
      is the
      intention of the Depositor and the Trustee that the Certificateholders shall
      not
      be personally liable for obligations of the Trust Fund, that the interests
      in
      the Trust Fund represented by the Certificates shall be nonassessable for any
      reason whatsoever, and that the Certificates, upon due authentication thereof
      by
      the Trustee pursuant to this Agreement, are and shall be deemed fully paid.
      

    

    SECTION
      10.11.
      The
      Closing.

    

    The
      closing of the transactions contemplated by this Agreement shall occur at 10:00
      a.m. Philadelphia time on the Closing Date at the Closing Place.

    

    SECTION
      10.12.
      Interpretation.

    

    Unless
      the context of this Agreement clearly requires otherwise, (a) references to
      the
      plural include the singular, the singular the plural, the part the whole, (b)
      references to one gender includes all genders, (c) “or” has the inclusive
      meaning frequently identified with the phrase “and/or,” (d) “including” has the
      inclusive meaning frequently identified with the phrase “but not limited to” and
      (e) references to “hereunder,” “hereof” or “herein” relate to this Agreement.
      The section and other headings contained in this Agreement are for reference
      purposes only and shall not control or affect the construction of this Agreement
      or the interpretation thereof in any respect. Section, subsection, schedule
      and
      exhibit references are to this Agreement unless otherwise
      specified.

    

    SECTION
      10.13.
      Material Litigation; Affiliations.

    

    So
      long
      as the Depositor is subject to Exchange Act reporting with respect to the Trust
      Fund, on of before the 18th day of each calendar month, or if such day is not
      a
      Business Day, the next succeeding Business Day, the Sellers, the Depositor,
      the
      Trustee and the Servicer shall notify the Depositor and the Trustee of any
      proceedings of the type described in Item 1117 of Regulation AB, together with
      a
      description thereof, that were commenced or terminated in the related Due
      Period. In addition, the Trustee and the Servicer shall notify the Depositor
      and
      the Trustee of any affiliations or relationships that develop following the
      Closing Date between the Depositor, the Trustee or the Servicer and any of
      the
      parties listed in Item 1119 of Regulation AB, together with a description
      thereof, no later than March 15 of any calendar year in which the Depositor
      is
      required to file an annual report on Form 10-K with respect to the Trust Fund
      (or such earlier time as may be required under the Exchange Act or Regulation
      AB).

    

    SECTION
      10.14.
      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 Trustee and
      the
      Servicer shall be rendered as an independent contractor and not as agent for
      the
      Certificateholders. 

    
      
        
        

      

      
        117

        
          

        

      

       

    

    

    SECTION
      10.15.
      Protection of Assets. 

    

    (a) Except
      for transactions and activities entered into in connection with the
      securitization that is the subject of this Agreement, the Trust Fund created
      by
      this Agreement is not authorized and has no power to:

    

     (1)
      borrow money or issue debt;

        (2)
      merge
      with another entity, reorganize, liquidate or sell assets;

        (3)
      engage in any business or activities.

    

    (b) Each
      party to this agreement agrees that it will not file an involuntary bankruptcy
      petition against the Trustee or the Trust Fund or initiate any other form of
      insolvency proceeding until the date which is one year and one day after the
      date on which the Certificates have been paid finally and in full.

     

    SECTION
      10.16.
      Execution of Swap Agreement and Cap Agreement. 

    

    The
      Depositor hereby directs the Trustee, in its capacity as trustee on behalf
      of
      the External Trust, to deliver and perform its obligations under, and make
      the
      representations contained in, the Swap Agreement and the Cap Agreement on the
      Closing Date and thereafter on behalf of, and for the benefit of, the
      Certificateholders.

    

    The
      Trustee acknowledges and agrees that at the direction of the Depositor or the
      Servicer, it shall initiate a Regulation AB Request (as defined in the Schedule
      to the Swap Agreement and the Schedule to the Cap Agreement) with respect to
      such subject matter as the Depositor or the Servicer may determine is necessary
      from time to time. The Trustee shall direct the Swap Counterparty or the Cap
      Counterparty, as applicable, to forward any information in response to such
      Regulation AB Request directly to the Depositor and the Servicer, and the
      Trustee shall reasonably cooperate with the Depositor and the Servicer to
      enforce any such Regulation AB Request pursuant to the terms of the Swap
      Agreement or the Cap Agreement, as applicable. 

    

    The
      Sellers, the Depositor, the Servicer and the Holders of the Offered Certificates
      (by their acceptance of such Certificates) acknowledge and agree that the
      Trustee is executing, delivering and performing its obligations under, and
      making the representations contained in, the Swap Agreement and the Cap
      Agreement, and shall do so solely in its capacity as Trustee of the External
      Trust and not in its individual capacity. 

    

    *
      * * * *
      *

    
      
        
        

      

      
        118

        
          

        

      

       

    

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

     

    
      	
              JPMORGAN
                CHASE BANK, N.A., a banking association organized under the laws
                of the
                United States, as Trustee

            	 	 POPULAR
              ABS, INC.,
              a Delaware corporation, as Depositor
	 	 	 	 
	 	 	 	 
	By:  /s/ Steve M. Husbands	 	 By:	/s/ Darren Nelson
	
              
                

              

              Steve
                M. Husbands, Assistant Vice President

            	 	 	
              

               Darren
                Nelson, Senior Vice President

            

    

     

    
      	 	 	 
	 	
              EQUITY
                ONE, INC., a Delaware corporation, as a Seller and
                Servicer

            
	 
 	 
 	 
 
	
            	By:  	/s/ Darren Nelson
	 	
              

              Darren
                Nelson, Senior Vice President

            

      	 	 	 
	 	
              
                EQUITY
                  ONE, INCORPORATED, a Pennsylvania corporation, as a
                  Seller

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Darren Nelson
	 	
              

              
                Darren
                  Nelson, Senior Vice President

              

            

    

     

    
      	 	 	 
	 	
              
                
                  EQUITY
                    ONE, INC., a Minnesota corporation, as a
                    Seller

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Darren Nelson
	 	
              

              
                Darren
                  Nelson, Senior Vice President

              

            

    

     

    
      	 	 	 
	 	
              
                
                  
                    EQUITY
                      ONE CONSUMER LOAN COMPANY, INC., a New Hampshire corporation,
                      as a
                      Seller

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Darren Nelson
	 	
              

              
                Darren
                  Nelson, Senior Vice President

              

            

    

     

    
      	 	 	 
	 	
              
                
                  
                    
                      POPULAR
                        FINANCIAL SERVICES, LLC, a Delaware limited liability company,
                        as a
                        Seller

                    

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Darren Nelson
	 	
              

              
                Darren
                  Nelson, Senior Vice President

              

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      I

     

    Loan
      Schedule

     

    SEE
      ATTACHED

    
      
        
        

      

      
        S-I-1

        
          

        

      

       

    

    

    SCHEDULE
      IIA

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of Equity One-Delaware

     

    Equity
      One-Delaware (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIA to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller.
      Capitalized terms used but not otherwise defined in this Schedule IIA shall
      have
      the meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	
              (1)

            	
              Seller
                is duly organized as a Delaware corporation and is validly existing
                and in
                good standing under the laws of the State of Delaware and is duly
                authorized and qualified to transact any and all business contemplated
                by
                the Agreement to be conducted by Seller under the laws of each state
                where
                a Mortgaged Property is located or is otherwise exempt under applicable
                law from such qualification or is otherwise not required under applicable
                law to effect such qualification. 

            

    

     

    
      	
              (2)

            	
              Seller
                has the full corporate power and authority to sell each Loan, and
                to
                execute, deliver and perform, and to enter into and consummate the
                transactions contemplated by the Agreement and has duly authorized
                by all
                necessary corporate action on the part of Seller the execution, delivery
                and performance of the Agreement; and the Agreement, assuming the
                due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Seller,
                enforceable against Seller in accordance with its terms, except that
                (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                equitable
                defenses and to the discretion of the court before which any proceeding
                therefor may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Seller, the sale of the
                Loans
                by Seller under the Agreement, the consummation of any other of the
                transactions contemplated by the Agreement, and the fulfillment of
                or
                compliance with the terms thereof are in the ordinary course of business
                of Seller and will not (a) result in a material breach of any term
                or
                provision of the charter or by-laws of Seller or (b) materially conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Seller is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Seller of any court, regulatory body, administrative
                agency
                or governmental body having jurisdiction over Seller; and Seller
                is not in
                breach or violation of any material indenture or other material agreement
                or instrument, or in violation of any statute, order or regulation
                of any
                court, regulatory body, administrative agency or governmental body
                having
                jurisdiction over it which breach or violation may materially impair
                Seller’s ability to perform or meet any of its obligations under the
                Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Seller’s knowledge, threatened,
                against Seller that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Seller
                to
                sell the Loans or to perform any of its other obligations under the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IIA-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Seller of, or compliance by Seller with, the Agreement or the consummation
                of the transactions contemplated thereby, or if any such consent,
                approval, authorization or order is required, Seller has obtained
                the
                same.

            

    

     

    
      	
              (6)

            	
              Seller
                intends to treat the conveyance of the Loans to the Depositor as
                a sale
                under applicable law. 

            

    

     

    
      	
              (7)

            	
              Seller
                is not insolvent nor is Seller aware of any pending insolvency, and
                Seller
                will not become insolvent as a result of its sale of the Loans under
                the
                Agreement, and Seller’s sale of the Loans to the Depositor under the
                Agreement will not be made with any intent to hinder, delay or defraud
                any
                of its creditors.

            

    

     

    
      
        
        

      

      
        S-IIA-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIB

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of Equity One-Minnesota

     

    Equity
      One-Minnesota (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIB to
      the
      Depositor and the Trustee as of the Closing Date or, if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller.
      Capitalized terms used but not otherwise defined in this Schedule IIB shall
      have
      the meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement” shall be used in this Schedule to
      refer to the Pooling and Servicing Agreement.

     

    
      	
              (1)

            	
              Seller
                is duly organized as a Minnesota corporation and is validly existing
                and
                in good standing under the laws of the State of Minnesota and is
                duly
                authorized and qualified to transact any and all business contemplated
                by
                the Agreement to be conducted by Seller under the laws of each state
                where
                a Mortgaged Property is located or is otherwise exempt under applicable
                law from such qualification or is otherwise not required under applicable
                law to effect such qualification. 

            

    

     

    
      	
              (2)

            	
              Seller
                has the full corporate power and authority to sell each Loan, and
                to
                execute, deliver and perform, and to enter into and consummate the
                transactions contemplated by the Agreement and has duly authorized
                by all
                necessary corporate action on the part of Seller the execution, delivery
                and performance of the Agreement; and the Agreement, assuming the
                due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Seller,
                enforceable against Seller in accordance with its terms, except that
                (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                equitable
                defenses and to the discretion of the court before which any proceeding
                therefor may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Seller, the sale of the
                Loans
                by Seller under the Agreement, the consummation of any other of the
                transactions contemplated by the Agreement, and the fulfillment of
                or
                compliance with the terms thereof are in the ordinary course of business
                of Seller and will not (a) result in a material breach of any term
                or
                provision of the charter or by-laws of Seller or (b) materially conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Seller is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Seller of any court, regulatory body, administrative
                agency
                or governmental body having jurisdiction over Seller; and Seller
                is not in
                breach or violation of any material indenture or other material agreement
                or instrument, or in violation of any statute, order or regulation
                of any
                court, regulatory body, administrative agency or governmental body
                having
                jurisdiction over it which breach or violation may materially impair
                Seller’s ability to perform or meet any of its obligations under the
                Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Seller’s knowledge, threatened,
                against Seller that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Seller
                to
                sell the Loans or to perform any of its other obligations under the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IIB-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Seller of, or compliance by Seller with, the Agreement or the consummation
                of the transactions contemplated thereby, or if any such consent,
                approval, authorization or order is required, Seller has obtained
                the
                same.

            

    

     

    
      	
              (6)

            	
              Seller
                intends to treat the conveyance of the Loans to the Depositor as
                a sale
                under applicable law. 

            

    

     

    
      	
              (7)

            	
              Seller
                is not insolvent nor is Seller aware of any pending insolvency, and
                Seller
                will not become insolvent as a result of its sale of the Loans under
                the
                Agreement, and Seller’s sale of the Loans to the Depositor under the
                Agreement will not be made with any intent to hinder, delay or defraud
                any
                of its creditors.

            

    

     

    
      
        
        

      

      
        S-IIB-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIC

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of Equity One-New Hampshire

     

    Equity
      One-New Hampshire (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIC to
      the
      Depositor and the Trustee as of the Closing Date or, if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller.
      Capitalized terms used but not otherwise defined in this Schedule IIC shall
      have
      the meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement” shall be used in this Schedule to
      refer to the Pooling and Servicing Agreement.

     

    
      	
              (1)

            	
              Seller
                is duly organized as a New Hampshire corporation and is validly existing
                and in good standing under the laws of the State of New Hampshire
                and is
                duly authorized and qualified to transact any and all business
                contemplated by the Agreement to be conducted by Seller under the
                laws of
                each state where a Mortgaged Property is located or is otherwise
                exempt
                under applicable law from such qualification or is otherwise not
                required
                under applicable law to effect such qualification.
                

            

    

     

    
      	
              (2)

            	
              Seller
                has the full corporate power and authority to sell each Loan, and
                to
                execute, deliver and perform, and to enter into and consummate the
                transactions contemplated by the Agreement and has duly authorized
                by all
                necessary corporate action on the part of Seller the execution, delivery
                and performance of the Agreement; and the Agreement, assuming the
                due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Seller,
                enforceable against Seller in accordance with its terms, except that
                (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                equitable
                defenses and to the discretion of the court before which any proceeding
                therefor may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Seller, the sale of the
                Loans
                by Seller under the Agreement, the consummation of any other of the
                transactions contemplated by the Agreement, and the fulfillment of
                or
                compliance with the terms thereof are in the ordinary course of business
                of Seller and will not (a) result in a material breach of any term
                or
                provision of the charter or by-laws of Seller or (b) materially conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Seller is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Seller of any court, regulatory body, administrative
                agency
                or governmental body having jurisdiction over Seller; and Seller
                is not in
                breach or violation of any material indenture or other material agreement
                or instrument, or in violation of any statute, order or regulation
                of any
                court, regulatory body, administrative agency or governmental body
                having
                jurisdiction over it which breach or violation may materially impair
                Seller’s ability to perform or meet any of its obligations under the
                Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Seller’s knowledge, threatened,
                against Seller that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Seller
                to
                sell the Loans or to perform any of its other obligations under the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IIC-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Seller of, or compliance by Seller with, the Agreement or the consummation
                of the transactions contemplated thereby, or if any such consent,
                approval, authorization or order is required, Seller has obtained
                the
                same.

            

    

     

    
      	
              (6)

            	
              Seller
                intends to treat the conveyance of the Loans to the Depositor as
                a sale
                under applicable law. 

            

    

     

    
      	
              (7)

            	
              Seller
                is not insolvent nor is Seller aware of any pending insolvency, and
                Seller
                will not become insolvent as a result of its sale of the Loans under
                the
                Agreement, and Seller’s sale of the Loans to the Depositor under the
                Agreement will not be made with any intent to hinder, delay or defraud
                any
                of its creditors.

            

    

     

    
      
        
        

      

      
        S-IIC-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IID

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of Equity One-Pennsylvania

     

    Equity
      One-Pennsylvania (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IID to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller.
      Capitalized terms used but not otherwise defined in this Schedule IID shall
      have
      the meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	
              (1)

            	
              Seller
                is duly organized as a Pennsylvania corporation and is validly existing
                and in good standing under the laws of the Commonwealth of Pennsylvania
                and is duly authorized and qualified to transact any and all business
                contemplated by the Agreement to be conducted by Seller under the
                laws of
                each state where a Mortgaged Property is located or is otherwise
                exempt
                under applicable law from such qualification or is otherwise not
                required
                under applicable law to effect such
                qualification.

            

    

     

    
      	
              (2)

            	
              Seller
                has the full corporate power and authority to sell each Loan, and
                to
                execute, deliver and perform, and to enter into and consummate the
                transactions contemplated by the Agreement and has duly authorized
                by all
                necessary corporate action on the part of Seller the execution, delivery
                and performance of the Agreement; and the Agreement, assuming the
                due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Seller,
                enforceable against Seller in accordance with its terms, except that
                (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                equitable
                defenses and to the discretion of the court before which any proceeding
                therefor may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Seller, the sale of the
                Loans
                by Seller under the Agreement, the consummation of any other of the
                transactions contemplated by the Agreement, and the fulfillment of
                or
                compliance with the terms thereof are in the ordinary course of business
                of Seller and will not (a) result in a material breach of any term
                or
                provision of the charter or by-laws of Seller or (b) materially conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Seller is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Seller of any court, regulatory body, administrative
                agency
                or governmental body having jurisdiction over Seller; and Seller
                is not in
                breach or violation of any material indenture or other material agreement
                or instrument, or in violation of any statute, order or regulation
                of any
                court, regulatory body, administrative agency or governmental body
                having
                jurisdiction over it which breach or violation may materially impair
                Seller’s ability to perform or meet any of its obligations under the
                Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Seller’s knowledge, threatened,
                against Seller that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Seller
                to
                sell the Loans or to perform any of its other obligations under the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IID-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Seller of, or compliance by Seller with, the Agreement or the consummation
                of the transactions contemplated thereby, or if any such consent,
                approval, authorization or order is required, Seller has obtained
                the
                same.

            

    

     

    
      	
              (6)

            	
              Seller
                intends to treat the conveyance of the Loans to the Depositor as
                a sale
                under applicable law. 

            

    

     

    
      	
              (7)

            	
              Seller
                is not insolvent nor is Seller aware of any pending insolvency, and
                Seller
                will not become insolvent as a result of its sale of the Loans under
                the
                Agreement, and Seller’s sale of the Loans to the Depositor under the
                Agreement will not be made with any intent to hinder, delay or defraud
                any
                of its creditors.

            

    

     

    
      
        
        

      

      
        S-IID-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIE

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of Popular Financial

     

    Popular
      Financial (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIE to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller.
      Capitalized terms used but not otherwise defined in this Schedule IIE shall
      have
      the meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	
              (1)

            	
              Seller
                is duly formed as a Delaware limited liability company and is validly
                existing and in good standing under the laws of the State of Delaware
                and
                is duly authorized and qualified to transact any and all business
                contemplated by the Agreement to be conducted by Seller under the
                laws of
                each state where a Mortgaged Property is located or is otherwise
                exempt
                under applicable law from such qualification or is otherwise not
                required
                under applicable law to effect such
                qualification.

            

    

     

    
      	
              (2)

            	
              Seller
                has the full power and authority to sell each Loan, and to execute,
                deliver and perform, and to enter into and consummate the transactions
                contemplated by the Agreement and has duly authorized by all necessary
                corporate action on the part of Seller the execution, delivery and
                performance of the Agreement; and the Agreement, assuming the due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Seller,
                enforceable against Seller in accordance with its terms, except that
                (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and
                injunctive and other forms of equitable relief may be subject to
                equitable
                defenses and to the discretion of the court before which any proceeding
                therefor may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Seller, the sale of the
                Loans
                by Seller under the Agreement, the consummation of any other of the
                transactions contemplated by the Agreement, and the fulfillment of
                or
                compliance with the terms thereof are in the ordinary course of business
                of Seller and will not (a) result in a material breach of any term
                or
                provision of the operating agreement of Seller or (b) materially
                conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Seller is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Seller of any court, regulatory body, administrative
                agency
                or governmental body having jurisdiction over Seller; and Seller
                is not in
                breach or violation of any material indenture or other material agreement
                or instrument, or in violation of any statute, order or regulation
                of any
                court, regulatory body, administrative agency or governmental body
                having
                jurisdiction over it which breach or violation may materially impair
                Seller’s ability to perform or meet any of its obligations under the
                Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Seller’s knowledge, threatened,
                against Seller that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Seller
                to
                sell the Loans or to perform any of its other obligations under the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IIE-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Seller of, or compliance by Seller with, the Agreement or the consummation
                of the transactions contemplated thereby, or if any such consent,
                approval, authorization or order is required, Seller has obtained
                the
                same.

            

    

     

    
      	
              (6)

            	
              Seller
                intends to treat the conveyance of the Loans to the Depositor as
                a sale
                under applicable law. 

            

    

     

    
      	
              (7)

            	
              Seller
                is not insolvent nor is Seller aware of any pending insolvency, and
                Seller
                will not become insolvent as a result of its sale of the Loans under
                the
                Agreement, and Seller’s sale of the Loans to the Depositor under the
                Agreement will not be made with any intent to hinder, delay or defraud
                any
                of its creditors.

            

    

     

    
      
        
        

      

      
        S-IIE-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIF

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    RESERVED

    
      
        
        

      

      
        S-IIF-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIX

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Representations
      and Warranties of the Servicer

     

    Equity
      One-Delaware, in its capacity as Servicer (“Servicer”),
      hereby makes the representations and warranties set forth in this Schedule
      IIX
      to the Depositor and the Trustee as of the Closing Date, or if so specified
      herein, as of the Cut-off Date with respect to the Loans being conveyed by
      the
      Seller(s). Capitalized terms used but not otherwise defined in this Schedule
      IIX
      shall have the meanings ascribed thereto in the Pooling and Servicing Agreement
      (the “Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Servicer, the Sellers identified
      therein, Popular ABS, Inc., as depositor, and JPMorgan Chase Bank, N.A., as
      trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	
              (1)

            	
              Servicer
                is duly organized as a Delaware corporation and is validly existing
                and in
                good standing under the laws of the State of Delaware and is duly
                authorized and qualified to transact any and all business contemplated
                by
                the Agreement to be conducted by Servicer in any state in which a
                Mortgaged Property is located or is otherwise not required under
                applicable law to effect such qualification and, in any event, is
                in
                compliance with the doing business laws of any such state, to the
                extent
                necessary to ensure its ability to service the Loans in accordance
                with
                the terms of the Agreement and to perform any of its other obligations
                under the Agreement in accordance with the terms thereof.
                

            

    

     

    
      	
              (2)

            	
              Servicer
                has the full corporate power and authority to service each Loan,
                and to
                execute, deliver and perform, and to enter into and consummate the
                transactions contemplated by the Agreement and has duly authorized
                by all
                necessary corporate action on the part of Servicer the execution,
                delivery
                and performance of the Agreement; and the Agreement, assuming the
                due
                authorization, execution and delivery thereof by the other parties
                thereto, constitutes a legal, valid and binding obligation of Servicer,
                enforceable against Servicer in accordance with its terms, except
                that (a)
                the enforceability thereof may be limited by bankruptcy, insolvency,
                moratorium, receivership and other similar laws relating to creditors’
                rights generally and (b) the remedy of specific performance and injunctive
                and other forms of equitable relief may be subject to equitable defenses
                and to the discretion of the court before which any proceeding therefor
                may be brought.

            

    

     

    
      	
              (3)

            	
              The
                execution and delivery of the Agreement by Servicer, the servicing
                of the
                Loans by Servicer under the Agreement, the consummation of any other
                of
                the transactions contemplated by the Agreement, and the fulfillment
                of or
                compliance with the terms thereof are in the ordinary course of business
                of Servicer and will not (a) result in a material breach of any term
                or
                provision of the charter or by-laws of Servicer or (b) materially
                conflict
                with, result in a material breach, violation or acceleration of,
                or result
                in a material default under, the terms of any other material agreement
                or
                instrument to which Servicer is a party or by which it may be bound
                or (c)
                constitute a material violation of any statute, order or regulation
                applicable to Servicer of any court, regulatory body, administrative
                agency or governmental body having jurisdiction over Servicer; and
                Servicer is not in breach or violation of any material indenture
                or other
                material agreement or instrument, or in violation of any statute,
                order or
                regulation of any court, regulatory body, administrative agency or
                governmental body having jurisdiction over it which breach or violation
                may materially impair Servicer’s ability to perform or meet any of its
                obligations under the Agreement.

            

    

     

    
      	
              (4)

            	
              No
                litigation is pending or, to the best of Servicer’s knowledge, threatened,
                against Servicer that would materially and adversely affect the execution,
                delivery or enforceability of the Agreement or the ability of Servicer
                to
                service the Loans or to perform any of its other obligations under
                the
                Agreement in accordance with the terms
                thereof.

            

    

     

    
      
        
        

      

      
        S-IIX-1

        
          

        

      

      
        
        

      

    

     

    
      	
              (5)

            	
              No
                consent, approval, authorization or order of any court or governmental
                agency or body is required for the execution, delivery and performance
                by
                Servicer of, or compliance by Servicer with, the Agreement or the
                consummation of the transactions contemplated thereby, or if any
                such
                consent, approval, authorization or order is required, Servicer has
                obtained the same.

            

    

     

    
      
        
        

      

      
        S-IIX-2

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIIA

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Loan
      Representations and Warranties of Equity One-Delaware

     

    Equity
      One-Delaware (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIIA to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller and
      the
      Mortgages, Mortgage Notes and Mortgaged Properties related thereto. Capitalized
      terms used but not otherwise defined in this Schedule IIIA shall have the
      meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	(1)  	
              The
                information set forth on Schedule I to the Agreement with respect
                to the
                Loans is true and correct in all material respects as of the Closing
                Date.

            

    

     

    
      	(2)  	
              As
                of the close of business on August 31, 2006, no Loan was 30 or more
                days
                contractually past due (assuming 30 day months).
                

            

    

     

    
      	(3)  	
              None
                of the Loans are Second Lien Loans.

            

    

     

    
      	(4)  	
              No
                Loan had a Combined Loan-to-Value Ratio at origination in excess
                of 100%.
                For purposes of determining the date of origination on which each
                Loan’s
                Combined Loan-to-Value Ratio is measured, no Loan has been significantly
                modified within the meaning of Treasury Regulation 1.860G-2(b) as
                of the
                Closing Date.

            

    

     

    
      	(5)  	
              Each
                Mortgage is a valid and enforceable first lien on the referenced
                Mortgaged
                Property subject only to (a) the lien of non delinquent current real
                property taxes and assessments, (b) covenants, conditions and
                restrictions, rights of way, easements and other matters of public
                record
                as of the date of recording of such Mortgage, such exceptions appearing
                of
                record being acceptable to mortgage lending institutions generally
                or
                specifically reflected in the appraisal, if any, utilized in connection
                with the origination of the related Loan, and (c) other matters to
                which
                like properties are commonly subject which do not materially interfere
                with the benefits of the security intended to be provided by such
                Mortgage.

            

    

     

    
      	(6)  	
              Immediately
                prior to the assignment of the Loans to the Depositor, the Seller
                had good
                title to, and was the sole owner of, each such Loan free and clear
                of any
                pledge, lien, encumbrance or security interest and had full right
                and
                authority, subject to no interest or participation of, or agreement
                with,
                any other party, to sell and assign the same pursuant to the
                Agreement.

            

    

     

    
      	(7)  	
              To
                the best of Seller’s knowledge, there is no delinquent tax or assessment
                lien against any Mortgaged Property.

            

    

     

    
      	(8)  	
              There
                is no valid right of rescission, offset, defense or counterclaim
                to any
                Mortgage Note or Mortgage, including the obligation of the Mortgagor
                to
                pay the unpaid principal of or interest on such Mortgage
                Note.

            

    

     

    
      	(9)  	
              To
                the best of Seller’s knowledge, there are no mechanics’ liens or claims
                for work, labor or material affecting any Mortgaged Property which
                are or
                may be a lien prior to, or equal with, the lien of such Mortgage,
                except
                those which are insured against by the title insurance policy referred
                to
                in item (13) below.

            

    

     

    
      
        
        

      

      
        S-IIIA-1

        
          

        

      

      
        
        

      

    

     

    
      	(10)  	
              To
                the best of the Seller’s knowledge, each Mortgaged Property is free of
                material damage and in good repair.

            

    

     

    
      	(11)  	
              Each
                Loan at origination complied in all material respects
                with applicable local, state and federal laws, including, without
                limitation, usury, equal credit opportunity, real estate settlement
                procedures, truth-in-lending and disclosure laws, and all applicable
                predatory and abusive lending laws, and consummation of the transactions
                contemplated hereby will not involve the violation of any such
                laws.

            

    

     

    
      	(12)  	
              As
                of the Closing Date, neither the Seller nor any prior holder of any
                Mortgage has modified the Mortgage in any material respect (except
                that a
                Loan may have been modified by a written instrument which has been
                recorded or submitted for recordation, if necessary, to protect the
                interests of the Certificateholders and the original or a copy of
                which
                has been or shall be delivered to the Trustee); satisfied, canceled
                or
                subordinated such Mortgage in whole or in part; released the related
                Mortgaged Property in whole or in part from the lien of such Mortgage;
                or
                executed any instrument of release, cancellation, modification or
                satisfaction with respect thereto.

            

    

     

    
      	(13)  	
              For
                each Loan that is not a Borrower Retention Loan, a lender’s policy of
                title insurance together with a condominium endorsement and extended
                coverage endorsement, if applicable, in an amount at least equal
                to the
                Cut-off Date Principal Balance of each such Loan or a commitment
                (binder)
                to issue the same was effective on the date of the origination of
                each
                Loan, each such policy is valid and remains in full force and effect,
                and
                each such policy was issued by a title insurer qualified to do business
                in
                the jurisdiction where the related Mortgaged Property is located,
                which
                policy insures the Seller and successor owners of indebtedness secured
                by
                the related insured Mortgage, as to the applicable priority lien
                of the
                Mortgage subject to the exceptions set forth in item (4) above; to
                the
                best of the Seller’s knowledge, no claims have been made under such
                mortgage title insurance policy and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such mortgage title insurance
                policy.
                Approximately 25.50% of the Loans (by principal balance) are Borrower
                Retention Loans.

            

    

     

    
      	(14)  	
              To
                the best of the Seller’s knowledge, all of the improvements which were
                included for the purpose of determining the appraised value of each
                Mortgaged Property lie wholly within the boundaries and building
                restriction lines of such property, and no improvements on adjoining
                properties encroach upon such Mortgaged
                Property.

            

    

     

    
      	(15)  	
              To
                the best of the Seller’s knowledge, no improvement located on or being
                part of any Mortgaged Property is in violation of any applicable
                zoning
                law or regulation. To the best of the Seller’s knowledge, all inspections,
                licenses and certificates required to be made or issued with respect
                to
                all occupied portions of such 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, unless the lack thereof
                would
                not have a material adverse effect on the value of such Mortgaged
                Property, and such Mortgaged Property is lawfully occupied under
                applicable law.

            

    

     

    
      	(16)  	
              Each
                Mortgage Note and the related Mortgage are genuine, and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms and under applicable law, and with respect
                to
                each 40/30 Loan, the related Mortgage Note requires that the principal
                balance thereof be amortized over a term of forty (40) years with
                a
                required balloon payment thirty (30) years after origination of such
                40/30
                Loan. To the best of the Seller’s knowledge, all parties to such Mortgage
                Note and such Mortgage had legal capacity to execute such Mortgage
                Note
                and such Mortgage and each such Mortgage Note and Mortgage have been
                duly
                and properly executed by such
                parties.

            

    

     

    
      
        
        

      

      
        S-IIIA-2

        
          

        

      

      
        
        

      

    

     

    
      	(17)  	
              The
                proceeds of each Loan (other than certain amounts escrowed for home
                improvements) have been fully disbursed and there is no requirement
                for
                future advances thereunder. All costs, fees and expenses incurred
                in
                making, or closing or recording such Loans were
                paid.

            

    

     

    
      	(18)  	
              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, (a) in the case of a Mortgage designated as a deed of
                trust, by
                trustee’s sale and (b) otherwise by judicial
                foreclosure.

            

    

     

    
      	(19)  	
              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 Certificateholders
                to
                the trustee under the deed of trust, except in connection with a
                trustee’s
                sale after default by the
                Mortgagor.

            

    

     

    
      	(20)  	
              Each
                Mortgage Note and each Mortgage is in substantially one of the forms
                acceptable to FNMA or FHLMC, with such riders as have been acceptable
                to
                FNMA or FHLMC, as the case may be.

            

    

     

    
      	(21)  	
              The
                origination, underwriting and collection practices used by the Seller
                with
                respect to each Loan have been in all respects legal, prudent and
                customary in the mortgage lending and servicing
                business.

            

    

     

    
      	(22)  	
              There
                is no pledged account or other security other than any Escrow Account
                and
                real estate securing the Mortgagor’s
                obligations.

            

    

     

    
      	(23)  	
              No
                Loan has a shared appreciation feature, or other contingent interest
                feature.

            

    

     

    
      	(24)  	
              Each
                Loan contains a customary “due on sale”
clause.

            

    

     

    
      	(25)  	
              To
                the best of Seller’s knowledge: at the Cut-off Date, the improvements on
                each Mortgaged Property were covered by a valid and existing hazard
                insurance policy with a generally acceptable carrier that provides
                for
                fire and extended coverage and coverage for such other hazards as
                are
                customary in the area where such Mortgaged Property is located in
                an
                amount at least equal to the lesser of (a) the maximum insurable
                value of
                the improvements on such Mortgaged Property or (b) (i) in the case
                of a
                Loan secured by a Mortgage creating a first lien on such Mortgaged
                Property, the original principal balance of such Loan, or (ii) in
                the case
                of a Loan which is subject to a prior loan or prior loans, the combined
                principal balances of such Loan and the prior loan(s). If such Mortgaged
                Property is a condominium unit, it is included under the coverage
                afforded
                by a blanket policy for the condominium unit. For all Mortgages creating
                a
                first lien on the related Mortgaged Property, all such individual
                insurance policies and all flood policies referred to in item (25)
                below
                contain a standard mortgagee clause naming the Seller or the original
                mortgagee, and its successors in interest, as mortgagee, and the
                Seller
                has received no notice that any premiums due and payable thereon
                have not
                been paid; the Mortgage obligates the Mortgagor thereunder to maintain
                all
                such insurance including flood insurance at the Mortgagor’s cost and
                expense, and upon the Mortgagor’s failure to do so, authorizes the holder
                of the Mortgage to obtain and maintain such insurance at the Mortgagor’s
                cost and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	(26)  	
              If
                a 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 in a form meeting the requirements of the
                current
                guidelines of the Flood Insurance Administration was required at
                closing
                with respect to such Mortgaged Property with a generally acceptable
                carrier in an amount representing coverage not less than the least
                of (a)
                the original outstanding principal balance of the related Loan, (b)
                the
                minimum amount required to compensate for damage or loss on a maximum
                insurable value basis or (c) the maximum amount of insurance that
                is
                available under the Flood Disaster Protection Act of 1973, as
                amended.

            

    

     

    
      
        
        

      

      
        S-IIIA-3

        
          

        

      

      
        
        

      

    

     

    
      	(27)  	
              To
                the best of Seller’s knowledge, there is no proceeding occurring, pending
                or threatened for the total or partial condemnation of any Mortgaged
                Property.

            

    

     

    
      	(28)  	
              There
                is no material monetary default existing under any Mortgage or the
                related
                Mortgage Note and, to the best of the Seller’s knowledge, there is no
                event which, with the passage of time or with notice and the expiration
                of
                any grace or cure period, would constitute a default, breach, violation
                or
                event of acceleration under such Mortgage or related Mortgage Note;
                and
                the Seller has not waived any default, breach, violation or event
                of
                acceleration.

            

    

     

    
      	(29)  	
              Each
                Mortgaged Property is improved by a one- to four-family residential
                dwelling including condominium units, which, to the best of Seller’s
                knowledge, does not include cooperatives or mobile homes and does
                not
                constitute other than real property under state
                law.

            

    

     

    
      	(30)  	
              Each
                Loan is being serviced by the
                Servicer.

            

    

     

    
      	(31)  	
              Any
                future advances made 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 related loan schedule.
                The
                consolidated principal amount does not exceed the original principal
                amount of such Loan. No Mortgage Note permits or obligates the Servicer
                to
                make future advances to the Mortgagor at the option of the
                Mortgagor.

            

    

     

    
      	(32)  	
              To
                the best of Seller’s knowledge, all taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, leasehold
                payments
                or ground rents which previously became due and owing have been paid,
                except for items which have been assessed, but are not yet due and
                payable. Except for (a) payments in the nature of escrow payments,
                and (b)
                interest accruing from the date of any Mortgage Note or date of
                disbursement of the related Mortgage proceeds, whichever is later,
                to the
                day which precedes by one month the Due Date of the first installment
                of
                principal and interest, including without limitation, taxes and insurance
                payments, the Servicer has not advanced funds, or induced, solicited
                or
                knowingly received any advance of funds by a party other than the
                Mortgagor, directly or indirectly, for the payment of any amount
                required
                by the related Mortgage.

            

    

     

    
      	(33)  	
              Each
                Loan was underwritten in all material respects in accordance with
                the
                Seller’s underwriting guidelines as set forth in the Prospectus
                Supplement.

            

    

     

    
      	(34)  	
              An
                appraisal of each Mortgaged Property that is not a Borrower Retention
                Loan
                was obtained from a qualified appraiser, duly appointed by the originator,
                who had no interest, direct or indirect, in the Mortgaged Property
                or in
                any loan made on the security thereof, and whose compensation is
                not
                affected by the approval or disapproval of such Loan; such appraisal
                is in
                a form acceptable to FNMA and
                FHLMC.

            

    

     

    
      	(35)  	
              No
                Loan is a graduated payment mortgage loan or a growing equity mortgage
                loan, and no Loan is subject to a buydown or similar
                arrangement.

            

    

     

    
      	(36)  	
              The
                Loans were selected from among the outstanding residential mortgage
                loans
                in Seller’s portfolio at the Closing Date as to which the representations
                and warranties made as to such Loans set forth in this Schedule IIIA
                can
                be made. Such selection was not made in a manner that would adversely
                affect the interests of
                Certificateholders.

            

    

     

    
      
        
        

      

      
        S-IIIA-4

        
          

        

      

      
        
        

      

    

     

    
      	(37)  	
              Each
                Loan has a Due Date in the month of the first Distribution
                Date.

            

    

     

    
      	(38)  	
              Approximately
                11.51% of the Loans (by principal balance) are Balloon
                Loans.

            

    

     

    
      	(39)  	
              No
                Loan is subject to negative amortization or deferred interest
                payments.

            

    

     

    
      	(40)  	
              No
                Mortgagor has requested relief under the Relief
                Act.

            

    

     

    
      	(41)  	
              None
                of the Loans are retail installment contracts for goods or services
                or are
                home improvement loans for goods or services, which would be either
                “consumer credit contracts” or “purchase money loans” as such terms are
                defined in 16 C.F.R. §433.1.

            

    

     

    
      	(42)  	
              No
                Mortgagor has or will have a claim or defense against Seller or any
                assignor or assignee of Seller under any express or implied warranty
                with
                respect to goods or services provided in connection with any
                Loan.

            

    

     

    
      	(43)  	
              Each
                Loan is a “qualified mortgage” for purposes of Section 860G(a)(3) of the
                Code and Treasury Regulations Section 1.860G-2(a)(1) and
                (3).

            

    

     

    
      	(44)  	
              The
                Loans, individually and in the aggregate, conform in all material
                respects
                to the descriptions thereof in the Prospectus
                Supplement.

            

    

     

    
      	(45)  	
              There
                exist no deficiencies with respect to escrow deposits and payments,
                if
                such are required, for which customary arrangements for repayment
                thereof
                have not been made, and no escrow deposits or payments of other charges
                or
                payments due the Seller have been capitalized under any Mortgage
                or
                related Mortgage Note.

            

    

     

    
      	(46)  	
              All
                Loans calculate interest utilizing the actuarial
                method.

            

    

     

    
      	(47)  	
              None
                of the Loans are subject to the Home Ownership & Equity Protection Act
                of 1994. 

            

    

     

    
      	(48)  	
              As
                of the Cut-off Date, the Mortgage Rate relating to each Loan that
                is an
                adjustable rate mortgage loan has been adjusted in accordance with
                the
                terms of the related Mortgage Note.

            

    

     

    
      	(49)  	
              Each
                Loan at the time it was made complied in all material respects with
                applicable local, state, and federal laws, including, but not limited
                to,
                all applicable predatory and abusive lending
                laws.

            

    

     

    
      	(50)  	
              No
                Loan is classified and/or defined as (a) a “high cost home,” “covered”
                (excluding home loans defined as “covered home loans” pursuant to 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 federal, state or local law (or is similarly
                classified and/or defined 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), or (b) a “High Cost Loan” or “Covered Loan,” as applicable (as such
                terms are defined in the then current Standard & Poor’s LEVELS®
                Glossary which is now Version 5.7 Revised, Appendix
                E).

            

    

     

    
      	(51)  	
              No
                Loan originated on or after October 1, 2002, and before March 7,
                2003, is
                secured by property located in the State of Georgia, and no Loan
                originated on or after March 7, 2003, is a “high cost home loan” as
                defined under the Georgia Fair Lending
                Act.

            

    

     

    
      
        
        

      

      
        S-IIIA-5

        
          

        

      

      
        
        

      

    

     

    
      	(52)  	
              No
                Loan secured by property located in the State of Kentucky is a "high-cost
                home loan" as defined in Kentucky House Bill
                207.

            

    

     

    
      	(53)  	
              No
                Loan secured by property located in the State of New York (a) had
                an
                original principal balance of $300,000 or less and (b) had an application
                date on or after April 1, 2003, the terms of which loan equal or
                exceed
                either the APR or the points and fees threshold for “high-cost home
                loans,” as defined in Section 6-L of the New York State Banking
                Law.

            

    

     

    
      	(54)  	
              No
                Loan secured by property located in the State of New Mexico is a
                "high-cost home loan" as defined in the New Mexico Home Loan Protection
                Act.

            

    

     

    
      	(55)  	
              No
                Loan secured by property located in the State of New Jersey is a
                "high-cost home loan" as defined in the New Jersey Home Ownership
                Security
                Act of 2002.

            

    

     

    
      	(56)  	
              No
                Loan secured by property located in the State of Illinois is in violation
                of the provisions of the Illinois Interest
                Act.

            

    

     

    
      	(57)  	
              No
                Loan secured by property located in the Commonwealth of Massachusetts
                is a
                "high cost home mortgage loan" as defined in the Massachusetts Predatory
                Home Loan Practices Act.

            

    

     

    
      	(58)  	
              No
                Loan secured by property located in the State of Indiana is a "high-cost
                home loan" as defined in the Indiana
                High Cost Home Loan Act.

            

    

     

    
      
        
        

      

      
        S-IIIA-6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIIB

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Loan
      Representations and Warranties of Equity One-Minnesota

     

    Equity
      One-Minnesota (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIIB to
      the
      Depositor and the Trustee as of the Closing Date or, if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller and
      the
      Mortgages, Mortgage Notes and Mortgaged Properties related thereto. Capitalized
      terms used but not otherwise defined in this Schedule IIIB shall have the
      meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement” shall be used in this Schedule to
      refer to the Pooling and Servicing Agreement.

     

    
      	(1)  	
              The
                information set forth on Schedule I to the Agreement with respect
                to the
                Loans is true and correct in all material respects as of the Closing
                Date.

            

    

     

    
      	(2)  	
              As
                of the close of business on August 31, 2006, no Loan was 30 or more
                days
                contractually past due (assuming 30 day months).
                

            

    

     

    
      	(3)  	
              None
                of the Loans are Second Lien Loans.

            

    

     

    
      	(4)  	
              No
                Loan had a Combined Loan-to-Value Ratio at origination in excess
                of 100%.
                For purposes of determining the date of origination on which each
                Loan’s
                Combined Loan-to-Value Ratio is measured, no Loan has been significantly
                modified within the meaning of Treasury Regulation 1.860G-2(b) as
                of the
                Closing Date.

            

    

     

    
      	(5)  	
              Each
                Mortgage is a valid and enforceable first lien on the referenced
                Mortgaged
                Property subject only to (a) the lien of non delinquent current real
                property taxes and assessments, (b) covenants, conditions and
                restrictions, rights of way, easements and other matters of public
                record
                as of the date of recording of such Mortgage, such exceptions appearing
                of
                record being acceptable to mortgage lending institutions generally
                or
                specifically reflected in the appraisal, if any, utilized in connection
                with the origination of the related Loan, and (c) other matters to
                which
                like properties are commonly subject which do not materially interfere
                with the benefits of the security intended to be provided by such
                Mortgage.

            

    

     

    
      	(6)  	
              Immediately
                prior to the assignment of the Loans to the Depositor, the Seller
                had good
                title to, and was the sole owner of, each such Loan free and clear
                of any
                pledge, lien, encumbrance or security interest and had full right
                and
                authority, subject to no interest or participation of, or agreement
                with,
                any other party, to sell and assign the same pursuant to the
                Agreement.

            

    

     

    
      	(7)  	
              To
                the best of Seller’s knowledge, there is no delinquent tax or assessment
                lien against any Mortgaged Property.

            

    

     

    
      	(8)  	
              There
                is no valid right of rescission, offset, defense or counterclaim
                to any
                Mortgage Note or Mortgage, including the obligation of the Mortgagor
                to
                pay the unpaid principal of or interest on such Mortgage
                Note.

            

    

     

    
      	(9)  	
              To
                the best of Seller’s knowledge, there are no mechanics’ liens or claims
                for work, labor or material affecting any Mortgaged Property which
                are or
                may be a lien prior to, or equal with, the lien of such Mortgage,
                except
                those which are insured against by the title insurance policy referred
                to
                in item (13) below.

            

    

     

    
      
        
        

      

      
        S-IIIB-1

        
          

        

      

      
        
        

      

    

     

    
      	(10)  	
              To
                the best of the Seller’s knowledge, each Mortgaged Property is free of
                material damage and in good repair.

            

    

     

    
      	(11)  	
              Each
                Loan at origination complied in all material respects
                with applicable local, state and federal laws, including, without
                limitation, usury, equal credit opportunity, real estate settlement
                procedures, truth-in-lending and disclosure laws, and all applicable
                predatory and abusive lending laws, and consummation of the transactions
                contemplated hereby will not involve the violation of any such
                laws.

            

    

     

    
      	(12)  	
              As
                of the Closing Date, neither the Seller nor any prior holder of any
                Mortgage has modified the Mortgage in any material respect (except
                that a
                Loan may have been modified by a written instrument which has been
                recorded or submitted for recordation, if necessary, to protect the
                interests of the Certificateholders and the original or a copy of
                which
                has been or shall be delivered to the Trustee); satisfied, canceled
                or
                subordinated such Mortgage in whole or in part; released the related
                Mortgaged Property in whole or in part from the lien of such Mortgage;
                or
                executed any instrument of release, cancellation, modification or
                satisfaction with respect thereto.

            

    

     

    
      	(13)  	
              For
                each Loan that is not a Borrower Retention Loan, a lender’s policy of
                title insurance together with a condominium endorsement and extended
                coverage endorsement, if applicable, in an amount at least equal
                to the
                Cut-off Date Principal Balance of each such Loan or a commitment
                (binder)
                to issue the same was effective on the date of the origination of
                each
                Loan, each such policy is valid and remains in full force and effect,
                and
                each such policy was issued by a title insurer qualified to do business
                in
                the jurisdiction where the related Mortgaged Property is located,
                which
                policy insures the Seller and successor owners of indebtedness secured
                by
                the related insured Mortgage, as to the applicable priority lien
                of the
                Mortgage subject to the exceptions set forth in item (4) above; to
                the
                best of the Seller’s knowledge, no claims have been made under such
                mortgage title insurance policy and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such mortgage title insurance
                policy.
                Approximately 90.01% of the Loans (by principal balance) are Borrower
                Retention Loans.

            

    

     

    
      	(14)  	
              To
                the best of the Seller’s knowledge, all of the improvements which were
                included for the purpose of determining the appraised value of each
                Mortgaged Property lie wholly within the boundaries and building
                restriction lines of such property, and no improvements on adjoining
                properties encroach upon such Mortgaged
                Property.

            

    

     

    
      	(15)  	
              To
                the best of the Seller’s knowledge, no improvement located on or being
                part of any Mortgaged Property is in violation of any applicable
                zoning
                law or regulation. To the best of the Seller’s knowledge, all inspections,
                licenses and certificates required to be made or issued with respect
                to
                all occupied portions of such 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, unless the lack thereof
                would
                not have a material adverse effect on the value of such Mortgaged
                Property, and such Mortgaged Property is lawfully occupied under
                applicable law.

            

    

     

    
      	(16)  	
              Each
                Mortgage Note and the related Mortgage are genuine, and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms and under applicable law, and with respect
                to
                each 40/30 Loan, the related Mortgage Note requires that the principal
                balance thereof be amortized over a term of forty (40) years with
                a
                required balloon payment thirty (30) years after origination of such
                40/30
                Loan. To the best of the Seller’s knowledge, all parties to such Mortgage
                Note and such Mortgage had legal capacity to execute such Mortgage
                Note
                and such Mortgage and each such Mortgage Note and Mortgage have been
                duly
                and properly executed by such
                parties.

            

    

     

    
      
        
        

      

      
        S-IIIB-2

        
          

        

      

      
        
        

      

    

     

    
      	(17)  	
              The
                proceeds of each Loan (other than certain amounts escrowed for home
                improvements) have been fully disbursed and there is no requirement
                for
                future advances thereunder. All costs, fees and expenses incurred
                in
                making, or closing or recording such Loans were
                paid.

            

    

     

    
      	(18)  	
              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, (a) in the case of a Mortgage designated as a deed of
                trust, by
                trustee’s sale and (b) otherwise by judicial
                foreclosure.

            

    

     

    
      	(19)  	
              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 Certificateholders
                to
                the trustee under the deed of trust, except in connection with a
                trustee’s
                sale after default by the
                Mortgagor.

            

    

     

    
      	(20)  	
              Each
                Mortgage Note and each Mortgage is in substantially one of the forms
                acceptable to FNMA or FHLMC, with such riders as have been acceptable
                to
                FNMA or FHLMC, as the case may be.

            

    

     

    
      	(21)  	
              The
                origination, underwriting and collection practices used by the Seller
                with
                respect to each Loan have been in all respects legal, prudent and
                customary in the mortgage lending and servicing
                business.

            

    

     

    
      	(22)  	
              There
                is no pledged account or other security other than any Escrow Account
                and
                real estate securing the Mortgagor’s
                obligations.

            

    

     

    
      	(23)  	
              No
                Loan has a shared appreciation feature, or other contingent interest
                feature.

            

    

     

    
      	(24)  	
              Each
                Loan contains a customary “due on sale”
clause.

            

    

     

    
      	(25)  	
              To
                the best of Seller’s knowledge: at the Cut-off Date, the improvements on
                each Mortgaged Property were covered by a valid and existing hazard
                insurance policy with a generally acceptable carrier that provides
                for
                fire and extended coverage and coverage for such other hazards as
                are
                customary in the area where such Mortgaged Property is located in
                an
                amount at least equal to the lesser of (a) the maximum insurable
                value of
                the improvements on such Mortgaged Property or (b) (i) in the case
                of a
                Loan secured by a Mortgage creating a first lien on such Mortgaged
                Property, the original principal balance of such Loan, or (ii) in
                the case
                of a Loan which is subject to a prior loan or prior loans, the combined
                principal balances of such Loan and the prior loan(s). If such Mortgaged
                Property is a condominium unit, it is included under the coverage
                afforded
                by a blanket policy for the condominium unit. For all Mortgages creating
                a
                first lien on the related Mortgaged Property, all such individual
                insurance policies and all flood policies referred to in item (25)
                below
                contain a standard mortgagee clause naming the Seller or the original
                mortgagee, and its successors in interest, as mortgagee, and the
                Seller
                has received no notice that any premiums due and payable thereon
                have not
                been paid; the Mortgage obligates the Mortgagor thereunder to maintain
                all
                such insurance including flood insurance at the Mortgagor’s cost and
                expense, and upon the Mortgagor’s failure to do so, authorizes the holder
                of the Mortgage to obtain and maintain such insurance at the Mortgagor’s
                cost and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	(26)  	
              If
                a 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 in a form meeting the requirements of the
                current
                guidelines of the Flood Insurance Administration was required at
                closing
                with respect to such Mortgaged Property with a generally acceptable
                carrier in an amount representing coverage not less than the least
                of (a)
                the original outstanding principal balance of the related Loan, (b)
                the
                minimum amount required to compensate for damage or loss on a maximum
                insurable value basis or (c) the maximum amount of insurance that
                is
                available under the Flood Disaster Protection Act of 1973, as
                amended.

            

    

     

    
      
        
        

      

      
        S-IIIB-3

        
          

        

      

      
        
        

      

    

     

    
      	(27)  	
              To
                the best of Seller’s knowledge, there is no proceeding occurring, pending
                or threatened for the total or partial condemnation of any Mortgaged
                Property.

            

    

     

    
      	(28)  	
              There
                is no material monetary default existing under any Mortgage or the
                related
                Mortgage Note and, to the best of the Seller’s knowledge, there is no
                event which, with the passage of time or with notice and the expiration
                of
                any grace or cure period, would constitute a default, breach, violation
                or
                event of acceleration under such Mortgage or related Mortgage Note;
                and
                the Seller has not waived any default, breach, violation or event
                of
                acceleration.

            

    

     

    
      	(29)  	
              Each
                Mortgaged Property is improved by a one- to four-family residential
                dwelling including condominium units, which, to the best of Seller’s
                knowledge, does not include cooperatives or mobile homes and does
                not
                constitute other than real property under state
                law.

            

    

     

    
      	(30)  	
              Each
                Loan is being serviced by the
                Servicer.

            

    

     

    
      	(31)  	
              Any
                future advances made 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 related loan schedule.
                The
                consolidated principal amount does not exceed the original principal
                amount of such Loan. No Mortgage Note permits or obligates the Servicer
                to
                make future advances to the Mortgagor at the option of the
                Mortgagor.

            

    

     

    
      	(32)  	
              To
                the best of Seller’s knowledge, all taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, leasehold
                payments
                or ground rents which previously became due and owing have been paid,
                except for items which have been assessed, but are not yet due and
                payable. Except for (a) payments in the nature of escrow payments,
                and (b)
                interest accruing from the date of any Mortgage Note or date of
                disbursement of the related Mortgage proceeds, whichever is later,
                to the
                day which precedes by one month the Due Date of the first installment
                of
                principal and interest, including without limitation, taxes and insurance
                payments, the Servicer has not advanced funds, or induced, solicited
                or
                knowingly received any advance of funds by a party other than the
                Mortgagor, directly or indirectly, for the payment of any amount
                required
                by the related Mortgage.

            

    

     

    
      	(33)  	
              Each
                Loan was underwritten in all material respects in accordance with
                the
                Seller’s underwriting guidelines as set forth in the Prospectus
                Supplement.

            

    

     

    
      	(34)  	
              An
                appraisal of each Mortgaged Property that is not a Borrower Retention
                Loan
                was obtained from a qualified appraiser, duly appointed by the originator,
                who had no interest, direct or indirect, in the Mortgaged Property
                or in
                any loan made on the security thereof, and whose compensation is
                not
                affected by the approval or disapproval of such Loan; such appraisal
                is in
                a form acceptable to FNMA and
                FHLMC.

            

    

     

    
      	(35)  	
              No
                Loan is a graduated payment mortgage loan or a growing equity mortgage
                loan, and no Loan is subject to a buydown or similar
                arrangement.

            

    

     

    
      	(36)  	
              The
                Loans were selected from among the outstanding residential mortgage
                loans
                in Seller’s portfolio at the Closing Date as to which the representations
                and warranties made as to such Loans set forth in this Schedule IIIB
                can
                be made. Such selection was not made in a manner that would adversely
                affect the interests of
                Certificateholders.

            

    

     

    
      
        
        

      

      
        S-IIIB-4

        
          

        

      

      
        
        

      

    

     

    
      	(37)  	
              Each
                Loan has a Due Date in the month of the first Distribution
                Date.

            

    

     

    
      	(38)  	
              Approximately
                6.88% of the Loans (by principal balance) are Balloon
                Loans.

            

    

     

    
      	(39)  	
              No
                Loan is subject to negative amortization or deferred interest
                payments.

            

    

     

    
      	(40)  	
              No
                Mortgagor has requested relief under the Relief
                Act.

            

    

     

    
      	(41)  	
              None
                of the Loans are retail installment contracts for goods or services
                or are
                home improvement loans for goods or services, which would be either
                “consumer credit contracts” or “purchase money loans” as such terms are
                defined in 16 C.F.R. §433.1.

            

    

     

    
      	(42)  	
              No
                Mortgagor has or will have a claim or defense against Seller or any
                assignor or assignee of Seller under any express or implied warranty
                with
                respect to goods or services provided in connection with any
                Loan.

            

    

     

    
      	(43)  	
              Each
                Loan is a “qualified mortgage” for purposes of Section 860G(a)(3) of the
                Code and Treasury Regulations Section 1.860G-2(a)(1) and
                (3).

            

    

     

    
      	(44)  	
              The
                Loans, individually and in the aggregate, conform in all material
                respects
                to the descriptions thereof in the Prospectus
                Supplement.

            

    

     

    
      	(45)  	
              There
                exist no deficiencies with respect to escrow deposits and payments,
                if
                such are required, for which customary arrangements for repayment
                thereof
                have not been made, and no escrow deposits or payments of other charges
                or
                payments due the Seller have been capitalized under any Mortgage
                or
                related Mortgage Note.

            

    

     

    
      	(46)  	
              All
                Loans calculate interest utilizing the actuarial
                method.

            

    

     

    
      	(47)  	
              None
                of the Loans are subject to the Home Ownership & Equity Protection Act
                of 1994. 

            

    

     

    
      	(48)  	
              As
                of the Cut-off Date, the Mortgage Rate relating to each Loan that
                is an
                adjustable rate mortgage loan has been adjusted in accordance with
                the
                terms of the related Mortgage Note.

            

    

     

    
      	(49)  	
              Each
                Loan at the time it was made complied in all material respects with
                applicable local, state, and federal laws, including, but not limited
                to,
                all applicable predatory and abusive lending
                laws.

            

    

     

    
      	(50)  	
              No
                Loan is classified and/or defined as (a) a “high cost home,” “covered”
                (excluding home loans defined as “covered home loans” pursuant to 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 federal, state or local law (or is similarly
                classified and/or defined 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), or (b) a “High Cost Loan” or “Covered Loan,” as applicable (as such
                terms are defined in the then current Standard & Poor’s LEVELS®
                Glossary which is now Version 5.7 Revised, Appendix
                E).

            

    

     

    
      	(51)  	
              No
                Loan originated on or after October 1, 2002, and before March 7,
                2003, is
                secured by property located in the State of Georgia, and no Loan
                originated on or after March 7, 2003, is a “high cost home loan” as
                defined under the Georgia Fair Lending
                Act.

            

    

     

    
      
        
        

      

      
        S-IIIB-5

        
          

        

      

      
        
        

      

    

     

    
      	(52)  	
              No
                Loan secured by property located in the State of Kentucky is a "high-cost
                home loan" as defined in Kentucky House Bill
                207.

            

    

     

    
      	(53)  	
              No
                Loan secured by property located in the State of New York (a) had
                an
                original principal balance of $300,000 or less and (b) had an application
                date on or after April 1, 2003, the terms of which loan equal or
                exceed
                either the APR or the points and fees threshold for “high-cost home
                loans,” as defined in Section 6-L of the New York State Banking
                Law.

            

    

     

    
      	(54)  	
              No
                Loan secured by property located in the State of New Mexico is a
                "high-cost home loan" as defined in the New Mexico Home Loan Protection
                Act.

            

    

     

    
      	(55)  	
              No
                Loan secured by property located in the State of New Jersey is a
                "high-cost home loan" as defined in the New Jersey Home Ownership
                Security
                Act of 2002.

            

    

     

    
      	(56)  	
              No
                Loan secured by property located in the State of Illinois is in violation
                of the provisions of the Illinois Interest
                Act.

            

    

     

    
      	(57)  	
              No
                Loan secured by property located in the Commonwealth of Massachusetts
                is a
                "high cost home mortgage loan" as defined in the Massachusetts Predatory
                Home Loan Practices Act.

            

    

     

    
      	(58)  	
              No
                Loan secured by property located in the State of Indiana is a "high-cost
                home loan" as defined in the Indiana
                High Cost Home Loan Act.

            

    

     

    
      
        
        

      

      
        S-IIIB-6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIIC

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Loan
      Representations and Warranties of Equity One-New Hampshire

     

    Equity
      One-New Hampshire (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIIC to
      the
      Depositor and the Trustee as of the Closing Date or, if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller and
      the
      Mortgages, Mortgage Notes and Mortgaged Properties related thereto. Capitalized
      terms used but not otherwise defined in this Schedule IIIC shall have the
      meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement” shall be used in this Schedule to
      refer to the Pooling and Servicing Agreement.

     

    
      	(1)  	
              The
                information set forth on Schedule I to the Agreement with respect
                to the
                Loans is true and correct in all material respects as of the Closing
                Date.

            

    

     

    
      	(2)  	
              As
                of the close of business on August 31, 2006, no Loan was 30 or more
                days
                contractually past due (assuming 30 day months).
                

            

    

     

    
      	(3)  	
              None
                of the Loans are Second Lien Loans.

            

    

     

    
      	(4)  	
              No
                Loan had a Combined Loan-to-Value Ratio at origination in excess
                of 100%.
                For purposes of determining the date of origination on which each
                Loan’s
                Combined Loan-to-Value Ratio is measured, no Loan has been significantly
                modified within the meaning of Treasury Regulation 1.860G-2(b) as
                of the
                Closing Date.

            

    

     

    
      	(5)  	
              Each
                Mortgage is a valid and enforceable first lien on the referenced
                Mortgaged
                Property subject only to (a) the lien of non delinquent current real
                property taxes and assessments, (b) covenants, conditions and
                restrictions, rights of way, easements and other matters of public
                record
                as of the date of recording of such Mortgage, such exceptions appearing
                of
                record being acceptable to mortgage lending institutions generally
                or
                specifically reflected in the appraisal, if any, utilized in connection
                with the origination of the related Loan, and (c) other matters to
                which
                like properties are commonly subject which do not materially interfere
                with the benefits of the security intended to be provided by such
                Mortgage.

            

    

     

    
      	(6)  	
              Immediately
                prior to the assignment of the Loans to the Depositor, the Seller
                had good
                title to, and was the sole owner of, each such Loan free and clear of any
                pledge, lien, encumbrance or security interest and had full right
                and
                authority, subject to no interest or participation of, or agreement
                with,
                any other party, to sell and assign the same pursuant to the
                Agreement.

            

    

     

    
      	(7)  	
              To
                the best of Seller’s knowledge, there is no delinquent tax or assessment
                lien against any Mortgaged Property.

            

    

     

    
      	(8)  	
              There
                is no valid right of rescission, offset, defense or counterclaim
                to any
                Mortgage Note or Mortgage, including the obligation of the Mortgagor
                to
                pay the unpaid principal of or interest on such Mortgage
                Note.

            

    

     

    
      	(9)  	
              To
                the best of Seller’s knowledge, there are no mechanics’ liens or claims
                for work, labor or material affecting any Mortgaged Property which
                are or
                may be a lien prior to, or equal with, the lien of such Mortgage,
                except
                those which are insured against by the title insurance policy referred
                to
                in item (13) below.

            

    

     

    
      
        
        

      

      
        S-IIIC-1

        
          

        

      

      
        
        

      

    

     

    
      	(10)  	
              To
                the best of the Seller’s knowledge, each Mortgaged Property is free of
                material damage and in good repair.

            

    

     

    
      	(11)  	
              Each
                Loan at origination complied in all material respects with applicable
                local, state and federal laws, including, without limitation, usury,
                equal
                credit opportunity, real estate settlement procedures, truth-in-lending
                and disclosure laws, and all applicable predatory and abusive lending
                laws, and consummation of the transactions contemplated hereby will
                not
                involve the violation of any such
                laws.

            

    

     

    
      	(12)  	
              As
                of the Closing Date, neither the Seller nor any prior holder of any
                Mortgage has modified the Mortgage in any material respect (except
                that a
                Loan may have been modified by a written instrument which has been
                recorded or submitted for recordation, if necessary, to protect the
                interests of the Certificateholders and the original or a copy of
                which
                has been or shall be delivered to the Trustee); satisfied, canceled
                or
                subordinated such Mortgage in whole or in part; released the related
                Mortgaged Property in whole or in part from the lien of such Mortgage;
                or
                executed any instrument of release, cancellation, modification or
                satisfaction with respect thereto.

            

    

     

    
      	(13)  	
              For
                each Loan that is not a Borrower Retention Loan, a lender’s policy of
                title insurance together with a condominium endorsement and extended
                coverage endorsement, if applicable, in an amount at least equal
                to the
                Cut-off Date Principal Balance of each such Loan or a commitment
                (binder)
                to issue the same was effective on the date of the origination of
                each
                Loan, each such policy is valid and remains in full force and effect,
                and
                each such policy was issued by a title insurer qualified to do business
                in
                the jurisdiction where the related Mortgaged Property is located,
                which
                policy insures the Seller and successor owners of indebtedness secured
                by
                the related insured Mortgage, as to the applicable priority lien
                of the
                Mortgage subject to the exceptions set forth in item (4) above; to
                the
                best of the Seller’s knowledge, no claims have been made under such
                mortgage title insurance policy and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such mortgage title insurance
                policy.
                Approximately 90.01% of the Loans (by principal balance) are Borrower
                Retention Loans.

            

    

     

    
      	(14)  	
              To
                the best of the Seller’s knowledge, all of the improvements which were
                included for the purpose of determining the appraised value of each
                Mortgaged Property lie wholly within the boundaries and building
                restriction lines of such property, and no improvements on adjoining
                properties encroach upon such Mortgaged
                Property.

            

    

     

    
      	(15)  	
              To
                the best of the Seller’s knowledge, no improvement located on or being
                part of any Mortgaged Property is in violation of any applicable
                zoning
                law or regulation. To the best of the Seller’s knowledge, all inspections,
                licenses and certificates required to be made or issued with respect
                to
                all occupied portions of such 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, unless the lack thereof
                would
                not have a material adverse effect on the value of such Mortgaged
                Property, and such Mortgaged Property is lawfully occupied under
                applicable law.

            

    

     

    
      	(16)  	
              Each
                Mortgage Note and the related Mortgage are genuine, and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms and under applicable law, and with respect
                to
                each 40/30 Loan, the related Mortgage Note requires that the principal
                balance thereof be amortized over a term of forty (40) years with
                a
                required balloon payment thirty (30) years after origination of such
                40/30
                Loan. To the best of the Seller’s knowledge, all parties to such Mortgage
                Note and such Mortgage had legal capacity to execute such Mortgage
                Note
                and such Mortgage and each such Mortgage Note and Mortgage have been
                duly
                and properly executed by such
                parties.

            

    

     

    
      
        
        

      

      
        S-IIIC-2

        
          

        

      

      
        
        

      

    

     

    
      	(17)  	
              The
                proceeds of each Loan (other than certain amounts escrowed for home
                improvements) have been fully disbursed and there is no requirement
                for
                future advances thereunder. All costs, fees and expenses incurred
                in
                making, or closing or recording such Loans were
                paid.

            

    

     

    
      	(18)  	
              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, (a) in the case of a Mortgage designated as a deed of
                trust, by
                trustee’s sale and (b) otherwise by judicial
                foreclosure.

            

    

     

    
      	(19)  	
              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 Certificateholders
                to
                the trustee under the deed of trust, except in connection with a
                trustee’s
                sale after default by the
                Mortgagor.

            

    

     

    
      	(20)  	
              Each
                Mortgage Note and each Mortgage is in substantially one of the forms
                acceptable to FNMA or FHLMC, with such riders as have been acceptable
                to
                FNMA or FHLMC, as the case may be.

            

    

     

    
      	(21)  	
              The
                origination, underwriting and collection practices used by the Seller
                with
                respect to each Loan have been in all respects legal, prudent and
                customary in the mortgage lending and servicing
                business.

            

    

     

    
      	(22)  	
              There
                is no pledged account or other security other than any Escrow Account
                and
                real estate securing the Mortgagor’s
                obligations.

            

    

     

    
      	(23)  	
              No
                Loan has a shared appreciation feature, or other contingent interest
                feature.

            

    

     

    
      	(24)  	
              Each
                Loan contains a customary “due on sale”
clause.

            

    

     

    
      	(25)  	
              To
                the best of Seller’s knowledge: at the Cut-off Date, the improvements on
                each Mortgaged Property were covered by a valid and existing hazard
                insurance policy with a generally acceptable carrier that provides
                for
                fire and extended coverage and coverage for such other hazards as
                are
                customary in the area where such Mortgaged Property is located in
                an
                amount at least equal to the lesser of (a) the maximum insurable
                value of
                the improvements on such Mortgaged Property or (b) (i) in the case
                of a
                Loan secured by a Mortgage creating a first lien on such Mortgaged
                Property, the original principal balance of such Loan, or (ii) in
                the case
                of a Loan which is subject to a prior loan or prior loans, the combined
                principal balances of such Loan and the prior loan(s). If such Mortgaged
                Property is a condominium unit, it is included under the coverage
                afforded
                by a blanket policy for the condominium unit. For all Mortgages creating
                a
                first lien on the related Mortgaged Property, all such individual
                insurance policies and all flood policies referred to in item (25)
                below
                contain a standard mortgagee clause naming the Seller or the original
                mortgagee, and its successors in interest, as mortgagee, and the
                Seller
                has received no notice that any premiums due and payable thereon
                have not
                been paid; the Mortgage obligates the Mortgagor thereunder to maintain
                all
                such insurance including flood insurance at the Mortgagor’s cost and
                expense, and upon the Mortgagor’s failure to do so, authorizes the holder
                of the Mortgage to obtain and maintain such insurance at the Mortgagor’s
                cost and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	(26)  	
              If
                a 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 in a form meeting the requirements of the
                current
                guidelines of the Flood Insurance Administration was required at
                closing
                with respect to such Mortgaged Property with a generally acceptable
                carrier in an amount representing coverage not less than the least
                of (a)
                the original outstanding principal balance of the related Loan, (b)
                the
                minimum amount required to compensate for damage or loss on a maximum
                insurable value basis or (c) the maximum amount of insurance that
                is
                available under the Flood Disaster Protection Act of 1973, as
                amended.

            

    

     

    
      
        
        

      

      
        S-IIIC-3

        
          

        

      

      
        
        

      

    

     

    
      	(27)  	
              To
                the best of Seller’s knowledge, there is no proceeding occurring, pending
                or threatened for the total or partial condemnation of any Mortgaged
                Property.

            

    

     

    
      	(28)  	
              There
                is no material monetary default existing under any Mortgage or the
                related
                Mortgage Note and, to the best of the Seller’s knowledge, there is no
                event which, with the passage of time or with notice and the expiration
                of
                any grace or cure period, would constitute a default, breach, violation
                or
                event of acceleration under such Mortgage or related Mortgage Note;
                and
                the Seller has not waived any default, breach, violation or event
                of
                acceleration.

            

    

     

    
      	(29)  	
              Each
                Mortgaged Property is improved by a one- to four-family residential
                dwelling including condominium units, which, to the best of Seller’s
                knowledge, does not include cooperatives or mobile homes and does
                not
                constitute other than real property under state
                law.

            

    

     

    
      	(30)  	
              Each
                Loan is being serviced by the
                Servicer.

            

    

     

    
      	(31)  	
              Any
                future advances made 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 related loan schedule.
                The
                consolidated principal amount does not exceed the original principal
                amount of such Loan. No Mortgage Note permits or obligates the Servicer
                to
                make future advances to the Mortgagor at the option of the
                Mortgagor.

            

    

     

    
      	(32)  	
              To
                the best of Seller’s knowledge, all taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, leasehold
                payments
                or ground rents which previously became due and owing have been paid,
                except for items which have been assessed, but are not yet due and
                payable. Except for (a) payments in the nature of escrow payments,
                and (b)
                interest accruing from the date of any Mortgage Note or date of
                disbursement of the related Mortgage proceeds, whichever is later,
                to the
                day which precedes by one month the Due Date of the first installment
                of
                principal and interest, including without limitation, taxes and insurance
                payments, the Servicer has not advanced funds, or induced, solicited
                or
                knowingly received any advance of funds by a party other than the
                Mortgagor, directly or indirectly, for the payment of any amount
                required
                by the related Mortgage.

            

    

     

    
      	(33)  	
              Each
                Loan was underwritten in all material respects in accordance with
                the
                Seller’s underwriting guidelines as set forth in the Prospectus
                Supplement.

            

    

     

    
      	(34)  	
              An
                appraisal of each Mortgaged Property that is not a Borrower Retention
                Loan
                was obtained from a qualified appraiser, duly appointed by the originator,
                who had no interest, direct or indirect, in the Mortgaged Property
                or in
                any loan made on the security thereof, and whose compensation is
                not
                affected by the approval or disapproval of such Loan; such appraisal
                is in
                a form acceptable to FNMA and
                FHLMC.

            

    

     

    
      	(35)  	
              No
                Loan is a graduated payment mortgage loan or a growing equity mortgage
                loan, and no Loan is subject to a buydown or similar
                arrangement.

            

    

     

    
      	(36)  	
              The
                Loans were selected from among the outstanding residential mortgage
                loans
                in Seller’s portfolio at the Closing Date as to which the representations
                and warranties made as to such Loans set forth in this Schedule IIIC
                can
                be made. Such selection was not made in a manner that would adversely
                affect the interests of
                Certificateholders.

            

    

     

    
      
        
        

      

      
        S-IIIC-4

        
          

        

      

      
        
        

      

    

     

    
      	(37)  	
              Each
                Loan has a Due Date in the month of the first Distribution
                Date.

            

    

     

    
      	(38)  	
              None
                of the Loans are Balloon Loans.

            

    

     

    
      	(39)  	
              No
                Loan is subject to negative amortization or deferred interest
                payments.

            

    

     

    
      	(40)  	
              No
                Mortgagor has requested relief under the Relief
                Act.

            

    

     

    
      	(41)  	
              None
                of the Loans are retail installment contracts for goods or services
                or are
                home improvement loans for goods or services, which would be either
                “consumer credit contracts” or “purchase money loans” as such terms are
                defined in 16 C.F.R. §433.1.

            

    

     

    
      	(42)  	
              No
                Mortgagor has or will have a claim or defense against Seller or any
                assignor or assignee of Seller under any express or implied warranty
                with
                respect to goods or services provided in connection with any
                Loan.

            

    

     

    
      	(43)  	
              Each
                Loan is a “qualified mortgage” for purposes of Section 860G(a)(3) of the
                Code and Treasury Regulations Section 1.860G-2(a)(1) and
                (3).

            

    

     

    
      	(44)  	
              The
                Loans, individually and in the aggregate, conform in all material
                respects
                to the descriptions thereof in the Prospectus
                Supplement.

            

    

     

    
      	(45)  	
              There
                exist no deficiencies with respect to escrow deposits and payments,
                if
                such are required, for which customary arrangements for repayment
                thereof
                have not been made, and no escrow deposits or payments of other charges
                or
                payments due the Seller have been capitalized under any Mortgage
                or
                related Mortgage Note.

            

    

     

    
      	(46)  	
              All
                Loans calculate interest utilizing the actuarial
                method.

            

    

     

    
      	(47)  	
              None
                of the Loans are subject to the Home Ownership & Equity Protection Act
                of 1994. 

            

    

     

    
      	(48)  	
              As
                of the Cut-off Date, the Mortgage Rate relating to each Loan that
                is an
                adjustable rate mortgage loan has been adjusted in accordance with
                the
                terms of the related Mortgage Note.

            

    

     

    
      	(49)  	
              Each
                Loan at the time it was made complied in all material respects with
                applicable local, state, and federal laws, including, but not limited
                to,
                all applicable predatory and abusive lending
                laws.

            

    

     

    
      	(50)  	
              No
                Loan is classified and/or defined as (a) a “high cost home,” “covered”
                (excluding home loans defined as “covered home loans” pursuant to 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 federal, state or local law (or is similarly
                classified and/or defined 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), or (b) a “High Cost Loan” or “Covered Loan,” as applicable (as such
                terms are defined in the then current Standard & Poor’s LEVELS®
                Glossary which is now Version 5.7 Revised, Appendix
                E).

            

    

     

    
      	(51)  	
              No
                Loan originated on or after October 1, 2002, and before March 7,
                2003, is
                secured by property located in the State of Georgia, and no Loan
                originated on or after March 7, 2003, is a “high cost home loan” as
                defined under the Georgia Fair Lending
                Act.

            

    

     

    
      
        
        

      

      
        S-IIIC-5

        
          

        

      

      
        
        

      

    

     

    
      	(52)  	
              No
                Loan secured by property located in the State of Kentucky is a "high-cost
                home loan" as defined in Kentucky House Bill
                207.

            

    

     

    
      	(53)  	
              No
                Loan secured by property located in the State of New York (a) had
                an
                original principal balance of $300,000 or less and (b) had an application
                date on or after April 1, 2003, the terms of which loan equal or
                exceed
                either the APR or the points and fees threshold for “high-cost home
                loans,” as defined in Section 6-L of the New York State Banking
                Law.

            

    

     

    
      	(54)  	
              No
                Loan secured by property located in the State of New Mexico is a
                "high-cost home loan" as defined in the New Mexico Home Loan Protection
                Act.

            

    

     

    
      	(55)  	
              No
                Loan secured by property located in the State of New Jersey is a
                "high-cost home loan" as defined in the New Jersey Home Ownership
                Security
                Act of 2002.

            

    

     

    
      	(56)  	
              No
                Loan secured by property located in the State of Illinois is in violation
                of the provisions of the Illinois Interest
                Act.

            

    

     

    
      	(57)  	
              No
                Loan secured by property located in the Commonwealth of Massachusetts
                is a
                "high cost home mortgage loan" as defined in the Massachusetts Predatory
                Home Loan Practices Act.

            

    

     

    
      	(58)  	
              No
                Loan secured by property located in the State of Indiana is a "high-cost
                home loan" as defined in the Indiana High Cost Home Loan
                Act.

            

    

     

    
      
        
        

      

      
        S-IIIC-6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIID

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Loan
      Representations and Warranties of Equity One-Pennsylvania

     

    Equity
      One-Pennsylvania (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIID to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller and
      the
      Mortgages, Mortgage Notes and Mortgaged Properties related thereto. Capitalized
      terms used but not otherwise defined in this Schedule IIID shall have the
      meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	(1)  	
              The
                information set forth on Schedule I to the Agreement with respect
                to the
                Loans is true and correct in all material respects as of the Closing
                Date.

            

    

     

    
      	(2)  	
              As
                of the close of business on August 31, 2006, no Loan was 30 or more
                days
                contractually past due (assuming 30 day months).
                

            

    

     

    
      	(3)  	
              None
                of the Loans are Second Lien Loans.

            

    

     

    
      	(4)  	
              No
                Loan had a Combined Loan-to-Value Ratio at origination in excess
                of 100%.
                For purposes of determining the date of origination on which each
                Loan’s
                Combined Loan-to-Value Ratio is measured, no Loan has been significantly
                modified within the meaning of Treasury Regulation 1.860G-2(b) as
                of the
                Closing Date.

            

    

     

    
      	(5)  	
              Each
                Mortgage is a valid and enforceable first lien on the referenced
                Mortgaged
                Property subject only to (a) the lien of non delinquent current real
                property taxes and assessments, (b) covenants, conditions and
                restrictions, rights of way, easements and other matters of public
                record
                as of the date of recording of such Mortgage, such exceptions appearing
                of
                record being acceptable to mortgage lending institutions generally
                or
                specifically reflected in the appraisal, if any, utilized in connection
                with the origination of the related Loan, and (c) other matters to
                which
                like properties are commonly subject which do not materially interfere
                with the benefits of the security intended to be provided by such
                Mortgage.

            

    

     

    
      	(6)  	
              Immediately
                prior to the assignment of the Loans to the Depositor, the Seller
                had good
                title to, and was the sole owner of, each such Loan free and clear
                of any
                pledge, lien, encumbrance or security interest and had full right
                and
                authority, subject to no interest or participation of, or agreement
                with,
                any other party, to sell and assign the same pursuant to the
                Agreement.

            

    

     

    
      	(7)  	
              To
                the best of Seller’s knowledge, there is no delinquent tax or assessment
                lien against any Mortgaged Property.

            

    

     

    
      	(8)  	
              There
                is no valid right of rescission, offset, defense or counterclaim
                to any
                Mortgage Note or Mortgage, including the obligation of the Mortgagor
                to
                pay the unpaid principal of or interest on such Mortgage
                Note.

            

    

     

    
      	(9)  	
              To
                the best of Seller’s knowledge, there are no mechanics’ liens or claims
                for work, labor or material affecting any Mortgaged Property which
                are or
                may be a lien prior to, or equal with, the lien of such Mortgage,
                except
                those which are insured against by the title insurance policy referred
                to
                in item (13) below.

            

    

     

    
      
        
        

      

      
        S-IIID-1

        
          

        

      

      
        
        

      

    

     

    
      	(10)  	
              To
                the best of the Seller’s knowledge, each Mortgaged Property is free of
                material damage and in good repair.

            

    

     

    
      	(11)  	
              Each
                Loan at origination complied in all material respects
                with applicable local, state and federal laws, including, without
                limitation, usury, equal credit opportunity, real estate settlement
                procedures, truth-in-lending and disclosure laws, and all applicable
                predatory and abusive lending laws, and consummation of the transactions
                contemplated hereby will not involve the violation of any such
                laws.

            

    

     

    
      	(12)  	
              As
                of the Closing Date, neither the Seller nor any prior holder of any
                Mortgage has modified the Mortgage in any material respect (except
                that a
                Loan may have been modified by a written instrument which has been
                recorded or submitted for recordation, if necessary, to protect the
                interests of the Certificateholders and the original or a copy of
                which
                has been or shall be delivered to the Trustee); satisfied, canceled
                or
                subordinated such Mortgage in whole or in part; released the related
                Mortgaged Property in whole or in part from the lien of such Mortgage;
                or
                executed any instrument of release, cancellation, modification or
                satisfaction with respect thereto.

            

    

     

    
      	(13)  	
              For
                each Loan that is not a Borrower Retention Loan, a lender’s policy of
                title insurance together with a condominium endorsement and extended
                coverage endorsement, if applicable, in an amount at least equal
                to the
                Cut-off Date Principal Balance of each such Loan or a commitment
                (binder)
                to issue the same was effective on the date of the origination of
                each
                Loan, each such policy is valid and remains in full force and effect,
                and
                each such policy was issued by a title insurer qualified to do business
                in
                the jurisdiction where the related Mortgaged Property is located,
                which
                policy insures the Seller and successor owners of indebtedness secured
                by
                the related insured Mortgage, as to the applicable priority lien
                of the
                Mortgage subject to the exceptions set forth in item (4) above; to
                the
                best of the Seller’s knowledge, no claims have been made under such
                mortgage title insurance policy and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such mortgage title insurance
                policy.
                Approximately 16.03% of the Loans (by principal balance) are Borrower
                Retention Loans.

            

    

     

    
      	(14)  	
              To
                the best of the Seller’s knowledge, all of the improvements which were
                included for the purpose of determining the appraised value of each
                Mortgaged Property lie wholly within the boundaries and building
                restriction lines of such property, and no improvements on adjoining
                properties encroach upon such Mortgaged
                Property.

            

    

     

    
      	(15)  	
              To
                the best of the Seller’s knowledge, no improvement located on or being
                part of any Mortgaged Property is in violation of any applicable
                zoning
                law or regulation. To the best of the Seller’s knowledge, all inspections,
                licenses and certificates required to be made or issued with respect
                to
                all occupied portions of such 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, unless the lack thereof
                would
                not have a material adverse effect on the value of such Mortgaged
                Property, and such Mortgaged Property is lawfully occupied under
                applicable law.

            

    

     

    
      	(16)  	
              Each
                Mortgage Note and the related Mortgage are genuine, and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms and under applicable law, and with respect
                to
                each 40/30 Loan, the related Mortgage Note requires that the principal
                balance thereof be amortized over a term of forty (40) years with
                a
                required balloon payment thirty (30) years after origination of such
                40/30
                Loan. To the best of the Seller’s knowledge, all parties to such Mortgage
                Note and such Mortgage had legal capacity to execute such Mortgage
                Note
                and such Mortgage and each such Mortgage Note and Mortgage have been
                duly
                and properly executed by such
                parties.

            

    

     

    
      
        
        

      

      
        S-IIID-2

        
          

        

      

      
        
        

      

    

     

    
      	(17)  	
              The
                proceeds of each Loan (other than certain amounts escrowed for home
                improvements) have been fully disbursed and there is no requirement
                for
                future advances thereunder. All costs, fees and expenses incurred
                in
                making, or closing or recording such Loans were
                paid.

            

    

     

    
      	(18)  	
              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, (a) in the case of a Mortgage designated as a deed of
                trust, by
                trustee’s sale and (b) otherwise by judicial
                foreclosure.

            

    

     

    
      	(19)  	
              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 Certificateholders
                to
                the trustee under the deed of trust, except in connection with a
                trustee’s
                sale after default by the
                Mortgagor.

            

    

     

    
      	(20)  	
              Each
                Mortgage Note and each Mortgage is in substantially one of the forms
                acceptable to FNMA or FHLMC, with such riders as have been acceptable
                to
                FNMA or FHLMC, as the case may be.

            

    

     

    
      	(21)  	
              The
                origination, underwriting and collection practices used by the Seller
                with
                respect to each Loan have been in all respects legal, prudent and
                customary in the mortgage lending and servicing
                business.

            

    

     

    
      	(22)  	
              There
                is no pledged account or other security other than any Escrow Account
                and
                real estate securing the Mortgagor’s
                obligations.

            

    

     

    
      	(23)  	
              No
                Loan has a shared appreciation feature, or other contingent interest
                feature.

            

    

     

    
      	(24)  	
              Each
                Loan contains a customary “due on sale”
clause.

            

    

     

    
      	(25)  	
              To
                the best of Seller’s knowledge: at the Cut-off Date, the improvements on
                each Mortgaged Property were covered by a valid and existing hazard
                insurance policy with a generally acceptable carrier that provides
                for
                fire and extended coverage and coverage for such other hazards as
                are
                customary in the area where such Mortgaged Property is located in
                an
                amount at least equal to the lesser of (a) the maximum insurable value of
                the improvements on such Mortgaged Property or (b) (i) in the case
                of a
                Loan secured by a Mortgage creating a first lien on such Mortgaged
                Property, the original principal balance of such Loan, or (ii) in
                the case
                of a Loan which is subject to a prior loan or prior loans, the combined
                principal balances of such Loan and the prior loan(s). If such Mortgaged
                Property is a condominium unit, it is included under the coverage
                afforded
                by a blanket policy for the condominium unit. For all Mortgages creating
                a
                first lien on the related Mortgaged Property, all such individual
                insurance policies and all flood policies referred to in item (25)
                below
                contain a standard mortgagee clause naming the Seller or the original
                mortgagee, and its successors in interest, as mortgagee, and the
                Seller
                has received no notice that any premiums due and payable thereon
                have not
                been paid; the Mortgage obligates the Mortgagor thereunder to maintain
                all
                such insurance including flood insurance at the Mortgagor’s cost and
                expense, and upon the Mortgagor’s failure to do so, authorizes the holder
                of the Mortgage to obtain and maintain such insurance at the Mortgagor’s
                cost and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	(26)  	
              If
                a 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 in a form meeting the requirements of the
                current
                guidelines of the Flood Insurance Administration was required at
                closing
                with respect to such Mortgaged Property with a generally acceptable
                carrier in an amount representing coverage not less than the least
                of (a)
                the original outstanding principal balance of the related Loan, (b)
                the
                minimum amount required to compensate for damage or loss on a maximum
                insurable value basis or (c) the maximum amount of insurance that
                is
                available under the Flood Disaster Protection Act of 1973, as
                amended.

            

    

     

    
      
        
        

      

      
        S-IIID-3

        
          

        

      

      
        
        

      

    

     

    
      	(27)  	
              To
                the best of Seller’s knowledge, there is no proceeding occurring, pending
                or threatened for the total or partial condemnation of any Mortgaged
                Property.

            

    

     

    
      	(28)  	
              There
                is no material monetary default existing under any Mortgage or the
                related
                Mortgage Note and, to the best of the Seller’s knowledge, there is no
                event which, with the passage of time or with notice and the expiration
                of
                any grace or cure period, would constitute a default, breach, violation
                or
                event of acceleration under such Mortgage or related Mortgage Note;
                and
                the Seller has not waived any default, breach, violation or event
                of
                acceleration.

            

    

     

    
      	(29)  	
              Each
                Mortgaged Property is improved by a one- to four-family residential
                dwelling including condominium units, which, to the best of Seller’s
                knowledge, does not include cooperatives or mobile homes and does
                not
                constitute other than real property under state
                law.

            

    

     

    
      	(30)  	
              Each
                Loan is being serviced by the
                Servicer.

            

    

     

    
      	(31)  	
              Any
                future advances made 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 related loan schedule.
                The
                consolidated principal amount does not exceed the original principal
                amount of such Loan. No Mortgage Note permits or obligates the Servicer
                to
                make future advances to the Mortgagor at the option of the
                Mortgagor.

            

    

     

    
      	(32)  	
              To
                the best of Seller’s knowledge, all taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, leasehold
                payments
                or ground rents which previously became due and owing have been paid,
                except for items which have been assessed, but are not yet due and
                payable. Except for (a) payments in the nature of escrow payments,
                and (b)
                interest accruing from the date of any Mortgage Note or date of
                disbursement of the related Mortgage proceeds, whichever is later,
                to the
                day which precedes by one month the Due Date of the first installment
                of
                principal and interest, including without limitation, taxes and insurance
                payments, the Servicer has not advanced funds, or induced, solicited
                or
                knowingly received any advance of funds by a party other than the
                Mortgagor, directly or indirectly, for the payment of any amount
                required
                by the related Mortgage.

            

    

     

    
      	(33)  	
              Each
                Loan was underwritten in all material respects in accordance with
                the
                Seller’s underwriting guidelines as set forth in the Prospectus
                Supplement.

            

    

     

    
      	(34)  	
              An
                appraisal of each Mortgaged Property that is not a Borrower Retention
                Loan
                was obtained from a qualified appraiser, duly appointed by the originator,
                who had no interest, direct or indirect, in the Mortgaged Property
                or in
                any loan made on the security thereof, and whose compensation is
                not
                affected by the approval or disapproval of such Loan; such appraisal
                is in
                a form acceptable to FNMA and
                FHLMC.

            

    

     

    
      	(35)  	
              No
                Loan is a graduated payment mortgage loan or a growing equity mortgage
                loan, and no Loan is subject to a buydown or similar
                arrangement.

            

    

     

    
      	(36)  	
              The
                Loans were selected from among the outstanding residential mortgage
                loans
                in Seller’s portfolio at the Closing Date as to which the representations
                and warranties made as to such Loans set forth in this Schedule IIID
                can
                be made. Such selection was not made in a manner that would adversely
                affect the interests of
                Certificateholders.

            

    

     

    
      
        
        

      

      
        S-IIID-4

        
          

        

      

      
        
        

      

    

     

    
      	(37)  	
              Each
                Loan has a Due Date in the month of the first Distribution
                Date.

            

    

     

    
      	(38)  	
              Approximately
                10.55% of the Loans (by principal balance) are Balloon
                Loans.

            

    

     

    
      	(39)  	
              No
                Loan is subject to negative amortization or deferred interest
                payments.

            

    

     

    
      	(40)  	
              No
                Mortgagor has requested relief under the Relief
                Act.

            

    

     

    
      	(41)  	
              None
                of the Loans are retail installment contracts for goods or services
                or are
                home improvement loans for goods or services, which would be either
                “consumer credit contracts” or “purchase money loans” as such terms are
                defined in 16 C.F.R. §433.1.

            

    

     

    
      	(42)  	
              No
                Mortgagor has or will have a claim or defense against Seller or any
                assignor or assignee of Seller under any express or implied warranty
                with
                respect to goods or services provided in connection with any
                Loan.

            

    

     

    
      	(43)  	
              Each
                Loan is a “qualified mortgage” for purposes of Section 860G(a)(3) of the
                Code and Treasury Regulations Section 1.860G-2(a)(1) and
                (3).

            

    

     

    
      	(44)  	
              The
                Loans, individually and in the aggregate, conform in all material
                respects
                to the descriptions thereof in the Prospectus
                Supplement.

            

    

     

    
      	(45)  	
              There
                exist no deficiencies with respect to escrow deposits and payments,
                if
                such are required, for which customary arrangements for repayment
                thereof
                have not been made, and no escrow deposits or payments of other charges
                or
                payments due the Seller have been capitalized under any Mortgage
                or
                related Mortgage Note.

            

    

     

    
      	(46)  	
              All
                Loans calculate interest utilizing the actuarial
                method.

            

    

     

    
      	(47)  	
              None
                of the Loans are subject to the Home Ownership & Equity Protection Act
                of 1994. 

            

    

     

    
      	(48)  	
              As
                of the Cut-off Date, the Mortgage Rate relating to each Loan that
                is an
                adjustable rate mortgage loan has been adjusted in accordance with
                the
                terms of the related Mortgage Note.

            

    

     

    
      	(49)  	
              Each
                Loan at the time it was made complied in all material respects with
                applicable local, state, and federal laws, including, but not limited
                to,
                all applicable predatory and abusive lending
                laws.

            

    

     

    
      	(50)  	
              No
                Loan is classified and/or defined as (a) a “high cost home,” “covered”
                (excluding home loans defined as “covered home loans” pursuant to 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 federal, state or local law (or is similarly
                classified and/or defined 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), or (b) a “High Cost Loan” or “Covered Loan,” as applicable (as such
                terms are defined in the then current Standard & Poor’s LEVELS®
                Glossary which is now Version 5.7 Revised, Appendix
                E).

            

    

     

    
      	(51)  	
              No
                Loan originated on or after October 1, 2002, and before March 7,
                2003, is
                secured by property located in the State of Georgia, and no Loan
                originated on or after March 7, 2003, is a “high cost home loan” as
                defined under the Georgia Fair Lending
                Act.

            

    

     

    
      
        
        

      

      
        S-IIID-5

        
          

        

      

      
        
        

      

    

     

    
      	(52)  	
              No
                Loan secured by property located in the State of Kentucky is a "high-cost
                home loan" as defined in Kentucky House Bill
                207.

            

    

     

    
      	(53)  	
              No
                Loan secured by property located in the State of New York (a) had
                an
                original principal balance of $300,000 or less and (b) had an application
                date on or after April 1, 2003, the terms of which loan equal or
                exceed
                either the APR or the points and fees threshold for “high-cost home
                loans,” as defined in Section 6-L of the New York State Banking
                Law.

            

    

     

    
      	(54)  	
              No
                Loan secured by property located in the State of New Mexico is a
                "high-cost home loan" as defined in the New Mexico Home Loan Protection
                Act.

            

    

     

    
      	(55)  	
              No
                Loan secured by property located in the State of New Jersey is a
                "high-cost home loan" as defined in the New Jersey Home Ownership
                Security
                Act of 2002.

            

    

     

    
      	(56)  	
              No
                Loan secured by property located in the State of Illinois is in violation
                of the provisions of the Illinois Interest
                Act.

            

    

     

    
      	(57)  	
              No
                Loan secured by property located in the Commonwealth of Massachusetts
                is a
                "high cost home mortgage loan" as defined in the Massachusetts Predatory
                Home Loan Practices Act.

            

    

     

    
      	(58)  	
              No
                Loan secured by property located in the State of Indiana is a "high-cost
                home loan" as defined in the Indiana
                High Cost Home Loan Act.

            

    

     

    
      
        
        

      

      
        S-IIID-6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIIE

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    Loan
      Representations and Warranties of Popular Financial

     

    Popular
      Financial (“Seller”)
      hereby
      makes the representations and warranties set forth in this Schedule IIIE to
      the
      Depositor and the Trustee as of the Closing Date, or if so specified herein,
      as
      of the Cut-off Date with respect to the Loans being conveyed by Seller and
      the
      Mortgages, Mortgage Notes and Mortgaged Properties related thereto. Capitalized
      terms used but not otherwise defined in this Schedule IIIE shall have the
      meanings ascribed thereto in the Pooling and Servicing Agreement (the
“Pooling
      and Servicing Agreement”)
      relating to the above-referenced Series, among Seller, the other Sellers and
      the
      Servicer identified therein, Popular ABS, Inc., as depositor, and JPMorgan
      Chase
      Bank, N.A., as trustee. The term “Agreement”
shall
      be used in this Schedule to refer to the Pooling and Servicing
      Agreement.

     

    
      	(1)  	
              The
                information set forth on Schedule I to the Agreement with respect
                to the
                Loans is true and correct in all material respects as of the Closing
                Date.

            

    

     

    
      	(2)  	
              As
                of the close of business on August 31, 2006, no Loan was 30 or more
                days
                contractually past due (assuming 30 day months).
                

            

    

     

    
      	(3)  	
              None
                of the Loans are Second Lien Loans.

            

    

     

    
      	(4)  	
              No
                Loan had a Combined Loan-to-Value Ratio at origination in excess
                of 100%.
                For purposes of determining the date of origination on which each
                Loan’s
                Combined Loan-to-Value Ratio is measured, no Loan has been significantly
                modified within the meaning of Treasury Regulation 1.860G-2(b) as
                of the
                Closing Date.

            

    

     

    
      	(5)  	
              Each
                Mortgage is a valid and enforceable first lien on the referenced
                Mortgaged
                Property subject only to (a) the lien of non delinquent current real
                property taxes and assessments, (b) covenants, conditions and
                restrictions, rights of way, easements and other matters of public
                record
                as of the date of recording of such Mortgage, such exceptions appearing
                of
                record being acceptable to mortgage lending institutions generally
                or
                specifically reflected in the appraisal, if any, utilized in connection
                with the origination of the related Loan, and (c) other matters to
                which
                like properties are commonly subject which do not materially interfere
                with the benefits of the security intended to be provided by such
                Mortgage.

            

    

     

    
      	(6)  	
              Immediately
                prior to the assignment of the Loans to the Depositor, the Seller
                had good
                title to, and was the sole owner of, each such Loan free and clear
                of any
                pledge, lien, encumbrance or security interest and had full right
                and
                authority, subject to no interest or participation of, or agreement
                with,
                any other party, to sell and assign the same pursuant to the
                Agreement.

            

    

     

    
      	(7)  	
              To
                the best of Seller’s knowledge, there is no delinquent tax or assessment
                lien against any Mortgaged Property.

            

    

     

    
      	(8)  	
              There
                is no valid right of rescission, offset, defense or counterclaim
                to any
                Mortgage Note or Mortgage, including the obligation of the Mortgagor
                to
                pay the unpaid principal of or interest on such Mortgage
                Note.

            

    

     

    
      	(9)  	
              To
                the best of Seller’s knowledge, there are no mechanics’ liens or claims
                for work, labor or material affecting any Mortgaged Property which
                are or
                may be a lien prior to, or equal with, the lien of such Mortgage,
                except
                those which are insured against by the title insurance policy referred
                to
                in item (13) below.

            

    

     

    
      
        
        

      

      
        S-IIIE-1

        
          

        

      

      
        
        

      

    

     

    
      	(10)  	
              To
                the best of the Seller’s knowledge, each Mortgaged Property is free of
                material damage and in good repair.

            

    

     

    
      	(11)  	
              Each
                Loan at origination complied in all material respects
                with applicable local, state and federal laws, including, without
                limitation, usury, equal credit opportunity, real estate settlement
                procedures, truth-in-lending and disclosure laws, and all applicable
                predatory and abusive lending laws, and consummation of the transactions
                contemplated hereby will not involve the violation of any such
                laws.

            

    

     

    
      	(12)  	
              As
                of the Closing Date, neither the Seller nor any prior holder of any
                Mortgage has modified the Mortgage in any material respect (except
                that a
                Loan may have been modified by a written instrument which has been
                recorded or submitted for recordation, if necessary, to protect the
                interests of the Certificateholders and the original or a copy of
                which
                has been or shall be delivered to the Trustee); satisfied, canceled
                or
                subordinated such Mortgage in whole or in part; released the related
                Mortgaged Property in whole or in part from the lien of such Mortgage;
                or
                executed any instrument of release, cancellation, modification or
                satisfaction with respect thereto.

            

    

     

    
      	(13)  	
              For
                each Loan that is not a Borrower Retention Loan, a lender’s policy of
                title insurance together with a condominium endorsement and extended
                coverage endorsement, if applicable, in an amount at least equal
                to the
                Cut-off Date Principal Balance of each such Loan or a commitment
                (binder)
                to issue the same was effective on the date of the origination of
                each
                Loan, each such policy is valid and remains in full force and effect,
                and
                each such policy was issued by a title insurer qualified to do business
                in
                the jurisdiction where the related Mortgaged Property is located,
                which
                policy insures the Seller and successor owners of indebtedness secured
                by
                the related insured Mortgage, as to the applicable priority lien
                of the
                Mortgage subject to the exceptions set forth in item (4) above; to
                the
                best of the Seller’s knowledge, no claims have been made under such
                mortgage title insurance policy and no prior holder of the related
                Mortgage, including the Seller, has done, by act or omission, anything
                which would impair the coverage of such mortgage title insurance
                policy.
                None of the Loans are Borrower Retention
                Loans.

            

    

     

    
      	(14)  	
              To
                the best of the Seller’s knowledge, all of the improvements which were
                included for the purpose of determining the appraised value of each
                Mortgaged Property lie wholly within the boundaries and building
                restriction lines of such property, and no improvements on adjoining
                properties encroach upon such Mortgaged
                Property.

            

    

     

    
      	(15)  	
              To
                the best of the Seller’s knowledge, no improvement located on or being
                part of any Mortgaged Property is in violation of any applicable
                zoning
                law or regulation. To the best of the Seller’s knowledge, all inspections,
                licenses and certificates required to be made or issued with respect
                to
                all occupied portions of such 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, unless the lack thereof
                would
                not have a material adverse effect on the value of such Mortgaged
                Property, and such Mortgaged Property is lawfully occupied under
                applicable law.

            

    

     

    
      	(16)  	
              Each
                Mortgage Note and the related Mortgage are genuine, and each is the
                legal,
                valid and binding obligation of the maker thereof, enforceable in
                accordance with its terms and under applicable law, and with respect
                to
                each 40/30 Loan, the related Mortgage Note requires that the principal
                balance thereof be amortized over a term of forty (40) years with
                a
                required balloon payment thirty (30) years after origination of such
                40/30
                Loan. To the best of the Seller’s knowledge, all parties to such Mortgage
                Note and such Mortgage had legal capacity to execute such Mortgage
                Note
                and such Mortgage and each such Mortgage Note and Mortgage have been
                duly
                and properly executed by such
                parties.

            

    

     

    
      
        
        

      

      
        S-IIIE-2

        
          

        

      

      
        
        

      

    

     

    
      	(17)  	
              The
                proceeds of each Loan (other than certain amounts escrowed for home
                improvements) have been fully disbursed and there is no requirement
                for
                future advances thereunder. All costs, fees and expenses incurred
                in
                making, or closing or recording such Loans were
                paid.

            

    

     

    
      	(18)  	
              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, (a) in the case of a Mortgage designated as a deed of
                trust, by
                trustee’s sale and (b) otherwise by judicial
                foreclosure.

            

    

     

    
      	(19)  	
              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 Certificateholders
                to
                the trustee under the deed of trust, except in connection with a
                trustee’s
                sale after default by the
                Mortgagor.

            

    

     

    
      	(20)  	
              Each
                Mortgage Note and each Mortgage is in substantially one of the forms
                acceptable to FNMA or FHLMC, with such riders as have been acceptable
                to
                FNMA or FHLMC, as the case may be.

            

    

     

    
      	(21)  	
              The
                origination, underwriting and collection practices used by the Seller
                with
                respect to each Loan have been in all respects legal, prudent and
                customary in the mortgage lending and servicing
                business.

            

    

     

    
      	(22)  	
              There
                is no pledged account or other security other than any Escrow Account
                and
                real estate securing the Mortgagor’s
                obligations.

            

    

     

    
      	(23)  	
              No
                Loan has a shared appreciation feature, or other contingent interest
                feature.

            

    

     

    
      	(24)  	
              Each
                Loan contains a customary “due on sale”
clause.

            

    

     

    
      	(25)  	
              To
                the best of Seller’s knowledge: at the Cut-off Date, the improvements on
                each Mortgaged Property were covered by a valid and existing hazard
                insurance policy with a generally acceptable carrier that provides
                for
                fire and extended coverage and coverage for such other hazards as
                are
                customary in the area where such Mortgaged Property is located in
                an
                amount at least equal to the lesser of (a) the maximum insurable
                value of
                the improvements on such Mortgaged Property or (b) (i) in the case
                of a
                Loan secured by a Mortgage creating a first lien on such Mortgaged
                Property, the original principal balance of such Loan, or (ii) in
                the case
                of a Loan which is subject to a prior loan or prior loans, the combined
                principal balances of such Loan and the prior loan(s). If such Mortgaged
                Property is a condominium unit, it is included under the coverage
                afforded
                by a blanket policy for the condominium unit. For all Mortgages creating
                a
                first lien on the related Mortgaged Property, all such individual
                insurance policies and all flood policies referred to in item (25)
                below
                contain a standard mortgagee clause naming the Seller or the original
                mortgagee, and its successors in interest, as mortgagee, and the
                Seller
                has received no notice that any premiums due and payable thereon
                have not
                been paid; the Mortgage obligates the Mortgagor thereunder to maintain
                all
                such insurance including flood insurance at the Mortgagor’s cost and
                expense, and upon the Mortgagor’s failure to do so, authorizes the holder
                of the Mortgage to obtain and maintain such insurance at the Mortgagor’s
                cost and expense and to seek reimbursement therefor from the
                Mortgagor.

            

    

     

    
      	(26)  	
              If
                a 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 in a form meeting the requirements of the
                current
                guidelines of the Flood Insurance Administration was required at
                closing
                with respect to such Mortgaged Property with a generally acceptable
                carrier in an amount representing coverage not less than the least
                of (a)
                the original outstanding principal balance of the related Loan, (b)
                the
                minimum amount required to compensate for damage or loss on a maximum
                insurable value basis or (c) the maximum amount of insurance that
                is
                available under the Flood Disaster Protection Act of 1973, as
                amended.

            

    

     

    
      
        
        

      

      
        S-IIIE-3

        
          

        

      

      
        
        

      

    

     

    
      	(27)  	
              To
                the best of Seller’s knowledge, there is no proceeding occurring, pending
                or threatened for the total or partial condemnation of any Mortgaged
                Property.

            

    

     

    
      	(28)  	
              There
                is no material monetary default existing under any Mortgage or the
                related
                Mortgage Note and, to the best of the Seller’s knowledge, there is no
                event which, with the passage of time or with notice and the expiration
                of
                any grace or cure period, would constitute a default, breach, violation
                or
                event of acceleration under such Mortgage or related Mortgage Note;
                and
                the Seller has not waived any default, breach, violation or event
                of
                acceleration.

            

    

     

    
      	(29)  	
              Each
                Mortgaged Property is improved by a one- to four-family residential
                dwelling including condominium units, which, to the best of Seller’s
                knowledge, does not include cooperatives or mobile homes and does
                not
                constitute other than real property under state
                law.

            

    

     

    
      	(30)  	
              Each
                Loan is being serviced by the
                Servicer.

            

    

     

    
      	(31)  	
              Any
                future advances made 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 related loan schedule.
                The
                consolidated principal amount does not exceed the original principal
                amount of such Loan. No Mortgage Note permits or obligates the Servicer
                to
                make future advances to the Mortgagor at the option of the
                Mortgagor.

            

    

     

    
      	(32)  	
              To
                the best of Seller’s knowledge, all taxes, governmental assessments,
                insurance premiums, water, sewer and municipal charges, leasehold
                payments
                or ground rents which previously became due and owing have been paid,
                except for items which have been assessed, but are not yet due and
                payable. Except for (a) payments in the nature of escrow payments,
                and (b)
                interest accruing from the date of any Mortgage Note or date of
                disbursement of the related Mortgage proceeds, whichever is later,
                to the
                day which precedes by one month the Due Date of the first installment
                of
                principal and interest, including without limitation, taxes and insurance
                payments, the Servicer has not advanced funds, or induced, solicited
                or
                knowingly received any advance of funds by a party other than the
                Mortgagor, directly or indirectly, for the payment of any amount
                required
                by the related Mortgage.

            

    

     

    
      	(33)  	
              Each
                Loan was underwritten in all material respects in accordance with
                the
                Seller’s underwriting guidelines as set forth in the Prospectus
                Supplement.

            

    

     

    
      	(34)  	
              An
                appraisal of each Mortgaged Property that is not a Borrower Retention
                Loan
                was obtained from a qualified appraiser, duly appointed by the originator,
                who had no interest, direct or indirect, in the Mortgaged Property
                or in
                any loan made on the security thereof, and whose compensation is
                not
                affected by the approval or disapproval of such Loan; such appraisal
                is in
                a form acceptable to FNMA and
                FHLMC.

            

    

     

    
      	(35)  	
              No
                Loan is a graduated payment mortgage loan or a growing equity mortgage
                loan, and no Loan is subject to a buydown or similar
                arrangement.

            

    

     

    
      	(36)  	
              The
                Loans were selected from among the outstanding residential mortgage
                loans
                in Seller’s portfolio at the Closing Date as to which the representations
                and warranties made as to such Loans set forth in this Schedule IIIE
                can
                be made. Such selection was not made in a manner that would adversely
                affect the interests of
                Certificateholders.

            

    

     

    
      
        
        

      

      
        S-IIIE-4

        
          

        

      

      
        
        

      

    

     

    
      	(37)  	
              Each
                Loan has a Due Date in the month of the first Distribution
                Date.

            

    

     

    
      	(38)  	
              Approximately
                1.73% of the Loans (by principal balance) are Balloon
                Loans.

            

    

     

    
      	(39)  	
              No
                Loan is subject to negative amortization or deferred interest
                payments.

            

    

     

    
      	(40)  	
              No
                Mortgagor has requested relief under the Relief
                Act.

            

    

     

    
      	(41)  	
              None
                of the Loans are retail installment contracts for goods or services
                or are
                home improvement loans for goods or services, which would be either
                “consumer credit contracts” or “purchase money loans” as such terms are
                defined in 16 C.F.R. §433.1.

            

    

     

    
      	(42)  	
              No
                Mortgagor has or will have a claim or defense against Seller or any
                assignor or assignee of Seller under any express or implied warranty
                with
                respect to goods or services provided in connection with any
                Loan.

            

    

     

    
      	(43)  	
              Each
                Loan is a “qualified mortgage” for purposes of Section 860G(a)(3) of the
                Code and Treasury Regulations Section 1.860G-2(a)(1) and
                (3).

            

    

     

    
      	(44)  	
              The
                Loans, individually and in the aggregate, conform in all material
                respects
                to the descriptions thereof in the Prospectus
                Supplement.

            

    

     

    
      	(45)  	
              There
                exist no deficiencies with respect to escrow deposits and payments,
                if
                such are required, for which customary arrangements for repayment
                thereof
                have not been made, and no escrow deposits or payments of other charges
                or
                payments due the Seller have been capitalized under any Mortgage
                or
                related Mortgage Note.

            

    

     

    
      	(46)  	
              All
                Loans calculate interest utilizing the actuarial
                method.

            

    

     

    
      	(47)  	
              None
                of the Loans are subject to the Home Ownership & Equity Protection Act
                of 1994. 

            

    

     

    
      	(48)  	
              As
                of the Cut-off Date, the Mortgage Rate relating to each Loan that
                is an
                adjustable rate mortgage loan has been adjusted in accordance with
                the
                terms of the related Mortgage Note.

            

    

     

    
      	(49)  	
              Each
                Loan at the time it was made complied in all material respects with
                applicable local, state, and federal laws, including, but not limited
                to,
                all applicable predatory and abusive lending
                laws.

            

    

     

    
      	(50)  	
              No
                Loan is classified and/or defined as (a) a “high cost home,” “covered”
                (excluding home loans defined as “covered home loans” pursuant to 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 federal, state or local law (or is similarly
                classified and/or defined 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), or (b) a “High Cost Loan” or “Covered Loan,” as applicable (as such
                terms are defined in the then current Standard & Poor’s LEVELS®
                Glossary which is now Version 5.7 Revised, Appendix
                E).

            

    

     

    
      	(51)  	
              No
                Loan originated on or after October 1, 2002, and before March 7,
                2003, is
                secured by property located in the State of Georgia, and no Loan
                originated on or after March 7, 2003, is a “high cost home loan” as
                defined under the Georgia Fair Lending
                Act.

            

    

     

    
      
        
        

      

      
        S-IIIE-5

        
          

        

      

      
        
        

      

    

     

    
      	(52)  	
              No
                Loan secured by property located in the State of Kentucky is a "high-cost
                home loan" as defined in Kentucky House Bill
                207.

            

    

     

    
      	(53)  	
              No
                Loan secured by property located in the State of New York (a) had
                an
                original principal balance of $300,000 or less and (b) had an application
                date on or after April 1, 2003, the terms of which loan equal or
                exceed
                either the APR or the points and fees threshold for “high-cost home
                loans,” as defined in Section 6-L of the New York State Banking
                Law.

            

    

     

    
      	(54)  	
              No
                Loan secured by property located in the State of New Mexico is a
                "high-cost home loan" as defined in the New Mexico Home Loan Protection
                Act.

            

    

     

    
      	(55)  	
              No
                Loan secured by property located in the State of New Jersey is a
                "high-cost home loan" as defined in the New Jersey Home Ownership
                Security
                Act of 2002.

            

    

     

    
      	(56)  	
              No
                Loan secured by property located in the State of Illinois is in violation
                of the provisions of the Illinois Interest
                Act.

            

    

     

    
      	(57)  	
              No
                Loan secured by property located in the Commonwealth of Massachusetts
                is a
                "high cost home mortgage loan" as defined in the Massachusetts Predatory
                Home Loan Practices Act.

            

    

     

    
      	(58)  	
              No
                Loan secured by property located in the State of Indiana is a "high-cost
                home loan" as defined in the Indiana
                High Cost Home Loan Act.

            

    

    
      
        
        

      

      
        S-IIIE-6

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IIIF 

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    RESERVED

    
      
        
        

      

      
        S-IIIF-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      IV

     

    LIST
      OF
      FINANCING STATEMENTS:

     

    PERFECTION
      OF GRANT OF SECURITY INTEREST

     

    BY
      SELLERS TO DEPOSITOR

     

    
      	
              SELLER

            	 	
              LOCATION

            
	
              Equity
                One, Inc., a Delaware corporation

            	 	
              Secretary
                of State of the State of Delaware

            
	 	 	 
	
              Equity
                One, Incorporated

            	 	
              Secretary
                of the Commonwealth of the Commonwealth of Pennsylvania

            
	 	 	 
	
              Equity
                One, Inc., a Minnesota corporation

            	 	
              Secretary
                of State of Minnesota

            
	 	 	 
	
              Equity
                One Consumer Loan Company, Inc., a New Hampshire
                corporation

            	 	
              Secretary
                of State of New Hampshire

            
	 	 	 
	
              Popular
                Financial Services, LLC

            	 	
              Secretary
                of State of the State of Delaware

            

    

     

    
      
        
        

      

      
        S-IV-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      V

     

    LIST
      OF
      FINANCING STATEMENTS:

    PERFECTION
      OF GRANT OF SECURITY INTEREST

    BY
      DEPOSITOR TO TRUSTEE

     

    
      	
              DEPOSITOR

            	 	
              LOCATION

            
	
              Popular
                ABS, Inc.

            	 	
              Secretary
                of State of the State of Delaware

            

    

     

    
      
        
        

      

      
        S-V-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      VI

     

    LIST
      OF
      FINANCING STATEMENTS:

     

    PERFECTION
      OF SALE

     

    BY
      SELLERS TO DEPOSITOR

     

    
      	
              SELLER

            	 	
              LOCATION

            
	
              Equity
                One, Inc., a Delaware corporation

            	 	
              Secretary
                of State of the State of Delaware

            
	 	 	 
	
              Equity
                One, Incorporated 

            	 	
              Secretary
                of the Commonwealth of the Commonwealth of Pennsylvania

            
	 	 	 
	
              Equity
                One, Inc., a Minnesota corporation

            	 	
              Secretary
                of State of Minnesota

            
	 	 	 
	
              Equity
                One Consumer Loan Company, Inc., a New Hampshire
                corporation

            	 	
              Secretary
                of State of New Hampshire

            
	 	 	 
	
              Popular
                Financial Services, LLC 

            	 	
              Secretary
                of State of the State of Delaware

            

    

     

    
      
        
        

      

      
        S-VI-1

        
          

        

      

      
        
        

      

    

    SCHEDULE
      VII

     

    LIST
      OF
      FINANCING STATEMENTS:

     

    PERFECTION
      OF SALE

     

    BY
      DEPOSITOR TO TRUSTEE

     

    
      	
              DEPOSITOR

            	 	
              LOCATION

            
	
              Popular
                ABS, Inc.

            	 	
              Secretary
                of State of the State of
                Delaware

            

    

    
      
        
        

      

      
        S-VII-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1

    

    Form
      of
      Class A-[   ] Certificate

     

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

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    
      	Certificate No.	
              : 

            	 
	 	 	 
	Cut-off Date:	
              : 

            	September 1, 2006
	 	 	 
	First Distribution Date:	
              : 

            	October 25, 2006
	 	 	 
	
              Initial
                Certificate Balance

              of
                this Certificate

              (“Denomination”) 

            	
              : 

            	$
	 	 	 
	
              Initial
                Class Certificate Balance

              of
                all Certificates of

              this
                Class: 

            	
              : 

            	$
	 	 	 
	Pass-Through Rate	
              : 

            	LIBOR + %
	 	 	 
	CUSIP	
              : 

            	 
	 	 	 
	ISIN	
              : 

            	 

    

     

    
      
        
        

      

      
        A-1-1

        
          

        

      

      
        
        

      

    

    
       

      Popular
        ABS, Inc.

      Mortgage
        Pass-Through Certificates, Series 2006-D

      Class
        A-[   ]

       

      evidencing
        a percentage interest in the distributions allocable to the Certificates
        of the
        above-referenced Class with respect to a Trust Fund consisting primarily
        of a
        pool of fixed and adjustable rate mortgage loans (collectively, the
“Loans”).
        

       

      Popular
        ABS, Inc., as Depositor

       

      Principal
        in respect of this Certificate is distributable monthly as set forth herein.
        Accordingly, the Certificate Balance at any time may be less than the
        Certificate Balance as set forth herein. This Certificate does not evidence
        an
        obligation of, or an interest in, and is not guaranteed by the Depositor,
        the
        Sellers, the Servicer or the Trustee referred to below or any of their
        respective affiliates. Neither this Certificate nor the Loans are guaranteed
        or
        insured by any governmental agency or instrumentality.

    

     

    This
      certifies that                                 
      is the
      registered owner of the Percentage Interest evidenced by this Certificate
      (obtained by dividing the denomination of this Certificate by the aggregate
      Initial Certificate Balances of all Certificates of the Class to which this
      Certificate belongs) in certain monthly distributions with respect to a Trust
      Fund consisting primarily of the Loans deposited by Popular ABS, Inc. (the
      “Depositor”).
      The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”)
      among
      the Depositor, Equity One, Inc., a Delaware corporation, Equity One, Inc.,
      a
      Minnesota corporation, Equity One Consumer Loan Company, Inc., a New Hampshire
      corporation, Equity One, Incorporated and Popular Financial Services, LLC,
      as
      sellers (in such capacity, collectively, the “Sellers”),
      Equity One, Inc., a Delaware corporation, as servicer (in such capacity, the
      “Servicer”),
      and
      JPMorgan Chase Bank, N.A., as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    *
      *
      *

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      	
              Dated _______________,
                20__

              Countersigned:

            	
              JPMorgan
                Chase
                Bank, N.A.,

              as
                Trustee

            
	 	 	
            	 
	By:	
               

              
                

              

              Authorized
                Signatory of 

              JPMorgan
                Chase Bank, N.A.,

              as
                Trustee

            	By:  	
               

              
                
 

            

    

     

    
      
        
        

      

      
        A-1-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-2

     

    RESERVED

    
      
        
        

      

      
        A-2-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-3 

    

    Form
      of
      Class M-[   ] Certificate

     

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

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CLASS M-[] CERTIFICATE IS SUBORDINATE TO THE [SENIOR CERTIFICATES] [SENIOR
      CERTIFICATES AND THE CLASS M-1 CERTIFICATES] [SENIOR CERTIFICATES, THE CLASS
      M-1
      CERTIFICATES AND THE CLASS M-2 CERTIFICATES] [SENIOR CERTIFICATES, THE CLASS
      M-1
      CERTIFICATES, THE CLASS M-2 CERTIFICATES AND THE CLASS M-3 CERTIFICATES] [SENIOR
      CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS
      M-3 CERTIFICATES AND THE CLASS M-4 CERTIFICATES] [SENIOR CERTIFICATES, THE
      CLASS
      M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE
      CLASS M-4 CERTIFICATES AND THE CLASS M-5 CERTIFICATES] OF THIS SERIES TO THE
      EXTENT DESCRIBED HEREIN AND IN THE POOLING AND SERVICING AGREEMENT REFERRED
      TO
      HEREIN.

     

    
      	Certificate No.	
              : 

            	 
	 	 	 
	Cut-off Date:	
              : 

            	September 1, 2006
	 	 	 
	First Distribution Date:	
              : 

            	October 25, 2006
	 	 	 
	
              Initial
                Certificate Balance

              of
                this Certificate

              (“Denomination”) 

            	
              : 

            	$
	 	 	 
	
              Initial
                Class Certificate Balance

              of
                all Certificates of

              this
                Class: 

            	
              : 

            	$
	 	 	 
	Pass-Through Rate	
              : 

            	LIBOR + %
	 	 	 
	CUSIP	
              : 

            	 
	 	 	 
	ISIN	
              : 

            	 

       

      
        
          
          

        

        
          A-3-1

          
            

          

        

        
          
          

        

      

       

    

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates, Series 2006-D

    Class
      M-[   ]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      a
      pool of fixed and adjustable rate mortgage loans (collectively, the
“Loans”).

     

    Popular
      ABS, Inc., as Depositor

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Sellers, the Servicer or the Trustee referred to below or any of their
      respective affiliates. Neither this Certificate nor the Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that                                 
      is the
      registered owner of the Percentage Interest evidenced by this Certificate
      (obtained by dividing the denomination of this Certificate by the aggregate
      Initial Certificate Balances of all Certificates of the Class to which this
      Certificate belongs) in certain monthly distributions with respect to a Trust
      Fund consisting primarily of the Loans deposited by Popular ABS, Inc. (the
      “Depositor”).
      The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”)
      among
      the Depositor, Equity One, Inc., a Delaware corporation, Equity One, Inc.,
      a
      Minnesota corporation, Equity One Consumer Loan Company, Inc., a New Hampshire
      corporation, Equity One, Incorporated and Popular Financial Services, LLC,
      as
      sellers (in such capacity, collectively, the “Sellers”),
      Equity One, Inc., a Delaware corporation, as servicer (in such capacity, the
      “Servicer”),
      and
      JPMorgan Chase Bank, N.A., as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    *
      *
      *

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      
        	
                Dated _______________,
                  20__

                Countersigned:

              	
                
                  JPMorgan
                    Chase
                    Bank, N.A.,

                  as
                    Trustee

                

              
	 	 	
                
                

              
	By:	
                 

                
                  

                

                Authorized
                  Signatory of 

                JPMorgan
                  Chase Bank, N.A.,

                as
                  Trustee

              	
                By:

                
                  

                

              

      

      

        
          
            
            

          

          
            A-3-2

            
              

            

          

          
            
            

          

        

      

    

     

    EXHIBIT
      A-4

     

    Form
      of
      Class B-[   ] Certificate

     

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

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    THIS
      CLASS B-[] CERTIFICATE IS SUBORDINATE TO THE [SENIOR CERTIFICATES, THE CLASS
      M-1
      CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
      M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES AND THE CLASS M-6 CERTIFICATES]
      [SENIOR CERTIFICATES, THE CLASS M-1 CERTIFICATES, THE CLASS M-2 CERTIFICATES,
      THE CLASS M-3 CERTIFICATES, THE CLASS M-4 CERTIFICATES, THE CLASS M-5
      CERTIFICATES, THE CLASS M-6 CERTIFICATES] [SENIOR CERTIFICATES, THE CLASS M-1
      CERTIFICATES, THE CLASS M-2 CERTIFICATES, THE CLASS M-3 CERTIFICATES, THE CLASS
      M-4 CERTIFICATES, THE CLASS M-5 CERTIFICATES, THE CLASS M-6 CERTIFICATES AND
      CLASS B-1 CERTIFICATES] OF THIS SERIES TO THE EXTENT DESCRIBED HEREIN AND IN
      THE
      POOLING AND SERVICING AGREEMENT REFERRED TO HEREIN.

     

    
      
        	Certificate No.	
                : 

              	 
	 	 	 
	Cut-off Date:	
                : 

              	September 1, 2006
	 	 	 
	First Distribution Date:	
                : 

              	October 25, 2006
	 	 	 
	
                Initial
                  Certificate Balance

                of
                  this Certificate

                (“Denomination”) 

              	
                : 

              	$
	 	 	 
	
                Initial
                  Class Certificate Balance

                of
                  all Certificates of

                this
                  Class: 

              	
                : 

              	$
	 	 	 
	Pass-Through Rate	
                : 

              	LIBOR + %
	 	 	 
	CUSIP	
                : 

              	 
	 	 	 
	ISIN	
                : 

              	 

         

        
          
            
            

          

          
            A-4-1

            
              

            

          

          
            
            

          

        

      

    

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates, Series 2006-D

    Class
      B-[   ]

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      a
      pool of fixed and adjustable rate mortgage loans (collectively, the
“Loans”).

     

    Popular
      ABS, Inc., as Depositor

     

    Principal
      in respect of this Certificate is distributable monthly as set forth herein.
      Accordingly, the Certificate Balance at any time may be less than the
      Certificate Balance as set forth herein. This Certificate does not evidence
      an
      obligation of, or an interest in, and is not guaranteed by the Depositor, the
      Sellers, the Servicer or the Trustee referred to below or any of their
      respective affiliates. Neither this Certificate nor the Loans are guaranteed
      or
      insured by any governmental agency or instrumentality.

     

    This
      certifies that                                 
      is the
      registered owner of the Percentage Interest evidenced by this Certificate
      (obtained by dividing the denomination of this Certificate by the aggregate
      Initial Certificate Balances of all Certificates of the Class to which this
      Certificate belongs) in certain monthly distributions with respect to a Trust
      Fund consisting primarily of the Loans deposited by Popular ABS, Inc. (the
      “Depositor”).
      The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”)
      among
      the Depositor, Equity One, Inc., a Delaware corporation, Equity One, Inc.,
      a
      Minnesota corporation, Equity One Consumer Loan Company, Inc., a New Hampshire
      corporation, Equity One, Incorporated and Popular Financial Services, LLC,
      as
      sellers (in such capacity, collectively, the “Sellers”),
      Equity One, Inc., a Delaware corporation, as servicer (in such capacity, the
      “Servicer”),
      and
      JPMorgan Chase Bank, N.A., as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    *
      *
      *

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
      
        
          	
                  Dated _______________,
                    20__

                  Countersigned:

                	
                  JPMorgan
                    Chase
                    Bank, N.A.,

                  as
                    Trustee

                
	 	 	
                	 
	By:	
                  
                    

                  

                  Authorized
                    Signatory of 

                  JPMorgan
                    Chase Bank, N.A.,

                  as
                    Trustee

                	By:  	
                   

                  
                    
 

                

        

        

          
            
              
              

            

            
              A-4-2

              
                

              

            

            
              
              

            

          

        

      

    

     

    EXHIBIT
      B-1

     

    Form
      of
      Class R Certificate

     

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN THREE “REAL ESTATE MORTGAGE INVESTMENT CONDUITS,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE PROPOSED
      TRANSFEREE DELIVERS TO THE TRUSTEE A TRANSFER AFFIDAVIT IN ACCORDANCE WITH
      THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.

     

    [THIS
      CERTIFICATE REPRESENTS THE “TAX MATTERS PERSON RESIDUAL INTEREST” ISSUED UNDER
      THE AGREEMENT REFERRED TO BELOW AND MAY NOT BE TRANSFERRED TO ANY PERSON EXCEPT
      IN CONNECTION WITH THE ASSUMPTION BY THE TRANSFEREE OF THE DUTIES OF THE
      SERVICER UNDER SUCH AGREEMENT.]

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE TRUSTEE EITHER A REPRESENTATION LETTER TO THE EFFECT
      THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE EMPLOYEE
      RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR A PLAN SUBJECT TO SECTION
      4975 OF THE CODE, OR AN OPINION OF COUNSEL IN ACCORDANCE WITH THE PROVISIONS
      OF
      THE AGREEMENT REFERRED TO HEREIN. NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY
      HEREIN, ANY PURPORTED TRANSFER OF THIS CERTIFICATE TO OR ON BEHALF OF AN
      EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA OR TO THE CODE WITHOUT THE OPINION OF
      COUNSEL SATISFACTORY TO THE TRUSTEE AS DESCRIBED ABOVE SHALL BE VOID AND OF
      NO
      EFFECT.

     

    THIS
      CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”).
      ANY
      RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION THEREOF UNDER THE
      ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE REGISTRATION
      REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT
      REFERRED TO HEREIN.

    
       

      
        	Certificate No.	
                : 

              	 
	 	 	 
	Cut-off Date:	
                : 

              	September 1,
                2006

      

    

     

    
      
        
        

      

      
        B-1-1

        
          

        

      

      
        
        

      

    

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates, Series 2006-D

    Class
      R

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      a
      pool of fixed and adjustable rate mortgage loans (collectively, the
“Loans”).
      

     

    Popular
      ABS, Inc., as Depositor

     

    This
      Certificate does not evidence an obligation of, or an interest in, and is not
      guaranteed by the Depositor, the Sellers, the Servicer or the Trustee referred
      to below or any of their respective affiliates. Neither this Certificate nor
      the
      Loans are guaranteed or insured by any governmental agency or
      instrumentality.

     

    This
      certifies that                                 
      is the
      registered owner of the Percentage Interest (set forth on the face hereof)
      in
      certain monthly distributions with respect to a Trust Fund consisting of the
      Loans deposited by Popular ABS, Inc. (the “Depositor”).
      The
      Trust Fund was created pursuant to a Pooling and Servicing Agreement dated
      as of
      the Cut-off Date specified above (the “Agreement”)
      among
      the Depositor, Equity One, Inc., a Delaware corporation, Equity One, Inc.,
      a
      Minnesota corporation, Equity One Consumer Loan Company, Inc., a New Hampshire
      corporation, Equity One, Incorporated and Popular Financial Services, LLC,
      as
      sellers (in such capacity, collectively, the “Sellers”),
      Equity One, Inc., a Delaware corporation, as servicer (in such capacity, the
      “Servicer”),
      and
      JPMorgan Chase Bank, N.A., as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    Any
      distribution of the proceeds of any remaining assets of the Trust Fund will
      be
      made only upon presentment and surrender of this Class R Certificate at the
      Corporate Trust Office or the office or agency maintained by the Trustee in
      New
      York, New York.

     

    Any
      proposed transfer of a Class R Certificate shall be subject to the restrictions
      on transfer described in Section 5.02 of the Agreement.

     

    No
      transfer of a Class R Certificate shall be made unless the Trustee shall have
      received either (i) a representation letter from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      subject to Section 406 of ERISA or Section 4975 of the Code, nor a person acting
      on behalf of any such plan, which representation letter shall not be an expense
      of the Trustee or the Servicer or (ii) in the case of any such Class R
      Certificate presented for registration in the name of an employee benefit plan
      subject to ERISA, or Section 4975 of the Code (or comparable provisions of
      any
      subsequent enactment), or a trustee of any such plan or any other person acting
      on behalf of any such plan, an Opinion of Counsel satisfactory to the Trustee
      and the Servicer to the effect that the purchase or holding of such Class R
      Certificate will not result in the assets of the Trust Fund and the External
      Trust being deemed to be “plan assets” and subject to the prohibited transaction
      provisions of ERISA and the Code and will not subject the Trustee or the
      Servicer to any obligation in addition to those undertaken in the Agreement,
      which Opinion of Counsel shall not be an expense of the Trustee or the Servicer.
      Notwithstanding anything else to the contrary herein, any purported transfer
      of
      a Class R Certificate to or on behalf of an employee benefit plan subject to
      ERISA or to the Code without the opinion of counsel satisfactory to the Trustee
      as described above shall be void and of no effect.

     

    Each
      Holder of this Class R Certificate will be deemed to have agreed to be bound
      by
      the restrictions of the Agreement, including but not limited to the restrictions
      that (i) each person holding or acquiring any Ownership Interest in this Class
      R
      Certificate must be a Permitted Transferee, (ii) no Ownership Interest in this
      Class R Certificate may be transferred without delivery to the Trustee of (a)
      a
      transfer affidavit of the proposed transferee and (b) a transfer certificate
      of
      the transferor, each of such documents to be in the form described in the
      Agreement, (iii) each person holding or acquiring any Ownership Interest in
      this
      Class R Certificate must agree to require a transfer affidavit and to deliver
      a
      transfer certificate to the Trustee as required pursuant to the Agreement,
      (iv)
      each person holding or acquiring an Ownership Interest in this Class R
      Certificate must agree not to transfer an Ownership Interest in this Class
      R
      Certificate if it has actual knowledge that the proposed transferee is not
      a
      Permitted Transferee and (v) any attempted or purported transfer of any
      Ownership Interest in this Class R Certificate in violation of such restrictions
      will be absolutely null and void and will vest no rights in the purported
      transferee.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    *
      *
      *

     

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
       

      
        
          
            	
                    Dated: _______________,
                      20__

                    Countersigned:

                  	
                    JPMorgan
                      Chase
                      Bank, N.A.,

                    as
                      Trustee

                  
	 	 	
                  	 
	By:	
                    
                      

                    

                    Authorized
                      Signatory of 

                    JPMorgan
                      Chase Bank, N.A.,

                    as
                      Trustee

                  	By:  	
                     

                    
                      
 

                  

          

          

            
              
                
                

              

              
                B-1-2

                
                  

                

              

              
                
                

              

            

          

           

        

      

    

    EXHIBIT
      B-2

     

    Form
      of
      Class X Certificate

    

    SOLELY
      FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
      RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986,
      AS
      AMENDED (THE “CODE”).

     

    NEITHER
      THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
      TRANSFEREE DELIVERS TO THE TRUSTEE EITHER (I) A REPRESENTATION LETTER TO THE
      EFFECT THAT SUCH TRANSFEREE IS NOT AN EMPLOYEE BENEFIT PLAN SUBJECT TO THE
      EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, OR A PLAN SUBJECT
      TO SECTION 4975 OF THE CODE, OR (II) IF THIS CERTIFICATE HAS BEEN THE SUBJECT
      OF
      AN ERISA QUALIFYING UNDERWRITING, A REPRESENTATION THAT THE TRANSFEREE IS
      PURCHASING SUCH CERTIFICATE WITH FUNDS CONTAINED IN AN “INSURANCE COMPANY
      GENERAL ACCOUNT”, AS DEFINED IN PROHIBITED TRANSACTION CLASS EXEMPTION 95-60
      (“PTCE 95-60”) AND THAT THE PURCHASE AND HOLDING OF SUCH CERTIFICATES ARE
      COVERED UNDER SECTIONS I AND III OF PTCE 95-60, OR (III) AN OPINION OF COUNSEL
      IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT REFERRED TO HEREIN.
      NOTWITHSTANDING ANYTHING ELSE TO THE CONTRARY HEREIN, ANY PURPORTED TRANSFER
      OF
      THIS CERTIFICATE TO OR ON BEHALF OF AN EMPLOYEE BENEFIT PLAN SUBJECT TO ERISA
      OR
      TO THE CODE WITHOUT THE OPINION OF COUNSEL SATISFACTORY TO THE TRUSTEE AS
      DESCRIBED ABOVE SHALL BE VOID AND OF NO EFFECT.

     

    THIS
      CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE “ACT”). ANY RESALE OR TRANSFER OF THIS CERTIFICATE WITHOUT REGISTRATION
      THEREOF UNDER THE ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPTED FROM THE
      REGISTRATION REQUIREMENTS OF THE ACT AND IN ACCORDANCE WITH THE PROVISIONS
      OF
      THE AGREEMENT REFERRED TO HEREIN.

     

    
      
        	Certificate No.	
                : 

              	1
	 	 	 
	Cut-off Date:	
                : 

              	September 1, 2006
	 	 	 
	Percentage Interest	
                : 

              	__.__%

        

          
            
              
              

            

            
              B-2-1

              
                

              

            

            
              
              

            

          

        

         

      

    

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates, Series 2006-D

    Class
      X

     

    evidencing
      a percentage interest in the distributions allocable to the Certificates of
      the
      above-referenced Class with respect to a Trust Fund consisting primarily of
      a
      pool of fixed and adjustable rate mortgage loans (collectively, the
“Loans”).
      

     

    Popular
      ABS, Inc., as Depositor

     

    This
      Certificate does not evidence an obligation of, or an interest in, and is not
      guaranteed by the Depositor, the Sellers, the Servicer or the Trustee referred
      to below or any of their respective affiliates. Neither this Certificate nor
      the
      Loans are guaranteed or insured by any governmental agency or
      instrumentality.

     

    This
      certifies that Popular ABS, Inc. is the registered owner of the Percentage
      Interest (set forth on the face hereof) in certain monthly distributions with
      respect to a Trust Fund consisting of the Loans deposited by Popular ABS, Inc.
      (the “Depositor”). The Trust Fund was created pursuant to a Pooling and
      Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”) among the Depositor, Equity One, Inc., a Delaware corporation,
      Equity One, Inc., a Minnesota corporation, Equity One Consumer Loan Company,
      Inc., a New Hampshire corporation, Equity One, Incorporated and Popular
      Financial Services, LLC, as sellers (in such capacity, collectively, the
“Sellers”),
      Equity One, Inc., a Delaware corporation, as servicer (in such capacity, the
      “Servicer”),
      and
      JPMorgan Chase Bank, N.A., as trustee (the “Trustee”).
      To
      the extent not defined herein, the capitalized terms used herein have the
      meanings assigned in the Agreement. This Certificate is issued under and is
      subject to the terms, provisions and conditions of the Agreement, to which
      Agreement the Holder of this Certificate by virtue of the acceptance hereof
      assents and by which such Holder is bound.

     

    No
      transfer of a Class X Certificate shall be made unless the Trustee shall have
      received either (i) a representation letter from the transferee of such
      Certificate, acceptable to and in form and substance satisfactory to the
      Trustee, to the effect that such transferee is not an employee benefit plan
      subject to Section 406 of ERISA or Section 4975 of the Code, nor a person acting
      on behalf of any such plan, which representation letter shall not be an expense
      of the Trustee or the Servicer, (ii) if the Class X Certificate has been the
      subject of an ERISA Qualifying Underwriting and the transferee is an insurance
      company, a representation that the transferee is an insurance company which
      is
      purchasing such Certificate with funds contained in an “insurance company
      general account”, as defined in Prohibited Transaction Class Exemption 95-60
      (“PTCE
      95-60”)
      and
      that the purchase and holding of the Certificate is covered under Sections
      I and
      III of PTCE 95-60 or (iii) in the case of any such Class X Certificate
      presented for registration in the name of an employee benefit plan subject
      to
      ERISA, or Section 4975 of the Code (or comparable provisions of any subsequent
      enactment), or a trustee of any such plan or any other person acting on behalf
      of any such plan, an Opinion of Counsel satisfactory to the Trustee and the
      Servicer to the effect that the purchase or holding of such Class X Certificate
      will not result in the assets of the Trust Fund and the External Trust being
      deemed to be “plan assets” and subject to the prohibited transaction provisions
      of ERISA and the Code and will not subject the Trustee or the Servicer to any
      obligation in addition to those undertaken in the Agreement, which Opinion
      of
      Counsel shall not be an expense of the Trustee or the Servicer. Notwithstanding
      anything else to the contrary herein, any purported transfer of a Class X
      Certificate to or on behalf of an employee benefit plan subject to ERISA or
      to
      the Code without the opinion of counsel satisfactory to the Trustee as described
      above shall be void and of no effect.

     

    Any
      distribution of the proceeds of any remaining assets of the Trust Fund will
      be
      made only upon presentment and surrender of this Class X Certificate at the
      Corporate Trust Office or the office or agency maintained by the Trustee in
      New
      York, New York.

     

    Reference
      is hereby made to the further provisions of this Certificate set forth on the
      reverse hereof, which further provisions shall for all purposes have the same
      effect as if set forth at this place.

     

    This
      Certificate shall not be entitled to any benefit under the Agreement or be
      valid
      for any purpose unless manually countersigned by an authorized signatory of
      the
      Trustee.

     

    *
      *
      *

    IN
      WITNESS WHEREOF, the Trustee has caused this Certificate to be duly
      executed.

     

    
       

      
        
          
            	
                    Dated: _______________,
                      20__

                    Countersigned:

                  	 	
                    JPMorgan
                      Chase
                      Bank, N.A.,

                    as
                      Trustee

                  
	 	 	
                  	 
	By:	
                     

                    
                      

                    

                    Authorized
                      Signatory of 

                    JPMorgan
                      Chase Bank, N.A.,

                    as
                      Trustee

                  	By:  	
                     

                    
                      

                      Name:

                      Title:

                    

                  

          

          

            
              
                
                

              

              
                B-2-2

                
                  

                

              

              
                
                

              

            

          

        

      

    

     

    EXHIBIT
      C

     

    Form
      of
      Reverse of Certificates

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

     

    This
      Certificate is one of a duly authorized issue of Certificates designated as
      Popular ABS, Inc. Mortgage Pass-Through Certificates, of the Series specified
      on
      the face hereof (herein collectively called the “Certificates”),
      and
      representing a beneficial ownership interest in the Trust Fund created by the
      Agreement.

     

    The
      Certificateholder, by its acceptance of this Certificate, agrees that it will
      look solely to the funds on deposit in the Distribution Account for payment
      hereunder and that the Trustee is not liable to the Certificateholders for
      any
      amount payable under this Certificate or the Agreement or, except as expressly
      provided in the Agreement, subject to any liability under the
      Agreement.

     

    This
      Certificate does not purport to summarize the Agreement and reference is made
      to
      the Agreement for the interests, rights and limitations of rights, benefits,
      obligations and duties evidenced thereby, and the rights, duties and immunities
      of the Trustee.

     

    Pursuant
      to the terms of the Agreement, a distribution will be made on the 25th day
      of
      each month or, if such 25th day is not a Business Day, the Business Day
      immediately following (the “Distribution
      Date”),
      commencing on the first Distribution Date specified on the face hereof, to
      the
      Person in whose name this Certificate is registered at the close of business
      on
      the applicable Record Date in an amount equal to the product of the Percentage
      Interest evidenced by this Certificate and the amount required to be distributed
      to Holders of Certificates of the Class to which this Certificate belongs on
      such Distribution Date pursuant to the Agreement. 

     

    Distributions
      on this Certificate shall be made by wire transfer of immediately available
      funds to the account of the Holder hereof at a bank or other entity having
      appropriate facilities therefor, if such Certificateholder shall have so
      notified the Trustee in writing at least five Business Days prior to the related
      Record Date and such Certificateholder shall satisfy the conditions to receive
      such form of payment set forth in the Agreement, or, if not, by check mailed
      by
      first class mail to the address of such Certificateholder appearing in the
      Certificate Register. The final distribution on each Certificate will be made
      in
      like manner, but only upon presentment and surrender of such Certificate at
      the
      Corporate Trust Office or such other location specified in the notice to
      Certificateholders of such final distribution.

     

    The
      Agreement permits, with certain exceptions therein provided, the amendment
      thereof and the modification of the rights and obligations of the Trustee and
      the rights of the Certificateholders under the Agreement at any time by the
      Sellers, Depositor, the Servicer and the Trustee with the consent of the Holders
      of Certificates affected by such amendment evidencing the requisite Percentage
      Interest, as provided in the Agreement. Any such consent by the Holder of this
      Certificate shall be conclusive and binding on such Holder and upon all future
      Holders of this Certificate and of any Certificate issued upon the transfer
      hereof or in exchange therefor or in lieu hereof whether or not notation of
      such
      consent is made upon this Certificate. The Agreement also permits the amendment
      thereof, in certain limited circumstances, without the consent of the Holders
      of
      any of the Certificates.

     

    As
      provided in the Agreement and subject to certain limitations therein set forth,
      the transfer of this Certificate is registrable in the Certificate Register
      of
      the Trustee upon surrender of this Certificate for registration of transfer
      at
      the applicable Corporate Trust Office, accompanied by a written instrument
      of
      transfer in form satisfactory to the Trustee and the Certificate Registrar
      duly
      executed by the Holder hereof or such holder’s attorney duly authorized in
      writing, and thereupon one or more new Certificates of the same Class in
      authorized denominations and evidencing the same aggregate Percentage Interest
      in the Trust Fund will be issued to the designated transferee or
      transferees.

     

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

     

    The
      Certificates are issuable only as registered Certificates without coupons in
      denominations specified in the Agreement. As provided in the Agreement and
      subject to certain limitations therein set forth, Certificates are exchangeable
      for new Certificates of the same Class in authorized denominations and
      evidencing the same aggregate Percentage Interest, as requested by the Holder
      surrendering the same.

     

    No
      service charge will be made for any such registration of transfer or exchange,
      but the Trustee may require payment of a sum sufficient to cover any tax or
      other governmental charge payable in connection therewith.

     

    The
      Depositor, the Servicer, the Sellers and the Trustee and any agent of the
      Depositor or the Trustee may treat the Person in whose name this Certificate
      is
      registered as the owner hereof for all purposes, and neither the Depositor,
      the
      Trustee, nor any such agent shall be affected by any notice to the
      contrary.

     

    On
      any
      Distribution Date on which the Pool Principal Balance is less than 10% of the
      Cut-off Date Pool Principal Balance, the Servicer will have the option to
      repurchase, in whole, from the Trust Fund all remaining Loans and all property
      acquired in respect of the Loans at a purchase price determined as provided
      in
      the Agreement. In the event that no such optional termination occurs, the
      obligations and responsibilities created by the Agreement will terminate upon
      the later of the maturity or other liquidation (or any advance with respect
      thereto) of the last Loan remaining in the Trust Fund or the disposition of
      all
      property in respect thereof and the distribution to Certificateholders of all
      amounts required to be distributed pursuant to the Agreement. In no event,
      however, will the trust created by the Agreement continue beyond the expiration
      of 21 years from the death of the last survivor of the descendants living at
      the
      date of the Agreement of a certain person named in the Agreement.

     

    Any
      term
      used herein that is defined in the Agreement shall have the meaning assigned
      in
      the Agreement, and nothing herein shall be deemed inconsistent with that
      meaning.

     

    
      
        
        

      

      
        C-2

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT

     

    
      FOR
        VALUE RECEIVED, the undersigned hereby sell(s),
        assign(s) and transfer(s) unto
        _______________________________________________________________

    

    __________________________________________________________________________________________________________________________

    __________________________________________________________________________________________________________________________

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

     

    the
      Percentage Interest evidenced by the within Certificate and hereby authorizes
      the transfer of registration of such Percentage Interest to assignee on the
      Certificate Register of the Trust Fund.

     

    I
      (We)
      further direct the Trustee to issue a new Certificate of a like denomination
      and
      Class, to the above named assignee and deliver such Certificate to the following
      address:

    
      __________________________________________________________________________________________________________________________

    

    
      __________________________________________________________________________________________________________________________

    

     

    Dated:

     

    
      	 	 	 
	 
 	 
 	 
 
	 	
              

              Signature
                by or on behalf of assignor

            

    

     

    DISTRIBUTION
      INSTRUCTIONS

     

    
      The
        assignee should include the following for purposes of distribution:

       

    

    
      
        Distributions
          shall be made, by wire transfer or
          otherwise, in immediately available funds to ______________________________________________________________
          for
          the
          account
          of ____________________________________________________________________________________
          account
          number _________________________ or,
          if
          mailed by check, to
          ______________________________________________________.

      

    

    Applicable
      statements should be mailed to
      ________________________________________________________________________________

     

    This
      information is provided by
      ________________________________________________________________________________________________________
      the
      assignee named above, or _____________________________________________________________________________________________________________________________,

    as
      its
      agent.

     

    
      
        
        

      

      
        C-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D

     

    Form
      of
      Initial Certification Of Trustee

     

    [date]

     

    [Depositor]

    [Servicer]

    [Sellers]

    _____________________

     

    _____________________

     

    
      	
            	Re:	
              Pooling
                and Servicing Agreement among Popular ABS, Inc., as Depositor, Equity
                One,
                Inc., a Delaware corporation, Equity One, Inc., a Minnesota corporation,
                Equity One Consumer Loan Company, Inc., a New Hampshire corporation,
                Equity One, Incorporated and Popular Financial Services, LLC, as
                Sellers,
                Equity One, Inc., a Delaware corporation, as Servicer, and JPMorgan
                Chase
                Bank, N.A., as
                Trustee, Mortgage Pass-Through Certificates, Series 2006-D 

            

    

     

    Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling and Servicing Agreement”), the undersigned, as Trustee,
      hereby certifies that, as to each Loan listed in the Loan Schedule (other than
      any Loan paid in full or listed on the attached Exception Report) it has
      received the original Mortgage Note or an executed Affidavit of Lost Note in
      the
      form attached hereto as Annex I, and confirms that, for all Mortgage Notes
      received, the name on the Mortgage Note matches that on the Loan Schedule,
      except as set forth on the Exception Report attached hereto.

     

    Based
      on
      its review and examination and only as to the foregoing documents, such
      documents appear regular on their face and related to such Loan.

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to: (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in each Mortgage File of any of the Loans identified on
      the
      Loan Schedule, or (ii) the collectibility, insurability, effectiveness or
      suitability of any such Loan.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

     

    
      	 	 	 
	 	
              JPMorgan
                Chase Bank, N.A.,

              
                as
                  Trustee

              

            
	 
 	 
 	 
 
	
            	
              By:  

               

              
                Name:

                Title:

              

            	
               

              
                

              

               

            
	 	 	 
	 	 	 
	 	
            
	 	 

    

     

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

    Annex
      I

     

    AFFIDAVIT
      OF LOST NOTE

     

     

    
      	COMMONWEALTH OF PENNSYLVANIA	
              :

            	 	 
	 	:	
              SS

            	 
	COUNTY OF PHILADELPHIA	:	 	 

    

       

    

     

    The
      undersigned, being duly sworn, deposes and says that:

     

    1.
      ______________,
      a
      _____________ corporation
      (the “Holder”) is the owner of a note dated _____________ of
      _____________, in the
      principal amount of $ __________ (the
      “Note”).

     

    2. The
      Holder has not pledged or disposed of the Note in any manner whatsoever to
      any
      person nor given any person authority to transfer or pledge the
      same.

     

    3. The
      Holder does not know of the whereabouts of the Note and believes the Note has
      been lost or destroyed.

     

    4. The
      Holder makes this affidavit to JPMorgan Chase Bank, N.A. (“Trustee”) in order to
      induce the Trustee to issue its initial certification pursuant to Section 2.02
      of the Pooling and Servicing Agreement dated as of September 1, 2006 among
      the
      Trustee, the Holder and the other parties set forth therein, without an
      exception therefrom.

     

    5. The
      Holder and its successors and assigns shall at all time indemnify and save
      harmless the Trustee against all loss or damage it might suffer by reason of
      the
      issuance and delivery of a replacement note for the Note, including all cost,
      charges, expenses and claims of every kind and nature. 

     

    6. If
      the
      Note shall be found the Holder shall promptly deliver the same to the Trustee
      in
      order that it may be cancelled.

     

    7. The
      undersigned is duly authorized to execute this Affidavit on behalf of the
      Holder.

     

    
      	 	 	 
	Date: ___________________	[SELLER]
	_____________________	 	 
	Witness	By:  	
               

              
                

              

              Name: 

              Title: 

            

    

     

    
      
        	 	 	 
	
              	
                JPMorgan
                  Chase Bank, N.A.,

                as
                  Trustee

              
	
              	 	 
	
              	By:  	
                 

                
                  

                

                Name: 

                Title: 

              

      

        

        
          
            
            

          

          
            D-2

            
              

            

          

          
            
            

          

        

      

    

     

    EXHIBIT
      E

     

    Form
      of
      Final Certification Of Trustee

     

    [date]

     

    [Depositor]

     

    [Servicer]

     

    [Seller]

     

    _____________________

     

    _____________________

     

    
      
        	
              	Re:	
                Pooling
                  and Servicing Agreement among Popular ABS, Inc., as Depositor,
                  Equity One,
                  Inc., a Delaware corporation, Equity One, Inc., a Minnesota corporation,
                  Equity One Consumer Loan Company, Inc., a New Hampshire corporation,
                  Equity One, Incorporated and Popular Financial Services, LLC, as
                  Sellers,
                  Equity One, Inc., a Delaware corporation, as Servicer, and JPMorgan
                  Chase
                  Bank, N.A., as Trustee,
                  Mortgage Pass-Through Certificates, Series 2006-D 

              

      

    

     

    Gentlemen:

     

    In
      accordance with Section 2.02 of the above-captioned Pooling and Servicing
      Agreement (the “Pooling
      and Servicing Agreement”),
      the
      undersigned, as Trustee, hereby certifies that as to each Loan listed in the
      Loan Schedule (other than any Loan paid in full or listed on the attached
      Exception Report), except as set forth on the Exception Report attached hereto,
      it has received:

     

    (i) the
      original Mortgage Note and confirms that the name on the Mortgage Note matches
      that on the Loan Schedule; 

     

    (ii) the
      original recorded Mortgage (unless such Mortgage has not yet been returned
      by
      the relevant recording office, as certified by the Depositor;

     

    (iii) the
      original recorded assignment of the Mortgage in the form provided in Section
      2.01(c) of the Pooling and Servicing Agreement;

     

    (iv) the
      original or duplicate original recorded assignment or assignments of the
      Mortgage necessary to show a complete chain of assignment from the originator
      to
      the Seller, unless the Depositor has certified that the related assignment
      has
      not been returned from the applicable recording office; and

     

    (v) the
      original or duplicate original lender’s title policy and all riders thereto or,
      any one of an original title binder, an original preliminary title report or
      an
      original title commitment, or a copy thereof certified by the title company,
      unless the Depositor has certified that such title policy has not yet been
      received from the applicable title insurance company.

     

    Based
      on
      its review and examination and only as to the foregoing documents, (a) such
      documents appear regular on their face and related to such Loan, and (b) the
      information set forth in items (c), (d), (e) and (i) of the definition of the
      “Loan Schedule” in Article I of the Pooling and Servicing Agreement accurately
      reflects information set forth in the Mortgage File.

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    The
      Trustee has made no independent examination of any documents contained in each
      Mortgage File beyond the review specifically required in the Pooling and
      Servicing Agreement. The Trustee makes no representations as to: (i) the
      validity, legality, sufficiency, enforceability or genuineness of any of the
      documents contained in each Mortgage File of any of the Loans identified on
      the
      Loan Schedule, or (ii) the collectibility, insurability, effectiveness or
      suitability of any such Loan.

     

    Capitalized
      words and phrases used herein shall have the respective meanings assigned to
      them in the Pooling and Servicing Agreement.

    
       

      
        
          	 	 	 
	
                	
                  JPMorgan
                    Chase Bank, N.A.,

                  as
                    Trustee

                
	
                	 	 
	
                	By:  	
                   

                  
                    

                  

                  Name: 

                  Title: 

                

        

         

        
          
            
            

          

          
            E-2

            
              

            

          

          
            
            

          

        

          

      

    

    EXHIBIT
      F

     

    Form
      of
      Transfer Affidavit

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

    

    
      	
              STATE
                OF

            	
              )

            	 
	 	
              )
                ss:

            	 
	
              COUNTY
                OF

            	
              )

            	 

    

     

    The
      undersigned, being first duly sworn, deposes and says as follows:

     

    1. The
      undersigned is an officer of                     ,
      the
      proposed Transferee of an Ownership Interest in a Class R Certificate (the
      “Certificate”)
      issued
      pursuant to the Pooling and Servicing Agreement, (the “Agreement”),
      relating to the above-referenced Series, by and among Popular ABS, Inc., as
      depositor (the “Depositor”),
      Equity One, Inc., a Delaware corporation, Equity One, Inc., a Minnesota
      corporation, Equity One Consumer Loan Company, Inc., a New Hampshire
      corporation, Equity One, Incorporated and Popular Financial Services, LLC,
      as
      Sellers, Equity One, Inc., a Delaware corporation, as Servicer, and JPMorgan
      Chase Bank, N.A., as Trustee. Capitalized terms used, but not defined herein
      or
      in Exhibit 1 hereto, shall have the meanings ascribed to such terms in the
      Agreement. The Transferee has authorized the undersigned to make this affidavit
      on behalf of the Transferee.

     

    2. The
      Transferee is, as of the date hereof, and will be, as of the date of the
      Transfer, a Permitted Transferee. The Transferee is acquiring its Ownership
      Interest in the Certificate for its own account. The Transferee has no knowledge
      that any such affidavit is false.

     

    3. The
      Transferee acknowledges that it understands that as the holder of the residual
      interest, the Transferee may incur tax liabilities in excess of any cash flows
      the residual interest generates and the Transferee intends to pay any taxes
      associated with its holding the residual interest as those taxes become
      due.

     

    4. The
      Transferee represents that the conditions specified in either or both of
      subparagraph (a) and (b) of this paragraph are satisfied:

     

    (a)
      The
      requirements of this subparagraph (a) will be met if: the present value of
      the
      anticipated tax liabilities associated with holding the residual interest does
      not exceed the sum of: (i) the present value of any consideration given to
      the
      Transferee to acquire the interest, (ii) the present value of the expected
      future distributions on the interest, and (iii) the present value of the
      anticipated tax savings associated with holding the interest as the REMIC
      generates losses. For purposes of this subparagraph (a), the Transferee is
      assumed to pay tax at a rate equal to the highest rate of tax specified in
      section 11(b)(1) of the Code, and present values are computed using a discount
      rate equal to the applicable federal rate prescribed by section 1274(d) of
      the
      Code, compounded semiannually, or such other rate that the Transferee can
      demonstrate it borrows substantial funds at in the course of its trade or
      business from unrelated third parties.

    

    (b)
      The
      requirements of this subparagraph (b) will be met if: (i) at the time of the
      transfer, and at the close of each of the Transferee’s two fiscal years
      preceding the year of transfer the Transferee’s gross assets for financial
      reporting purposes exceed $100 million and its net assets for financial
      reporting purposes exceed $10 million, (ii) The Transferee is an eligible
      corporation (within the meaning of section 860L(a)(2) of the Code), (iii) The
      Transferee is not a foreign branch of an eligible corporation or any other
      arrangement by which the Residual interest will at any time be subject to net
      tax by a foreign country or possession of the United States, (iv) The Transferee
      agrees, in executing this Certificate that any subsequent transfer of the
      Residual interest will be to another eligible corporation in a “qualifying
      transaction,” and (v) the Transferee has not indicated to, nor provided to the
      Transferor any grounds to believe that, the Transferee will not pay the taxes
      associated with the residual interest. For purposes of applying this
      subparagraph (b), the Transferee’s gross assets and net assets do not include
      any obligation of any person related to the Transferee within the meaning of
      section 860L(g) of the Code, or any other asset if a principal purpose for
      holding or acquiring the asset is to permit the Transferee to satisfy the
      requirements of this subparagraph (b), and a “qualifying transaction” is a
      transaction that satisfies the requirements of §4 of Rev. Proc. 2001-12, 2001-3
      I.R.B. 35.

    
      
        
        

      

      
        F-1

        
          

        

      

       

    

    

    5. The
      Transferee has been advised of, and understands that (i) a tax will be imposed
      on Transfers of the Certificate to Persons that are not Permitted Transferees;
      (ii) such tax will be imposed on the transferor, or, if such Transfer is through
      an agent (which includes a broker, nominee or middleman) for a Person that
      is
      not a Permitted Transferee, on the agent; and (iii) the Person otherwise liable
      for the tax shall be relieved of liability for the tax if the subsequent
      Transferee furnished to such Person an affidavit that such subsequent Transferee
      is a Permitted Transferee and, at the time of Transfer, such Person does not
      have actual knowledge that the affidavit is false.

    

    6. The
      Transferee has been advised of, and understands that a tax will be imposed
      on a
“pass-through entity” holding the Certificate if at any time during the taxable
      year of the pass-through entity a Person that is not a Permitted Transferee
      is
      the record holder of an interest in such entity. The Transferee understands
      that
      such tax will not be imposed for any period with respect to which the record
      holder furnishes to the pass-through entity an affidavit that such record holder
      is a Permitted Transferee and the pass-through entity does not have actual
      knowledge that such affidavit is false. (For this purpose, a “pass-through
      entity” includes a regulated investment company, a real estate investment trust
      or common trust fund, a partnership, trust or estate, and certain cooperatives
      and, except as may be provided in Treasury Regulations, persons holding
      interests in pass-through entities as a nominee for another
      Person.)

    

    7. The
      Transferee has reviewed the provisions of Section 5.02(c) of the Agreement
      (attached hereto as Exhibit 2 and incorporated herein by reference) and
      understands the legal consequences of the acquisition of an Ownership Interest
      in the Certificate including, without limitation, the restrictions on subsequent
      Transfers and the provisions regarding voiding the Transfer and mandatory sales.
      The Transferee expressly agrees to be bound by and to abide by the provisions
      of
      Section 5.02(c) of the Agreement and the restrictions noted on the face of
      the
      Certificate. The Transferee understands and agrees that any breach of any of
      the
      representations included herein shall render the Transfer to the Transferee
      contemplated hereby null and void.

     

    8. The
      Transferee agrees to require a Transfer Affidavit from any Person to whom the
      Transferee attempts to Transfer its Ownership Interest in the Certificate,
      and
      in connection with any Transfer by a Person for whom the Transferee is acting
      as
      nominee, trustee or agent, and the Transferee will not Transfer its Ownership
      Interest or cause any Ownership Interest to be Transferred to any Person that
      the Transferee knows is not a Permitted Transferee. In connection with any
      such
      Transfer by the Transferee, the Transferee agrees to deliver to the Trustee
      a
      certificate substantially in the form set forth as Exhibit G to the Agreement
      (a
“Transferor
      Certificate”)
      to the
      effect that such Transferee has no actual knowledge that the Person to which
      the
      Transfer is to be made is not a Permitted Transferee.

     

    9. The
      Transferee does not have the intention to impede the assessment or collection
      of
      any tax legally required to be paid with respect to the
      Certificate.

     

    10. The
      Transferee’s taxpayer identification number is             .

     

    
      
        
        

      

      
        F-2

        
          

        

      

       

    

     

    11. The
      Transferee is a U.S. Person as defined in Code Section 7701(a)(30).

     

    12. The
      Transferee is aware that the Certificate may be a “noneconomic residual
      interest” within the meaning of proposed Treasury regulations promulgated
      pursuant to the Code and that the transferor of a noneconomic residual interest
      will remain liable for any taxes due with respect to the income on such residual
      interest, unless no significant purpose of the transfer was to impede the
      assessment or collection of tax.

     

    13. The
      Transferee is not an employee benefit plan that is subject to ERISA or a plan
      or
      arrangement that is subject to Section 4975 of the Code, and the Transferee
      is
      not acting on behalf of such a plan or arrangement or using the assets of any
      such plan or arrangement to effect the transfer. 

     

    14. The
      Transferee has provided financial statements or other financial information
      requested by the transferor in connection with the transfer of the Class R
      Certificates to permit the transferor to assess the financial capability of
      the
      Transferee to pay any such taxes.

    *
      *
      *

    IN
      WITNESS WHEREOF, the Transferee has caused this instrument to be executed on
      its
      behalf, pursuant to authority of its Board of Directors, by its duly authorized
      officer and its corporate seal to be hereunto affixed, duly attested, this
          
      day
      of
                  ,
      20  .

     

    _______________________________

    PRINT
      NAME OF TRANSFEREE

    By:
      ____________________________

    Name:
      _________________________

    Title:
      __________________________

     

    [Corporate
      Seal]

     

    ATTEST:

     

    
      _______________________________

    

    [Assistant]
      Secretary

     

    Personally
      appeared before me the above-named             
      ,
      known
      or proved to me to be the same person who executed the foregoing instrument
      and
      to be the                     
      of the
      Transferee, and acknowledged that he executed the same as his free act and
      deed
      and the free act and deed of the Transferee.

     

    Subscribed
      and sworn before me this     
      day
      of
        
      ,
      20  .

     

     

    
      _______________________________

    

    NOTARY
      PUBLIC

     

    My
      Commission expires the     
      day of
                ,
      20  .

    
      
        
        

      

      
        F-3

        
          

        

      

       

    

    

    EXHIBIT
      1

    to
      EXHIBIT F

     

    Certain
      Definitions

     

    “Ownership
      Interest”:
      As to
      any Class R Certificate, any ownership interest in such Certificate, including
      any interest in such Certificate as the Holder thereof and any other interest
      therein, whether direct or indirect, legal or beneficial.

     

    “Permitted
      Transferee”:
      Any
      person other than (a) the United States, any State or political subdivision
      thereof, or any agency or instrumentality of any of the foregoing, (b) a foreign
      government, International Organization or any agency or instrumentality of
      either of the foregoing, (c) an organization (except certain farmers’
cooperatives described in section 521 of the Code) which is exempt from tax
      imposed by Chapter 1 of the Code (including the tax imposed by section 511
      of
      the Code on unrelated business taxable income) on any excess inclusions (as
      defined in section 860E(c)(l) of the Code) with respect to any Class R
      Certificate, (d) rural electric and telephone cooperatives described in section
      1381(a)(2)(C) of the Code, (e) a Person that is not (i) a citizen or
      resident of the United States, (ii) a corporation or partnership (or other
      entity properly treated as a corporation or partnership for U.S. federal income
      tax purposes) created or organized in or under the laws of the United States
      or
      any political subdivision thereof, (iii) an estate whose income from sources
      without the United States is includible in gross income for United States
      federal income tax purposes regardless of its connection with the conduct of
      a
      trade or business within the United States, or (iv) a trust if a court within
      the United States is able to exercise primary supervision over the
      administration of the trust and one or more United States Persons have authority
      to control all substantial decisions of the trust, unless such Person listed
      in
      clause (i), (ii), (iii) or (iv) above has furnished the transferor and the
      Trustee with a duly completed Internal Revenue Service Form W-8ECI and (f)
      any
      other Person so designated by the Depositor based upon an Opinion of Counsel
      that the Transfer of an Ownership Interest in a Class R Certificate to such
      Person may cause any REMIC hereunder to fail to qualify as one or more REMICs
      at
      any time that the Certificates are outstanding. The terms “United States,”
“State” and “International Organization” shall have the meanings set forth in
      section 7701 of the Code or successor provisions. A corporation will not be
      treated as an instrumentality of the United States or of any State or political
      subdivision thereof for these purposes if all of its activities are subject
      to
      tax and, with the exception of the Federal Home Loan Mortgage Corporation,
      a
      majority of its board of directors is not selected by such government unit.
      

    

    “Person”:
      Any
      individual, corporation, partnership, joint venture, bank, joint stock company,
      trust (including any beneficiary thereof), unincorporated organization or
      government or any agency or political subdivision thereof.

    

    “Transfer”:
      Any
      direct or indirect transfer or sale of any Ownership Interest in a Certificate,
      including the acquisition of a Certificate by the Depositor.

     

    “Transferee”:
      Any
      Person who is acquiring by Transfer any Ownership Interest in a
      Certificate.

     

    
      
        
        

      

      
        F-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2

    to
      EXHIBIT F

     

    Section
      5.02(c) of the Agreement

    

    (c) Each
      Person who has or who acquires any Ownership Interest in a Class R Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Class R Certificate are expressly
      subject to the following provisions:

     

    (i)
       Each
      Person holding or acquiring any Ownership Interest in a Class R Certificate
      shall be a Permitted Transferee and shall promptly notify the Trustee of any
      change or impending change in its status as a Permitted Transferee.

     

    (ii)
       No
      Ownership Interest in a Class R Certificate may be registered on the Closing
      Date or thereafter transferred, and the Trustee shall not register the Transfer
      of any Class R Certificate unless, in addition to the certificates required
      to
      be delivered to the Trustee under subparagraph (b) above, the Trustee shall
      have
      been furnished with an affidavit (a “Transfer
      Affidavit”)
      of the
      initial owner or the proposed transferee in the form attached hereto as Exhibit
      F.

     

    (iii) Each
      Person holding or acquiring any Ownership Interest in a Class R Certificate
      shall agree (A) to obtain a Transfer Affidavit from any other Person to whom
      such Person attempts to Transfer its Ownership Interest in a Class R
      Certificate, (B) to obtain a Transfer Affidavit from any Person for whom such
      Person is acting as nominee, trustee or agent in connection with any Transfer
      of
      a Class R Certificate and (C) not to Transfer its Ownership Interest in a Class
      R Certificate or to cause the Transfer of an Ownership Interest in a Class
      R
      Certificate to any other Person if it has actual knowledge that such Person
      is
      not a Permitted Transferee.

     

    (iv) Any
      attempted or purported Transfer of any Ownership Interest in a Class R
      Certificate in violation of the provisions of this Section 5.02(c) shall be
      absolutely null and void and shall vest no rights in the purported Transferee.
      If any purported transferee shall become a Holder of a Class R Certificate
      in
      violation of the provisions of this Section 5.02(c), then the last preceding
      Permitted Transferee shall be restored to all rights as Holder thereof
      retroactive to the date of registration of Transfer of such Class R Certificate.
      The Trustee shall be under no liability to any Person for any registration
      of
      Transfer of a Class R Certificate that is in fact not permitted by this Section
      or for making any payments due on such Certificate to the Holder thereof or
      taking any other action with respect to such Holder under the provisions of
      this
      Agreement so long as the Transfer was registered after receipt of the related
      Transfer Affidavit, Transferor Certificate and either the Rule 144A Letter
      or
      the Investment Letter. The Trustee shall be entitled but not obligated to
      recover from any Holder of a Class R Certificate that was in fact not a
      Permitted Transferee at the time it became a Holder or, at such subsequent
      time
      as it became other than a Permitted Transferee, all payments made on such Class
      R Certificate at and after either such time. Any such payments so recovered
      by
      the Trustee shall be paid and delivered by the Trustee to the last preceding
      Permitted Transferee of such Certificate.

     

    (v) The
      Depositor shall use its best efforts to make available, upon receipt of written
      request from the Trustee, all information necessary to compute any tax imposed
      under Section 860E(e) of the Code as a result of a Transfer of an Ownership
      Interest in a Class R Certificate to any Holder who is not a Permitted
      Transferee.

     

    
      
        
        

      

      
        F-5

        
          

        

      

       

    

     

    The
      restrictions on Transfers of a Class R Certificate set forth in this Section
      5.02(c) shall cease to apply (and the applicable portions of the legend on
      a
      Class R Certificate may be deleted) with respect to Transfers occurring after
      delivery to the Trustee of an Opinion of Counsel, which Opinion of Counsel
      shall
      not be an expense of the Trust Fund, the Trustee, the Sellers or the Servicer,
      to the effect that the elimination of such restrictions will not cause the
      Trust
      Fund hereunder to fail to qualify as one or more REMICs at any time that the
      Certificates are outstanding or result in the imposition of any tax on the
      Trust
      Fund, a Certificateholder or another Person. Each Person holding or acquiring
      any Ownership Interest in a Class R Certificate hereby consents to any amendment
      of this Agreement which, based on an Opinion of Counsel furnished to the
      Trustee, is reasonably necessary (A) to ensure that the record ownership of,
      or
      any beneficial interest in, a Class R Certificate is not transferred, directly
      or indirectly, to a Person that is not a Permitted Transferee and (B) to provide
      for a means to compel the Transfer of a Class R Certificate which is held by
      a
      Person that is not a Permitted Transferee to a Holder that is a Permitted
      Transferee.

     

    
      
        
        

      

      
        F-6

        
          

        

      

       

    

    EXHIBIT
      G

     

    Form
      of
      Transferor Certificate

     

    _____________________

    Date

     

    Popular
      ABS, Inc.

    103
      Springer Building

    3411
      Silverside Road

    Wilmington,
      Delaware 19810

    Attention:
      _______________

     

    JPMorgan
      Chase Bank, N.A.

    _________________________

    _________________________

    Attention:
      ____________________________

            
________________________

          

    Re: Popular
      ABS, Inc. Mortgage Pass-Through Certificates, Series 2006-D, Class  
, 

     

    Ladies
      and Gentlemen:

     

    In
      connection with our disposition of the above Certificates we certify that (a)
      we
      understand that the Certificates have not been registered under the Securities
      Act of 1933, as amended (the “Act”),
      and
      are being disposed by us in a transaction that is exempt from the registration
      requirements of the Act, (b) we have not offered or sold any Certificates to,
      or
      solicited offers to buy any Certificates from, any person, or otherwise
      approached or negotiated with any person with respect thereto, in a manner
      that
      would be deemed, or taken any other action which would result in, a violation
      of
      Section 5 of the Act and (c) to the extent we are disposing of a Class R
      Certificate, we have no knowledge the Transferee is not a Permitted
      Transferee.

     

    Very
      truly yours,

     

    ______________________________

    Print
      Name of Transferor

     

    By:___________________________

    Authorized
      Officer

     

    
      
        
        

      

      
        G-1

        
          

        

      

       

    

    EXHIBIT
      H

     

    Form
      of
      Investment Letter (Non Rule 144A)

     

    ____________________________________

    Date

     

    Popular
      ABS, Inc.

    103
      Springer Building

    3411
      Silverside Road

    Wilmington,
      Delaware 19810

    Attention:
      _________________________

    _____________________________

    _________________________________

     

    JPMorgan
      Chase Bank, N.A.

    _____________________________

    _____________________________

     

    Attention:
      ________________________  

                  
_____________________

     

    Re: Popular
      ABS, Inc. Mortgage Pass-Through Certificates, Series
      2006-D, Class 

     

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that (a)
      we
      understand that the Certificates are not being registered under the Securities
      Act of 1933, as amended (the “Act”),
      or
      any state securities laws and are being transferred to us in a transaction
      that
      is exempt from the registration requirements of the Act and any such laws,
      (b)
      we are an “accredited investor,”
      as defined in Regulation D under the Act, and have such knowledge and experience
      in financial and business matters that we are capable of evaluating the merits
      and risks of investments in the Certificates, (c) we have had the opportunity
      to
      ask questions of and receive answers from the Depositor concerning the purchase
      of the Certificates and all matters relating thereto or any additional
      information deemed necessary to our decision to purchase the Certificates,
      (d)
      either (i) we are not an employee benefit plan that is subject to the Employee
      Retirement Income Security Act of 1974, as amended, or a plan or arrangement
      that is subject to Section 4975 of the Internal Revenue Code of 1986, as
      amended, nor are we acting on behalf of any such plan or arrangement, nor are
      we
      using the assets of any such plan or arrangement to effect such acquisition,
      or
      (ii) we are an insurance company and are purchasing Certificates, other than
      the
      Class R Certificates, that have been the subject of an ERISA Qualifying
      Underwriting, we are purchasing the Certificates with funds contained in an
      “insurance company general account”, as defined in Prohibited Transaction Class
      Exemption 95-60 (“PTCE 95-60”) and the purchasing and holding of such
      Certificates are covered by Sections I and III of PTCE 95-60, (e) we are
      acquiring the Certificates for investment for our own account and not with
      a
      view to any distribution of such Certificates (but without prejudice to our
      right at all times to sell or otherwise dispose of the Certificates in
      accordance with clause (g) below), (f) 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,
      or
      taken any other action which would result in a violation of Section 5 of the
      Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates
      unless (1) such sale, transfer or other disposition is made pursuant to an
      effective registration statement under the Act or is exempt from such
      registration requirements, and if requested, we will at our expense provide
      an
      opinion of counsel satisfactory to the addressees of this Certificate that
      such
      sale, transfer or other disposition may be made pursuant to an exemption from
      the Act, (2) the purchaser or transferee of such Certificate has executed and
      delivered to you a certificate to substantially the same effect as this
      certificate, and (3) the purchaser or transferee has otherwise complied with
      any
      conditions for transfer set forth in the Pooling and Servicing
      Agreement.

     

    
      Very
        truly yours,

       

      ______________________________

      Print
        Name of Transferor

       

      By:___________________________

      Authorized
        Officer

      

        
          
            
            

          

          
            H-1

            
              

            

          

           

        

      

    

     

    EXHIBIT
      I

     

    Form
      of
      Rule 144A Letter

     

    
      ____________________________________

      Date

       

      Popular
        ABS, Inc.

      103
        Springer Building

      3411
        Silverside Road

      Wilmington,
        Delaware 19810

      Attention:
        _________________________

      _____________________________

      _________________________________

       

      JPMorgan
        Chase Bank, N.A.

      _____________________________

      _____________________________

       

      Attention:
        ________________________  

                    
_____________________

    

     

     

    Re: Popular
      ABS, Inc. Mortgage Pass-Through Certificates, Series 2006-D, Class  , 

    

    Ladies
      and Gentlemen:

     

    In
      connection with our acquisition of the above Certificates we certify that (a)
      we
      understand that the Certificates are not being registered under the Securities
      Act of 1933, as amended (the “Act”),
      or
      any state securities laws and are being transferred to us in a transaction
      that
      is exempt from the registration requirements of the Act and any such laws,
      (b)
      we have such knowledge and experience in financial and business matters that
      we
      are capable of evaluating the merits and risks of investments in the
      Certificates, (c) we have had the opportunity to ask questions of and receive
      answers from the Depositor concerning the purchase of the Certificates and
      all
      matters relating thereto or any additional information deemed necessary to
      our
      decision to purchase the Certificates, (d) either (i) we are not an employee
      benefit plan that is subject to the Employee Retirement Income Security Act
      of
      1974, as amended, or a plan or arrangement that is subject to Section 4975
      of
      the Internal Revenue Code of 1986, as amended, nor are we acting on behalf
      of
      any such plan or arrangement, nor are we using the assets of any such plan
      or
      arrangement to effect such acquisition, or (ii) we are an insurance company
      and
      are purchasing Certificates, other than the Class R Certificates, that have
      been
      the subject of an ERISA Qualifying Underwriting, we are purchasing the
      Certificates with funds contained in an “insurance company general account”, as
      defined in Prohibited Transaction Class Exemption 95-60 (“PTCE 95-60”) and the
      purchasing and holding of such Certificates are covered by Sections I and III
      of
      PTCE 95-60, (e) we have not, nor has anyone acting on our behalf offered,
      transferred, pledged, sold or otherwise disposed of the Certificates, any
      interest in the Certificates or any other similar security to, or solicited
      any
      offer to buy or accept a transfer, pledge or other disposition of the
      Certificates, any interest in the Certificates or any other similar security
      from, or otherwise approached or negotiated with respect to the Certificates,
      any interest in the Certificates or any other similar security with, any person
      in any manner, or made any general solicitation by means of general advertising
      or in any other manner, or taken any other action, that would constitute a
      distribution of the Certificates under the Act or that would render the
      disposition of the Certificates a violation of Section 5 of the Act or require
      registration pursuant thereto, nor will act, nor has authorized or will
      authorize any person to act, in such manner with respect to the Certificates,
      and (f) we are a “qualified institutional buyer”
as
      that term is defined in Rule 144A under the Act and have completed either of
      the
      forms of certification to that effect attached hereto as Annex 1 or Annex 2.
      We
      are aware that the sale to us is being made in reliance on Rule 144A. We are
      acquiring the Certificates for our own account or for resale pursuant to Rule
      144A and further, understand that such Certificates may be resold, pledged
      or
      transferred only (i) to a person reasonably believed to be a qualified
      institutional buyer that purchases for its own account or for the account of
      a
      qualified institutional buyer to whom notice is given that the resale, pledge
      or
      transfer is being made in reliance on Rule 144A, or (ii) pursuant to another
      exemption from registration under the Act.

     

    
      Very
        truly yours,

       

      ______________________________

      Print
        Name of Transferor

       

      By:___________________________

      Authorized
        Officer

    

    
      
        
        

      

      
        I-1

        
          

        

      

       

    

    ANNEX
      1 TO EXHIBIT I

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees Other Than Registered Investment Companies]

     

    The
      undersigned (the “Buyer”)
      hereby
      certifies as follows to the parties listed in the Rule 144A Transferee
      Certificate to which this certification relates with respect to the Certificates
      described therein:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer,
      Senior Vice President or other executive officer of the Buyer.

     

    2. In
      connection with purchases by the Buyer, the Buyer is a “qualified institutional buyer”
as
      that term is defined in Rule 144A under the Securities Act of 1933, as amended
      (“Rule
      144A”)
      because (i) the Buyer owned and/or invested on a discretionary basis either
      at
      least $100,000,000 in securities or, if Buyer is a dealer, Buyer must own and/or
      invest on a discretionary basis at least $10,000,000 in securities (except
      for
      the excluded securities referred to below) as of the end of the Buyer’s most
      recent fiscal year (such amount being calculated in accordance with Rule 144A
      and (ii) the Buyer satisfies the criteria in the category marked
      below.

     

    
      	 	
              __

            	
              Corporation,
                etc.
                The Buyer is a corporation (other than a bank, savings and loan
                association or similar institution), Massachusetts or similar business
                trust, partnership, or charitable organization described in Section
                501(c)(3) of the Internal Revenue Code of 1986, as
                amended.

            

    

     

    
      	 	
              __

            	
              Bank.
                The Buyer (a) is a national bank or banking institution organized
                under
                the laws of any State, territory or the District of Columbia, the
                business
                of which is substantially confined to banking and is supervised by
                the
                State or territorial banking commission or similar official or is
                a
                foreign bank or equivalent institution, and (b) has an audited net
                worth
                of at least $25,000,000 as demonstrated in its latest annual financial
                statements, a
                copy of which is attached hereto.

            

    

     

    
      	 	
              __

            	
              Savings
                and Loan.
                The Buyer (a) is a savings and loan association, building and loan
                association, cooperative bank, homestead association or similar
                institution, which is supervised and examined by a State or Federal
                authority having supervision over any such institutions or is a foreign
                savings and loan association or equivalent institution and (b) has an
                audited net worth of at least $25,000,000 as demonstrated in its
                latest
                annual financial statements, a
                copy of which is attached hereto.

            

    

     

    
      	 	
              __

            	
              Broker-dealer.
                The Buyer is a dealer registered pursuant to Section 15 of the Securities
                Exchange Act of 1934.

            

    

     

    
      	 	
              __

            	
               Insurance
                Company.
                The Buyer is an insurance company whose primary and predominant business
                activity is the writing of insurance or the reinsuring of risks
                underwritten by insurance companies and which is subject to supervision
                by
                the insurance commissioner or a similar official or agency of a State,
                territory or the District of
                Columbia.

            

    

     

    
      	 	
              __

            	
              State
                or Local Plan.
                The Buyer is a plan established and maintained by a State, its political
                subdivisions, or any agency or instrumentality of the State or its
                political subdivisions, for the benefit of its
                employees.

            

    

     

    
      	 	
              __

            	
              ERISA
                Plan.
                The Buyer is an employee benefit plan within the meaning of Title
                I of the
                Employee Retirement Income Security Act of
                1974.

            

    

     

    
      
        
        

      

      
        I-2

        
          

        

      

       

    

     

    
      	 	
              __

            	
              Investment
                Advisor.
                The Buyer is an investment advisor registered under the Investment
                Advisors Act of 1940.

            

    

     

    
      	 	
              __

            	
              Small
                Business Investment Company.
                Buyer is a small business investment company licensed by the U.S.
                Small
                Business Administration under Section 301(c) or (d) of the Small
                Business Investment Act of 1958.

            

    

     

    
      	 	
              __

            	
              Business
                Development Company.
                Buyer is a business development company as defined in Section 202(a)
                (22) of the Investment Advisors Act of
                1940.

            

    

     

    3. The
      term
“securities”
as
      used
      herein does
      not include
      (i)
      securities of issuers that are affiliated with the Buyer, (ii) securities that
      are part of an unsold allotment to or subscription by the Buyer, if the Buyer
      is
      a dealer, (iii) securities issued or guaranteed by the U.S. or any
      instrumentality thereof, (iv) bank deposit notes and certificates of deposit,
      (v) loan participations, (vi) repurchase agreements, (vii) securities owned
      but
      subject to a repurchase agreement and (viii) currency, interest rate and
      commodity swaps.

     

    4. For
      purposes of determining the aggregate amount of securities owned and/or invested
      on a discretionary basis by the Buyer, the Buyer used the cost of such
      securities to the Buyer and did not include any of the securities referred
      to in
      the preceding paragraph, except (i) where the Buyer reports its securities
      holdings in its financial statements on the basis of their market value, and
      (ii) no current information with respect to the cost of those securities has
      been published. If clause (ii) in the preceding sentence applies, the securities
      may be valued at market. Further, in determining such aggregate amount, the
      Buyer may have included securities owned by subsidiaries of the Buyer, but
      only
      if such subsidiaries are consolidated with the Buyer in its financial statements
      prepared in accordance with generally accepted accounting principles and if
      the
      investments of such subsidiaries are managed under the Buyer’s direction.
      However, such securities were not included if the Buyer is a majority-owned,
      consolidated subsidiary of another enterprise and the Buyer is not itself a
      reporting company under the Securities Exchange Act of 1934, as
      amended.

     

    5. The
      Buyer
      acknowledges that it is familiar with Rule 144A and understands that the seller
      to it and other parties related to the Certificates are relying and will
      continue to rely on the statements made herein because one or more sales to
      the
      Buyer may be in reliance on Rule 144A.

     

    6. Until
      the
      date of purchase of the Rule 144A Securities, the Buyer will notify each of
      the
      parties to which this certification is made of any changes in the information
      and conclusions herein. Until such notice is given, the Buyer’s purchase of the
      Certificates will constitute a reaffirmation of this certification as of the
      date of such purchase. In addition, if the Buyer is a bank or savings and loan
      is provided above, the Buyer agrees that it will furnish to such parties updated
      annual financial statements promptly after they become available.

     

     

                                          
      _____________________________

    Print
      Name of Buyer

     

    By:
      __________________________

    Name:

    Title:

     

    Date:
      ________________________ 

     

    
      
        
        

      

      
        I-3

        
          

        

      

       

    

    ANNEX
      2 TO EXHIBIT I

     

    QUALIFIED
      INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

     

    [For
      Transferees That are Registered Investment Companies]

     

    The
      undersigned (the “Buyer”)
      hereby
      certifies as follows to the parties listed in the Rule 144A Transferee
      Certificate to which this certification relates with respect to the Certificates
      described therein:

     

    1. As
      indicated below, the undersigned is the President, Chief Financial Officer
      or
      Senior Vice President of the Buyer or, if the Buyer is a “qualified institutional buyer”
as
      that term is defined in Rule 144A under the Securities Act of 1933, as amended
      (“Rule
      144A”)
      because Buyer is part of a Family of Investment Companies (as defined below),
      is
      such an officer of the Adviser.

     

    2. In
      connection with purchases by Buyer, the Buyer is a “qualified institutional buyer”
as
      defined in SEC Rule 144A because (i) the Buyer is an investment company
      registered under the Investment Company Act of 1940, as amended and (ii) as
      marked below, the Buyer alone, or the Buyer’s Family of Investment Companies,
      owned at least $100,000,000 in securities (other than the excluded securities
      referred to below) as of the end of the Buyer’s most recent fiscal year. For
      purposes of determining the amount of securities owned by the Buyer or the
      Buyer’s Family of Investment Companies, the cost of such securities was used,
      except (i) where the Buyer or the Buyer’s Family of Investment Companies reports
      its securities holdings in its financial statements on the basis of their market
      value, and (ii) no current information with respect to the cost of those
      securities has been published. If clause (ii) in the preceding sentence applies,
      the securities may be valued at market.

     

    
      	 	
              __

            	
              The
                Buyer owned $            
                in
                securities (other than the excluded securities referred to below)
                as of
                the end of the Buyer’s most recent fiscal year (such amount being
                calculated in accordance with Rule
                144A).

            

    

     

    
      	 	
              __

            	
              The
                Buyer is part of a Family of Investment Companies which owned in
                the
                aggregate $        
                in
                securities (other than the excluded securities referred to below)
                as of
                the end of the Buyer’s most recent fiscal year (such amount being
                calculated in accordance with Rule
                144A).

            

    

     

    3. The
      term
“Family
      of Investment Companies”
as
      used
      herein means two or more registered investment companies (or series thereof)
      that have the same investment adviser or investment advisers that are affiliated
      (by virtue of being majority owned subsidiaries of the same parent or because
      one investment adviser is a majority owned subsidiary of the
      other).

     

    4. The
      term
“securities”
as
      used
      herein does not include (i) securities of issuers that are affiliated with
      the
      Buyer or are part of the Buyer’s Family of Investment Companies, (ii) securities
      issued or guaranteed by the U.S. or any instrumentality thereof, (iii) bank
      deposit notes and certificates of deposit, (iv) loan participations, (v)
      repurchase agreements, (vi) securities owned but subject to a repurchase
      agreement and (vii) currency, interest rate and commodity swaps.

     

    5. The
      Buyer
      is familiar with Rule 144A and understands that the parties listed in the Rule
      144A Transferee Certificate to which this certification relates are relying
      and
      will continue to rely on the statements made herein because one or more sales
      to
      the Buyer will be in reliance on Rule 144A. In addition, the Buyer will only
      purchase for the Buyer’s own account.

     

    6. Until
      the
      date of purchase of the Certificates, the undersigned will notify the parties
      listed in the Rule 144A Transferee Certificate to which this certification
      relates of any changes in the information and conclusions herein. Until such
      notice is given, the Buyer’s purchase of the Certificates will constitute a
      reaffirmation of this certification by the undersigned as of the date of such
      purchase.

     

    
       

       

                                            
        _____________________________

                                                                                                                        Print
        Name of Buyer or Adviser

       

      By:
        __________________________

      Name:

      Title:

    

     

    IF
      AN
      ADVISER:

     

    
                                            
        _____________________________

                                                                                                                            
        Print Name of Buyer

    

    

     

    Date:
      _________________________

     

    

     

    
      
        
        

      

      
        I-4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      J

     

    Form
      of
      Request for Release of Documents

     

    Popular
      ABS, Inc.

    Mortgage
      Pass-Through Certificates

    Series
      2006-D

     

    
      	
              To:
                

            	 ___________________________	
              Attn:
                _____________________________

            
	 	 	 _____________________________

    

    

     

    Re:      
      Pooling
      and Servicing Agreement among Popular ABS, Inc., as Depositor, Equity One,
      Inc.,
      a Delaware corporation, Equity One, Inc., a Minnesota corporation, Equity One
      Consumer Loan Company, Inc., a New Hampshire corporation, Equity One,
      Incorporated and Popular Financial Services, LLC, as Sellers, Equity One, Inc.,
      a Delaware corporation, as Servicer, and JPMorgan Chase Bank, N.A.,
      as
      Trustee,
      Mortgage Pass-Through Certificates, Series 2006-D 

     

    Ladies
      and Gentlemen:

     

    In
      connection with the administration of the Loans held by you as Trustee for
      the
      Popular ABS, Inc. Mortgage Pass-Through Certificates, Series 2006-D, we request
      the release of the Mortgage File for the Loan(s) described below, for the reason
      indicated.

     

    
      	
              FT
                Account #:

            	
              Pool
                #:

            
	 	 
	
              Mortgagor’s
                Name, Address and Zip Code:

            	 
	 	 
	
              Loan
                Number:

            	 
	 	 
	
              Reason
                for Requesting Documents (check one)

            	 
	 	 

    

    
      	 	
              1.

            	
              Loan
                paid in full (_______________________ hereby certifies that all amounts
                have been received.)

            

    

     

    
      	 	
              2.

            	
              Loan
                Liquidated (___________________________ hereby certifies that all
                proceeds
                of foreclosure, insurance, or other liquidation have been finally
                received.)

            

    

     

    
      	 	
              3.

            	
              Loan
                in Foreclosure.

            

    

     

    
      	 	
              4.

            	
              Other
                (explain):

            

    

     

    The
      Documents and any proceeds thereof, including any proceeds of proceeds, coming
      into the possession or control of the Servicer shall be deposited into the
      Certificate Account, and the Servicer shall keep the Documents and any proceeds
      separate and distinct from all other property in the Servicer’s possession,
      custody or control.

     

    
      
        
        

      

      
        J-1

        
          

        

      

       

    

    If
      item 1
      or 2 above is checked, and if all or part of the Mortgage File was previously
      released to us, please release to us our previous receipt on file with you,
      as
      well as any additional documents in your possession relating to the
      above-specified Loan. If item 3 or 4 is checked, upon return of all of the
      above
      documents to you as Trustee, please acknowledge your receipt by signing in
      the
      space indicated below, and returning this form.

    _______________________

    __________________________

    __________________________

     

    
      	
              By:
                ____________________________

            	
            
	Name:
              __________________________	 
	Title:
              ___________________________	 
	
              Date:
                ___________________________

            	 

    

     

    TRUSTEE
      CONSENT TO RELEASE AND

    ACKNOWLEDGEMENT
      OF RECEIPT

     

    
      	
              By:
                ____________________________

            	
            
	Name:
              __________________________	 
	Title:
              ___________________________	 
	
              Date:
                ___________________________

            	 

    

    
      
        
        

      

      
        J-2

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      K

     

    Form
      of
      Reporting Document

     

    BLOOMBERG
      FILE LAYOUT

     

    
      	
              Field
                Name

            	 	
              Length

            	 	
              Start

            	 	
              End

            	 	
              Format/Description

            
	
              Loan
                Number

            	 	
              10

            	 	 	
              1

            	 	 	
              10

            	 	 	
              X(10)
                Last 10 digits of loan ID

            
	
              OMCR

            	 	
              3

            	 	 	
              11

            	 	 	
              13

            	 	 	
              X(3)
                For commercial mtg only

            
	
              Property
                Type Code

            	 	
              1

            	 	 	
              14

            	 	 	
              14

            	 	 	
              9

            
	
              Filler

            	 	
              4

            	 	 	
              15

            	 	 	
              18

            	 	 	
              X(4)

            
	
              Loan
                Purpose Code

            	 	
              1

            	 	 	
              19

            	 	 	
              19

            	 	 	
              9

            
	
              Filler

            	 	
              2

            	 	 	
              20

            	 	 	
              21

            	 	 	
              X(2)

            
	
              Loan
                Type Code

            	 	
              1

            	 	
               

            	
              22

            	 	 	
              22

            	 	 	
              9

            
	
              Filler

            	 	
              2

            	 	
               

            	
              23

            	 	 	
              24

            	 	 	
              X(2)

            
	
              Current
                Interest Rate

            	 	
              6

            	 	 	
              25

            	 	 	
              30

            	 	 	
              99.999

            
	
              Filler

            	 	
              4

            	 	 	
              31

            	 	 	
              34

            	 	 	
              X(4)

            
	
              Original
                Loan Balance

            	 	
              11

            	 	 	
              35

            	 	 	
              45

            	 	 	
              9(8).99

            
	
              Ending
                Sch Loan Bal

            	 	
              11

            	 	 	
              46

            	 	 	
              56

            	 	 	
              9(5).99

            
	
              Filler

            	 	
              10

            	 	 	
              57

            	 	 	
              66

            	 	 	
              X(10)

            
	
              First
                Payment Date

            	 	
              4

            	 	 	
              67

            	 	 	
              70

            	 	 	
              MMYY

            
	
              Maturity
                Date

            	 	
              4

            	 	 	
              71

            	 	 	
              74

            	 	 	
              MMYY

            
	
              Curr
                P&I Payment

            	 	
              8

            	 	 	
              75

            	 	 	
              82

            	 	 	
              9(5).99

            
	
              Servicing
                Fee Rate

            	 	
              5

            	 	 	
              83

            	 	 	
              87

            	 	 	
              9.999

            
	
              Orig
                Stated Term

            	 	
              3

            	 	 	
              88

            	 	 	
              90

            	 	 	
              999

            
	
              Filler

            	 	
              1

            	 	 	
              91

            	 	 	
              91

            	 	 	
              X

            
	
              Loan
                Status Code

            	 	
              2

            	 	 	
              92

            	 	 	
              93

            	 	 	
              99

            
	
              Filler

            	 	
              2

            	 	
               

            	
              94

            	 	 	
              94

            	 	 	
              X

            
	
              Orig
                LTV Ratio

            	 	
              5

            	 	 	
              95

            	 	 	
              99

            	 	 	
              999.9

            
	
              Filler

            	 	
              1

            	 	 	
              100

            	 	 	
              100

            	 	 	
              X

            
	
              State
                Code

            	 	
              2

            	 	 	
              101

            	 	 	
              102

            	 	 	
              XX

            
	
              Filler

            	 	
              9

            	 	 	
              103

            	 	 	
              111

            	 	 	
              X(9)

            
	
              Paid
                Thru Date

            	 	
              6

            	 	 	
              112

            	 	 	
              117

            	 	 	
              MMYYDD

            
	
              Filler

            	 	
              1

            	 	 	
              118

            	 	 	
              118

            	 	 	
              X

            
	
              Adjustable
                Rate Code

            	 	
              1

            	 	 	
              119

            	 	 	
              119

            	 	 	
              X A
                =ARM, Blank =Fixed

            
	
              Filler

            	 	
              11

            	 	 	
              120

            	 	 	
              130

            	 	 	
              X(11)

            
	
              Balloon
                Flag

            	 	
              1

            	 	 	
              131

            	 	 	
              131

            	 	 	
              X B
                =
                Balloon, Blank - Not

            
	
              Filler

            	 	
              1

            	 	 	
              132

            	 	 	
              132

            	 	 	
              X

            
	
              Latest
                Appraisal Value

            	 	
              11

            	 	 	
              133

            	
               

            	 	
              143

            	 	 	
              9(8).99

            
	
              Filler

            	 	
              16

            	 	 	
              144

            	 	 	
              159

            	 	 	
              X(16)

            
	
              Pymt
                Frequency Indicator

            	 	
              1

            	 	 	
              160

            	
               

            	 	
              160

            	 	 	
              9

            
	
              Filter

            	 	
              18

            	 	 	
              161

            	 	 	
              178

            	 	 	
              X(18)

            
	
              Total
                Pymt

            	 	
              8

            	 	 	
              179

            	 	 	
              186

            	 	 	
              9(5).99

            
	
              Filler

            	 	
              5

            	 	 	
              187

            	 	 	
              191

            	 	 	
              X(5)

            
	
              Interest
                Collection Code

            	 	
              1

            	 	 	
              192

            	 	 	
              192

            	 	 	
              9

            
	
              Filler

            	 	
              1

            	 	 	
              193

            	 	 	
              193

            	 	 	
              X

            
	
              Payment
                Type Code

            	 	
              1

            	 	 	
              194

            	 	 	
              194

            	 	 	
              9

            
	
              Filler

            	 	
              6

            	 	 	
              195

            	 	 	
              200

            	 	 	
              X(6)

            
	
              Orig
                Note Rate

            	 	
              6

            	 	 	
              201

            	 	 	
              206

            	 	 	
              99.999

            
	
              Filler

            	 	
              1

            	 	 	
              207

            	 	 	
              207

            	 	 	
              X

            
	
              Index
                Type Code

            	 	
              1

            	 	 	
              208

            	 	 	
              208

            	 	 	
              9

            
	
              Filler

            	 	
              2

            	 	 	
              209

            	 	 	
              210

            	 	 	
              X

            
	
              Gross
                Margin

            	 	
              5

            	 	 	
              211

            	 	 	
              215

            	 	 	
              9.999

            

    

     

    
      
        
        

      

      
        K-1

        
          

        

      

       

    

     

    
      
        	
                Field
                  Name

              	 	
                Length

              	 	
                Start

              	 	
                End

              	 	Format/Descreption
	
                Filler

              	 	
                1

              	 	 	
                216

              	 	 	
                216

              	 	 	
                X

              
	
                Next
                  Note Rate Change Date

              	 	
                4

              	 	 	
                217

              	 	
                 

              	
                220

              	 	 	
                MMYY

              
	
                Filler

              	 	
                1

              	 	 	
                221

              	 	 	
                221

              	 	 	
                X

              
	
                Next
                  Pymt Change Date

              	 	
                4

              	 	 	
                222

              	 	 	
                225

              	 	 	
                MMYY

              
	
                Filler

              	 	
                1

              	 	 	
                226

              	 	 	
                226

              	 	 	
                X

              
	
                Note
                  Rate Adj Freq

              	 	
                2

              	 	 	
                227

              	 	 	
                228

              	 	 	
                99
                  In days

              
	
                Filler

              	 	
                1

              	 	 	
                229

              	 	 	
                229

              	 	 	
                X

              
	
                Pymt
                  Adj Freq

              	 	
                2

              	 	 	
                230

              	 	 	
                231

              	 	 	
                99

              
	
                Filler

              	 	
                1

              	 	 	
                232

              	 	 	
                232

              	 	 	
                x

              
	
                Periodic
                  Rate Cap

              	 	
                5

              	 	 	
                233

              	 	 	
                237

              	 	 	
                99.999

              
	
                Filler

              	 	
                8

              	 	 	
                238

              	 	 	
                245

              	 	 	
                X(8)

              
	
                Lifetime
                  Max Note Rate

              	 	
                6

              	 	 	
                246

              	 	 	
                251

              	 	 	
                99.999

              
	
                Filler

              	 	
                1

              	 	 	
                252

              	 	 	
                252

              	 	 	
                X

              
	
                Lifetime
                  Min Note Rate

              	 	
                6

              	 	 	
                253

              	 	 	
                258

              	 	 	
                99.999

              
	
                Filler

              	 	
                24

              	 	 	
                259

              	 	 	
                282

              	 	 	
                X(24)

              
	
                Negative
                  Amort Code

              	 	
                1

              	 	 	
                283

              	 	 	
                283

              	 	 	
                9             
                  1= Yes, blank = No

              
	
                Filler

              	 	
                12

              	 	 	
                284

              	 	 	
                295

              	 	 	
                X(12)

              
	
                Note
                  Rate Rounding Code

              	 	
                1

              	 	 	
                296

              	 	 	
                296

              	 	 	
                9

              
	
                Filler

              	 	
                3

              	 	 	
                297.

              	 	 	
                299

              	 	 	
                X(3)

              
	
                ARM
                  Convertibility

              	 	
                1

              	 	 	
                300

              	 	 	
                300

              	 	 	
                9             
                  1= Yes, blank = No

              
	
                Primary
                  Mortgagor Name

              	 	
                25

              	 	 	
                301

              	 	 	
                325

              	 	 	
                X(25)

              
	
                Filler

              	 	
                1

              	 	 	
                326

              	 	 	
                326

              	 	 	
                X

              
	
                Property
                  Street Address

              	 	
                30

              	 	 	
                327

              	 	 	
                356

              	 	 	
                X(30)

              
	
                Filler

              	 	
                3

              	 	 	
                357

              	 	 	
                359

              	 	 	
                X(3)

              
	
                Property
                  City

              	 	
                11

              	 	 	
                360

              	 	 	
                370

              	 	 	
                X(11)

              
	
                Filler

              	 	
                1

              	 	 	
                371

              	 	 	
                371

              	 	 	
                X

              
	
                Property
                  Zip Code

              	 	
                5

              	 	 	
                372

              	 	 	
                376

              	 	 	
                9(5)

              
	
                Filler

              	 	
                16

              	 	 	
                377

              	 	 	
                392

              	 	 	
                X(16)

              
	
                Note
                  Issue Date

              	 	
                6

              	 	 	
                393

              	 	 	
                398

              	 	 	
                MMYYDD

              
	
                Filler

              	 	
                34

              	 	 	
                399

              	 	 	
                432

              	 	 	
                X(34)

              
	
                Servicer
                  Code

              	 	
                5

              	 	 	
                433

              	 	 	
                437

              	 	 	
                X(5)

              
	
                Filler

              	 	
                1

              	 	 	
                438

              	 	 	
                438

              	 	 	
                X

              
	
                Series
                  ID

              	 	
                6

              	 	 	
                439

              	 	 	
                444

              	 	 	
                X(6)

              
	
                Filler

              	 	
                27

              	 	 	
                445

              	 	 	
                471

              	 	 	
                X(27)

              
	
                Curtailments
                  (thru EOM) (5)

              	 	
                11

              	 	 	
                472

              	 	 	
                482

              	 	 	
                9(8).99

              
	
                Filler

              	 	
                1

              	 	 	
                483

              	 	 	
                483

              	 	 	
                X

              
	
                Curtailments
                  (after EOM) (6)

              	 	
                11

              	 	 	
                484

              	 	 	
                494

              	 	 	
                9(8).99

              
	
                Filler

              	 	
                1

              	 	 	
                495

              	 	 	
                495

              	 	 	
                X

              
	
                Payoff
                  Date

              	 	
                6

              	 	 	
                496

              	 	 	
                501

              	 	 	
                MMYYDD

              

      

    

    
      
        
        

      

      
        K-2

        
          

        

      

       

    

    Table
      of Codes

    

    
      	
              Property
                Type Code:

            
	 	
              01
                - Single Family

            
	 	
              02
                - Multi Family

            
	 	
              03
                - Condo or Co-op

            
	 	
              04
                - Mobile Home

            
	 	
              05
                - Plan Unit Development

            
	 	
              06
                - Commercial (Non-Exempt)

            
	 	
              07
                - Commercial (Church)

            
	 	
              08
                - Commercial (School, Health Care Facility or Welfare
                Facility)

            
	 	
              09
                - Commercial (Retail)

            
	 	
              10
                - Commercial (Office)

            
	 	
              11
                - Commercial (Retail/Office)

            
	 	
              12
                - Commercial (Hotel)

            
	 	
              13
                - Commercial (Industrial)

            
	 	
              14
                - Commercial (Flex)

            
	 	
              20
                - Commercial (Retail, Anchored)

            
	 	
              21
                - Commercial (Retail, Unanchored)

            
	 	
              22
                - Commercial (Ministorage)

            
	 	
              30
                - Commercial (Multiple Property(ies))

            
	 	
              99
                - Other

            
	 	 
	
              Loan
                Purpose Code:

            
	 	
              1
                -
                Purchase

            
	 	
              2
                -
                No cash refinance

            
	 	
              3
                -
                Cash out refinance

            
	 	
              4
                -
                Construction Permanent

            
	 	
              5
                -
                Home Improvement

            
	 	
              9
                -
                Other

            
	 	 
	
              Loan
                Type Code:

            
	 	
              1-
                Fixed Rate

            
	 	
              2
                -
                Variable Rate

            
	 	
              3
                -
                Variable Rate With Negative Amortization

            
	 	
              4
                -
                GPM Plan I (30 yr. with a yearly payment increase of 2.5% for the
                first 5
                Years)

            
	 	
              5
                -
                GPM Plan II (30 yr. with a yearly payment increase of 5% for the
                first 5
                Years)

            
	 	
              6
                -
                GPM Plan III (30 yr. with a yearly payment increase of 7.5% for the
                first
                5 Years)

            
	 	
              7
                -
                GPM Plan IV (30 yr. with a yearly payment increase of 2% for the
                first 10
                Years)

            
	 	
              8
                -
                GPM Plan V (30 yr. with a yearly payment increase of 3% for the first
                10
                Years)

            
	 	
              9
                -
                Other

            
	 	 
	
              Loan
                Status Code:

            
	 	
              00
                - Performing

            
	 	
              01-
                Delinquent

            
	 	
              02
                - In Foreclosure

            
	 	
              03
                - REO loan

            
	 	
              04
                - Loan added due to substitution

            
	 	
              05
                - Loan removed due to substitution

            
	 	
              06
                - Loan Modified

            
	 	
              07
                - Specially Serviced

            
	 	
              08
                - Bankruptcy filed

            
	 	
              09
                - Other/Unknown

            

    

     

    
      
        
        

      

      
        K-3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              10
                - Payoff (prepaid in full)

            
	 	
              11-
                Settlements

            
	 	
              12
                - 3rd Party Sale

            
	 	
              13
                - REO Sales

            
	 	
              14
                - Prepayment Penalty Waived

            
	 	
              15
                - Loan Repurchased

            
	 	
              16
                - Payment Default

            
	 	
              17
                - Rehabilitated/Corrected

            
	 	 
	
              Note
                Rate Rounding Code:

            
	 	
              0
                -
                Not Applicable (i.e. fixed rate mortgage) 

            
	 	
              1-
                Index plus Gross Margin no rounding

            
	 	
              2
                -
                Index plus Gross Margin, rounded to nearest Rounding
                Factor

            
	 	
              3
                -
                Index plus Gross Margin, rounded up to nearest Rounding
                Factor

            
	 	
              4
                -
                Index plus Gross Margin, rounded down to nearest Rounding
                Factor

            
	 	
              5
                -
                Index, rounded to nearest Rounding Factor, plus Gross
                Margin

            
	 	
              6
                -
                Index, rounded up to nearest Rounding Factor, plus Gross
                Margin

            
	 	
              7
                -
                Index, rounded down to nearest Rounding Factor, plus Gross
                Margin

            
	 	 
	
              Payment
                Frequency Code:

            
	 	
              1-
                Bi-Weekly

            
	 	
              2
                -
                Monthly

            
	 	
              3
                -
                Quarterly

            
	 	
              4
                -
                Semi-Annual

            
	 	
              5
                -
                Annual

            
	 	
              9
                -
                Other

            
	 	 
	
              Interest
                Collection Code:

            
	 	
              1-
                Interest in arrears

            
	 	
              2
                -
                Interest in advance

            
	 	
              3
                -
                Simple interest

            
	 	 
	
              Payment
                Type Code:

            
	 	
              1-
                Blended P&I

            
	 	
              2
                -
                Constant principal

            
	 	
              3
                -
                Interest only

            
	 	
              4
                -
                Actual Blended P&I (Actual Payment Collection)

            
	 	
              9
                -
                Other

            
	 	 
	
              Loan
                Product Code:

            
	 	
              1-
                Conventional with mortgage insurance

            
	 	
              2
                -
                Federal Housing Authority

            
	 	
              3
                -
                Veterans Administration

            
	 	
              4
                -
                Conventional without mortgage insurance

            
	 	
              5
                -
                Farmers Home Administration

            
	 	
              9
                -
                Other

            
	 	 
	
              Index
                Type Code:

            
	 	
              0
                -
                Not Applicable (i.e. fixed rate mortgage)

            
	 	
              1-
                Six Month Treasury

            
	 	
              2
                -
                One Year Treasury

            
	 	
              3
                -
                Three year Treasury

            
	 	
              4
                -
                Five year Treasury

            

    

     

    
      
        
        

      

      
        K-4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              5
                -
                11th District Cost of Funds

            
	 	
              6
                -
                LIBOR

            
	 	
              7
                -
                Prime Rate

            
	 	
              8
                -
                Wall Street Journal LIBOR

            
	 	
              9
                -
                Other

            

    

     

    
      
        
        

      

      
        K-5

        
          

        

      

       

    

    EXHIBIT
      L

     

    Swap
      Maximum Notional Balance Schedule

     

    
      	
              September
                28, 2006

            	 	
              October
                25, 2006

            	 	
              368,079,000.00

            
	
              October
                25, 2006

            	 	
              November
                25, 2006

            	 	
              359,547,203.00

            
	
              November
                25, 2006

            	 	
              December
                25, 2006

            	 	
              351,256,280.00

            
	
              December
                25, 2006

            	 	
              January
                25, 2007

            	 	
              342,919,975.00

            
	
              January
                25, 2007

            	 	
              February
                25, 2007

            	 	
              334,639,338.00

            
	
              February
                25, 2007

            	 	
              March
                25, 2007

            	 	
              326,357,710.00

            
	
              March
                25, 2007

            	 	
              April
                25, 2007

            	 	
              318,017,422.00

            
	
              April
                25, 2007

            	 	
              May
                25, 2007

            	 	
              309,726,578.00

            
	
              May
                25, 2007

            	 	
              June
                25, 2007

            	 	
              301,383,194.00

            
	
              June
                25, 2007

            	 	
              July
                25, 2007

            	 	
              293,088,695.00

            
	
              July
                25, 2007

            	 	
              August
                25, 2007

            	 	
              284,952,788.00

            
	
              August
                25, 2007

            	 	
              September
                25, 2007

            	 	
              277,060,585.00

            
	
              September
                25, 2007

            	 	
              October
                25, 2007

            	 	
              269,362,745.00

            
	
              October
                25, 2007

            	 	
              November
                25, 2007

            	 	
              261,813,313.00

            
	
              November
                25, 2007

            	 	
              December
                25, 2007

            	 	
              254,489,103.00

            
	
              December
                25, 2007

            	 	
              January
                25, 2008

            	 	
              247,305,920.00

            
	
              January
                25, 2008

            	 	
              February
                25, 2008

            	 	
              240,336,410.00

            
	
              February
                25, 2008

            	 	
              March
                25, 2008

            	 	
              233,537,573.00

            
	
              March
                25, 2008

            	 	
              April
                25, 2008

            	 	
              226,867,186.00

            
	
              April
                25, 2008

            	 	
              May
                25, 2008

            	 	
              220,396,442.00

            
	
              May
                25, 2008

            	 	
              June
                25, 2008

            	 	
              214,049,910.00

            
	
              June
                25, 2008

            	 	
              July
                25, 2008

            	 	
              207,890,670.00

            
	
              July
                25, 2008

            	 	
              August
                25, 2008

            	 	
              201,849,521.00

            
	
              August
                25, 2008

            	 	
              September
                25, 2008

            	 	
              106,322,463.00

            
	
              September
                25, 2008

            	 	
              October
                25, 2008

            	 	
              104,050,558.00

            
	
              October
                25, 2008

            	 	
              November
                25, 2008

            	 	
              101,828,224.00

            
	
              November
                25, 2008

            	 	
              December
                25, 2008

            	 	
              99,654,350.00

            
	
              December
                25, 2008

            	 	
              January
                25, 2009

            	 	
              97,527,846.00

            
	
              January
                25, 2009

            	 	
              February
                25, 2009

            	 	
              95,447,651.00

            
	
              February
                25, 2009

            	 	
              March
                25, 2009

            	 	
              93,412,728.00

            
	
              March
                25, 2009

            	 	
              April
                25, 2009

            	 	
              91,422,061.00

            
	
              April
                25, 2009

            	 	
              May
                25, 2009

            	 	
              89,474,662.00

            
	
              May
                25, 2009

            	 	
              June
                25, 2009

            	 	
              87,569,562.00

            
	
              June
                25, 2009

            	 	
              July
                25, 2009

            	 	
              85,657,633.00

            
	
              July
                25, 2009

            	 	
              August
                25, 2009

            	 	
              83,835,634.00

            
	
              August
                25, 2009

            	 	
              September
                25, 2009

            	 	
              82,053,129.00

            
	
              September
                25, 2009

            	 	
              October
                25, 2009

            	 	
              80,309,236.00

            
	
              October
                25, 2009

            	 	
              November
                25, 2009

            	 	
              78,603,097.00

            
	
              November
                25, 2009

            	 	
              December
                25, 2009

            	 	
              76,933,872.00

            
	
              December
                25, 2009

            	 	
              January
                25, 2010

            	 	
              75,300,738.00

            
	
              January
                25, 2010

            	 	
              February
                25, 2010

            	 	
              73,702,895.00

            
	
              February
                25, 2010

            	 	
              March
                25, 2010

            	 	
              72,139,558.00

            
	
              March
                25, 2010

            	 	
              April
                25, 2010

            	 	
              70,609,962.00

            
	
              April
                25, 2010

            	 	
              May
                25, 2010

            	 	
              69,113,359.00

            
	
              May
                25, 2010

            	 	
              June
                25, 2010

            	 	
              67,649,017.00

            
	
              June
                25, 2010

            	 	
              July
                25, 2010

            	 	
              66,216,223.00

            
	
              July
                25, 2010

            	 	
              August
                25, 2010

            	 	
              64,814,279.00

            
	
              August
                25, 2010

            	 	
              September
                25, 2010

            	 	
              63,442,502.00

            
	
              September
                25, 2010

            	 	
              October
                25, 2010

            	 	
              62,100,225.00

            
	
              October
                25, 2010

            	 	
              November
                25, 2010

            	 	
              60,786,799.00

            

    

    
      	
              November
                25, 2010

            	 	
              December
                25, 2010

            	 	
              59,501,585.00

            
	
              December
                25, 2010

            	 	
              January
                25, 2011

            	 	
              58,243,963.00

            
	
              January
                25, 2011

            	 	
              February
                25, 2011

            	 	
              57,013,324.00

            
	
              February
                25, 2011

            	 	
              March
                25, 2011

            	 	
              55,809,075.00

            
	
              March
                25, 2011

            	 	
              April
                25, 2011

            	 	
              54,630,635.00

            
	
              April
                25, 2011

            	 	
              May
                25, 2011

            	 	
              53,477,436.00

            
	
              May
                25, 2011

            	 	
              June
                25, 2011

            	 	
              52,348,925.00

            
	
              June
                25, 2011

            	 	
              July
                25, 2011

            	 	
              51,244,559.00

            
	
              July
                25, 2011

            	 	
              August
                25, 2011

            	 	
              50,163,808.00

            

    

     

    
      
        
        

      

      
        L-1

        
          

        

      

       

    

     

    EXHIBIT
      M

     

    Form
      of
      Power of Attorney

    

    LIMITED
      POWER OF ATTORNEY

    

    KNOW
      ALL
      MEN BY THESE PRESENTS, that JPMorgan Chase Bank, N.A., a banking association
      organized under the laws of the United States, having a place of business at
      4
      New York Plaza, 6th Floor, New York, N.Y. 10004, as Trustee (and in no personal
      or other representative capacity) under the Pooling and Servicing Agreement,
      dated as of __________, 20__ (as amended, restated, supplemented or otherwise
      modified from time to time, the “Agreement”; capitalized terms not defined
      herein have the definitions assigned to such terms in the Agreement), relating
      to the __________________, hereby appoints _______________, in its capacity
      as a
      Servicer under the Agreement, as the Trustee’s true and lawful Special
      Attorney-in-Fact, in the Trustee’s name, place and stead and for the Trustee’s
      benefit, but only in its capacity as Trustee aforesaid, to perform all acts
      and
      execute all documents as may be customary, necessary and appropriate to
      effectuate the following enumerated transactions in respect of any mortgage,
      deed of trust, promissory note or real estate owned from time to time owned
      (beneficially or in title, whether the Trustee is named therein as mortgagee
      or
      beneficiary or has become mortgagee or beneficiary by virtue of endorsement,
      assignment or other conveyance) or held by or registered to the Trustee
      (directly or through custodians or nominees), or in respect of which the Trustee
      has a security interest or other lien, all as provided under the applicable
      Agreement and only to the extent the respective Trustee has an interest therein
      under the Agreement, and in respect of which the Servicer is acting as servicer
      pursuant to the Agreement (the “Mortgage Documents”).

    

    This
      appointment shall apply to the following enumerated transactions under the
      Agreement only:

    

    1. The
      modification or re-recording of any Mortgage Document for the purpose of
      correcting it to conform to the original intent of the parties thereto or to
      correct title errors discovered after title insurance was issued and where
      such
      modification or re-recording does not adversely affect the lien under the
      Mortgage Document as insured.

    

    2. The
      subordination of the lien under a Mortgage Document to an easement in favor
      of a
      public utility company or a state or federal agency or unit with powers of
      eminent domain including, without limitation, the execution of partial
      satisfactions/releases, partial reconveyances and the execution of requests
      to
      trustees to accomplish same.

    

    3. The
      conveyance of the properties subject to a Mortgage Document to the applicable
      mortgage insurer, or the closing of the title to the property to be acquired
      as
      real estate so owned, or conveyance of title to real estate so
      owned.

    

    4. The
      completion of loan assumption and modification agreements in respect of Mortgage
      Documents.

    

    5. The
      full
      or partial satisfaction/release of a Mortgage Document or full conveyance upon
      payment and discharge of all sums secured thereby, including, without
      limitation, cancellation of the related note.

    

    6. The
      assignment of any Mortgage Document, in connection with the repurchase of the
      mortgage loan secured and evidenced thereby.

    

    7. The
      full
      assignment of a Mortgage Document upon payment and discharge of all sums secured
      thereby in conjunction with the refinancing thereof, including, without
      limitation, the assignment of the related note.

    
      
        
        

      

      
        M-1

        
          

        

      

       

    

    

    8. With
      respect to a Mortgage Document, the foreclosure, the taking of a deed in lieu
      of
      foreclosure, or the completion of judicial or non-judicial foreclosure or
      termination, cancellation or rescission of any such foreclosure, including,
      without limitation, any and all of the following acts:

    

    
      	 	
              a.

            	
              the
                substitution of trustee(s) serving under a deed of trust, in accordance
                with state law and the deed of
                trust;

            

    

    

    
      	 	
              b.

            	
              the
                preparation and issuance of statements of breach or
                non-performance;

            

    

    

    
      	 	
              c.

            	
              the
                preparation and filing of notices of default and/or notices of
                sale;

            

    

    

    
      	 	
              d.

            	
              the
                cancellation/rescission of notices of default and/or notices of
                sale;

            

    

    

    
      	 	
              e.

            	
              the
                taking of a deed in lieu of foreclosure;
                and

            

    

    

    
      	 	
              f.

            	
              the
                preparation and execution of such other documents and performance
                of such
                other actions as may be necessary under the terms of the Mortgage
                Document
                or state law to expeditiously complete said transactions in paragraphs
                8(a) through 8(e), above.

            

    

    

    9. Demand,
      sue for, recover, collection and receive each and every sum of money, debt,
      account and interest (which now is, or hereafter shall become due and payable)
      belonging to or claimed by the Trustee under the Mortgage Documents, and to
      use
      or take any lawful means for recovery thereof by legal process or
      otherwise.

    

    10. Endorse
      on behalf of the Trustee all checks, drafts and/or negotiable instruments made
      payable to the Trustee in respect of the Mortgage Documents.

    

    The
      Trustee gives the Special Attorney-in-Fact full power and authority to execute
      such instruments and to do and perform all and every act and thing necessary
      and
      proper to carry into effect the power or powers granted by this Limited Power
      of
      Attorney, subject to the terms and conditions set forth in the Agreement
      including the standard of care applicable to servicers in the Agreement, and
      hereby does ratify and confirm what such Special Attorney-in-Fact shall lawfully
      do or cause to be done by authority hereof. 

     

    [SIGNATURE
      PAGE FOLLOWS]

    
      
        
        

      

      
        M-2

        
          

        

      

       

    

    

    IN
      WITNESS WHEREOF, the Trustee has caused its corporate name and seal to be hereto
      signed and affixed and these presents to be acknowledged by its duly elected
      and
      authorized officer this ___ day of ___ , 20__.

     

    
      	 	 	 
	 	JPMorgan
              Chase
              Bank, N.A., as Trustee 
	 
 	 
 	 
 
	 	By:  	 
	 	
               

              Name: 

              Title: 

            	
              

            

    

     

    
      	WITNESS:	 	 	WITNESS:
	 	 	 	 
	 	 	 	 
	
              
                

              

              Name:

              Title:

            	 	 	
              
                

              

              Name:

              Title:

            

 

    STATE
      OF
      NEW YORK

    SS

    COUNTY
      OF
      NEW YORK

    

    On
      ______________, 20__, before me, the undersigned, a Notary Public in and for
      said state, personally appeared __________________, personally known to me
      to be
      the person whose name is subscribed to the within instrument and to be a duly
      authorized and acting _______________ of JPMorgan Chase Bank, N.A., and such
      person acknowledged to me that such person executed the within instrument in
      such person’s authorized capacity as a ___________________ of JPMorgan Chase
      Bank, N.A., and that by such signature on the within instrument the entity
      upon
      behalf of which such person acted executed the instrument.

    

    WITNESS
      my hand and official seal.

    

    
      
        

      

    

    Notary
      Public

    
      
        
        

      

      
        M-3

        
          

        

      

       

    

    EXHIBIT
      N

     

    Servicing
      Criteria

    

    SERVICING
      CRITERIA TO BE ADDRESSED

    IN
      ASSESSMENT OF COMPLIANCE

    

    
      	
              Reg
                AB Reference

            	 	
              Servicing
                Criteria

            	 	
              Applicable
                Trustee

              Responsibility

            
	 	 	
              General
                Servicing Considerations

            	 	 
	
              1122(d)(1)(i)

            	 	
              Policies
                and procedures are instituted to monitor any performance or other
                triggers
                and events of default in accordance with the transaction
                agreements.

            	 	
              X

            
	
              1122(d)(1)(ii)

            	 	
              If
                any material servicing activities are outsourced to third parties,
                policies and procedures are instituted to monitor the third party’s
                performance and compliance with such servicing activities.

            	 	 
	
              1122(d)(1)(iii)

            	 	
              Any
                requirements in the transaction agreements to maintain a back-up
                servicer
                for the pool assets are maintained.

            	 	 
	
              1122(d)(1)(iv)

            	 	
              A
                fidelity bond and errors and omissions policy is in effect on the
                party
                participating in the servicing function throughout the reporting
                period in
                the amount of coverage required by and otherwise in accordance with
                the
                terms of the transaction agreements.

            	 	 
	 	 	
              Cash
                Collection and Administration

            	 	 
	
              1122(d)(2)(i)

            	 	
              Payments
                on pool assets are deposited into the appropriate custodial bank
                accounts
                and related bank clearing accounts no more than two business days
                following receipt, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            
	
              1122(d)(2)(ii)

            	 	
              Disbursements
                made via wire transfer on behalf of an obligor or to an investor
                are made
                only by authorized personnel.

            	 	
              X

            
	
              1122(d)(2)(iii)

            	 	
              Advances
                of funds or guarantees regarding collections, cash flows or distributions,
                and any interest or other fees charged for such advances, are made,
                reviewed and approved as specified in the transaction
                agreements.

            	 	 
	
              1122(d)(2)(iv)

            	 	
              The
                related accounts for the transaction, such as cash reserve accounts
                or
                accounts established as a form of over collateralization, are separately
                maintained (e.g., with respect to commingling of cash) as set forth
                in the
                transaction agreements.

            	 	
              X

            
	
              1122(d)(2)(v)

            	 	
              Each
                custodial account is maintained at a federally insured depository
                institution as set forth in the transaction agreements. For purposes
                of
                this criterion, “federally insured depository institution” with respect to
                a foreign financial institution means a foreign financial institution
                that
                meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange
                Act.

            	 	 
	
              1122(d)(2)(vi)

            	 	
              Unissued
                checks are safeguarded so as to prevent unauthorized
                access.

            	 	 
	
              1122(d)(2)(vii)
                

            	 	
              Reconciliations
                are prepared on a monthly basis for all asset-backed securities related
                bank accounts, including custodial accounts and related bank clearing
                accounts. These reconciliations are (A) mathematically accurate;
                (B)
                prepared within 30 calendar days after the bank statement cutoff
                date, or
                such other number of days specified in the transaction agreements;
                (C)
                reviewed and approved by someone other than the person who prepared
                the
                reconciliation; and (D) contain explanations for reconciling items.
                These
                reconciling items are resolved within 90 calendar days of their original
                identification, or such other number of days specified in the transaction
                agreements.

            	 	
              X

            
	 	 	
              Investor
                Remittances and Reporting

            	 	 
	
              1122(d)(3)(i)

            	 	
              Reports
                to investors, including those to be filed with the Commission, are
                maintained in accordance with the transaction agreements and applicable
                Commission requirements. Specifically, such reports (A) are prepared
                in
                accordance with timeframes and other terms set forth in the transaction
                agreements; (B) provide information calculated in accordance with
                the
                terms specified in the transaction agreements; (C) are filed with
                the
                Commission as required by its rules and regulations; and (D) agree
                with
                investors’ or the trustee’s records as to the total unpaid principal
                balance and number of pool assets serviced by the
                servicer.

            	 	
              X
                (only
                with respect to (A), (B) and (D)

            
	
              1122(d)(3)(ii)

            	 	
              Amounts
                due to investors are allocated and remitted in accordance with timeframes,
                distribution priority and other terms set forth in the transaction
                agreements.

            	 	
              X

            
	
              1122(d)(3)(iii)

            	 	
              Disbursements
                made to an investor are posted within two business days to the servicer’s
                investor records, or such other number of days specified in the
                transaction agreements.

            	 	
              X

            
	
              1122(d)(3)(iv)

            	 	
              Amounts
                remitted to investors per the investor reports agree with cancelled
                checks, or other form of payment, or custodial bank
                statements.

            	 	
              X

            

    

     

    
      
        
        

      

      
        N-1

        
          

        

      

      
        
        

      

    

    

    
      	
              Reg
                AB Reference

            	 	
              Servicing
                Criteria

            	 	
              Applicable
                Trustee

              Responsibility

            
	 	 	
              Pool
                Asset Administration

            	 	 
	
              1122(d)(4)(i)
                

            	 	
              Collateral
                or security on pool assets is maintained as required by the transaction
                agreements or related pool asset documents.

            	 	
              X*

            
	
              1122(d)(4)(ii)

            	 	
              Pool
                assets and related documents are safeguarded as required by the
                transaction agreements.

            	 	
              X*

            
	
              1122(d)(4)(iii)

            	 	
              Any
                additions, removals or substitutions to the asset pool are made,
                reviewed
                and approved in accordance with any conditions or requirements in
                the
                transaction agreements.

            	 	
              X

            
	
              1122(d)(4)(iv)

            	 	
              Payments
                on pool assets, including any payoffs, made in accordance with the
                related
                pool asset documents are posted to the servicer’s obligor records
                maintained no more than two business days after receipt, or such
                other
                number of days specified in the transaction agreements, and allocated
                to
                principal, interest or other items (e.g., escrow) in accordance with
                the
                related pool asset documents.

            	 	 
	
              1122(d)(4)(v)

            	 	
              The
                servicer’s records regarding the pool assets agree with the servicer’s
                records with respect to an obligor’s unpaid principal
                balance.

            	 	 
	
              1122(d)(4)(vi)

            	 	
              Changes
                with respect to the terms or status of an obligor's pool assets (e.g.,
                loan modifications or re-agings) are made, reviewed and approved
                by
                authorized personnel in accordance with the transaction agreements
                and
                related pool asset documents.

            	 	 
	
              1122(d)(4)(vii)

            	 	
              Loss
                mitigation or recovery actions (e.g., forbearance plans, modifications
                and
                deeds in lieu of foreclosure, foreclosures and repossessions, as
                applicable) are initiated, conducted and concluded in accordance
                with the
                timeframes or other requirements established by the transaction
                agreements.

            	 	 
	
              1122(d)(4)(viii)

            	 	
              Records
                documenting collection efforts are maintained during the period a
                pool
                asset is delinquent in accordance with the transaction agreements.
                Such
                records are maintained on at least a monthly basis, or such other
                period
                specified in the transaction agreements, and describe the entity’s
                activities in monitoring delinquent pool assets including, for example,
                phone calls, letters and payment rescheduling plans in cases where
                delinquency is deemed temporary (e.g., illness or
                unemployment).

            	 	 
	
              1122(d)(4)(ix)

            	 	
              Adjustments
                to interest rates or rates of return for pool assets with variable
                rates
                are computed based on the related pool asset documents.

            	 	 
	
              1122(d)(4)(x)

            	 	
              Regarding
                any funds held in trust for an obligor (such as escrow accounts):
                (A) such
                funds are analyzed, in accordance with the obligor’s pool asset documents,
                on at least an annual basis, or such other period specified in the
                transaction agreements; (B) interest on such funds is paid, or credited,
                to obligors in accordance with applicable pool asset documents and
                state
                laws; and (C) such funds are returned to the obligor within 30 calendar
                days of full repayment of the related pool assets, or such other
                number of
                days specified in the transaction agreements.

            	 	 
	
              1122(d)(4)(xi)

            	 	
              Payments
                made on behalf of an obligor (such as tax or insurance payments)
                are made
                on or before the related penalty or expiration dates, as indicated
                on the
                appropriate bills or notices for such payments, provided that such
                support
                has been received by the servicer at least 30 calendar days prior
                to these
                dates, or such other number of days specified in the transaction
                agreements.

            	 	 
	
              1122(d)(4)(xii)

            	 	
              Any
                late payment penalties in connection with any payment to be made
                on behalf
                of an obligor are paid from the servicer’s funds and not charged to the
                obligor, unless the late payment was due to the obligor’s error or
                omission.

            	 	 
	
              1122(d)(4)(xiii)

            	 	
              Disbursements
                made on behalf of an obligor are posted within two business days
                to the
                obligor’s records maintained by the servicer, or such other number of days
                specified in the transaction agreements.

            	 	 
	
              1122(d)(4)(xiv)
                

            	 	
              Delinquencies,
                charge-offs and uncollectible accounts are recognized and recorded
                in
                accordance with the transaction agreements.

            	 	 
	
              1122(d)(4)(xv)

            	 	
              Any
                external enhancement or other support, identified in Item 1114(a)(1)
                through (3) or Item 1115 of Regulation AB, is maintained as set forth
                in
                the transaction agreements.

            	 	 

    

     

    
      	*	
              With
                respect to its custodial functions.

            

    

    

    Notwithstanding
      anything in the Agreement to the contrary, this Exhibit N may be revised from
      time to time upon the mutual written agreement of the Depositor and the Trustee,
      including, without limitation, for revisions in response to evolving
      interpretations of Regulation AB, which revised Exhibit N shall automatically
      become part of this Agreement and shall be attached hereto.

    
      
        
        

      

      
        N-2

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      O

     

    40
      YEAR
      LOAN NOTIONAL BALANCES SCHEDULE

     

    
      	
              Distribution

              Date

            	 	
              Notional

              Balance
                ($)

            	 	
              Distribution

              Date

            	 	
              Notional

              Balance
                ($)

            	 	
              Distribution

              Date

            	 	
              Notional
                Balance($)

            	 	
              Distribution

              Date

            	 	
              Notional
                Balance ($)

            
	
              October
                2016

            	 	
              $33,321,066.93

            	 	
              October
                2021

            	 	
              $14,360,196.12

            	 	
              October
                2026

            	 	
              $6,048,582.76

            	 	
              October
                2031

            	 	
              $2,436,338.78

            
	
              November
                2016

            	 	
              32,860,883.64

            	 	
              November
                2021

            	 	
              14,157,960.13

            	 	
              November
                2026

            	 	
              5,960,299.10

            	 	
              November
                2031

            	 	
              2,398,252.39

            
	
              December
                2016

            	 	
              32,406,946.33

            	 	
              December
                2021

            	 	
              13,958,485.78

            	 	
              December
                2026

            	 	
              5,873,233.72

            	 	
              December
                2031

            	 	
              2,360,701.42

            
	
              January
                2017

            	 	
              31,959,170.66

            	 	
              January
                2022

            	 	
              13,761,735.70

            	 	
              January
                2027

            	 	
              5,787,370.11

            	 	
              January
                2032

            	 	
              2,323,678.56

            
	
              February
                2017

            	 	
              31,517,473.48

            	 	
              February
                2022

            	 	
              13,567,673.07

            	 	
              February
                2027

            	 	
              5,702,691.94

            	 	
              February
                2032

            	 	
              2,287,176.58

            
	
              March
                2017

            	 	
              31,081,772.74

            	 	
              March
                2022

            	 	
              13,376,261.52

            	 	
              March
                2027

            	 	
              5,619,183.14

            	 	
              March
                2032

            	 	
              2,251,188.37

            
	
              April
                2017

            	 	
              30,651,987.51

            	 	
              April
                2022

            	 	
              13,187,465.18

            	 	
              April
                2027

            	 	
              5,536,827.80

            	 	
              April
                2032

            	 	
              2,215,706.93

            
	
              May
                2017

            	 	
              30,228,037.93

            	 	
              May
                2022

            	 	
              13,001,248.68

            	 	
              May
                2027

            	 	
              5,455,610.29

            	 	
              May
                2032

            	 	
              2,180,725.32

            
	
              June
                2017

            	 	
              29,809,845.24

            	 	
              June
                2022

            	 	
              12,817,577.12

            	 	
              June
                2027

            	 	
              5,375,515.15

            	 	
              June
                2032

            	 	
              2,146,236.72

            
	
              July
                2017

            	 	
              29,397,331.71

            	 	
              July
                2022

            	 	
              12,636,416.07

            	 	
              July
                2027

            	 	
              5,296,527.14

            	 	
              July
                2032

            	 	
              2,112,234.38

            
	
              August
                2017

            	 	
              28,990,420.68

            	 	
              August
                2022

            	 	
              12,457,731.56

            	 	
              August
                2027

            	 	
              5,218,631.22

            	 	
              August
                2032

            	 	
              2,078,711.67

            
	
              September
                2017

            	 	
              28,589,036.51

            	 	
              September
                2022

            	 	
              12,281,490.09

            	 	
              September
                2027

            	 	
              5,141,812.55

            	 	
              September
                2032

            	 	
              2,045,662.03

            
	
              October
                2017

            	 	
              28,193,104.60

            	 	
              October
                2022

            	 	
              12,107,658.59

            	 	
              October
                2027

            	 	
              5,066,056.52

            	 	
              October
                2032

            	 	
              2,013,078.98

            
	
              November
                2017

            	 	
              27,802,551.33

            	 	
              November
                2022

            	 	
              11,936,204.45

            	 	
              November
                2027

            	 	
              4,991,348.68

            	 	
              November
                2032

            	 	
              1,980,956.16

            
	
              December
                2017

            	 	
              27,417,304.08

            	 	
              December
                2022

            	 	
              11,767,095.51

            	 	
              December
                2027

            	 	
              4,917,674.79

            	 	
              December
                2032

            	 	
              1,949,287.26

            
	
              January
                2018

            	 	
              27,037,291.22

            	 	
              January
                2023

            	 	
              11,600,300.02

            	 	
              January
                2028

            	 	
              4,845,020.80

            	 	
              January
                2033

            	 	
              1,918,066.08

            
	
              February
                2018

            	 	
              26,662,442.07

            	 	
              February
                2023

            	 	
              11,435,786.68

            	 	
              February
                2028

            	 	
              4,773,372.87

            	 	
              February
                2033

            	 	
              1,887,286.50

            
	
              March
                2018

            	 	
              26,292,686.89

            	 	
              March
                2023

            	 	
              11,273,524.59

            	 	
              March
                2028

            	 	
              4,702,717.32

            	 	
              March
                2033

            	 	
              1,856,942.47

            
	
              April
                2018

            	 	
              25,927,956.94

            	 	
              April
                2023

            	 	
              11,113,483.28

            	 	
              April
                2028

            	 	
              4,633,040.65

            	 	
              April
                2033

            	 	
              1,827,028.04

            
	
              May
                2018

            	 	
              25,568,184.32

            	 	
              May
                2023

            	 	
              10,955,632.71

            	 	
              May
                2028

            	 	
              4,564,329.58

            	 	
              May
                2033

            	 	
              1,797,537.32

            
	
              June
                2018

            	 	
              25,213,302.11

            	 	
              June
                2023

            	 	
              10,799,943.20

            	 	
              June
                2028

            	 	
              4,496,570.97

            	 	
              June
                2033

            	 	
              1,768,464.52

            
	
              July
                2018

            	 	
              24,863,244.27

            	 	
              July
                2023

            	 	
              10,646,385.52

            	 	
              July
                2028

            	 	
              4,429,751.87

            	 	
              July
                2033

            	 	
              1,739,803.91

            
	
              August
                2018

            	 	
              24,517,945.64

            	 	
              August
                2023

            	 	
              10,494,930.79

            	 	
              August
                2028

            	 	
              4,363,859.53

            	 	
              August
                2033

            	 	
              1,711,549.87

            
	
              September
                2018

            	 	
              24,177,341.95

            	 	
              September
                2023

            	 	
              10,345,550.53

            	 	
              September
                2028

            	 	
              4,298,881.32

            	 	
              September
                2033

            	 	
              1,683,696.80

            
	
              October
                2018

            	 	
              23,841,369.81

            	 	
              October
                2023

            	 	
              10,198,216.68

            	 	
              October
                2028

            	 	
              4,234,804.82

            	 	
              October
                2033

            	 	
              1,656,239.23

            
	
              November
                2018

            	 	
              23,509,966.64

            	 	
              November
                2023

            	 	
              10,052,901.51

            	 	
              November
                2028

            	 	
              4,171,617.79

            	 	
              November
                2033

            	 	
              1,629,171.74

            
	
              December
                2018

            	 	
              23,183,070.75

            	 	
              December
                2023

            	 	
              9,909,577.70

            	 	
              December
                2028

            	 	
              4,109,308.11

            	 	
              December
                2033

            	 	
              1,602,488.98

            
	
              January
                2019

            	 	
              22,860,621.25

            	 	
              January
                2024

            	 	
              9,768,218.28

            	 	
              January
                2029

            	 	
              4,047,863.86

            	 	
              January
                2034

            	 	
              1,576,185.69

            
	
              February
                2019

            	 	
              22,542,558.09

            	 	
              February
                2024

            	 	
              9,628,796.63

            	 	
              February
                2029

            	 	
              3,987,273.26

            	 	
              February
                2034

            	 	
              1,550,256.66

            
	
              March
                2019

            	 	
              22,228,822.02

            	 	
              March
                2024

            	 	
              9,491,286.53

            	 	
              March
                2029

            	 	
              3,927,524.70

            	 	
              March
                2034

            	 	
              1,524,696.77

            
	
              April
                2019

            	 	
              21,919,354.58

            	 	
              April
                2024

            	 	
              9,355,662.08

            	 	
              April
                2029

            	 	
              3,868,606.73

            	 	
              April
                2034

            	 	
              1,499,500.95

            
	
              May
                2019

            	 	
              21,614,098.12

            	 	
              May
                2024

            	 	
              9,221,897.74

            	 	
              May
                2029

            	 	
              3,810,508.05

            	 	
              May
                2034

            	 	
              1,474,664.20

            
	
              June
                2019

            	 	
              21,312,995.74

            	 	
              June
                2024

            	 	
              9,089,968.32

            	 	
              June
                2029

            	 	
              3,753,217.50

            	 	
              June
                2034

            	 	
              1,450,181.63

            
	
              July
                2019

            	 	
              21,015,991.35

            	 	
              July
                2024

            	 	
              8,959,848.95

            	 	
              July
                2029

            	 	
              3,696,724.10

            	 	
              July
                2034

            	 	
              1,426,048.35

            
	
              August
                2019

            	 	
              20,723,029.55

            	 	
              August
                2024

            	 	
              8,831,515.12

            	 	
              August
                2029

            	 	
              3,641,016.98

            	 	
              August
                2034

            	 	
              1,402,259.59

            
	
              September
                2019

            	 	
              20,434,055.75

            	 	
              September
                2024

            	 	
              8,704,942.64

            	 	
              September
                2029

            	 	
              3,586,085.46

            	 	
              September
                2034

            	 	
              1,378,810.60

            
	
              October
                2019

            	 	
              20,149,016.06

            	 	
              October
                2024

            	 	
              8,580,107.64

            	 	
              October
                2029

            	 	
              3,531,918.96

            	 	
              October
                2034

            	 	
              1,355,696.74

            
	
              November
                2019

            	 	
              19,867,857.32

            	 	
              November
                2024

            	 	
              8,456,986.58

            	 	
              November
                2029

            	 	
              3,478,507.08

            	 	
              November
                2034

            	 	
              1,332,913.39

            
	
              December
                2019

            	 	
              19,590,527.09

            	 	
              December
                2024

            	 	
              8,335,556.23

            	 	
              December
                2029

            	 	
              3,425,839.55

            	 	
              December
                2034

            	 	
              1,310,456.04

            
	
              January
                2020

            	 	
              19,316,973.65

            	 	
              January
                2025

            	 	
              8,215,793.70

            	 	
              January
                2030

            	 	
              3,373,906.22

            	 	
              January
                2035

            	 	
              1,288,320.20

            
	
              February
                2020

            	 	
              19,047,145.96

            	 	
              February
                2025

            	 	
              8,097,676.37

            	 	
              February
                2030

            	 	
              3,322,697.11

            	 	
              February
                2035

            	 	
              1,266,501.45

            
	
              March
                2020

            	 	
              18,780,993.66

            	 	
              March
                2025

            	 	
              7,981,181.94

            	 	
              March
                2030

            	 	
              3,272,202.34

            	 	
              March
                2035

            	 	
              1,244,995.45

            
	
              April
                2020

            	 	
              18,518,467.10

            	 	
              April
                2025

            	 	
              7,866,288.42

            	 	
              April
                2030

            	 	
              3,222,412.18

            	 	
              April
                2035

            	 	
              1,223,797.89

            
	
              May
                2020

            	 	
              18,259,517.27

            	 	
              May
                2025

            	 	
              7,752,974.12

            	 	
              May
                2030

            	 	
              3,173,317.04

            	 	
              May
                2035

            	 	
              1,202,904.54

            
	
              June
                2020

            	 	
              18,004,095.83

            	 	
              June
                2025

            	 	
              7,641,217.62

            	 	
              June
                2030

            	 	
              3,124,907.45

            	 	
              June
                2035

            	 	
              1,182,311.20

            
	
              July
                2020

            	 	
              17,752,155.11

            	 	
              July
                2025

            	 	
              7,530,997.81

            	 	
              July
                2030

            	 	
              3,077,174.07

            	 	
              July
                2035

            	 	
              1,162,013.78

            
	
              August
                2020

            	 	
              17,503,648.04

            	 	
              August
                2025

            	 	
              7,422,293.85

            	 	
              August
                2030

            	 	
              3,030,107.68

            	 	
              August
                2035

            	 	
              1,142,008.20

            
	
              September
                2020

            	 	
              17,258,528.23

            	 	
              September
                2025

            	 	
              7,315,085.19

            	 	
              September
                2030

            	 	
              2,983,699.19

            	 	
              September
                2035

            	 	
              1,122,290.43

            
	
              October
                2020

            	 	
              17,016,749.88

            	 	
              October
                2025

            	 	
              7,209,351.56

            	 	
              October
                2030

            	 	
              2,937,939.65

            	 	
              October
                2035

            	 	
              1,102,856.54

            
	
              November
                2020

            	 	
              16,778,267.82

            	 	
              November
                2025

            	 	
              7,105,072.96

            	 	
              November
                2030

            	 	
              2,892,820.19

            	 	
              November
                2035

            	 	
              1,083,702.61

            
	
              December
                2020

            	 	
              16,543,037.51

            	 	
              December
                2025

            	 	
              7,002,229.65

            	 	
              December
                2030

            	 	
              2,848,332.09

            	 	
              December
                2035

            	 	
              1,064,824.79

            
	
              January
                2021

            	 	
              16,311,014.98

            	 	
              January
                2026

            	 	
              6,900,802.17

            	 	
              January
                2031

            	 	
              2,804,466.76

            	 	
              January
                2036

            	 	
              1,046,219.27

            
	
              February
                2021

            	 	
              16,082,156.85

            	 	
              February
                2026

            	 	
              6,800,771.32

            	 	
              February
                2031

            	 	
              2,761,215.68

            	 	
              February
                2036

            	 	
              1,027,882.33

            
	
              March
                2021

            	 	
              15,856,420.37

            	 	
              March
                2026

            	 	
              6,702,118.15

            	 	
              March
                2031

            	 	
              2,718,570.49

            	 	
              March
                2036

            	 	
              1,009,810.24

            
	
              April
                2021

            	 	
              15,633,763.30

            	 	
              April
                2026

            	 	
              6,604,823.98

            	 	
              April
                2031

            	 	
              2,676,522.93

            	 	
              April
                2036

            	 	
              991,999.38

            
	
              May
                2021

            	 	
              15,414,144.03

            	 	
              May
                2026

            	 	
              6,508,870.37

            	 	
              May
                2031

            	 	
              2,635,064.84

            	 	
              May
                2036

            	 	
              974,446.13

            
	
              June
                2021

            	 	
              15,197,521.47

            	 	
              June
                2026

            	 	
              6,414,239.14

            	 	
              June
                2031

            	 	
              2,594,188.19

            	 	
              June
                2036

            	 	
              957,146.97

            
	
              July
                2021

            	 	
              14,983,855.11

            	 	
              July
                2026

            	 	
              6,320,912.34

            	 	
              July
                2031

            	 	
              2,553,885.02

            	 	
              July
                2036

            	 	
              940,098.39

            
	
              August
                2021

            	 	
              14,773,104.97

            	 	
              August
                2026

            	 	
              6,228,872.28

            	 	
              August
                2031

            	 	
              2,514,147.53

            	 	
              August
                2036

            	 	
              923,296.92

            
	
              September
                2021

            	 	
              14,565,231.60

            	 	
              September
                2026

            	 	
              6,138,101.50

            	 	
              September
                2031

            	 	
              2,474,967.98

            	 	
              September
                2036

            	 	
              906,739.16

            

    

     

    
      
        
        

      

      
        O-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]