Document:

Exhibit 4.2

                        NELNET STUDENT LOAN TRUST 2006-3

                                 TRUST AGREEMENT

                                 BY AND BETWEEN

                        NELNET STUDENT LOAN FUNDING, LLC,
                   AS INITIAL CERTIFICATEHOLDER AND DEPOSITOR,

                                       AND

                       WELLS FARGO DELAWARE TRUST COMPANY
                               AS DELAWARE TRUSTEE

                          DATED AS OF NOVEMBER 1, 2006

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                                TABLE OF CONTENTS

                                                                            Page
                                    ARTICLE I
                                   DEFINITIONS

Section 1.01.     Definitions..................................................1
Section 1.02.     Other References.............................................4

                                   ARTICLE II
  ORGANIZATION OF THE TRUST; AUTHORITY TO EXECUTE AND PERFORM VARIOUS
              DOCUMENTS; DECLARATION OF TRUST BY DELAWARE TRUSTEE

Section 2.01.     Establishment of the Trust...................................5
Section 2.02.     Name.........................................................5
Section 2.03.     Office and Situs of Trust....................................5
Section 2.04.     Authority....................................................6
Section 2.05.     Powers and Authority.........................................6
Section 2.06.     Declaration of Trust by Delaware Trustee.....................8
Section 2.07.     The Indenture................................................8
Section 2.08.     Title to Trust Estate........................................8
Section 2.09.     Covenants Regarding Operations...............................8
Section 2.10.     Appointment of Delaware Trustee.............................13
Section 2.11.     Federal Income Tax Allocations..............................13
Section 2.12.     Administration..............................................13
Section 2.13.     Additional Contributions....................................13
Section 2.14.     Principal Place of Business.................................13
Section 2.15.     Liability of the Certificateholders and the
                  Delaware Trustee............................................13

                                   ARTICLE III
                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

Section 3.01.     Initial Beneficial Ownership................................14
Section 3.02.     The Certificates............................................14
Section 3.03.     Authentication of Certificates..............................14
Section 3.04.     Registration of Transfer and Exchange of Certificates.......14
Section 3.05.     Mutilated, Destroyed, Lost or Stolen Certificates...........17
Section 3.06.     Persons Deemed Owners.......................................17
Section 3.07.     Access to List of Certificateholders' Names and Addresses...17
Section 3.08.     Maintenance of Office or Agency.............................17
Section 3.09.     Terms of Certificates Binding...............................18

                                   ARTICLE IV
                           DISTRIBUTIONS AND PAYMENTS

Section 4.01.     Distribution of Payments....................................18
Section 4.02.     Payments From Trust Estate Only.............................19
Section 4.03.     Method of Payment...........................................19
Section 4.04.     Trust Payment Date Statement................................19

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                                    ARTICLE V
                           DUTIES OF DELAWARE TRUSTEE

Section 5.01.     Notice of Default...........................................20
Section 5.02.     Action Upon Instruction.....................................20
Section 5.03.     Indemnification.............................................22
Section 5.04.     No Duties Except as Specified in Transaction Documents......22
Section 5.05.     No Action Except Under Specified Documents or Instructions..22
Section 5.06.     Action by Certificateholders with Respect to Bankruptcy.....22
Section 5.07.     Discharge of Liens..........................................23

                                   ARTICLE VI
                                DELAWARE TRUSTEE

Section 6.01.     Acceptance of Trusts and Duties.............................23
Section 6.02.     Furnishing of Documents.....................................25
Section 6.03.     No Representations or Warranties as to Trust Estate.........25
Section 6.04.     No Segregation of Moneys; No Interest.......................26
Section 6.05.     Reliance; Advice of Counsel.................................26
Section 6.06.     Not Acting in Individual Capacity...........................26
Section 6.07.     Books and Records...........................................27
Section 6.08.     Tax Returns.................................................27

                                   ARTICLE VII
                   ASSUMPTION OF LIABILITY AND PAYMENT FOR DELAWARE TRUSTEE

Section 7.01.     Compensation and Expenses...................................27
Section 7.02.     Indemnification by Trust....................................28
Section 7.03.     Certificateholders To Assume Liability......................28

                                  ARTICLE VIII
                            TERMINATION OF INDENTURE

Section 8.01.     Termination in General......................................29
Section 8.02.     Termination at Option of Certificateholders.................29
Section 8.03.     Termination.................................................29

                                   ARTICLE IX
       SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES AND SEPARATE
                               DELAWARE TRUSTEES

Section 9.01.     Resignation and Successors..................................30
Section 9.02.     Co-Delaware Trustees and Separate Delaware Trustees.........31
Section 9.03.     Changes in Identity of a Delaware Trustee...................31

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                                    ARTICLE X
                                  MISCELLANEOUS

Section 10.01.    Amendment...................................................31
Section 10.02.    No Interest in Trust Estate.................................32
Section 10.03.    Sale of the Trust Estate by Delaware Trustee is Binding.....33
Section 10.04.    Limitations on Rights of Others.............................33
Section 10.05.    Notices, Etc................................................33
Section 10.06.    Severability................................................34
Section 10.07.    Separate Counterparts.......................................34
Section 10.08.    Entire Agreement............................................34
Section 10.09.    Successors and Assigns......................................34
Section 10.10.    Governing Law...............................................34
Section 10.11.    No Liability of Certificateholders..........................34
Section 10.12.    Actions by the Certificateholders...........................34

EXHIBIT A CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS............................1
EXHIBIT B FORM OF TRUST PAYMENT DATE STATEMENT.................................1
EXHIBIT C FORM OF CERTIFICATE..................................................1
EXHIBIT D FORM OF TRANSFEROR LETTER............................................1
EXHIBIT E FORM OF INVESTMENT LETTER............................................1
EXHIBIT F FORM OF RULE 144A LETTER.............................................1

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                                 TRUST AGREEMENT

        THIS TRUST AGREEMENT, dated as of November 1, 2006 (as may be amended
from time to time), by and among NELNET STUDENT LOAN FUNDING, LLC, a Delaware
limited liability company, as the Initial Certificateholder and Depositor, and
WELLS FARGO DELAWARE TRUST COMPANY (when referred to herein in its individual
capacity, the "Trust Company," and when referred to herein solely in its
capacity as trustee hereunder, the "Delaware Trustee"), is being entered into in
order to establish a Delaware statutory trust to be known as "Nelnet Student
Loan Trust 2006-3" (the "Trust").

                              W I T N E S S E T H :

        WHEREAS, the Depositor and the Trust Company have mutually agreed as set
forth herein to create the Trust.

        In consideration of the mutual agreements herein contained and other
good and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.01. .DEFINITIONS. All capitalized terms used in this Trust Agreement
shall have the meanings set forth below and, if not defined herein, shall have
the respective meanings assigned to them in the Indenture:

        "ADMINISTRATION AGREEMENT" means that certain Administration Agreement,
dated as of December 1, 2006, among the Trust, the Administrator, the Delaware
Trustee and the Indenture Trustee.

        "ADMINISTRATION FEE" means the fee, if any, from time to time payable to
the Administrator pursuant to the Administration Agreement.

        "ADMINISTRATOR" means National Education Loan Network, Inc., a Nevada
Corporation, and its successors and assigns.

        "AUTHORIZED OFFICER" means, with respect to an entity, the Chairman of
the Board, the President, Chief Operating Officer, any Senior Vice President,
Secretary, Treasurer, any Vice President, any Assistant Vice President or any
Financial Services Officer thereof.

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        "BANKRUPTCY ACTION" means (i) commencing any case, proceeding or other
action or filing a petition under any existing or future bankruptcy, insolvency
or similar law seeking (A) to adjudicate the Trust a bankrupt or insolvent, (B)
to have an order for relief entered with respect to the Trust, or (C)
reorganization, arrangement, adjustment, wind-up, liquidation, dissolution,
composition or other relief with respect to the Trust or its debts, (ii)
consenting to the institution of bankruptcy or insolvency proceedings against
the Trust, (iii) seeking or consenting to the appointment of a receiver,
custodian, liquidator, assignee, trustee, sequestrator (or other similar
official) of the Trust or a substantial part of its property, (iv) except as
required by law, admitting its inability to pay its debts generally as they
become due, (v) making a general assignment by the Trust for the benefit of
creditors, (vi) filing an answer or other pleading admitting or failing to
contest the material allegations of a petition filed against the Trust in a
proceeding of the type described in the preceding subclauses (i) through (v),
(vii) failing generally to pay the debts of the Trust as such debts become due
within the meaning of United States Bankruptcy Code, 11 U.S.C. ss.ss. 101 et
seq., as amended or (viii) authorizing, taking any action in furtherance of,
consenting to or acquiescing in any of the foregoing or any similar action or
other proceedings under any federal or state bankruptcy or insolvency or similar
law on behalf of, or with respect to, the Trust, or in connection with any
obligations relating to the Certificates, the Notes, this Trust Agreement or any
of the other Transaction Documents.

        "BENEFICIAL OWNER" means the owners of Certificates as determined for
federal income tax purposes, taking into account the provisions of ss.
1.7704-1(h) of the Treasury Regulations.

        "CERTIFICATE" means a certificate issued by the Trust evidencing the
beneficial ownership interests in the Trust as set forth thereon.

        "CERTIFICATEHOLDER" means the Persons or Person in whose name a
Certificate is registered in the Register on the applicable date.

        "DELAWARE TRUSTEE" means Wells Fargo Delaware Trust Company, not in its
individual capacity but solely in its capacity as trustee of the Trust under
this Trust Agreement, and its successors in interest that is a Delaware trust
company not affiliated with a Certificateholder.

        "DEPOSITOR" means Nelnet Student Loan Funding, LLC, a Delaware limited
liability company, and its successors and assigns.

        "ELIGIBLE LENDER TRUSTEE" means Zions First National Bank, as eligible
lender trustee for the Trust under the Eligible Lender Trust Agreement.

        "INDENTURE" means the Indenture of Trust, dated as of December 1, 2006,
between the Trust, the Eligible Lender Trustee and the Indenture Trustee, as
supplemented or amended from time to time.

        "INDENTURE TRUSTEE" means Zions First National Bank, as trustee under
the Indenture.

        "INDEPENDENT TRUSTEE" means a Person that (i) is independent and is not
a stockholder or other securityholder (whether direct, indirect or beneficial),
customer or supplier of the Trust or any of its affiliates; (ii) is not a
director, officer, employee, affiliate, member, manager or associate of the
Trust or any of its affiliates (other than in its capacity as the Delaware
Trustee for the Trust); (iii) is not related to any Person referred to in
clauses (i) or (ii) above; (iv) is not a trustee, conservator or receiver for
the Trust or any of its affiliates (other than in its capacity as a Delaware
Trustee); and (v) in the ordinary course of its business, acts as a statutory
trustee for other special purpose statutory trusts similar to the Trust and is
otherwise independent from the Trust and its affiliates (except as provided
above); provided that affiliates as used in this sentence does not include the
interests of the Delaware Trustee and its affiliates in each other.

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        "INITIAL CERTIFICATE HOLDER" means Nelnet Student Loan Funding, LLC.

        "MOODY'S" means Moody's Investors Service, Inc., and its successors and
assigns.

        "NOTES" shall have the meaning set forth in the Indenture.

        "NOTICES" has the meaning specified in Section 10.05 hereof.

        "OPINION OF COUNSEL" means a written opinion of counsel, who may be
counsel for a Certificateholder, which opinion is reasonably acceptable to the
Delaware Trustee.

        "PAYMENTS" has the meaning specified in Section 4.01(b) hereof.

        "PERCENTAGE INTEREST" means with respect to any Certificate the
percentage interest set forth on the face of such Certificate.

        "PERSON" means any individual, corporation, partnership, joint venture,
association, joint stock company, statutory trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political
subdivision thereof.

        "REGISTER" means a register kept by the Registrar in which, subject to
such reasonable regulations as it may prescribe, the Registrar shall provide for
the registration of the Certificates and the registration of transfers of the
Certificates.

        "REGISTERED OWNER" shall have the meaning set forth in the Indenture.

        "REGISTRAR" means the Delaware Trustee, or its designee, as Registrar
hereunder.

        "REQUIRED CERTIFICATEHOLDERS" means the approval of or direction by the
Certificateholders holding a majority of the Percentage Interests unless a
higher Percentage Interest is specifically required by the terms of this Trust
Agreement or applicable law in which case "Required Certificateholders" shall
mean such higher Percentage Interest.

        "RULE 144A LETTER" has the meaning set forth in Section 3.04(b) hereof.

        "SECURITIES ACT" means the Securities Act of 1933, as amended.

        "STANDARD & POOR'S" means Standard & Poor's Rating Services, a division
of The McGraw-Hill Companies, Inc., and its successors and assigns.

        "TRANSACTION DOCUMENTS" has the meaning specified in Section 2.05(a)(i)
hereof.

        "TRUST" means the Nelnet Student Loan Trust 2006-3 established pursuant
to this Trust Agreement.

        "TRUST AGREEMENT" means this Trust Agreement, dated as of November 1,
2006, between Nelnet Student Loan Funding, LLC, as Initial Certificateholder and
Depositor, and Wells Fargo Delaware Trust Company, as Delaware Trustee, as
amended or supplemented from time to time.

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        "TRUST COMPANY" means Wells Fargo Delaware Trust Company, in its
individual capacity.

        "TRUST ESTATE" means all of the assets, property, and security interests
related thereto contributed, sold, assigned or otherwise transferred to or
acquired by the Trust together with all other assets subject hereto,
constituting the Trust created hereby and to be administered hereunder,
including without limitation, the earnings thereon and products and proceeds
thereof.

        "TRUST PAYMENT DATE STATEMENT" has the meaning set forth in Section
4.04(a) hereof.

        "TRUST STATUTE" means Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code ss. 3801 et seq., as the same may be amended from time to time.

        "UCC FINANCING STATEMENT" shall have the meaning set forth in Section
2.05(c) hereof.

        SECTION 1.02. OTHER REFERENCES.

                (a) As used in this Trust Agreement and in any certificate or
        other document made or delivered pursuant hereto or thereto, accounting
        terms not defined in this Trust Agreement or in any such certificate or
        other document, and accounting terms partly defined in this Trust
        Agreement or in any such certificate or other document, to the extent
        not defined, shall have the respective meanings given to them under
        generally accepted accounting principles. To the extent that the
        definitions of accounting terms in this Trust Agreement or in any such
        certificate or other document are inconsistent with the meanings of such
        terms under generally accepted accounting principles, the definitions
        contained in this Trust Agreement or in any such certificate or other
        document shall control.

                (b) The definitions contained in this Trust Agreement are
        applicable to the singular as well as the plural, the past, the present,
        the future, the active and the passive forms of such terms and to the
        masculine as well as the feminine and neuter genders of such terms.

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

                (d) The terms "hereof," "herein," "hereby" or "hereunder,"
        unless otherwise modified by more specific reference, shall refer to
        this Trust Agreement in its entirety as amended from time to time.
        Unless otherwise indicated in context, the terms "Article," "Section,"
        "Schedule," or "Exhibit" shall refer to an Article or Section of, or
        Schedule or Exhibit to, this Trust Agreement. The headings of sections
        and paragraphs and the Table of Contents contained in this Trust
        Agreement are provided for convenience only. They form no part of this
        Trust Agreement and shall not affect its construction or interpretation.

                                       4
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                                   ARTICLE II

                           ORGANIZATION OF THE TRUST;
               AUTHORITY TO EXECUTE AND PERFORM VARIOUS DOCUMENTS;
                    DECLARATION OF TRUST BY DELAWARE TRUSTEE

        SECTION 2.01. ESTABLISHMENT OF THE TRUST. The Depositor and the Delaware
Trustee hereby establish a trust (the "Trust") pursuant to the Trust Statute, to
be known as "Nelnet Student Loan Trust 2006-3" Simultaneously with the execution
hereof, the Depositor shall make a contribution to the Trust as the Depositor's
initial contribution, as described more fully in Exhibit A hereto, and
thereafter may transfer and assign the property described in the granting
clauses of the Indenture to the Trust under the terms of the Student Loan
Purchase Agreements (as defined in the Indenture) and other assignment
agreements by and between the Depositor, as seller or assignor, and the Trust,
as purchaser or assignee, and may assume certain obligations under and in
accordance with the Transaction Documents. Upon the making of such contribution,
the Delaware Trustee shall record the amount thereof on the books of the Trust
and the investment of the Depositor therein. It is the intention of the parties
hereto that the Trust shall constitute a statutory trust under the Trust
Statute, that this Trust Agreement shall constitute the governing instrument of
such Trust and that the Certificateholders shall hold all of the beneficial
interests in the Trust. The rights of the Certificateholders shall be determined
herein and the relationship between the parties hereto created by this Trust
Agreement shall not constitute indebtedness for any purpose. Subject to Section
2.08 hereof, it is the intention of the parties hereto that, solely for purposes
of federal income taxes, state and local income and franchise taxes, and any
other taxes imposed on, measured by or based upon gross or net income, (i) if
there is only one Certificateholder, the Trust shall be treated as a disregarded
entity separate from its owner pursuant to ss. 301.7701-2(c)(2) of the Treasury
Regulations and (ii) if there is more than one Certificateholder, the Trust
shall be treated as a partnership, and that the provisions of this Trust
Agreement shall be construed in accordance with such intent. The parties hereto
agree to take no action inconsistent with such treatment, unless required
otherwise by applicable law. The Delaware Trustee is hereby authorized to file
the certificate required under Section 3810 et seq. of the Trust Statute in
connection with the formation of the Trust under the Trust Statute.

        SECTION 2.02. NAME. The name of the Trust shall be "Nelnet Student Loan
Trust 2006-3," in which name the Delaware Trustee solely in such capacity on
behalf of the Trust may, subject to the terms hereof and the other Transaction
Documents, conduct business, make and execute loans, contracts, security
instruments and other instruments, acquire, pledge, convey and transfer property
and sue or be sued.

        SECTION 2.03. OFFICE AND SITUS OF TRUST. The Trust shall be located and
administered in the State of Delaware. The Trust shall not have any employees in
any state other than the State of Delaware; provided, however, that nothing
herein shall restrict or prohibit the Trust Company (in its individual capacity
but not as Delaware Trustee) from having employees within or without the State
of Delaware. The only office of the Trust shall be the corporate trust office of
the Delaware Trustee in the State of Delaware.

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        SECTION 2.04. AUTHORITY. Effective as of the date hereof, the Delaware
Trustee shall have all of the rights, powers and duties set forth herein, and to
the extent not inconsistent herewith, in the Trust Statute with respect to
accomplishing the purposes of the Trust.

        SECTION 2.05. POWERS AND AUTHORITY.

                (a) Subject to Section 2.09 hereof, the Trust has been created
        for the purpose of purchasing and owning student loans, issuing Notes
        from time to time, pledging its interest in student loans and other
        collateral under the terms of the Indenture to secure the Notes and
        performing activities that are necessary, suitable or convenient to
        accomplish those purposes, including without limitation, the following:

                        (i) execute and deliver the Basic Documents (as defined
                in the Indenture), including, but not limited to, one or more
                student loan purchase agreements, administration agreements,
                remarketing agreements, depository agreements, note purchase
                agreements, master servicing agreements, sub-servicing
                agreements, eligible lender trust agreements, guaranty
                agreements, custodial agreements, investment agreements,
                Derivative Products (as defined in the Indenture), and such
                other documents relating to the transactions contemplated by the
                Indenture and hereby as the Required Certificateholders or the
                Administrator may from time to time direct in writing
                (collectively, the "Transaction Documents"), in each case in the
                respective forms in which the same may be delivered by or on
                behalf of the Certificateholders or the Administrator to the
                Delaware Trustee from time to time for execution and delivery,
                and accept any document that is not signed by the Delaware
                Trustee, the delivery of which is provided for under any of the
                preceding agreements;

                        (ii) execute and deliver all other documents,
                certificates, instruments and agreements that are provided to it
                and are contemplated to be executed and delivered by the
                Delaware Trustee or the Trust, as applicable, by the documents
                referred to in clause (i) above;

                        (iii) to acquire and finance beneficial interests in
                Eligible Loans (as defined in the Indenture);

                        (iv) to deposit and apply the proceeds of the sale of
                the Notes;

                        (v) to assign, grant, transfer, pledge, mortgage and
                convey all or any portion of the Trust Estate pursuant to the
                Indenture and to hold, manage and distribute to the
                Certificateholders pursuant to the terms of this Trust Agreement
                any portion of the Trust Estate released from the lien of, and
                remitted to the Trust pursuant to, the Indenture;

                        (vi) execute and deliver assignments and assumptions
                with respect to certain rights and responsibilities under the
                Transaction Documents;

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                        (vii) upon the direction of the Required
                Certificateholders or the Administrator take whatever action
                shall be required to be taken by the Delaware Trustee by the
                terms of, and to exercise its rights and perform its duties
                under, each of the documents referred to in clauses (i) through
                (vi) above as set forth therein;

                        (viii) upon a Certificateholder making or causing to be
                made available to the Delaware Trustee the contributions
                referred to in Section 2.01 hereof, record the amount thereof on
                the books of the Trust as the investment of the
                Certificateholder therein;

                        (ix) to pay such expenses as directed by the
                Certificateholder or the Administrator and to note such payment
                on the books of the Trust;

                        (x) pay, remit and distribute monies received by the
                Trust pursuant to Section 4.01 hereof;

                        (xi) subject to the terms of this Trust Agreement and
                the Transaction Documents, to engage in such other activities as
                may be required in connection with the conservation of the Trust
                Estate, payment of the Notes and making distributions to the
                Certificateholders;

                        (xii) issue, execute and deliver the Certificates in the
                form attached hereto;

                        (xiii) take such other actions as are specified herein
                or are incidental to the foregoing; and

                        (xiv) subject to the terms of this Trust Agreement, take
                such other action in connection with the foregoing as the
                Required Certificateholders or the Administrator may from time
                to time direct.

                (b) Notwithstanding anything herein to the contrary, the Trust
        is neither authorized nor empowered to engage in any activity other than
        exercising its rights, powers and authority and performing its
        obligations in accordance with the express provisions of subsection (a)
        of this Section. The Delaware Trustee may establish such trust accounts
        on its records (or through the Trust Company) in its discretion as it
        may deem desirable or appropriate for the deposit and disbursement of
        any monies delivered to it hereunder.

                (c) Notwithstanding anything in this Trust Agreement or in any
        other Transaction Document to the contrary, the Trust is hereby
        authorized to execute, deliver and perform the Indenture, each Student
        Loan Purchase Agreement, the Master Servicing Agreement, the Eligible
        Lender Trust Agreement, the Administration Agreement, each Derivative
        PRODUCT (each as defined in the Indenture) and such financing statements
        (UCC-1 and UCC-3) evidencing the security interests granted by the Trust
        (the "UCC Financing Statement") pursuant to any of the foregoing
        agreements and/or the assignment of the Trust's interests in collateral
        pledged or assigned to the Trust pursuant to any of the foregoing
        documents, and the Delaware Trustee is hereby authorized to execute and
        deliver such documents on behalf of the Trust without any approval,
        consent or other action by any party hereto, and such execution,
        delivery and performance do not and shall be deemed not to conflict with
        or violate any provision of this Trust Agreement or any duty or
        restriction hereunder of any party hereto.

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        SECTION 2.06. DECLARATION OF TRUST BY DELAWARE TRUSTEE. The Delaware
Trustee hereby declares that it will hold the Trust Estate upon the trusts set
forth herein for the use and benefit of the Certificateholders and as Delaware
Trustee for the Certificateholders hereunder.

        SECTION 2.07. THE INDENTURE. The Certificateholders and the Delaware
Trustee hereby acknowledge that, when executed and delivered, the Indenture
shall create a lien on the Trust Estate, subject to the limitations set forth in
the Indenture.

        SECTION 2.08. TITLE TO TRUST ESTATE. Subject to the lien of the
Indenture, title to all of the Trust Estate at all times shall be vested in the
Trust as a separate legal entity except (a) where applicable law in any
jurisdiction requires title to any part of the Trust Estate to be vested in a
trustee or trustees, in which case title to that part of the Trust Estate shall
be vested in the Delaware Trustee, a co-trustee and/or a separate trustee, as
the case may be, and (b) except that record title to Eligible Loans that are
part of the Trust Estate shall be held by an eligible lender trustee pursuant to
the terms of an eligible lender trust agreement or the Indenture and the Trust
shall have a beneficial interest therein.

        SECTION 2.09. COVENANTS REGARDING OPERATIONS.

                (a) Notwithstanding any other provision to the contrary in this
        Trust Agreement or any other agreement, document or instrument executed
        by the Trust and notwithstanding any prior termination of this Trust
        Agreement and to the fullest extent permitted by law, the
        Certificateholders shall not take or authorize any Bankruptcy Action.

                (b) So long as the Indenture is in effect, and except as
        otherwise provided in the Indenture and the Transaction Documents, each
        Certificateholder and the Administrator shall cause the Trust to, and
        the Trust shall:

                        (i) do or cause to be done all things necessary to
                maintain its valid existence, rights and franchises in good
                standing as a statutory trust under the laws of the State of
                Delaware, preserve and keep in full force and effect its
                existence, rights and franchises, obtain and preserve its
                qualification to do business in each jurisdiction in which such
                qualification is or shall be necessary to protect the validity
                and enforceability of this Trust Agreement and the Transaction
                Documents, and observe all procedures and provisions required by
                this Trust Agreement and the laws of the State of Delaware;

                        (ii) not amend, alter, waive, change or repeal (A) its
                Statutory Trust Certificate, (B) the definitions in this Trust
                Agreement of the capitalized terms used in this Section or any
                of the definitions of the terms that form any part thereof or
                (C) Sections 2.05, 2.09, 5.03, 5.06, 6.08 or Article VII of this
                Trust Agreement;

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                        (iii) maintain its own bank accounts and correct and
                complete financial and other entity records, accounts and books
                of account separate and distinct from those of any other Person,
                not commingle its records, accounts, books of account and bank
                accounts with the organizational or other records, accounts,
                books of account or bank accounts of any other Person and cause
                such records, accounts, books of account and bank accounts to
                reflect the separate existence of the Trust;

                        (iv) act solely in its own name and through its
                Authorized Officers or agents in the conduct of its business,
                prepare all Trust correspondence in the Trust's name, hold
                itself out as a separate entity from any other Person, conduct
                its business so as not to mislead others as to the identity of
                the entity with which they are concerned, correct any
                misunderstanding regarding its separate identity known to the
                Trust, refrain from engaging in any activity that compromises
                the separate legal identity of the Trust, and strictly comply
                with all organizational and statutory formalities to maintain
                its separate existence;

                        (v) take such actions as may be necessary to authorize
                each of the Trust's actions as may be required by law and this
                Trust Agreement;

                        (vi) at any time that the Trust is not treated as a
                disregarded entity or part of a consolidated group filing
                consolidated returns for federal income tax purposes, file or
                cause to be filed its own tax and information returns, if any,
                as may be required of the Trust under applicable federal, state
                and local law, and pay any taxes so required to be paid under
                applicable law from its own assets;

                        (vii) except for the Delaware Trustee's standard
                practice regarding maintenance of funds and assets, not
                commingle its assets with assets of any other Person and
                segregate and separately maintain its assets as identifiable
                assets held in its name (except with respect to holding assets
                in its name, to the extent otherwise required by the terms of
                the Indenture with respect to any accounts established
                thereunder) and with its own tax identification number in such a
                manner that it is not costly or difficult to segregate,
                ascertain or identify its individual assets from those of any
                other Person, which shall at all times be held by or on behalf
                of the Trust and used only for the business of the Trust;

                        (viii) maintain annual financial statements separate
                from any other Person and pay or bear the cost of preparation of
                its own financial statements by an independent registered public
                accounting firm, if any, and disclose in the annual financial
                statements of the Trust the effects of its transactions in
                accordance with generally accepted accounting principles;

                        (ix) not permit the financial statements of the Trust,
                or any consolidated or combined financial statements which
                consolidate or combine the assets and earnings of any
                Certificateholder or any affiliate of a Certificateholder with
                those of the Trust, to state that the assets of the Trust are or
                will be available to pay creditors of any of its affiliates, any
                Certificateholder or any affiliate of a Certificateholder;

                                       9
<PAGE>

                        (x) maintain an arm's-length relationship with its
                affiliates, the Administrator and the Certificateholders and
                their respective affiliates, not enter into any contract or
                agreement with any of its affiliates, the Administrator or any
                Certificateholder or their respective affiliates unless the
                terms are commercially reasonable, and substantially similar to
                those that would be available on an arm's-length basis with
                third parties, and transact all business with its affiliates,
                the Administrator, the Certificateholders and their respective
                affiliates pursuant to enforceable agreements with material
                terms established at the inception that will not be amendable
                except with the consent of each of the parties to such
                agreement;

                        (xi) to the extent that the Trust leases premises from
                any Certificateholder or its affiliates, pay appropriate, fair
                and reasonable compensation or rental;

                        (xii) be directly responsible for the costs of its own
                outside legal, auditing and other similar services taxes,
                liabilities and operating expenses only out of its funds and not
                pay from its assets any obligations or indebtedness of any other
                Person;

                        (xiii) pay from its own funds the salaries of its own
                employees, if any, and maintain a sufficient number of employees
                in light of its contemplated business operations;

                        (xiv) compensate from its own funds independent
                contractors for performing services or incurring expenses in
                connection with such services for the Trust in an amount equal
                to the fair value of such services and expenses;

                        (xv) fairly and reasonably allocate between the Trust
                and any other Person pursuant to a written agreement all
                expenses that are shared with such Person, including any
                overhead, rent, or other compensation paid for shared or leased
                office space;

                        (xvi) not act as an agent of any Certificateholder, the
                Delaware Trustee or their respective affiliates;

                        (xvii) not permit any Certificateholder (excluding the
                Administrator acting pursuant to the Administration Agreement)
                or its respective affiliates to act as an agent for the Trust,
                except as specifically permitted by this Trust Agreement;

                        (xviii) not identify itself as a department or division
                of any other Person in order not (A) to mislead others as to the
                identity of the entity with which such other party is
                transacting business or (B) to suggest that the Trust is
                responsible for the debts of any other Person;

                                       10
<PAGE>

                        (xix) use stationery and invoices separate from any
                other Person;

                        (xx) not enter into leases for office space, except as
                necessary to maintain a principal place of business or conduct
                its operations;

                        (xxi) not be, become or hold itself out (or permit
                itself to be held out) as being liable for the debts or other
                obligations of any other Person, or hold out its credit (or
                permit its credit to be held out) as being available to satisfy
                the obligation of any other Person;

                        (xxii) not pledge any property or assets of the Trust
                (except as permitted by the Indenture), lend or advance any
                moneys (other than trade receivables in connection with the
                ordinary course of the Trust's business), guarantee (directly or
                indirectly), endorse (other than the endorsement of negotiable
                instruments for collection or deposit in the ordinary course of
                business) or otherwise become contingently liable (directly or
                indirectly) for the obligations of, or acquire or assume any
                obligation or liability of, any other Person;

                        (xxiii) except for investments expressly permitted by
                the Indenture, not make an investment in or for the benefit of,
                or own or purchase any stock, obligations or securities of or
                any other interest in, or make any capital contribution to, any
                other Person or form or acquire any subsidiary;

                        (xxiv) except for its obligations under the Indenture,
                trade payables incurred in the ordinary course of its business
                that are in amounts that are customary and reasonable under the
                circumstances, are not evidenced by a promissory note, and are
                paid when due (but in no event for more than sixty (60) days
                from the date that such indebtedness or liabilities are
                incurred, unless contested in good faith), not incur any debt,
                secured or unsecured, direct or contingent (including, without
                limitation, guaranteeing any obligation);

                        (xxv) maintain adequate capital for the normal
                obligations reasonably foreseeable in a business of the Trust's
                size and character and in light of its proposed business
                operations and liabilities (provided that this clause shall not
                be deemed a commitment by any Certificateholder to make
                contributions to the Trust);

                        (xxvi) not engage, directly or indirectly, in any
                business other than the actions required or permitted to be
                performed under Section 2.05 hereof;

                        (xxvii) not acquire or own any material assets other
                than the assets and properties to be pledged under the Indenture
                or as otherwise are necessary to comply with its obligations
                under the Transaction Documents;

                        (xxviii) properly account in the Trust's books and
                financial records for any transactions entered into between the
                Trust and any Certificateholder, the Administrator and their
                respective affiliates;

                                       11
<PAGE>

                        (xxix) not enter into any contract, except such
                contracts as necessary to enable the Trust to achieve its
                purposes as set forth in, or that are otherwise required or
                permitted by, Section 2.05 hereof;

                        (xxx) not agree to, enter into or consummate any
                transaction which would render it unable to confirm that (A) it
                is not an "employee benefit plan" as defined in Section 3(32) of
                ERISA, which is subject to Title I of ERISA, or a "governmental
                plan" within the meaning of Section 3(32) of ERISA; (B) it is
                not subject to state statutes regulating investments and
                fiduciary obligations with respect to governmental plans; and
                (C) less than 25% of each of its outstanding classes of equity
                interests are held by "benefit plan investors" within the
                meaning of 29 C.F.R. ss. 2510.3-101(f)(2);

                        (xxxi) to the fullest extent permitted by applicable law
                and except as otherwise expressly provided elsewhere in this
                Section, not take or refrain from taking any act which would
                make it impossible to carry on the activities of the Trust set
                forth in Section 2.05 hereof;

                        (xxxii) except as expressly provided in the Indenture,
                not knowingly perform any act that would subject (A) any
                Certificateholder to liabilities of the Trust in any
                jurisdiction or (B) the Trust to taxation as a corporation for
                federal income tax purposes;

                        (xxxiii) not combine, consolidate or merge into or with
                any other Person, convert into an entity that is not a Delaware
                statutory trust, reorganize or form the Trust in a jurisdiction
                other than Delaware or, to the fullest extent permitted by
                applicable law, dissolve, liquidate or transfer substantially
                all of its assets;

                        (xxxiv) not enter into the Transaction Documents or any
                other agreement with any intent to hinder, delay or defraud
                creditors of any Person;

                        (xxxv) not permit the Trust to be maintained or used to
                abuse creditors or to perpetuate a fraud, injury or injustice to
                creditors of any Person;

                        (xxxvi) subject to Section 5.06 hereof, not take any
                Bankruptcy Action; and

                        (xxxvii) cause any agents and other representative of
                the Trust to act at all times with respect to the Trust in
                furtherance of the foregoing.

                (c) None of the Trust, a Certificateholder or any Person on
        behalf of the Trust shall, and none of them shall have the authority to,
        enter into any agreements, written or otherwise (other than the
        obligations of the Certificateholder under Sections 5.03 and 6.08 and
        Article VII hereof), pursuant to which any Certificateholder or any of
        its affiliates agrees to extend credit, make loans or make payment or
        contributions (subject to Section 2.13 hereof) to or for or assume,
        guaranty or otherwise be obligated for the payment of the obligations or
        the performance of the Trust, hold itself out as being liable for the
        obligations of the Trust or hold out its credit as being available to
        satisfy the obligations of the Trust.

                                       12
<PAGE>

        SECTION 2.10. APPOINTMENT OF DELAWARE TRUSTEE. The Certificateholders
hereby appoint the Delaware Trustee as trustee of the Trust effective as of the
date hereof, to have all of the rights, powers, authority, authorization and
duties set forth herein and in the Trust Statute.

        SECTION 2.11. FEDERAL INCOME TAX ALLOCATIONS. Net income of the Trust
for any period, as determined for federal income tax purposes (and each item of
income, gain, loss and deduction entering into the computation thereof), shall
be allocated to the Certificateholders on a pro rata basis in accordance with
their respective Percentage Interests.

        SECTION 2.12. ADMINISTRATION. Unless and until otherwise notified in
writing by the Required Certificateholders, the Delaware Trustee is hereby
authorized and directed to take and receive instructions from the Administrator
pursuant to the Administration Agreement with respect to matters relating to the
Trust to the same extent and with the same effect and protection as if any such
instructions were received from the Required Certificateholders subject to the
provisions hereof. The Administrator shall be entitled to the Administration Fee
for services provided pursuant to the provisions hereof, which compensation is
hereby acknowledged as reasonable compensation by the Administrator and the
Certificateholders. The Administration Fee shall be payable as provided herein
and in the Indenture.

        SECTION 2.13. ADDITIONAL CONTRIBUTIONS. Any Certificateholder may make
an additional capital contribution (which capital contribution may be made with
funds advanced to the Certificateholder from the Administrator) to the Trust to
enable the Trust to carry out any instructions of such Certificateholder that
are permitted by the Transaction Documents, including an optional capital
contribution to enable the Trust to effect an optional purchase of Notes. If
such Certificateholder makes such a capital contribution, the Delaware Trustee
shall establish a separate trust account designated for the deposit of such
capital contributions. If a Certificateholder makes a capital contribution to
enable the Trust to take any action, any proceeds that result from such action
in an amount up to the amount of the capital contribution shall, if so directed
by the Certificateholder, be credited to such separate account and shall be
distributed to the Certificateholder that made such capital contribution.

        SECTION 2.14. PRINCIPAL PLACE OF BUSINESS. The Trust shall maintain its
principal place of business and chief executive office in the State of Delaware.

        SECTION 2.15. LIABILITY OF THE CERTIFICATEHOLDERS AND THE DELAWARE
TRUSTEE. To the fullest extent permitted by law, no Certificateholder shall have
any personal liability for any liability or obligation of the Trust for any
losses, claims, damages, liabilities and expenses of the Trust. The Delaware
Trustee shall not have any liability or obligation with respect to the
Certificateholders except as otherwise provided herein.

                                       13
<PAGE>

                                  ARTICLE III

                  TRUST CERTIFICATES AND TRANSFER OF INTERESTS

        SECTION 3.01. INITIAL BENEFICIAL OWNERSHIP. Upon the formation of the
Trust by the contribution by the Depositor pursuant to Section 2.01 hereof and
until the issuance of Certificates, the Depositor shall be the sole beneficial
owner of the Trust.

        SECTION 3.02. THE CERTIFICATES.

                (a) The Certificates are issuable in fully registered form in
        minimum Percentage Interests of 10%. Each Certificate shall be
        substantially in the form set forth in Exhibit C hereto. All
        Certificates may have set forth thereon such information, legends, and
        text as may be necessary or appropriate to conform to any applicable
        rules and regulations of any governmental authority or any usage or
        requirement of law with respect thereto. The Certificates shall be
        executed on behalf of the Trust by manual or facsimile signature of an
        Authorized Officer of the Delaware Trustee. Certificates bearing the
        manual or facsimile signatures of individuals who were, at the time when
        such signatures shall have been affixed, authorized to sign on behalf of
        the Delaware Trustee, shall be duly authorized, validly issued and
        entitled to the benefits of this Trust Agreement, notwithstanding that
        such individuals or any of them shall have ceased to be so authorized
        prior to the authentication and delivery of such Certificates or did not
        hold such offices at the date of authentication and delivery of such
        Certificates.

                (b) A transferee of a Certificate shall become a
        Certificateholder and shall be entitled to the rights and subject to the
        obligations of a Certificateholder hereunder upon such transferee's
        acceptance of a Certificate duly registered in such transferee's name
        pursuant to Section 3.04 hereof.

        SECTION 3.03. AUTHENTICATION OF CERTIFICATES. No Certificate shall
entitle its Certificateholder to any benefit under this Trust Agreement or be
valid for any purpose unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit C
hereto, executed by the Trust by manual signature of an Authorized Officer of
the Delaware Trustee; such authentication shall constitute conclusive evidence
that such Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication.

        SECTION 3.04. REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.

                (a) The Delaware Trustee shall keep or cause to be kept, at the
        office or agency maintained pursuant to Section 3.08 hereof, a Register
        in which, subject to such reasonable regulations as it may prescribe,
        the Registrar shall provide for the registration of Certificates and of
        transfers and exchanges of Certificates as herein provided.

                                       14
<PAGE>

                (b) The Certificates have not been and will not be registered
        under the Securities Act and will not be listed on any exchange. No
        transfer of a Certificate shall be made unless such transfer is made
        pursuant to an effective registration statement under the Securities Act
        and any applicable state securities laws or is exempt from the
        registration requirements under the Securities Act and such state
        securities laws. In the event that a transfer is to be made in reliance
        upon an exemption from the Securities Act and state securities laws, in
        order to assure compliance with the Securities Act and such laws, the
        Certificateholder desiring to effect such transfer and such
        Certificateholder's prospective transferee shall each certify to the
        Trust, the Delaware Trustee, the Administrator and the transferring
        Certificateholder in writing the facts surrounding the transfer in
        substantially the forms set forth in Exhibit D (the "Transferor Letter")
        and Exhibit E (the "Investment Letter") or Exhibit F (the "Rule 144A
        Letter") hereto, as applicable. Except in the case of a transfer as to
        which the proposed transferee has provided a Rule 144A Letter with
        respect to a Rule 144A transaction, there shall also be delivered to the
        Trust an Opinion of Counsel (unless such transfer is made to an
        affiliate of the transferor) to the effect that such transfer may be
        made pursuant to an exemption from the Securities Act, which Opinion of
        Counsel shall not be an expense of the Trust, the Delaware Trustee
        (unless it is the transferee from whom such opinion is to be obtained)
        or the Administrator. Each Certificateholder of a Certificate desiring
        to effect such a transfer shall, and does hereby agree to, indemnify the
        Trust, the Delaware Trustee and the Administrator against any liability
        that may result if the transfer is not so exempt or is not made in
        accordance with federal and state securities laws.

                (c) No transfer, sale, pledge or other disposition of the
        Certificate shall be made unless prior to such transfer, sale, pledge or
        other disposition, the Trust shall have received either (i) a
        representation letter from the transferee of such Certificate,
        acceptable to and in form and substance satisfactory to the Trust, to
        the effect that such a transferee is not an employee benefit plan
        subject to Section 406 of ERISA or Section 4975 of the Internal Revenue
        Code of 1986, as amended (the "Code"), or a person acting on behalf of
        any such plan or (ii) in the case of any 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
        enactments), 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
        Trust, the Delaware Trustee and the Administrator to the effect that the
        purchase or holding of such Certificate will not result in the Trust or
        the Trust Estate being deemed to be "plan assets" and subject to the
        prohibited transaction provisions of ERISA and the Code and will not
        subject the Trust, the Delaware Trustee, the Administrator or the
        transferring Certificateholder to any obligation in addition to those
        undertaken in this Trust Agreement. Notwithstanding anything else to the
        contrary herein, in the event any purported transfer of any Certificate
        is made without delivery of the representation letter referred to above,
        such representation shall be deemed to have been made by the transferee
        by its acceptance of such Certificate. In addition, any purported
        transfer of a Certificate to or on behalf of an employee benefit plan
        subject to ERISA or to the Code without the delivery to the Trust, the
        Delaware Trustee, and the Administrator of an Opinion of Counsel as
        described above shall be void and of no effect. Any certificate or
        Opinion of Counsel furnished pursuant to this Section may be relied on
        conclusively by the Trust, the Delaware Trustee, the Administrator and
        the transferring Certificateholder in determining whether the provisions
        hereof have been complied with.

                                       15
<PAGE>

                (d) No transfer shall be effective if immediately after such
        transfer there would be more than one hundred Beneficial Owners of
        Certificates. Any purported transfer in violation of the provisions of
        this subsection (d) shall be VOID AB INITIO and the Delaware Trustee
        shall have no liability in connection with a transfer in violation of
        the provisions of this subsection (d).

                (e) The foregoing provisions shall not prevent the assignment by
        a Certificateholder of all or any part of its right to receive
        distributions in respect of its interest in its Certificate, but such
        assignment shall effect no change in ownership of the Trust.

                (f) The preparation and delivery of the certificate and opinions
        referred to in this Section shall not be an expense of the Trust, the
        Delaware Trustee or the Administrator.

                (g) Upon surrender for registration of transfer of any
        Certificate at the office or agency maintained pursuant to Section 3.08
        hereof, the Delaware Trustee shall execute, authenticate and deliver, in
        the name of the designated transferee or transferees, one or more new
        Certificates in authorized denominations stating the aggregate amount
        and Percentage Interest so transferred dated the date of authentication
        by the Delaware Trustee. At the option of a Certificateholder,
        Certificates may be exchanged for other Certificates of authorized
        Percentage Interests and denominations of a like aggregate amount upon
        surrender of the Certificates to be exchanged at the office or agency
        maintained pursuant to Section 3.08 hereof.

                (h) Every Certificate presented or surrendered for registration
        of transfer or exchange shall be accompanied by a written instrument of
        transfer in form satisfactory to the Trust and duly executed by the
        Certificateholder or such Certificateholder's attorney duly authorized
        in writing. Each Certificate surrendered for registration of transfer or
        exchange shall be cancelled and subsequently disposed of by the Trust in
        accordance with its customary practice.

                (i) No service charge shall be made for any registration of
        transfer or exchange of Certificates, but the Trust or the Delaware
        Trustee may require payment of a sum sufficient to cover any tax or
        governmental charge that may be imposed in connection with any transfer
        or exchange of Certificates.

                (j) Notwithstanding any other provision herein or elsewhere, the
        Trust, the Delaware Trustee and the Administrator (i) shall not have any
        obligation to determine whether any transfer or exchange of a
        Certificate is permitted under or in accordance with this Trust
        Agreement; (ii) shall not have any personal liability to any person in
        connection with any transfer or exchange or proposed or purported
        transfer or exchange (and/or registration thereof) that is not permitted
        under or in accordance with this Trust Agreement; and (iii) shall be
        entitled to rely (and shall be fully justified and protected in so
        relying) on the Register as to the identity of the Certificateholders
        and as to the Certificates and the Percentage Interests and
        denominations thereof evidenced thereby.

                                       16
<PAGE>

                (k) Notwithstanding anything contained herein to the contrary,
        the Delaware Trustee shall not be responsible for ascertaining whether
        any transfer complies with the registration provisions or exemptions
        from the Securities Act of 1933, as amended, the Securities Act of 1934,
        as amended, applicable state securities law or the Investment Company
        Act; PROVIDED, HOWEVER, that if a certificate is specifically required
        to be delivered to the Delaware Trustee by a purchaser or transferee of
        a Certificate, the Delaware Trustee shall be under a duty to examine the
        same to determine whether it conforms to the requirements of this Trust
        Agreement and shall promptly notify the party delivering the same if
        such certificate does not so conform.

        SECTION 3.05. MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES. If (i)
any mutilated Certificate is surrendered to the Trust and the Registrar or the
Trust receives evidence to its satisfaction of the destruction, loss or theft of
the Certificate, and (ii) there is delivered to the Registrar, the Trust, the
Delaware Trustee and the Administrator such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Registrar or the Trust that the Certificate has been acquired by a
protected purchaser, the Delaware Trustee shall execute and the Delaware Trustee
or the Registrar shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of
like tenor, amount and Percentage Interest but bearing a number not
contemporaneously outstanding. Upon the issuance of any new Certificate under
this Section the Trust or the Delaware Trustee may require the payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer or exchange of the Certificate and any other
reasonable expenses (including the reasonable fees and expenses of the Trust,
Delaware Trustee, the Administrator and the Registrar) connected therewith. Any
duplicate Certificate issued pursuant to this Section shall constitute complete
and indefeasible evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

        SECTION 3.06. PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Trust, the Delaware Trustee, the
Administrator and the Registrar may treat the Person in whose name any
Certificate is registered in the Register as the owner of such Certificate for
the purpose of receiving distributions pursuant to Section 4.01(b) hereof and
for all other purposes whatsoever, and none of the Trust, Delaware Trustee, the
Administrator or the Registrar shall be bound by any notice to the contrary.

        SECTION 3.07. ACCESS TO LIST OF CERTIFICATEHOLDERS' NAMES AND ADDRESSES.
The Trust shall furnish or cause to be furnished to the Administrator or a
Certificateholder, within 15 days after receipt by the Delaware Trustee of a
written request therefor from the Administrator or the Certificateholder, a
list, in such form as the Administrator or the Certificateholder may reasonably
require, of the names and addresses of the Certificateholders then registered in
the Register as the owner of Certificates. Each Certificateholder, by receiving
and holding a Certificate, shall be deemed to have agreed not to hold any of the
other Certificateholders, the Trust, the Delaware Trustee, the Administrator, or
the Registrar accountable by reason of the disclosure of its name and address,
regardless of the source from which such information was derived.

                                       17
<PAGE>

        SECTION 3.08. MAINTENANCE OF OFFICE OR AGENCY. The Trust will maintain
an office or agency in Wilmington, Delaware where Certificates may be
surrendered for registration of transfer or exchange. The Trust will maintain an
office at the address stated in Section 10.05 hereof where notices and demands
to or upon the Trust, the Delaware Trustee, the Administrator, and the Registrar
in respect of this Trust Agreement may be served.

        SECTION 3.09. TERMS OF CERTIFICATES BINDING. Each Certificateholder, by
assenting to the acquisition by it of a Certificate, agrees to be bound by the
terms and conditions of the Certificates and of this Trust Agreement, including
any supplements or amendments thereto or hereto, and to perform the obligations
of a Certificateholder as set forth therein or herein, in all respects as if it
were a signatory hereto. This undertaking is made for the benefit of the Trust,
the Delaware Trustee, the Administrator, the Registrar, and all other
Certificateholders, if any.

                                   ARTICLE IV

                           DISTRIBUTIONS AND PAYMENTS

        SECTION 4.01. DISTRIBUTION OF PAYMENTS.

                (a) Until the Trust shall have received written notice from the
        Indenture Trustee that the Indenture shall have been discharged pursuant
        to its terms, all revenues and receipts of any kind whatsoever generated
        by, remitted in respect of or relating to the Trust Estate and other
        payments and receipts of any kind with respect to the Trust Estate or
        otherwise included in the Trust Estate shall, if received directly by
        the Delaware Trustee, forthwith after receipt, be paid over by the
        Delaware Trustee to the Indenture Trustee without deduction, set-off or
        adjustment of any kind for distribution in accordance with the
        provisions of the Indenture; provided, that neither the making of such
        payments to, nor the receipt of such payments by, the Indenture Trustee
        or any other person shall ever be deemed to constitute the Indenture
        Trustee or any such person as an income beneficiary hereunder, it being
        understood that all such payments will be made pursuant to contractual
        obligations under the Indenture; and provided, further, that the
        Delaware Trustee shall not be required to turn over any such amounts
        received from the Indenture Trustee, or received on account of any
        amounts referred to in clause FIRST of subsection (b) of this Section or
        in Article VII hereof.

                (b) Except as otherwise provided in paragraph (a) of this
        Section, (i) all payments and amounts actually received by or on behalf
        of the Delaware Trustee from the Trust Estate sources pursuant to the
        Indenture and (ii) all other revenues, receipts and other payments of
        any kind whatsoever generated by, remitted or received in respect of or
        relating to the Trust Estate or otherwise included in the Trust Estate
        and not pledged or required to be pledged pursuant to the Indenture or
        released from the lien of the Indenture (all to the extent not
        previously distributed) (collectively, the "Payments"), each to the
        extent received by or on behalf of the Delaware Trustee, shall be
        distributed forthwith upon receipt by the Delaware Trustee in the
        following order of priority: FIRST, so much of such Payments as shall be
        required to pay or reimburse the Trust Company and the Delaware Trustee
        for any fees, expenses, indemnities or other amounts not otherwise paid
        or reimbursed to the Trust Company or the Delaware Trustee pursuant to
        the Indenture or otherwise as to which such Person is entitled to be
        paid or reimbursed hereunder shall be retained by the Delaware Trustee;
        SECOND, so much of the remainder of such Payments as shall be required
        to pay or reimburse the Administrator in performing its responsibilities
        hereunder and under the Administration Agreement for any Administration
        Fee, expenses, indemnities or other amounts not otherwise paid or
        reimbursed to the Administrator pursuant to the Indenture or otherwise
        as to which such Person is entitled to be paid or reimbursed shall be
        paid or reimbursed to the Administrator; and THIRD, the balance, if any,
        of such Payment or amount remaining thereafter shall be promptly
        distributed to the Certificateholders, pro rata based on their
        respective Percentage Interests, without deduction, set-off or
        adjustment of any kind; provided, that neither the making of such
        Payments to, nor the receipt of such Payments by, a Certificateholder or
        any other Person shall ever be deemed to constitute a Certificateholder
        or any such Person as an income beneficiary hereunder, and provided
        further, that the Delaware Trustee shall not be required to turn over
        any such Payment as compensation or reimbursement of expenses.

                                       18
<PAGE>

        SECTION 4.02. PAYMENTS FROM TRUST ESTATE ONLY. All payments to be made
by the Delaware Trustee under this Trust Agreement or by the Trust (other than
payments made pursuant to Sections 2.05(a)(ix) and 2.13 hereof with funds to be
provided by a Certificateholder) shall be made only from the Trust Estate and
the income and proceeds from or related to the Trust Estate and only to the
extent that the Delaware Trustee shall have actually received such income or
proceeds from the Trust Estate and such proceeds are not required to be remitted
to the Indenture Trustee pursuant to Section 4.01(a) hereof or the Indenture.
Each Certificateholder agrees that it will look solely to the Trust Estate to
the extent available for payment as herein provided and that, except as
specifically provided in Section 6.01 hereof, the Trust Company shall not be
liable in its individual capacity to any Certificateholder for any amounts
payable under this Trust Agreement and shall not be subject to any liability in
its individual capacity under this Trust Agreement. This Section is intended
solely to limit the liability of the Delaware Trustee and shall have no effect
on the obligations of the Certificateholders under this Trust Agreement. This
Section does not limit the liability of the Delaware Trustee set forth in
Section 6.01 hereof.

        SECTION 4.03. METHOD OF PAYMENT. Unless otherwise directed by a
Certificateholder, all amounts payable to the Certificateholder pursuant to this
Trust Agreement shall be paid to it in immediately available funds by transfer
to a banking institution with bank wire transfer facilities for the account of
the Certificateholder, as the Delaware Trustee may be instructed from time to
time in writing by the Certificateholder.

        SECTION 4.04. TRUST PAYMENT DATE STATEMENT.

                (a) Based on the reports received by the Delaware Trustee
        pursuant to the Indenture, the Delaware Trustee, or the Administrator if
        requested by the Delaware Trustee pursuant to the Administration
        Agreement, shall prepare, or shall cause to be prepared for each payment
        or distribution made to the Delaware Trustee, the Administrator, or the
        Certificateholders pursuant to Section 4.01(b) hereof a statement
        substantially in the form of Exhibit B hereto (the "Trust Payment Date
        Statement"). In connection with any payments or distributions to the
        Delaware Trustee, the Administrator or the Certificateholders pursuant
        to Section 4.01(b) hereof, the Delaware Trustee, or the Administrator if
        requested by the Delaware Trustee pursuant to the Administration
        Agreement, shall deliver the Trust Payment Date Statement to each
        Certificateholder or as instructed by the Certificateholder in a written
        Notice to the Delaware Trustee and the Administrator.

                                       19
<PAGE>

                (b) The Delaware Trustee makes no representations or warranties
        as to the accuracy of the information contained in the reports generated
        by the Trust or the Administrator pursuant to the Indenture or, to the
        extent that the Trust Payment Date Statement contains or relies upon
        information provided by the reports provided by the Trust or the
        Administrator pursuant to the Indenture, the Trust Payment Date
        Statement. The Delaware Trustee shall not be bound to make any
        investigation as to the facts stated in the reports provided by the
        Trust pursuant to the Indenture, and may rely upon each of the reports
        provided by the Trust pursuant to the Indenture delivered to it by or on
        behalf of the Indenture Trustee.

                                   ARTICLE V

                           DUTIES OF DELAWARE TRUSTEE

        SECTION 5.01. NOTICE OF DEFAULT. In the event the Delaware Trustee shall
have actual knowledge of an Event of Default under the Indenture with respect to
any Notes, the Delaware Trustee shall give prompt telephonic notice (to the
extent telephone numbers are on file with the Delaware Trustee) followed by, or
in the alternative, written notice by facsimile or overnight courier for receipt
within 48 hours of discovery thereof to the Depositor and the Indenture Trustee.
Subject to the terms of Section 5.03 hereof, the Delaware Trustee shall take or
refrain from taking such action as the Delaware Trustee shall be instructed in
writing by the Required Certificateholders. If the Delaware Trustee shall not
have received such instructions within 20 days after giving written notice of
such event to the Certificateholders (or within such shorter period of time as
may be specified in such notice or required under the circumstances), the
Delaware Trustee, subject to instructions subsequently received from the
Required Certificateholders pursuant to the preceding sentence, may, but shall
be under no duty to, take or refrain from taking any action with respect thereto
as the Delaware Trustee shall deem advisable and in the best interests of the
Certificateholders and shall not have liability to any Person for any action or
inaction. For all purposes of this Trust Agreement, in the absence of actual
knowledge of an officer of the Delaware Trustee at its address specified in
Section 10.05 hereof, the Delaware Trustee shall not be deemed to have knowledge
of any event referred to in the first sentence of this Section unless it
receives written notice thereof from a Certificateholder or the Indenture
Trustee.

        SECTION 5.02. ACTION UPON INSTRUCTION.

                (a) Whenever the Delaware Trustee is (i) unable to decide
        between alternative courses of action permitted or required by the terms
        of this Trust Agreement or under any Transaction Document, (ii) unsure
        as to the application of any provision of this Trust Agreement or any
        Transaction Document or any such provision is ambiguous as to its
        application, or is, or appears to be, in conflict with any other
        applicable provision or (iii) in the event that this Trust Agreement
        permits any determination by the Delaware Trustee or is silent or is
        incomplete as to the course of action that the Delaware Trustee is
        required to take with respect to a particular set of facts, the Delaware

                                       20
<PAGE>

        Trustee may give Notice (in such form as shall be appropriate under the
        circumstances) to the Certificateholders and the Administrator
        requesting instruction and, to the extent that the Delaware Trustee acts
        or refrains from acting in good faith in accordance with any such
        instruction received from the Required Certificateholders or the
        Administrator, the Delaware Trustee shall not be liable, on account of
        such action or inaction, to any Person. If the Delaware Trustee shall
        not have received appropriate instruction within 10 days of such notice
        (or within such shorter period of time as reasonably may be specified in
        such notice or may be necessary under the circumstances) it may, but
        shall be under no duty to, take or refrain from taking such action not
        inconsistent with this Trust Agreement or the Transaction Documents, as
        it shall deem to be in the best interests of the Certificateholders, and
        shall not have liability to any Person for such action or inaction.

                (b) Notwithstanding anything in this Trust Agreement to the
        contrary, neither the Delaware Trustee nor any of its respective agents,
        shall be required to take or refrain from taking any action under this
        Trust Agreement, the Transaction Documents or any other agreement, or
        exercise any of their respective rights and powers, if the Delaware
        Trustee shall reasonably determine (without any obligation to make any
        such determination), or shall have been advised by counsel, that such
        action or inaction (i) is contrary to the terms of this Trust Agreement,
        the terms of the Transaction Documents or any other agreement to which
        the Delaware Trustee or the Trust is a party, (ii) is likely to result
        in a breach of its duties hereunder or those of the Trust Company, (iii)
        to the actual knowledge of an officer of the Delaware Trustee that is
        responsible for the administration of the Trust, would adversely affect
        the tax status of the Trust, or (iv) is otherwise contrary to applicable
        law.

                (c) The Delaware Trustee shall not be required to expend or risk
        its own funds or otherwise incur financial liability in the performance
        of any of its respective duties hereunder, or in the exercise of any of
        its respective rights or powers, if there is reasonable ground for
        believing that the repayment of such funds or adequate indemnity against
        such risk or liability is not reasonably assured to the Delaware Trustee
        and none of the provisions contained in this Trust Agreement shall in
        any event require the Delaware Trustee to perform, or be responsible for
        the manner of performance of, any of the obligations of any other party
        under this Trust Agreement.

                (d) Subject to the terms of Sections 5.01, 5.03 and 5.06 hereof
        and the Administration Agreement, the Required Certificateholders or the
        Administrator may by written instruction direct the Delaware Trustee in
        the management of the Trust. Such direction may be exercised at any time
        by written instruction of the Required Certificateholders or the
        Administrator. Prior to taking any action on behalf of the Trust under
        this Trust Agreement or the Transaction Documents, the Delaware Trustee
        may request and, if so requested, shall receive written instructions of
        the Required Certificateholders or the Administrator specifying the
        manner in which the Delaware Trustee shall take such action. The
        Delaware Trustee shall not be liable for any action it takes or omits to
        take in good faith in reliance on the instructions of such Required
        Certificateholders or the Administrator.

                                       21
<PAGE>

                (e) The Certificateholders agree to not provide any direction to
        the Delaware Trustee to take any action that is contrary to the terms of
        this Trust Agreement, the Transaction Documents, any other agreements to
        which the Delaware Trustee or the Trust is a party, or is otherwise
        contrary to applicable law.

                (f) The Delaware Trustee shall not have the power, except upon
        the direction of each Certificateholder, to (a) remove or replace the
        Eligible Lender Trustee, any Master Servicer, the Administrator or any
        other administrator or (b) except as expressly provided in the
        Transaction Documents, sell the Financed Eligible Loans after the
        termination of the Indenture. The Delaware Trustee shall take the
        actions referred to in the preceding sentence only upon written
        instructions signed by the Certificateholders.

        SECTION 5.03. INDEMNIFICATION. The Delaware Trustee shall not be
required to take or refrain from taking any action under this Trust Agreement,
the Transaction Documents or any other agreement (other than the actions
specified in the first sentence of Section 5.01 hereof) if the Delaware Trustee
shall reasonably determine, or shall have been advised by counsel, that such
actions may result in personal liability of the Trust Company or require it to
risk or advance its own funds unless the Trust Company and the Delaware Trustee
shall have been indemnified by the Certificateholders, in manner and form
reasonably satisfactory to the Trust Company and the Delaware Trustee, against
any liability, fee, cost or expense (including reasonable legal fees and
expenses) which may be incurred or charged in connection therewith; and if the
Required Certificateholders shall have directed the Delaware Trustee to take or
refrain from taking any such action, the Certificateholders so directing the
Delaware Trustee agree to furnish such indemnity as shall be required and, in
addition, to the extent not otherwise paid pursuant to the provisions of this
Trust Agreement, to pay the reasonable compensation of the Delaware Trustee for
the services performed or to be performed by it pursuant to such direction.

        SECTION 5.04. NO DUTIES EXCEPT AS SPECIFIED IN TRANSACTION DOCUMENTS.
The Delaware Trustee shall have no duty or obligation to manage, control, use,
make any payment in respect of, register, record, sell, dispose of or otherwise
deal with any of the Trust Estate, or otherwise to take or refrain from taking
any action as Delaware Trustee or on behalf of the Trust whatsoever under or in
connection with this Trust Agreement or the Transaction Documents except as (i)
expressly provided by the terms hereof or (ii) to the extent not so provided, as
expressly provided in written instructions received pursuant to Section 5.01 or
5.02 hereof; and no implied duties or obligations shall be read into this Trust
Agreement against the Delaware Trustee. The Delaware Trustee shall not in any
instance have any duty to inspect any of the Trust Estate or any records
pertaining thereto.

        SECTION 5.05. NO ACTION EXCEPT UNDER SPECIFIED DOCUMENTS OR
INSTRUCTIONS. The Delaware Trustee shall have no authority to manage, control,
use, make any payment in respect of, register, record, sell, dispose of or
otherwise deal with any part of the Trust Estate except (i) as required by the
terms of this Trust Agreement, (ii) in accordance with the powers granted to or
the authority conferred upon the Delaware Trustee pursuant to this Trust
Agreement, or (iii) in accordance with the express terms hereof or written
instructions received pursuant to Section 5.01 or 5.02 hereof.

                                       22
<PAGE>

        SECTION 5.06. ACTION BY CERTIFICATEHOLDERS WITH RESPECT TO BANKRUPTCY.
The Delaware Trustee shall not follow any direction of the Certificateholders to
take any Bankruptcy Action. The consent of the Delaware Trustee shall be
required prior to the commencement by the Trust of any Bankruptcy Action. To the
fullest extent permitted by applicable law, the Delaware Trustee shall not be
required to consent to the commencement by the Trust of any Bankruptcy Action
unless it has received a certificate signed by a nationally recognized
accounting firm (the "Accountant's Certificate") certifying that such accounting
firm reasonably believes that the Trust is insolvent. The Delaware Trustee may
conclusively rely upon the Accountant's Certificate.

        SECTION 5.07. DISCHARGE OF LIENS. Notwithstanding anything in this Trust
Agreement to the contrary, the Delaware Trustee agrees that it will, at its own
cost and expense (and not at the expense of the Trust), promptly take all action
as may be necessary to discharge any liens on any part of the Trust Estate which
are attributable to actions by or claims against the Trust Company that are not
related to the ownership of the Trust Estate or the administration of the Trust
Estate or the transactions contemplated by this Trust Agreement.

                                   ARTICLE VI

                                DELAWARE TRUSTEE

        SECTION 6.01. ACCEPTANCE OF TRUSTS AND DUTIES. The Trust Company accepts
the trusts hereby created and agrees to perform the same but only upon the terms
of this Trust Agreement. The Delaware Trustee is authorized and directed to
execute and deliver the Transaction Documents to which the Trust is to be party
and each certificate or other document attached as an exhibit to or contemplated
by the Transaction Documents to which the Trust is to be a party, as evidenced
conclusively by the Delaware Trustee's execution thereof. In addition to the
foregoing, the Delaware Trustee is authorized, but shall not be obligated, to
take all actions required of the Trust pursuant to the Transaction Documents.
Subject to Sections 2.09 and 5.06 hereof, the Delaware Trustee is further
authorized from time to time to take such action as the Required
Certificateholders instruct in writing with respect to the Transaction
Documents. The Delaware Trustee declares that it shall hold the Trust Estate,
and all amounts received by it thereunder and hereunder in trust, upon the terms
herein set forth, on behalf of the Trust for the use and benefit of all present
and future Certificateholders. The Delaware Trustee also agrees to receive and
disburse all money actually received by it constituting part of the Trust Estate
upon the terms hereof. Notwithstanding anything in this Trust Agreement to the
contrary, the Trust Company shall not be liable, answerable or accountable in
its individual capacity to any Person under any circumstances, except that such
limitation shall not limit the liability, if any, of the Trust Company to the
Certificateholders (i) for the Trust Company's own willful misconduct, bad
faith, gross negligence or reckless disregard of the duties involved in the
conduct of its offices hereunder or the willful misconduct, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of its
offices hereunder performed through its agent not appointed with due care, (ii)
in the case of the inaccuracy of any of the Trust Company's representations or
warranties contained in Section 6.03 hereof, (iii) for taxes, fees or other
charges on, based on or measured by any fees, commissions or compensation
received by it for acting as Delaware Trustee in connection with any of the
transactions contemplated by this Trust Agreement or any other agreement
contemplated by this Trust Agreement, or (iv) the failure to use ordinary care
to disburse in accordance with the terms hereof money actually received by it.
In particular, but not by way of limitation:

                                       23
<PAGE>

                (a) the Trust Company shall not be liable for any error of
        judgment made in good faith by any officer of the Delaware Trustee;

                (b) under no circumstances shall the Trust Company be personally
        liable hereunder for any indebtedness of the Trust;

                (c) the Trust Company shall not be personally liable for the
        payment of any tax imposed on the Trust or amounts that are includable
        in the federal gross income of the Certificateholders;

                (d) no provision of this Trust Agreement shall require the Trust
        Company to expend or risk funds or otherwise incur any financial
        liability in the performance of any of the Delaware Trustee's duties or
        powers hereunder, if the Trust Company believes or is advised by its
        legal counsel that repayment of such funds or adequate indemnity against
        such risk or liability is not assured or provided to its reasonable
        satisfaction;

                (e) under no circumstance shall the Trust Company be liable for
        any representation, warranty, covenant, or obligation or indebtedness of
        the Trust hereunder or under the Transaction Documents or any other
        agreement, document or certificate contemplated by the foregoing;

                (f) the Trust Company shall not be liable with respect to any
        action taken or omitted to be taken by the Administrator and the Trust
        Company shall not be liable for performing or supervising the
        performance of any obligations or duties under this Trust Agreement, the
        Administration Agreement or the Indenture, or under any other document
        contemplated hereby or thereby, which are to be performed by the
        Administrator or any other Person under such documents;

                (g) the Trust Company shall not be responsible for or in respect
        of the recitals herein, the validity or sufficiency of this Trust
        Agreement, or for the due execution hereof by the Depositor or the
        Administrator or for the form, character, genuineness, sufficiency,
        value or validity of any of the Trust Estate or for or in respect of the
        validity or sufficiency of the Indenture or any other document
        contemplated thereby to which the Trust Company is not a party, and the
        Trust Company shall in no event assume or incur any liability, duty or
        obligation to the Indenture Trustee, the Certificateholders, or the
        Administrator other than is expressly provided for herein;

                (h) notwithstanding anything contained herein or in any of the
        Transaction Documents to the contrary, neither the Trust Company nor the
        Delaware Trustee shall be required to take any action in any
        jurisdiction other than in the State of Delaware if the taking of such
        action will (i) require the consent or approval or authorization or
        order of or the giving of notice to, or the registration with or taking
        of any action in respect of, any state or other governmental authority
        or agency of any jurisdiction other than the State of Delaware; (ii)
        result in any fee, tax or other governmental charge under the laws of
        any jurisdiction or any political subdivisions thereof in existence on
        the date hereof other than the State of Delaware becoming payable by the
        Trust Company; or (iii) subject the Trust Company to personal
        jurisdiction in any jurisdiction other than the State of Delaware for
        causes of action arising from acts unrelated to the consummation of the
        transactions by the Trust Company or the Delaware Trustee, as the case
        may be, contemplated hereby;

                                       24
<PAGE>

                (i) no provision of this Trust Agreement shall require the Trust
        Company to monitor or otherwise supervise the actions or inactions of or
        the performance by the Administrator or any sub-administrators;

                (j) the Delaware Trustee shall be deemed to have discharged its
        duties and responsibilities hereunder and under the other Transaction
        Documents to the extent the Administrator or any other administrator has
        agreed in the Administration Agreement or the related administration
        agreement, as applicable, to perform any act or to discharge any duty of
        the Delaware Trustee hereunder or under any other Transaction Document,
        and the Delaware Trustee shall not be held liable for the default or
        failure of the Administrator or any other administrator to carry out its
        obligations under the Administration Agreement or related administration
        agreement, as applicable;

                (k) the Delaware Trustee shall have no obligation to administer,
        service or collect the Financed Eligible Loans or to maintain, monitor
        or otherwise supervise the administration, servicing or collection of
        the Financed Eligible Loans;

                (l) notwithstanding anything contained herein to the contrary,
        any funds and assets held by the Delaware Trustee on behalf of the Trust
        hereunder may be maintained and accounted for in the record-keeping and
        asset custody systems utilized by the Trust Company on behalf of the
        Delaware Trustee; and

                (m) notwithstanding anything contained herein to the contrary or
        in any Transaction Document or other document, the Delaware Trustee
        shall not be required to execute, deliver or certify on behalf of the
        Delaware Trustee, the Trust or any other Person any filings,
        certificates, affidavits or other instruments required by the Securities
        and Exchange Commission or required under the Sarbanes-Oxley Act of 2002
        and, notwithstanding any Person's right to instruct the Delaware
        Trustee, neither the Delaware Trustee nor any agent, employee, director
        or officer of the Delaware Trustee shall have any obligation to execute
        any certificates or other documents required by the Securities and
        Exchange Commission or required pursuant to the Sarbanes-Oxley Act of
        2002 or the rules and regulations promulgated thereunder, and the
        refusal to comply with any such instructions shall not constitute a
        default or breech under any Transaction Document.

        SECTION 6.02. FURNISHING OF DOCUMENTS. The Delaware Trustee will furnish
to the Certificateholders, promptly upon receipt, duplicates or copies of all
reports, notices, requests, demands, certificates, financial statements and any
other writings furnished to the Delaware Trustee. The Delaware Trustee shall
have no duty or obligation to examine or review such items received by it.

                                       25
<PAGE>

        SECTION 6.03. NO REPRESENTATIONS OR WARRANTIES AS TO TRUST ESTATE.
Neither the Trust Company nor the Delaware Trustee makes (i) any representation
or warranty as to the title, value or merchantability of the Trust Estate or any
other representation or warranty, express or implied, with respect to the Trust
Estate whatsoever, and (ii) any representation or warranty as to the validity or
enforceability of the Transaction Documents or any other agreement contemplated
by any of the foregoing, or as to the correctness of any statement contained in
any thereof, except that the Trust Company represents and warrants to the
Certificateholders and the Administrator that this Trust Agreement and, assuming
that this Trust Agreement has been duly authorized, executed and delivered by
the Depositor and the Administrator, each of the Transaction Documents and each
other document which contemplates execution thereof by the Delaware Trustee on
behalf of the Trust has been or will be executed and delivered by its officers
who are or will be duly authorized to execute and deliver such document on its
behalf, and that under Delaware law (excluding Delaware securities laws), this
Trust Agreement constitutes the legal, valid and binding obligation of the Trust
Company, enforceable against the Trust Company in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws affecting the enforcement of creditors' rights generally and
to general principles of equity.

        SECTION 6.04. NO SEGREGATION OF MONEYS; NO INTEREST. Except as otherwise
provided herein or in written instructions from the Required Certificateholders,
moneys received by the Delaware Trustee hereunder need not be segregated in any
manner, except to the extent required by applicable law and Section 2.09 hereof,
and may be deposited under such general conditions as may be prescribed by law,
and neither the Trust Company nor the Delaware Trustee shall be liable for any
interest thereon.

        SECTION 6.05. RELIANCE; ADVICE OF COUNSEL. The Delaware Trustee shall
not incur any liability to anyone in acting in reliance upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report,
opinion, bond, direction or other document or paper believed by it to be genuine
and believed by it to be signed by the proper party or parties. The Delaware
Trustee may accept a copy of a resolution of the board of directors or other
governing body of any party, certified by the secretary or a senior officer
thereof, as conclusive evidence that such resolution has been duly adopted by
such body and that the same is in full force and effect. As to any fact or
matter the manner of ascertainment of which is not specifically prescribed
herein, the Delaware Trustee may for all purposes hereof rely on a certificate
of the relevant person as to such fact or matter, and such certificate shall
constitute full protection to the Delaware Trustee for any action taken,
suffered or omitted by it in good faith in reliance thereon. In the
administration of the trusts created hereby, the Delaware Trustee may execute
any of the trusts or powers hereof and perform any of its powers and duties,
including, if applicable, the holding of title to all or any part of the Trust
Estate, hereunder directly or through agents or attorneys and may consult with
counsel, accountants and other skilled persons to be selected and employed by
it, and the Delaware Trustee shall not be liable for anything done, suffered or
omitted in good faith by it in accordance with the advice or opinion within the
scope of such person's competence of any such counsel, accountants or other
skilled persons selected by it with due care.

                                       26
<PAGE>

        SECTION 6.06. NOT ACTING IN INDIVIDUAL CAPACITY. Except as otherwise
provided in this Article, in accepting the trusts hereby created, the Trust
Company acts solely as Delaware Trustee hereunder and not in its individual
capacity, and all persons having any claim against the Delaware Trustee by
reason of the transactions contemplated hereby and by the Indenture shall look
only to the Trust Estate (or a part thereof, as the case may be) for payment or
satisfaction thereof, but subject to the lien created by Indenture.

        SECTION 6.07. BOOKS AND RECORDS. The Delaware Trustee shall be
responsible for the keeping of all customary and appropriate books and records
relating to the receipt and disbursement of all money which it may receive
hereunder or under any agreement contemplated hereby.

        SECTION 6.08. TAX RETURNS. The Delaware Trustee is hereby advised that
the Certificateholders intend that as long as the Trust has a single
Certificateholder, the entity created under this Trust Agreement shall be
treated for purposes of federal income tax, state and local income and franchise
taxes, and any other taxes imposed on, measured by or based upon gross or net
income, as a disregarded entity separate from its owner. However, if there is
more than one Certificateholder, the parties hereto intend that the entity
created under this Trust Agreement shall be treated as a partnership for federal
income tax purposes. The Trust shall, at the expense of the Certificateholders
pro rata based on their respective Percentage Interests, shall cause a firm of
independent public accountants selected by the Administrator to prepare any tax
returns or other forms certified by such accounting firm to be all, to the best
of such accounting firm's knowledge, of the tax returns or forms required to be
filed by the Trust; the Delaware Trustee shall cooperate with such accounting
firm in providing any information in its possession which is necessary or
advisable in the preparation of such tax returns and shall execute such tax
returns presented to it in execution form in a timely manner to enable the
Certificateholders to timely file such tax returns. The Delaware Trustee in its
capacity as Delaware Trustee shall sign all appropriate federal returns
presented to it in execution form; provided, however, that the Trust shall send
a copy of any such return and related information to any requesting
Certificateholder at such times as such Certificateholder may request. In no
event shall the Delaware Trustee be liable for any liabilities, costs or
expenses of the Trust, the Administrator, or the Certificateholders arising out
of the application of any tax law, including federal, state, foreign or local
income or excise taxes or any other tax imposed on or measured by income (or any
interest, penalty or addition with respect thereto or arising from a failure to
comply therewith) except for any such liability, cost or expense attributable to
any act or omission by the Delaware Trustee, as the case may be, in breach of
its obligations under this Trust Agreement. The Delaware Trustee shall keep
copies of all returns delivered to it or filed by it. Any reports, returns,
records, filings or books, other than those customary books and records or any
report or return specifically referenced in this Section, shall be the sole
responsibility and obligation of the Administrator and the Certificateholders,
and the Delaware Trustee shall have no obligation or responsibility with respect
thereto.

                                   ARTICLE VII

                       ASSUMPTION OF LIABILITY AND PAYMENT
                              FOR DELAWARE TRUSTEE

        SECTION 7.01. COMPENSATION AND EXPENSES. The Delaware Trustee shall
receive from the Trust as compensation (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust)
for its services hereunder such fees as may heretofore and from time to time

                                       27
<PAGE>

hereafter be agreed upon in a separate fee agreement between the Depositor and
the Delaware Trustee. The Delaware Trustee shall be entitled to be reimbursed
from the Payments for its reasonable expenses hereunder, including, without
limitation, the reasonable compensation, expenses and disbursements of such
agents, representatives, accountants, experts and counsel as the Delaware
Trustee may employ in connection with the exercise and performance of its rights
and duties under this Trust Agreement, the Transaction Documents or any other
agreement contemplated by any of the foregoing, whether or not the transactions
contemplated hereby and thereby are consummated and to be paid as additional
reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) for any
extraordinary services rendered hereunder. Such compensation and reimbursement
shall be paid first from the Collection Fund created pursuant to the Indenture
to the extent and in the priority set forth in the Indenture and then from the
Payments as set forth in Section 4.01(b) hereof.

        SECTION 7.02. INDEMNIFICATION BY TRUST. The Trust agrees, to the fullest
extent permitted by applicable law, to assume liability for, and hereby
indemnifies and holds harmless the Trust Company, its officers, directors and
employees and the Delaware Trustee from and against any and all liabilities,
obligations, losses, damages, taxes, claims, actions, suits, costs, expenses and
disbursements (including reasonable legal fees and expenses) of any kind and
nature whatsoever which may be imposed on, incurred by or asserted at any time
against the Trust Company, its officers, directors and employees or the Delaware
Trustee in any way relating to or arising out of the Trust Estate, any of the
properties included therein, the acceptance, termination or administration of
the Trust Estate or the Trust or any action or inaction of the Delaware Trustee
or the Trust hereunder or under the Transaction Documents or any other agreement
contemplated by any of the foregoing or any certificate of a Certificateholder,
except only that the Trust shall not be required so to assume liability for any
of the matters described in the seventh sentence of Section 6.01 hereof and
provided that the Trust and the Delaware Trustee agree that such assumption of
liability for liabilities, obligations, losses, damages, taxes, claims, actions,
such costs expenses or disbursements of any kind shall be direct and primary and
not that of a guarantor. If any item assumed by the Trust under this Section is
also subject to indemnification by another party to any of the documents
specifically referenced herein (other than Section 7.03 hereof), the Trust
Company or the Delaware Trustee shall first make demand on such party for
indemnification of any such item but shall not be obligated to exhaust its
remedies thereunder. The indemnities contained in this Section shall survive the
resignation or removal of the Delaware Trustee and shall survive the termination
of the Trust and this Trust Agreement. Such indemnification and reimbursement
shall be paid solely from the Payments as set forth in Section 4.01(b) hereof.

        SECTION 7.03. CERTIFICATEHOLDERS TO ASSUME LIABILITY. To the extent the
following amounts required to be paid hereunder to the Delaware Trustee are not
paid pursuant to Sections 4.01(b) or 7.02 hereof and to the fullest extent
permitted by applicable law, the Certificateholders, pro rata based on their
respective Percentage Interests, shall pay or cause to be paid (or reimburse the
Delaware Trustee for) (a) all reasonable fees and expenses of the Delaware
Trustee hereunder, including, without limitation, the reasonable compensation,
expenses and disbursements of such agents, representatives, accountants, experts
and counsel as the Delaware Trustee may employ in connection with the exercise
and performance of its rights and duties under this Trust Agreement, the

                                       28
<PAGE>

Transaction Documents or any other agreement contemplated by any of the
foregoing, whether or not the transactions contemplated hereby and thereby are
consummated and (b) all amounts required to be paid by Section 7.02 hereof and
not paid by the Trust. The liabilities and indemnities contained in this Section
are for the benefit of the Trust Company, in its individual capacity and its
officers, directors and employees and shall not be construed as imposing any
liabilities on any Certificateholder or any affiliate thereof for any expense or
liability of the Trust to third parties. Neither the Certificateholders nor the
Administrator shall have liabilities for the expenses and liabilities of the
Trust (except as otherwise provided in this Trust Agreement with respect to the
Trust Company, in its individual capacity) and all such expenses and liabilities
shall be payable solely from the Trust Estate.

                                  ARTICLE VIII

                            TERMINATION OF INDENTURE

        SECTION 8.01. TERMINATION IN GENERAL. After the termination of the
Indenture in accordance with its terms, this Trust Agreement and the Trust shall
terminate and be of no further force or effect upon the final distribution by
the Delaware Trustee of all monies or other property or proceeds of the Trust
Estate in accordance with the terms of this Trust Agreement. The bankruptcy,
liquidation, dissolution, death or incapacity of any Certificateholder shall not
(a) operate to terminate this Trust Agreement or the Trust, (b) entitle such
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for partition or winding up of all or
any part of the Trust or the Trust Estate or (c) otherwise affect the rights,
obligations and liabilities of the parties hereto. Subject to Section 8.02
hereof, none of the Certificateholders shall be entitled to revoke or terminate
the Trust.

        SECTION 8.02. TERMINATION AT OPTION OF CERTIFICATEHOLDERS.
Notwithstanding Section 8.01 hereof, the Trust shall dissolve and the remaining
assets of the Trust shall be distributed to the Certificateholders pro rata in
accordance with their respective Percentage Interests and the Trust Statute, and
this Trust Agreement shall be of no further force and effect, upon the election
of all of the Certificateholders by written notice to the Delaware Trustee, if
such notice shall be accompanied by the written agreement (in form and substance
satisfactory to the Delaware Trustee) of all of the Certificateholders assuming
all the obligations of the Trust and the Delaware Trustee and releasing the
Delaware Trustee therefrom; provided, however, that until the termination of the
Indenture in accordance with its terms and full and final payment of all
Obligations outstanding thereunder, the Certificateholders may not so terminate
this Trust Agreement or the Trust.

        SECTION 8.03. TERMINATION. Upon the completion of winding up of the
Trust, including the payment or the making of reasonable provision for payment
of all obligations of the Trust in accordance with Section 3808(e) of the Trust
Statute, the Delaware Trustee shall file a certificate of cancellation with the
Delaware Secretary of State in accordance with Section 3810 of the Trust
Statute, at which time the Trust and this Trust Agreement (other than Article
VII hereof) shall terminate. The Administrator shall act as the liquidator of
the Trust and shall be responsible for directing the Delaware Trustee to take
all required actions in connection with winding up the Trust.

                                       29
<PAGE>

                                   ARTICLE IX

                SUCCESSOR DELAWARE TRUSTEES, CO-DELAWARE TRUSTEES
                         AND SEPARATE DELAWARE TRUSTEES

        SECTION 9.01. RESIGNATION AND SUCCESSORS. The Delaware Trustee or any
successor may resign at any time without cause by giving at least 60 days' prior
written notice to the Certificateholders. The Required Certificateholders, may
at any time remove the Delaware Trustee without cause by written notice to the
Delaware Trustee, any such resignation or removal to be effective upon the
acceptance of appointment by a successor Delaware Trustee as hereinafter
provided. In the event of the resignation or removal of the Delaware Trustee,
the Required Certificateholders shall appoint a successor by written instrument.
If a successor Delaware Trustee shall not have been appointed within 60 days
after the giving of such notice, the Delaware Trustee may apply to any court of
competent jurisdiction in the United States to appoint a successor Delaware
Trustee to act until such time, if any, as a successor shall have been appointed
as provided above. Any successor so appointed by such court shall immediately
and without further act be superseded by any successor by the Required
Certificateholders. Any successor, however appointed, shall execute and deliver
to its predecessor Delaware Trustee an instrument accepting such appointment,
and thereupon such successor, without further act, shall become vested with all
the estates, properties, rights, powers, duties and trusts of the predecessor
Delaware Trustee in the trusts hereunder with like effect as if originally named
"Delaware Trustee" herein; but upon the written request of such successor, and
upon payment to the predecessor Delaware Trustee of all amounts due to it under
this Trust Agreement, such predecessor shall execute and deliver an instrument
transferring to such successor, upon the trusts herein expressed, all the
estates, properties, rights, powers, duties and trusts of such predecessor, and
such predecessor shall duly assign, transfer, deliver and pay over to such
successor all moneys or other property then held by such predecessor upon the
trusts herein expressed. Any right of the Certificateholders against the
predecessor Delaware Trustee, in its individual capacity, shall not be
prejudiced by the appointment of any successor Delaware Trustee and shall
survive the termination of the trusts created hereby. Any successor, however
appointed, shall be a bank or a trust company incorporated or organized and
doing business within the United States of America that is an Independent
Trustee and either (a) having a combined capital and surplus of at least
$50,000,000 and being subject to supervision or examination by federal banking
authorities and (b) having (or having its obligations hereunder guaranteed by a
trust company that has) a long-term unsecured debt rating of at least BBB- by
Standard & Poor's, Baa3 by Moody's (so long as Moody's provides a rating on any
of the Obligations under the Indenture), BBB by Fitch, and a short-term
unsecured debt rating of at least F2 by Fitch, or at least the equivalent rating
from another nationally recognized statistical rating organization, if there is
such an institution willing, able and legally qualified to perform the duties of
the "Delaware Trustee" hereunder upon reasonable or customary terms. Any
corporation into which the Delaware 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 Delaware Trustee shall be a party, or
any corporation to which substantially all the corporate trust business of the
Delaware Trustee may be transferred, shall, subject to the preceding sentence,
be the "Delaware Trustee" under this Trust Agreement without further act. Any
successor Delaware Trustee, however appointed, shall be competent and qualified
to (i) serve as a trustee of a Delaware statutory trust, (ii) take all action
required by the Delaware Trustee pursuant to the Transaction Documents, this
Trust Agreement and any other agreement contemplated by any of the foregoing,
and (iii) until termination of the Indenture in accordance with its terms, be an
Independent Trustee. There shall be at all times at least one "Delaware Trustee"
that meets the requirements of the laws of the State of Delaware.
Notwithstanding anything herein to the contrary, the resignation or removal of
the Delaware Trustee shall not be effective unless and until the Required
Certificateholders appoint a successor Delaware Trustee meeting the requirements
specified above.

                                       30
<PAGE>

        SECTION 9.02. CO-DELAWARE TRUSTEES AND SEPARATE DELAWARE TRUSTEES.
Whenever the Delaware Trustee or the Required Certificateholders shall deem it
necessary or prudent in order either to conform to any law of any jurisdiction
in which all or any part of the Trust Estate shall be situated or to make any
claim or bring any suit with respect to the Trust Estate or the Indenture, or
the Delaware Trustee or the Required Certificateholders shall be advised by
counsel satisfactory to it or them that it is so necessary or prudent, the
Delaware Trustee and the Certificateholders shall execute and deliver an
agreement supplemental hereto and all other instruments and agreements, and
shall take all other action, necessary or proper to constitute one or more
persons (and the Delaware Trustee may appoint one or more of its officers)
either as co-trustee or co-trustees jointly with the Delaware Trustee of all or
any part of the Trust Estate, or as separate trustee or separate trustees of all
or any part of the Trust Estate, and to vest in such persons, in such capacity,
such title to the Trust Estate or any part thereof and such rights or duties as
may be necessary or desirable, all for such period and under such terms and
conditions as are satisfactory to the Delaware Trustee and the Required
Certificateholders and, until the termination of the Indenture in accordance
with its terms as are reasonably satisfactory to the Indenture Trustee. In case
any co-trustee or separate trustee shall dissolve, die, become incapable of
acting, resign or be removed, the title to the Trust Estate and all rights and
duties of such co-trustee or separate trustee shall, so far as permitted by law,
vest in and be exercised by the Delaware Trustee, without the appointment of a
successor to such co-trustee or separate trustee.

        SECTION 9.03. CHANGES IN IDENTITY OF A DELAWARE TRUSTEE. Upon the change
of identity of a Delaware Trustee or the addition or deletion of a Delaware
Trustee, whose identity is required to be disclosed under applicable law, the
Delaware Trustee or Delaware Trustees shall cause such filings to be made in
Delaware if required by the Trust Statute, and, at the direction of the
Certificateholders, shall cause such filings to be made, if any, as may be
required in accordance with the provisions of other applicable law, indicating
the change with respect to such Delaware Trustee's identity or such addition or
deletion of a Delaware Trustee.

                                   ARTICLE X

                                  MISCELLANEOUS

        SECTION 10.01. AMENDMENT.

                (a) Subject to Section 2.09(b)(ii) hereof, this Trust Agreement
        may be amended by an instrument in writing that specifically refers to
        this Trust Agreement signed by the Delaware Trustee and the Required
        Certificateholders to (i) cure any ambiguity or correct any provision of
        the Trust Agreement or (ii) with the consent of each Certificateholder
        the interests of which in its Certificates or the Trust would be
        adversely affected in any material respect thereby, supplement, add,
        eliminate, or change in any manner one or more provisions of this Trust

                                       31
<PAGE>

        Agreement or modify in any manner the rights of the Certificateholders;
        provided, however, that such action, as evidenced by an Opinion of
        Counsel, shall not adversely affect in any material respect the
        interests of the Indenture Trustee, or the Registered Owners taken as a
        whole, except that no such Opinion of Counsel will be required if each
        rating agency then rating any of the Notes provides prior written
        confirmation that the proposed amendment will not result in the
        withdrawal, downgrade or qualifications of the then current ratings of
        the obligations; provided further, if in the opinion of the Delaware
        Trustee any amendment adversely affects any right, duty or liability of,
        or immunity or indemnity in favor of, it or the Trust Company under this
        Trust Agreement, the Transaction Documents or any of the documents
        contemplated hereby or thereby to which it or the Trust is a party, or
        would cause or result in any conflict with or breach of or default under
        any terms, conditions or provisions of its charter documents or bylaws
        or any document contemplated hereby or thereby to which it is a party,
        the Delaware Trustee may in its sole discretion decline to enter into
        such amendment.

                (b) Promptly after the execution of any such amendment or
        consent, the Trust shall furnish written notification of the substance
        of such amendment or consent to each Rating Agency (as defined in the
        Indenture) then rating any of the Notes and the Certificateholders.

                (c) It shall not be necessary for the consent of the
        Certificateholders pursuant to this Section to approve the particular
        form of any proposed amendment or consent, but it shall be sufficient if
        such consent shall approve the substance thereof. The manner of
        obtaining such consents (and any other consents of the
        Certificateholders provided for in this Trust Agreement) and of
        evidencing the authorization of the execution thereof by the
        Certificateholders shall be subject to such reasonable requirements as
        the Delaware Trustee may prescribe.

                (d) Nothing contained in this Section shall be construed as a
        delegation by a Certificateholder to the Delaware Trustee of the right
        of the Certificateholder to consent to any amendment, waiver,
        modification or supplement to the provisions of this Trust Agreement.

                (e) Prior to its execution of any amendment to this Trust
        Agreement, the Delaware Trustee shall be entitled to receive an Opinion
        of Counsel that such amendment is permitted by the Transaction Documents
        and that all conditions precedent have been met.

                (f) Any failure by a party hereto to exercise or any delay in
        exercising any of rights under this Trust Agreement shall not operate as
        a waiver of that or any other such right.

                                       32
<PAGE>

        SECTION 10.02. NO INTEREST IN TRUST ESTATE. Legal title to the Trust
Estate shall be vested in the Trust as a separate legal entity. To the fullest
extent permitted by Delaware law, and notwithstanding anything to the contrary
in this Trust Agreement or Section 3805(a) of the Trust Statute, no
Certificateholder shall have any undivided beneficial interest in the Trust
Estate for Delaware State law purposes, nor shall any Certificateholder have
title to, or any interest in, all or part of any specific properties, assets or
rights constituting all or part of the Trust Estate. No transfer, by operation
of law or otherwise, of any right, title or interest of a Certificateholder in
the Trust or under the Trust Statute shall operate to terminate this Trust
Agreement, the Trust or the trusts created hereunder or entitle any successor or
transferee to an accounting or to the transfer to it of title to all or any part
of the Trust Estate. The performance by the Administrator or a Certificateholder
of any obligation of the Delaware Trustee or the Trust hereunder or of the Trust
under the Indenture or any other document contemplated hereby or thereby shall
not be construed as a revocation of the trusts created hereby. The
Certificateholders shall not have any liability for the performance of this
Trust Agreement except as expressly set forth herein.

        SECTION 10.03. SALE OF THE TRUST ESTATE BY DELAWARE TRUSTEE IS BINDING.
Any sale or other conveyance of the Trust Estate or any part thereof by the
Delaware Trustee made pursuant to the terms of this Trust Agreement or the
Indenture shall bind the Certificateholders and shall be effective to transfer
or convey all right, title and interest of the Trust, the Delaware Trustee and
the Certificateholders in and to the Trust Estate or such part thereof. No
purchaser or other grantee shall be required to inquire as to the authorization,
necessity, expediency or regularity of such sale or conveyance or as to the
application of any sale or other proceeds with respect thereto by the Delaware
Trustee.

        SECTION 10.04. LIMITATIONS ON RIGHTS OF OTHERS. Except as provided in
Section 10.10 hereof, nothing in this Trust Agreement, whether express or
implied, shall be construed to give to any person other than the Trust Company,
the Delaware Trustee, the Depositor, the Certificateholders and the Indenture
Trustee any legal or equitable right, remedy or claim under the Trust or in
respect of this Trust Agreement, any covenants, conditions or provisions
contained herein.

        SECTION 10.05. NOTICES, ETC. All notices, requests, demands, consents
and other communications ("Notices") required or contemplated by the provisions
hereof shall refer on their face to this Trust Agreement (although failure to do
so shall not make such Notice ineffective), shall, unless otherwise stated
herein, be in writing and sent by telecopy, telegram, cable, mail (by certified
or registered mail, return receipt requested) or by reputable overnight courier
to the following addresses:

        if to the Delaware Trustee:        Wells Fargo Delaware Trust Company
                                           919 North Market Street, Suite 700
                                           Wilmington, DE  19801
                                           Attention:  Ann Roberts Dukart
                                           Phone:  (302) 575-2004
                                           FAX:  (302) 575-2006

                                       33
<PAGE>

        if to the Depositor:               Nelnet Student Loan Funding, LLC
                                           121 South 13th Street, Suite 301
                                           Lincoln, NE  88508
                                           Attention:  Terry J. Heimes
                                           Phone:  (402) 458-2300
                                           FAX:  (402) 458-2399

        if to the Indenture Trustee:       To such Person and at such address as
                                           may be specified in the Indenture.

or at such other address as shall be designated in written notice to the
Delaware Trustee by the Persons entitled to receive notices pursuant to this
Trust Agreement. All such notices shall be effective when received.

        SECTION 10.06. SEVERABILITY. Any provision of this Trust Agreement which
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        SECTION 10.07. SEPARATE COUNTERPARTS. This Trust Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all such counterparts shall
together constitute but one and the same instrument.

        SECTION 10.08. ENTIRE AGREEMENT. Each party hereto agrees that this
Trust Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof.

        SECTION 10.09. SUCCESSORS AND ASSIGNS. All covenants and agreements
contained herein shall be binding upon and inure to the benefit of the Delaware
Trustee, the Certificateholders, the Administrator and the Indenture Trustee and
their respective successors and assigns, all as herein provided. Any request,
notice, direction, consent, waiver or other writing or action by a
Certificateholder shall bind its successors and assigns.

        SECTION 10.10. GOVERNING LAW. This Trust Agreement shall be governed by,
and construed in accordance with, the substantive laws of the State of Delaware
(without regard to conflict of law provisions) applicable to contracts to be
performed entirely within such state, including all matters of construction,
validity and performance.

        SECTION 10.11. NO LIABILITY OF CERTIFICATEHOLDERS. Except as provided in
Sections 3.04(b), 6.08 and 7.03 and Article VII hereof, neither the
Certificateholders nor the Administrator shall be liable for any losses, claims,
damages, liabilities and expenses of the Trust.

        SECTION 10.12. ACTIONS BY THE CERTIFICATEHOLDERS. Any actions required
to be taken by the Certificateholders shall, unless otherwise specified herein,
be taken with the consent of the Certificateholders then holding a majority of
the Percentage Interests.

                           [SIGNATURE PAGE TO FOLLOW]

                                       34
<PAGE>

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

                                  NELNET STUDENT LOAN FUNDING, LLC, as Depositor

                                  By:  NELNET STUDENT LOAN FUNDING
                                       MANAGEMENT CORPORATION, as
                                       Manager and Special Member

                                  By         /s/ Hannah Smitterberg
                                     -------------------------------------------
                                      Hannah Smitterberg, Assistant Vice
                                      President

                                  WELLS FARGO DELAWARE TRUST COMPANY, in its
                                  individual capacity and in its capacity as
                                  Delaware Trustee

                                  By        /s/ Ann Roberts Dukart
                                     -------------------------------------------
                                  Name:     Ann Roberts Dukart
                                        ----------------------------------------
                                  Title:    Vice President
                                         ---------------------------------------

                                       35
<PAGE>

                                    EXHIBIT A

                    CERTIFICATEHOLDERS' CAPITAL CONTRIBUTIONS

                   Depositor                     Percentage Interest
                   ---------                     -------------------

Nelnet Student Loan Funding, LLC                         100%
(Aggregate principal amount of Trust Estate)
        TOTAL                                            100%

<PAGE>

                                    EXHIBIT B

                      FORM OF TRUST PAYMENT DATE STATEMENT

                 For the Payment Date dated __________ __, _____

Nelnet Student Loan Trust 2006-3

(1) Amount received from the Indenture Trustee under the Indenture on the
    Payment Date:$

(2) Amount, if any, deducted pursuant to Section 4.01 of the Trust
    Agreement: $
                --------------

     (a)  Trust Company and Delaware Trustee
          fees and expenses:                            $
                                                         ----------
     (b)  Administrator fees and expenses:              $
                                                         ----------
                                                        Total         $
                                                                       ---------

(3) Total amount to be remitted to Certificateholders
     (Item (1) minus Item (2)):                                       $
                                                                       ---------

<PAGE>

                                    EXHIBIT C

                               FORM OF CERTIFICATE

        THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
NOT BE RESOLD OR TRANSFERRED UNLESS IT IS REGISTERED PURSUANT TO SUCH ACT AND
LAWS OR IS SOLD OR TRANSFERRED IN TRANSACTIONS WHICH ARE EXEMPT FROM
REGISTRATION UNDER SUCH ACT AND UNDER APPLICABLE STATE LAW AND IS TRANSFERRED IN
ACCORDANCE WITH THE PROVISIONS OF THE TRUST AGREEMENT REFERRED TO HEREIN.

        THE TRUST CERTIFICATE DOES NOT REPRESENT DEPOSITS OR OBLIGATIONS OF OR
ANY INTEREST IN THE ADMINISTRATOR OR WELLS FARGO DELAWARE TRUST COMPANY.

        Certificate No. __________

        Percentage Interest evidenced by this Certificate: ___%

                                   CERTIFICATE
                   Issued by Nelnet Student Loan Trust 2006-3

        This Certificate (the "Certificate") is not guaranteed or insured by any
governmental agency or instrumentality and does not represent deposits or
obligations of or any interest in the Administrator or Wells Fargo Delaware
Trust Company.

        This Certificate certifies that _______________ is the registered owner
(the "Certificateholder") of the Percentage Interest evidenced by this
Certificate specified above in the Nelnet Student Loan Trust 2006-3 (the
"Trust"). The Trust was created pursuant to a Trust Agreement, dated as of
November 1, 2006 (the "Trust Agreement"), between Nelnet Student Loan Funding,
LLC, as Initial Certificateholder and Depositor (the "Depositor"), and Wells
Fargo Delaware Trust Company, as Delaware Trustee (the "Delaware Trustee"). To
the extent not defined herein, the capitalized terms used herein have the
meanings assigned in the Trust Agreement. This Certificate is issued under and
is subject to the terms, provisions and conditions of the Trust Agreement, to
which Trust Agreement the Certificateholder by virtue of the acceptance hereof
assents and by which such Certificateholder is bound.

        This Certificate has not and will not be registered under the Securities
Act of 1933, as amended (the "Securities Act") and will not be listed on any
exchange. In addition to other restrictions on transfer set forth in the Trust
Agreement, no transfer of this Certificate shall be made to a Person or entity
unless such transfer is made pursuant to an effective registration statement
under the Securities Act and any applicable state securities laws or is exempt
from the registration requirements under the Securities Act and such laws.

<PAGE>

        In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and state securities laws, in order to assure compliance
with the Securities Act and such laws, the Certificateholder desiring to effect
such transfer and such Certificateholder's prospective transferee shall each
certify to the Trust, the Delaware Trustee, the Administrator and the
transferring Certificateholder in writing the facts surrounding the transfer in
substantially the forms required by the Trust Agreement. Except in the case of a
transfer as to which the proposed transferee has provided a Rule 144A Letter
with respect to a Rule 144A transaction, there shall also be delivered to the
Trust an Opinion of Counsel (unless such transfer is made to an affiliate of the
transferor) to the effect that such transfer may be made pursuant to an
exemption from the Securities Act, which Opinion of Counsel shall not be an
expense of the Trust, the Delaware Trustee (unless it is the transferee from
whom such opinion is to be obtained) or of the Administrator. The
Certificateholder desiring to effect such a transfer shall, and does hereby
agree to, indemnify the Trust, the Delaware Trustee and the Administrator
against any liability that may result if the transfer is not so exempt or is not
made in accordance with federal and state securities laws.

        No transfer, sale, pledge or other disposition of this Certificate shall
be made unless prior to such transfer, sale, pledge or other disposition, the
Trust shall have received either (i) a representation letter from the transferee
of such Certificate, acceptable to and in form and substance satisfactory to the
Delaware Trustee, to the effect that such a transferee is not an employee
benefit plan subject to Section 406 of ERISA or Section 4975 of the Internal
Revenue Code of 1986, as amended (the "Code"), or a person acting on behalf of
any such plan, or (ii) in the case of any 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 enactments), 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 Trust, the Delaware Trustee and the Administrator
to the effect that the purchase or holding of such Certificate will not result
in the Trust or the Trust Estate being deemed to be "plan assets" and subject to
the prohibited transaction provisions of ERISA and the Code and will not subject
the Trust, Delaware Trustee, the Administrator or the transferring
Certificateholder to any obligation in addition to those undertaken in the Trust
Agreement. Notwithstanding anything else to the contrary herein, in the event
any purported transfer of a Certificate is made without delivery of the
representation letter referred to above, such representation shall be deemed to
have been made by the transferee by its acceptance of such Certificate. In
addition, any purported transfer of a Certificate to or on behalf of an employee
benefit plan subject to ERISA or to the Code without the delivery to the Trust,
the Delaware Trustee and the Administrator of an Opinion of Counsel as described
above shall be void and of no effect.

        This Certificate is one of a duly authorized issue of Certificates
representing a beneficial undivided ownership interest in the Trust created by
the Trust Agreement. This Certificate shall not be entitled to any benefit under
the Trust Agreement or be valid for any purpose unless manually countersigned by
an Authorized Officer of the Delaware Trustee.

        The Certificateholder, by its acceptance of this Certificate, agrees
that it will look solely to the Trust Estate for payment hereunder and that
neither the Delaware Trustee nor the Administrator is liable to the
Certificateholders for any amount distributable under this Certificate or the
Trust Agreement, except as expressly provided in the Trust Agreement.

                                       C-2
<PAGE>

        This Certificate does not purport to summarize the Trust Agreement and
reference is made to the Trust Agreement for the interests, rights and
limitations of rights, benefits, obligations and duties evidenced thereby, and
the rights, duties and immunities of the Delaware Trustee and the Administrator.

        Pursuant to the terms of the Trust Agreement, a distribution on all
Certificates issued by the Trust will be made as provided in the Trust Agreement
to the Person in whose name such Certificates are then registered. Such
distribution will be made pro rata to the holders based on their respective
Percentage Interests.

        Distributions on this Certificate shall be made by wire transfer to the
Certificateholder entitled thereto as its name appears on the Register. The
final distribution on the Certificate will be made in like manner, but only upon
presentment and surrender of such Certificate at the office or agency of the
Trust specified in the notice to Certificateholders of such final distribution.

        As provided in the Trust Agreement and subject to certain limitations
therein set forth, the transfer of this Certificate is registrable in the
Register upon surrender of this Certificate for registration of transfer at the
office maintained by the Trust accompanied by a written instrument of transfer
in form satisfactory to the Trust duly executed by the Certificateholder hereof
or such Certificateholder's attorney duly authorized in writing, and thereupon
one or more new Certificates in authorized denominations and evidencing the same
aggregate ownership in the Certificates are issuable only as registered
Certificates without coupons in denominations specified in the Trust Agreement.
As provided in the Trust Agreement and subject to certain limitations therein
set forth, Certificates are exchangeable for new Certificates in authorized
denominations and evidencing the same aggregate Percentage Interest, as
requested by the Certificateholder surrendering the same.

        The Trust shall keep or cause to be kept, at the office or agency
maintained pursuant to the Trust Agreement, a Register in which, subject to such
reasonable regulations as it may prescribe, the Registrar shall provide for the
registration of Certificates and of transfers and exchanges of Certificates as
herein provided.

        Prior to due presentation of a Certificate for registration of transfer,
the Trust, the Delaware Trustee, the Administrator and the Registrar may treat
the Person in whose name any Certificate is registered in the Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to
the Trust Agreement and for all other purposes whatsoever, and none of the
Trust, Delaware Trustee, the Administrator and the Registrar shall be bound by
any notice to the contrary.

        THE TRUST AGREEMENT CONSTITUTES THE CONTRACT GOVERNING THE RIGHTS AND
OBLIGATIONS OF THE CERTIFICATEHOLDERS. THIS CERTIFICATE IS ONLY EVIDENCE OF SUCH
CONTRACT AND, AS SUCH, IS SUBJECT IN ALL RESPECT TO THE TERMS OF THE TRUST
AGREEMENT, WHICH SUPERCEDES ANY INCONSISTENT STATEMENTS IN THIS CERTIFICATE.

                                      C-3
<PAGE>

        IN WITNESS WHEREOF, the Trust has caused this Certificate to be duly
executed.

        Dated: __________, _____

                                    Nelnet Student Loan Trust 2006-32

                                    By:  Wells Fargo Delaware Trust Company, not
                                    in its individual capacity but solely in its
                                    capacity as Delaware Trustee of the Nelnet
                                    Student Loan Trust 2006-3:

                                    By
                                       -----------------------------------------
                                    Name:
                                          --------------------------------------
                                    Title:
                                           -------------------------------------

This is one of the Certificates referenced in the within-mentioned Trust
Agreement:

By
  ---------------------------------------
Authorized Signatory of Wells Fargo Delaware
Trust Company, not in its individual capacity
but solely in its capacity as Delaware Trustee
of the Nelnet Student Loan Trust 2006-3

                                      C-4
<PAGE>

                                   ASSIGNMENT

        FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                  (Please print or typewrite name and address
                     including postal zip code of assignee)

        the Percentage Interest evidenced by the within Certificate and hereby
authorizes the transfer of registration of such Percentage Interest to assignee
on the Register of the Trust.

        I (We) further direct the Delaware Trustee to issue a new Certificate of
a like denomination, 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 __________.

Applicable statements should be mailed to

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

This  information  is  provided  by   ____________________,   the assignee named
above, or ____________________, as its agent.

                                      C-5
<PAGE>

                                    EXHIBIT D

                            FORM OF TRANSFEROR LETTER

                                     [DATE]

[Name and Address of Addressees]

               Re:    Nelnet Student Loan Trust 2006-3 formed pursuant to the
                      Trust Agreement, dated as of November 1, 2006, between
                      Nelnet Student Loan Funding, LLC, as Initial
                      Certificateholder and Depositor, and Wells Fargo
                      Delaware Trust Company, as Delaware Trustee (the "Trust
                      Agreement")

                      Transferor Certificates Number[s]:  ___
                      Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

        In connection with our disposition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that such Certificates
have not been registered under the Securities Act of 1933, as amended (the
"Securities Act"), and are being disposed by us in a transaction that is exempt
from the registration requirements of the Securities Act, (b) the disposition of
the Certificates is subject to restrictions and requirements set forth in the
Trust Agreement, and (c) we have not transferred, pledged, offered, sold or
otherwise disposed of any Certificate or any interest in any Certificate to, or
solicited offers to buy or accept a transfer, pledge or other disposition of any
Certificate or any interest in any Certificate from, any person, or otherwise
approved 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 Securities Act.

                                       Very truly yours,

                                       [NAME OF TRANSFEROR]

                                       By
                                          --------------------------------------
                                           Authorized Officer

<PAGE>

                                       E-1

                                    EXHIBIT E

                            FORM OF INVESTMENT LETTER

                                     [DATE]

[Name and Address of Addressees]

               Re:    Nelnet Student Loan Trust 2006-3 formed pursuant to the
                      Trust Agreement, dated as of November 1, 2006, between
                      Nelnet Student Loan Funding, LLC, as Initial
                      Certificateholder and Depositor, and Wells Fargo
                      Delaware Trust Company, as Delaware Trustee (the "Trust
                      Agreement")

                      Transferor Certificates Number[s]:  ___
                      Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

        In connection with our acquisition of Certificates issued by the
above-referenced Trust, we certify that (a) we understand that the Certificates
are not being, and have not been, registered under the Securities Act of 1933,
as amended (the "Securities Act"), or any state securities laws and are being,
and are required to be, transferred to us in a transaction that is exempt from
the registration requirements of the Securities Act and any such laws, (b) we
are an "accredited investor," as defined in Regulation D under the Securities
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 and based upon our present and projected net income and net worth,
we believe that we can bear the economic risk of an immediate or future loss of
our entire investment in the Certificates, (c) we have had the opportunity to
ask questions of and have receive answers from the Trust, the Delaware Trustee,
the Administrator and the transferring Certificateholder concerning the Trust
and the purchase of the Certificates and all matters relating thereto or any
additional information deemed necessary to our decision to purchase the
Certificates, (d) 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 (h) below), (e) we have not transferred,
pledged, offered, sold or otherwise disposed of any Certificate or any interest
in any Certificate to, or solicited offers to buy or accept a transfer, pledge
or other disposition of any Certificate or any interest in any Certificate 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 Securities Act, nor have we
authorized or will authorize any person to act in such manner with respect to
any Certificate or any interest in any Certificate, (f) we are not prohibited

<PAGE>

from purchasing the Certificates pursuant to the Trust Agreement, (g) we have
reviewed and are familiar with the form of the Certificates, including, without
limitation, the legends thereon, and (h) we will not sell, transfer or otherwise
dispose of any Certificates unless (i) such sale, transfer or other disposition
is made pursuant to an effective registration statement under the Securities Act
or is exempt from such registration requirements, (ii) we have provided at our
expense such opinions of counsel (A) requested by the Delaware Trustee as are
satisfactory to the Delaware Trustee or (B) as are required by the Trust
Agreement, (ii) the purchaser or transferee of such Certificate has executed and
delivered to you a Letter to substantially the same effect as this Letter, and
(iii) the purchaser or transferee has otherwise complied with any conditions for
transfer set forth in the Trust Agreement.

        Capitalized terms used in this Letter, and not defined herein shall have
the meanings set forth in the Trust Agreement.

                                         Very truly yours,

                                         [NAME OF TRANSFEREE]

                                         By
                                            ------------------------------------
                                             Authorized Officer

                                      E-2
<PAGE>

                                    EXHIBIT F

                            FORM OF RULE 144A LETTER

                                     [DATE]

[Name and Address of Addressees]

               Re:    Nelnet Student Loan Trust 2006-3 formed pursuant to the
                      Trust Agreement, dated as of November 1, 2006, between
                      Nelnet Student Loan Funding, LLC, as Initial
                      Certificateholder and Depositor, and Wells Fargo
                      Delaware Trust Company, as Delaware Trustee (the "Trust
                      Agreement")

                      Transferor Certificates Number[s]:  ___
                      Transferee Certificates Number[s]:  ___

Ladies and Gentlemen:

        In connection with our disposition of Certificates issued by the above
referenced Trust, we certify that (a) we understand that the Certificates are
not being registered under the Securities Act of 1933, as amended (the
"Securities Act"), or any state securities laws and are being transferred to us
in a transaction that is exempt from the registration requirements of the
Securities Act and any such laws, (b) we have had the opportunity to ask
questions of and receive answers from the Delaware Trustee, the Administrator
and the transferring Certificateholder concerning the purchase of the
Certificates and all matters relating thereto or any additional information
deemed necessary to our decision to purchase the Certificates, (c) we are not
prohibited from acquiring the Certificates pursuant to the Trust Agreement, (d)
we have not, nor has anyone acting on our behalf offered, transferred, pledged,
sold or otherwise disposed of the Certificates or any interest in the
Certificates to, or solicited any offer to buy or accept a transfer, pledge or
other disposition of the Certificates or any interest in the Certificates from,
or otherwise approached or negotiated with respect to the Certificates, any
interest in the Certificates or any other similar security with, any person in
any manner, or made any general solicitation by means of general advertising or
in any other manner, or taken any other action, that would constitute a
distribution of the Certificates under the Securities Act or that would render
the disposition of the Certificates a violation of Section 5 of the Securities
Act or require registration pursuant thereto, nor will act, nor has authorized
or will authorize any person to act, in such manner with respect to the

<PAGE>

Certificates, (e) we are a "qualified institutional buyer" as that term is
defined in Rule 144A under the Securities 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 a
registration, or another exemption from registration, under the Securities Act
and in compliance with the requirements and restrictions set forth in the Trust
Agreement.

                                       Very truly yours,

                                       [NAME OF TRANSFEREE]

                                       By
                                          --------------------------------------
                                           Authorized Officer

<PAGE>

                              ANNEX 1 TO EXHIBIT F

            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 Letter to which this certification relates
with respect to the Certificates described therein:

               i. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

               ii. 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 $__________(1) in securities (except
for the excluded securities referred to below) as of the end of the Buyer's most
recent fiscal year (such amount being calculated in accordance with Rule 144A)
and (ii) the Buyer satisfies the criteria in the category marked below.

                      Corporation, etc. The Buyer is a corporation (other than a
               bank, savings and loan association or similar institution),
               Massachusetts or similar statutory 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.

--------------
(1) Buyer must own and/or invest on a discretionary basis at least $100,000,000
in securities unless Buyer is a dealer, and, in that case, Buyer must own and/or
invest on a discretionary basis at least $10,000,000 in securities.

<PAGE>

                      Insurance Company. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of risks underwritten by insurance
               companies and which is subject to supervision by the insurance
               commissioner or a similar official or agency of 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.

                      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.

               iii. 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.

               iv. 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) above 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.

                                       F-1-2
<PAGE>

               v. 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.

               vi. 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:

                                     F-1-3
<PAGE>

                              ANNEX 2 TO EXHIBIT F

            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 Letter 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 to
such Family of Investment Companies.

        2. In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, as
amended and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (I) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (II) no current information with respect to the
cost of those securities has been published. If clause (II) in the preceding
sentence applies, the securities may be valued at market.

               The Buyer owned $_______ in securities (other than the excluded
        securities referred to below) as of the end of the Buyer's most recent
        fiscal year (such amount being calculated in accordance with Rule 144A).

               The Buyer is part of a Family of Investment Companies which owned
        in the aggregate $_______ in securities (other than the excluded
        securities referred to below) as of the end of the Buyer's most recent
        fiscal year (such amount being calculated in accordance with Rule 144A).

        3. The term "Family of Investment Companies" as used herein means two or
more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

        4. The term "securities" as used herein does not include (i) securities
of issuers that are affiliated with the Buyer or are part of the Buyer's Family
of Investment Companies, (ii) securities issued or guaranteed by the U.S. or any
instrumentality thereof, (iii) bank deposit notes and certificates of deposit,
(iv) loan participations, (v) repurchase agreements, (vi) securities owned but
subject to a repurchase agreement and (vii) currency, interest rate and
commodity swaps.

<PAGE>

        5. The Buyer is familiar with Rule 144A and understands that the parties
listed in the Rule 144A Transferee Letter 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 Letter 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:
      ----------------------------

                                     F-2-2Unassociated Document

    NOMURA
      HOME EQUITY LOAN, INC.,

     

    Depositor

     

     

    NOMURA
      CREDIT & CAPITAL, INC.,

     

    Sponsor

     

     

    EQUITY
      ONE, INC.,

     

    Servicer

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    Master
      Servicer and Securities Administrator

     

    and

     

     

    HSBC
      BANK
      USA, NATIONAL ASSOCIATION

     

    Trustee

     

    
      	 	 	 

    

    

     

    POOLING
      AND SERVICING AGREEMENT

     

    Dated
      as
      of October 1, 2006

     

    
      	 	 	 

    

    

     

    NOMURA
      HOME EQUITY LOAN, INC.

     

    ASSET-BACKED
      CERTIFICATES, SERIES 2006-FM2

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    TABLE
      OF CONTENTS

     

    
      	
              ARTICLE
                I

            
	
              DEFINITIONS

            
	
              Section
                1.01

            	
              Defined
                Terms.

            
	
              Section
                1.02

            	
              Allocation
                of Certain Interest Shortfalls.

            
	 	 
	
              ARTICLE
                II

              CONVEYANCE
                OF TRUST FUND REPRESENTATIONS AND WARRANTIES

            
	
              Section
                2.01

            	
              Conveyance
                of Trust Fund.

            
	
              Section
                2.02

            	
              Acceptance
                of the Mortgage Loans.

            
	
              Section
                2.03

            	
              Representations,
                Warranties and Covenants of the Servicer, the Sponsor and the Master
                Servicer.

            
	
              Section
                2.04

            	
              Representations
                and Warranties of the Depositor.

            
	
              Section
                2.05

            	
              Delivery
                of Opinion of Counsel in Connection with Substitutions and
                Repurchases.

            
	
              Section
                2.06

            	
              Issuance
                of the REMIC I Regular Interests.

            
	
              Section
                2.07

            	
              Conveyance
                of the REMIC I Regular Interests; Issuance and Conveyance of the
                REMIC II
                Regular Interests, the Class X Interest, the Class P Interest and
                the
                Class IO Interest.

            
	
              Section
                2.08

            	
              Issuance
                of Class R Certificates and Class R-X Certificates.

            
	
              Section
                2.09

            	
              Establishment
                of Trust.

            
	
              Section
                2.10

            	
              Purpose
                and Powers of the Trust.

            
	 	 
	
              ARTICLE
                III

            
	
              ADMINISTRATION
                AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

            
	
              Section
                3.01

            	
              Servicer
                to act as Servicer of the Mortgage Loans.

            
	
              Section
                3.02

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                3.03

            	
              Subservicers.

            
	
              Section
                3.04

            	
              Documents,
                Records and Funds in Possession of the Servicer To Be Held for
                Trustee.

            
	
              Section
                3.05

            	
              Maintenance
                of Hazard Insurance.

            
	
              Section
                3.06

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                3.07

            	
              Maintenance
                of Insurance Policies.

            
	
              Section
                3.08

            	
              [Reserved.]

            
	
              Section
                3.09

            	
              Realization
                Upon Defaulted Mortgage Loans; Determination of Excess Liquidation
                Proceeds and Realized Losses; Repurchases of Certain Mortgage
                Loans.

            
	
              Section
                3.10

            	
              Servicing
                Compensation.

            
	
              Section
                3.11

            	
              REO
                Property.

            
	
              Section
                3.12

            	
              Liquidation
                Reports.

            
	
              Section
                3.13

            	
              Annual
                Statement as to Compliance.

            
	
              Section
                3.14

            	
              Assessments
                of Compliance and Attestation Reports.

            
	
              Section
                3.15

            	
              Books
                and Records.

            
	
              Section
                3.16

            	
              The
                Trustee.

            
	
              Section
                3.17

            	
              REMIC-Related
                Covenants.

            
	
              Section
                3.18

            	
              Annual
                Sarbanes-Oxley Certification; Additional Information.

            
	
              Section
                3.19

            	
              Release
                of Mortgage Files.

            
	
              Section
                3.20

            	
              Documents,
                Records and Funds in Possession of the Servicer to be held for
                Trustee.

            
	
              Section
                3.21

            	
              Possession
                of Certain Insurance Policies and Documents.

            
	
              Section
                3.22

            	
              [Reserved].

            
	
              Section
                3.23

            	
              UCC.

            
	
              Section
                3.24

            	
              Optional
                Purchase of Defaulted Mortgage Loans.

            
	
              Section
                3.25

            	
              [Reserved].

            
	
              Section
                3.26

            	
              Collection
                of Mortgage Loan Payments; Custodial Account.

            
	
              Section
                3.27

            	
              Permitted
                Withdrawals From the Custodial Account.

            
	
              Section
                3.28

            	
              Reports
                to Master Servicer.

            
	
              Section
                3.29

            	
              Collection
                of Taxes; Assessments and Similar Items; Escrow
                Accounts.

            
	
              Section
                3.30

            	
              Adjustments
                to Mortgage Rate and Scheduled Payment.

            
	
              Section
                3.31

            	
              Distribution
                Account.

            
	
              Section
                3.32

            	
              Permitted
                Withdrawals and Transfers from the Distribution
                Account.

            
	
              Section
                3.33

            	
              Credit
                Risk Management Services and Reports; Reliability of
                Data.

            
	
              Section
                3.34

            	
              Intellectual
                Property and Confidentiality.

            
	
              Section
                3.35

            	
              Limitation
                Upon Liability of Credit Risk Manager; Indemnification.

            
	
              Section
                3.36

            	
              Resignation
                or Removal of Credit Risk Manager.

            
	 	 
	
              ARTICLE
                IV

            
	
              ADMINISTRATION
                AND MASTER SERVICING OF THE MORTGAGE LOANS

            
	
              Section
                4.01

            	
              The
                Master Servicer.

            
	
              Section
                4.02

            	
              Monitoring
                of the Servicer.

            
	
              Section
                4.03

            	
              Fidelity
                Bond.

            
	
              Section
                4.04

            	
              Power
                to Act; Procedures.

            
	
              Section
                4.05

            	
              Due-on-Sale
                Clauses; Assumption Agreements.

            
	
              Section
                4.06

            	
              Documents,
                Records and Funds in Possession of Master Servicer To Be Held for
                Trustee.

            
	
              Section
                4.07

            	
              Standard
                Hazard Insurance and Flood Insurance Policies.

            
	
              Section
                4.08

            	
              Presentment
                of Claims and Collection of Proceeds.

            
	
              Section
                4.09

            	
              Maintenance
                of the Primary Mortgage Insurance Policies.

            
	
              Section
                4.10

            	
              Trustee
                to Retain Possession of Certain Insurance Policies and
                Documents.

            
	
              Section
                4.11

            	
              Realization
                Upon Defaulted Loans.

            
	
              Section
                4.12

            	
              Compensation
                for the Master Servicer.

            
	
              Section
                4.13

            	
              REO
                Property.

            
	
              Section
                4.14

            	
              Obligation
                of the Master Servicer in Respect of Prepayment Interest
                Shortfalls.

            
	 	 
	
              ARTICLE
                V

            
	
              ADVANCES
                AND DISTRIBUTIONS

            
	
              Section
                5.01

            	
              Advances;
                Advance Facility.

            
	
              Section
                5.02

            	
              Compensating
                Interest Payments.

            
	
              Section
                5.03

            	
              REMIC
                Distributions.

            
	
              Section
                5.04

            	
              Distributions.

            
	
              Section
                5.05

            	
              Allocation
                of Realized Losses.

            
	
              Section
                5.06

            	
              Monthly
                Statements to Certificateholders.

            
	
              Section
                5.07

            	
              REMIC
                Designations, REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and
                REMIC VI
                Allocations.

            
	
              Section
                5.08

            	
              Prepayment
                Charges.

            
	
              Section
                5.09

            	
              Class
                P Certificate Account.

            
	
              Section
                5.10

            	
              [Reserved].

            
	
              Section
                5.11

            	
              Basis
                Risk Shortfall Reserve Fund.

            
	
              Section
                5.12

            	
              Supplemental
                Interest Trust.

            
	
              Section
                5.13

            	
              Tax
                Treatment of Swap Payments and Swap Termination
                Payments.

            
	
              Section
                5.14

            	
              Reports
                Filed with Securities and Exchange Commission.

            
	 	 
	
              ARTICLE
                VI

            
	
              THE
                CERTIFICATES

            
	
              Section
                6.01

            	
              The
                Certificates.

            
	
              Section
                6.02

            	
              Certificate
                Register; Registration of Transfer and Exchange of
                Certificates.

            
	
              Section
                6.03

            	
              Mutilated,
                Destroyed, Lost or Stolen Certificates.

            
	
              Section
                6.04

            	
              Persons
                Deemed Owners.

            
	
              Section
                6.05

            	
              Access
                to List of Certificateholders’ Names and Addresses.

            
	
              Section
                6.06

            	
              Book-Entry
                Certificates.

            
	
              Section
                6.07

            	
              Notices
                to Depository.

            
	
              Section
                6.08

            	
              Definitive
                Certificates.

            
	
              Section
                6.09

            	
              Maintenance
                of Office or Agency.

            
	 	 
	
              ARTICLE
                VII

            
	
              THE
                DEPOSITOR, THE SERVICER AND the Master Servicer

            
	
              Section
                7.01

            	
              Liabilities
                of the Depositor, the Servicer and the Master Servicer.

            
	
              Section
                7.02

            	
              Merger
                or Consolidation of the Depositor, the Servicer or the Master
                Servicer.

            
	
              Section
                7.03

            	
              Indemnification
                by Depositor, the Servicer and Servicing Function
                Participants.

            
	
              Section
                7.04

            	
              Limitations
                on Liability of the Depositor, the Securities Administrator, the
                Master
                Servicer, the Servicer and Others.

            
	
              Section
                7.05

            	
              The
                Servicer Not to Resign.

            
	
              Section
                7.06

            	
              Appointment
                of Special Servicer; Termination of the Servicer.

            
	
              Section
                7.07

            	
              Limitation
                on Resignation of the Master Servicer.

            
	
              Section
                7.08

            	
              Assignment
                of Master Servicing.

            
	
              Section
                7.09

            	
              Rights
                of the Depositor in Respect of the Servicer and the Master
                Servicer.

            
	 	 
	
              ARTICLE
                VIII

            
	
              DEFAUlt;
                TERMINATION OF SERVICER and Master Servicer

            
	
              Section
                8.01

            	
              Events
                of Default.

            
	
              Section
                8.02

            	
              Master
                Servicer to Act; Appointment of Successor.

            
	
              Section
                8.03

            	
              Notification
                to Certificateholders.

            
	
              Section
                8.04

            	
              Waiver
                of Servicer Defaults and Master Servicer Defaults.

            
	 	 
	
              ARTICLE
                IX

            
	
              CONCERNING
                THE TRUSTEE AND SECURITIES ADMINISTRATOR

            
	
              Section
                9.01

            	
              Duties
                of Trustee and Securities Administrator.

            
	
              Section
                9.02

            	
              Certain
                Matters Affecting the Trustee and Securities
                Administrator.

            
	
              Section
                9.03

            	
              Trustee
                and Securities Administrator not Liable for Certificates or Mortgage
                Loans.

            
	
              Section
                9.04

            	
              Trustee
                and Securities Administrator May Own Certificates.

            
	
              Section
                9.05

            	
              Fees
                and Expenses of Trustee and Securities Administrator.

            
	
              Section
                9.06

            	
              Eligibility
                Requirements for Trustee and Securities Administrator.

            
	
              Section
                9.07

            	
              Resignation
                and Removal of Trustee and Securities Administrator.

            
	
              Section
                9.08

            	
              Successor
                Trustee or Securities Administrator.

            
	
              Section
                9.09

            	
              Merger
                or Consolidation of Trustee or Securities
                Administrator.

            
	
              Section
                9.10

            	
              Appointment
                of Co-Trustee or Separate Trustee.

            
	
              Section
                9.11

            	
              Appointment
                of Office or Agency.

            
	
              Section
                9.12

            	
              Representations
                and Warranties.

            
	
              Section
                9.13

            	
              Tax
                Matters.

            
	 	 
	
              ARTICLE
                X

            
	
              TERMINATION

            
	
              Section
                10.01

            	
              Termination
                upon Liquidation or Repurchase of all Mortgage Loans.

            
	
              Section
                10.02

            	
              Final
                Distribution on the Certificates.

            
	
              Section
                10.03

            	
              Additional
                Termination Requirements.

            
	 	 
	
              ARTICLE
                XI

            
	
              MISCELLANEOUS
                PROVISIONS

            
	
              Section
                11.01

            	
              Amendment.

            
	
              Section
                11.02

            	
              Recordation
                of Agreement; Counterparts.

            
	
              Section
                11.03

            	
              Governing
                Law.

            
	
              Section
                11.04

            	
              Intention
                of Parties.

            
	
              Section
                11.05

            	
              Notices.

            
	
              Section
                11.06

            	
              Severability
                of Provisions.

            
	
              Section
                11.07

            	
              Assignment.

            
	
              Section
                11.08

            	
              Limitation
                on Rights of Certificateholders.

            
	
              Section
                11.09

            	
              Certificates
                Nonassessable and Fully Paid.

            
	
              Section
                11.10

            	
              Third
                Party Beneficiaries.

            
	
              Section
                11.11

            	
              Intention
                of the Parties and Interpretation.

            
	
              Section
                11.12

            	
              Early
                Termination of Basis Risk Cap Agreement.

            
	
              Section
                11.13

            	
              Early
                Termination of Swap Agreement.

            
	
              Section
                11.14

            	
              Early
                Termination of Interest Rate Cap
                Agreement.

            

    

    

    

    
      	
              Exhibits

            	 
	
              Exhibit
                A-1

            	
              Form
                of Class [I][II]-A-[1][2][3][4] Certificates

            
	
              Exhibit
                A-2

            	
              Form
                of Class M-[1][2][3][4][5][6][7][8][9] Certificates

            
	
              Exhibit
                A-3 

            	
              Form
                of Class B-[1][2] Certificates

            
	
              Exhibit
                A-4

            	
              Form
                of Class X Certificates

            
	
              Exhibit
                A-5

            	
              Form
                of Class P Certificates

            
	
              Exhibit
                A-6

            	
              Form
                of Class R[-X] Certificates

            
	
              Exhibit
                B

            	
              Mortgage
                Loan Schedule

            
	
              Exhibit
                C

            	
              Mortgage
                Loan Purchase Agreement

            
	
              Exhibit
                D

            	
              Form
                of Transfer Affidavit

            
	
              Exhibit
                E

            	
              Form
                of Transferor Certificate

            
	
              Exhibit
                F

            	
              Form
                of Investment Letter (Non-Rule 144A)

            
	
              Exhibit
                G

            	
              Form
                of Rule 144A Investment Letter

            
	
              Exhibit
                H

            	
              Form
                of Additional Disclosure Notification

            
	
              Exhibit
                I

            	
              DTC
                Letter of Representations

            
	
              Exhibit
                J

            	
              Schedule
                of Mortgage Loans with Lost Notes

            
	
              Exhibit
                K

            	
              Prepayment
                Charge Schedule

            
	
              Exhibit
                L

            	
              Relevant
                Servicing Criteria

            
	
              Exhibit
                M

            	
              Form
                of Back-up Certification

            
	
              Exhibit
                N

            	
              Reporting
                Responsibility

            
	
              Exhibit
                O

            	
              Appendix
                E of the Standard & Poor's Glossary For File Format For LEVELS®
                Version 5.7 Revised

            
	
              Exhibit
                P

            	
              Basis
                Risk Cap Agreement

            
	
              Exhibit
                Q

            	
              Interest
                Rate Swap Agreement

            
	
              Exhibit
                R

            	
              Interest
                Rate Cap Agreement

            
	
              Exhibit
                S

            	
              Form
                of Power of Attorney

            
	
              Exhibit
                X-1

            	
              Form
                of Schedule of Default Loan Data

            
	
              Exhibit
                X-2

            	
              Form
                of Schedule of Realized
                Losses/Gains

            

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    POOLING
      AND SERVICING AGREEMENT, dated as of October 1, 2006, among NOMURA HOME EQUITY
      LOAN, INC., a Delaware corporation, as depositor (the “Depositor”), NOMURA
      CREDIT & CAPITAL, INC., a Delaware corporation, as seller (in such capacity,
      the “Sponsor”), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
      association, as master servicer (the “Master Servicer”) and securities
      administrator (the “Securities Administrator”), EQUITY ONE, INC., a Delaware
      corporation, as servicer (the “Servicer”) and HSBC BANK, USA, NATIONAL
      ASSOCIATION, a national banking association, not in its individual capacity,
      but
      solely as trustee (the “Trustee”).

     

    PRELIMINARY
      STATEMENT

     

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

     

    REMIC
      I

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Trust Fund (exclusive of the Basis
      Risk Cap Agreement, the Basis Risk Shortfall Reserve Fund and, for the avoidance
      of doubt, the Supplemental Interest Trust, the Swap Agreement and the Interest
      Rate Cap Agreement) as a REMIC for federal income tax purposes, and such
      segregated pool of assets will be designated as “REMIC I”. The Class R-I
      Interest will represent the sole class of “residual interests” in REMIC I for
      purposes of the REMIC Provisions.

     

    The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      I Pass-Through Rate, the initial Uncertificated Principal Balance, and for
      purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
      “latest possible maturity date” for each of the REMIC I Regular Interests. None
      of the REMIC I Regular Interests will be certificated.

    

    
      	
              Designation

            	
              Uncertificated
                REMIC I

              Pass-Through
                Rate

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Assumed
                Final

              Maturity
                Date(1)

            
	
              I

            	
              (2)

            	
              $

            	
              124,645,681.06
                

            	
              July
                25, 2036

            
	
              I-1-A

            	
              (2)

            	
              $

            	
              13,170,936.60
                

            	
              July
                25, 2036

            
	
              I-1-B

            	
              (2)

            	
              $

            	
              13,170,936.60
                

            	
              July
                25, 2036

            
	
              I-2-A

            	
              (2)

            	
              $

            	
              12,744,920.25
                

            	
              July
                25, 2036

            
	
              I-2-B

            	
              (2)

            	
              $

            	
              12,744,920.25
                

            	
              July
                25, 2036

            
	
              I-3-A

            	
              (2)

            	
              $

            	
              12,141,879.62
                

            	
              July
                25, 2036

            
	
              I-3-B

            	
              (2)

            	
              $

            	
              12,141,879.62
                

            	
              July
                25, 2036

            
	
              I-4-A

            	
              (2)

            	
              $

            	
              11,567,791.57
                

            	
              July
                25, 2036

            
	
              I-4-B

            	
              (2)

            	
              $

            	
              11,567,791.57
                

            	
              July
                25, 2036

            
	
              I-5-A

            	
              (2)

            	
              $

            	
              11,020,725.91
                

            	
              July
                25, 2036

            
	
              I-5-B

            	
              (2)

            	
              $

            	
              11,020,725.91
                

            	
              July
                25, 2036

            
	
              I-6-A

            	
              (2)

            	
              $

            	
              10,500,131.17
                

            	
              July
                25, 2036

            
	
              I-6-B

            	
              (2)

            	
              $

            	
              10,500,131.17
                

            	
              July
                25, 2036

            
	
              I-7-A

            	
              (2)

            	
              $

            	
              10,003,801.44
                

            	
              July
                25, 2036

            
	
              I-7-B

            	
              (2)

            	
              $

            	
              10,003,801.44
                

            	
              July
                25, 2036

            
	
              I-8-A

            	
              (2)

            	
              $

            	
              9,531,460.98
                

            	
              July
                25, 2036

            
	
              I-8-B

            	
              (2)

            	
              $

            	
              9,531,460.98
                

            	
              July
                25, 2036

            
	
              I-9-A

            	
              (2)

            	
              $

            	
              9,081,179.62
                

            	
              July
                25, 2036

            
	
              I-9-B

            	
              (2)

            	
              $

            	
              9,081,179.62
                

            	
              July
                25, 2036

            
	
              I-10-A

            	
              (2)

            	
              $

            	
              8,652,681.62
                

            	
              July
                25, 2036

            
	
              I-10-B

            	
              (2)

            	
              $

            	
              8,652,681.62
                

            	
              July
                25, 2036

            
	
              I-11-A

            	
              (2)

            	
              $

            	
              8,244,036.81
                

            	
              July
                25, 2036

            
	
              I-11-B

            	
              (2)

            	
              $

            	
              8,244,036.81
                

            	
              July
                25, 2036

            
	
              I-12-A

            	
              (2)

            	
              $

            	
              7,854,969.45
                

            	
              July
                25, 2036

            
	
              I-12-B

            	
              (2)

            	
              $

            	
              7,854,969.45
                

            	
              July
                25, 2036

            
	
              I-13-A

            	
              (2)

            	
              $

            	
              117,050,818.88
                

            	
              July
                25, 2036

            
	
              I-13-B

            	
              (2)

            	
              $

            	
              117,050,818.88
                

            	
              July
                25, 2036

            
	
              I-14-A

            	
              (2)

            	
              $

            	
              1,546,342.85
                

            	
              July
                25, 2036

            
	
              I-14-B

            	
              (2)

            	
              $

            	
              1,546,342.85
                

            	
              July
                25, 2036

            
	
              I-15-A

            	
              (2)

            	
              $

            	
              1,460,036.62
                

            	
              July
                25, 2036

            
	
              I-15-B

            	
              (2)

            	
              $

            	
              1,460,036.62
                

            	
              July
                25, 2036

            
	
              I-16-A

            	
              (2)

            	
              $

            	
              1,380,899.60
                

            	
              July
                25, 2036

            
	
              I-16-B

            	
              (2)

            	
              $

            	
              1,380,899.60
                

            	
              July
                25, 2036

            
	
              I-17-A

            	
              (2)

            	
              $

            	
              1,307,828.84
                

            	
              July
                25, 2036

            
	
              I-17-B

            	
              (2)

            	
              $

            	
              1,307,828.84
                

            	
              July
                25, 2036

            
	
              I-18-A

            	
              (2)

            	
              $

            	
              1,195,603.17
                

            	
              July
                25, 2036

            
	
              I-18-B

            	
              (2)

            	
              $

            	
              1,195,603.17
                

            	
              July
                25, 2036

            
	
              I-19-A

            	
              (2)

            	
              $

            	
              1,108,745.47
                

            	
              July
                25, 2036

            
	
              I-19-B

            	
              (2)

            	
              $

            	
              1,108,745.47
                

            	
              July
                25, 2036

            
	
              I-20-A

            	
              (2)

            	
              $

            	
              1,064,627.27
                

            	
              July
                25, 2036

            
	
              I-20-B

            	
              (2)

            	
              $

            	
              1,064,627.27
                

            	
              July
                25, 2036

            
	
              I-21-A

            	
              (2)

            	
              $

            	
              1,021,612.03
                

            	
              July
                25, 2036

            
	
              I-21-B

            	
              (2)

            	
              $

            	
              1,021,612.03
                

            	
              July
                25, 2036

            
	
              I-22-A

            	
              (2)

            	
              $

            	
              980,802.69
                

            	
              July
                25, 2036

            
	
              I-22-B

            	
              (2)

            	
              $

            	
              980,802.69
                

            	
              July
                25, 2036

            
	
              I-23-A

            	
              (2)

            	
              $

            	
              941,647.79
                

            	
              July
                25, 2036

            
	
              I-23-B

            	
              (2)

            	
              $

            	
              941,647.79
                

            	
              July
                25, 2036

            
	
              I-24-A

            	
              (2)

            	
              $

            	
              903,871.59
                

            	
              July
                25, 2036

            
	
              I-24-B

            	
              (2)

            	
              $

            	
              903,871.59
                

            	
              July
                25, 2036

            
	
              I-25-A

            	
              (2)

            	
              $

            	
              1,447,076.90
                

            	
              July
                25, 2036

            
	
              I-25-B

            	
              (2)

            	
              $

            	
              1,447,076.90
                

            	
              July
                25, 2036

            
	
              I-26-A

            	
              (2)

            	
              $

            	
              797,987.91
                

            	
              July
                25, 2036

            
	
              I-26-B

            	
              (2)

            	
              $

            	
              797,987.91
                

            	
              July
                25, 2036

            
	
              I-27-A

            	
              (2)

            	
              $

            	
              766,829.43
                

            	
              July
                25, 2036

            
	
              I-27-B

            	
              (2)

            	
              $

            	
              766,829.43
                

            	
              July
                25, 2036

            
	
              I-28-A

            	
              (2)

            	
              $

            	
              736,773.91
                

            	
              July
                25, 2036

            
	
              I-28-B

            	
              (2)

            	
              $

            	
              736,773.91
                

            	
              July
                25, 2036

            
	
              I-29-A

            	
              (2)

            	
              $

            	
              708,097.08
                

            	
              July
                25, 2036

            
	
              I-29-B

            	
              (2)

            	
              $

            	
              708,097.08
                

            	
              July
                25, 2036

            
	
              I-30-A

            	
              (2)

            	
              $

            	
              680,247.47
                

            	
              July
                25, 2036

            
	
              I-30-B

            	
              (2)

            	
              $

            	
              680,247.47
                

            	
              July
                25, 2036

            
	
              I-31-A

            	
              (2)

            	
              $

            	
              653,776.55
                

            	
              July
                25, 2036

            
	
              I-31-B

            	
              (2)

            	
              $

            	
              653,776.55
                

            	
              July
                25, 2036

            
	
              I-32-A

            	
              (2)

            	
              $

            	
              628,132.85
                

            	
              July
                25, 2036

            
	
              I-32-B

            	
              (2)

            	
              $

            	
              628,132.85
                

            	
              July
                25, 2036

            
	
              I-33-A

            	
              (2)

            	
              $

            	
              603,592.10
                

            	
              July
                25, 2036

            
	
              I-33-B

            	
              (2)

            	
              $

            	
              603,592.10
                

            	
              July
                25, 2036

            
	
              I-34-A

            	
              (2)

            	
              $

            	
              580,154.31
                

            	
              July
                25, 2036

            
	
              I-34-B

            	
              (2)

            	
              $

            	
              580,154.31
                

            	
              July
                25, 2036

            
	
              I-35-A

            	
              (2)

            	
              $

            	
              557,267.99
                

            	
              July
                25, 2036

            
	
              I-35-B

            	
              (2)

            	
              $

            	
              557,267.99
                

            	
              July
                25, 2036

            
	
              I-36-A

            	
              (2)

            	
              $

            	
              535,760.37
                

            	
              July
                25, 2036

            
	
              I-36-B

            	
              (2)

            	
              $

            	
              535,760.37
                

            	
              July
                25, 2036

            
	
              I-37-A

            	
              (2)

            	
              $

            	
              514,528.49
                

            	
              July
                25, 2036

            
	
              I-37-B

            	
              (2)

            	
              $

            	
              514,528.49
                

            	
              July
                25, 2036

            
	
              I-38-A

            	
              (2)

            	
              $

            	
              494,675.30
                

            	
              July
                25, 2036

            
	
              I-38-B

            	
              (2)

            	
              $

            	
              494,675.30
                

            	
              July
                25, 2036

            
	
              I-39-A

            	
              (2)

            	
              $

            	
              475,097.85
                

            	
              July
                25, 2036

            
	
              I-39-B

            	
              (2)

            	
              $

            	
              475,097.85
                

            	
              July
                25, 2036

            
	
              I-40-A

            	
              (2)

            	
              $

            	
              456,623.35
                

            	
              July
                25, 2036

            
	
              I-40-B

            	
              (2)

            	
              $

            	
              456,623.35
                

            	
              July
                25, 2036

            
	
              I-41-A

            	
              (2)

            	
              $

            	
              438,700.33
                

            	
              July
                25, 2036

            
	
              I-41-B

            	
              (2)

            	
              $

            	
              438,700.33
                

            	
              July
                25, 2036

            
	
              I-42-A

            	
              (2)

            	
              $

            	
              421,604.53
                

            	
              July
                25, 2036

            
	
              I-42-B

            	
              (2)

            	
              $

            	
              421,604.53
                

            	
              July
                25, 2036

            
	
              I-43-A

            	
              (2)

            	
              $

            	
              405,060.21
                

            	
              July
                25, 2036

            
	
              I-43-B

            	
              (2)

            	
              $

            	
              405,060.21
                

            	
              July
                25, 2036

            
	
              I-44-A

            	
              (2)

            	
              $

            	
              389,343.10
                

            	
              July
                25, 2036

            
	
              I-44-B

            	
              (2)

            	
              $

            	
              389,343.10
                

            	
              July
                25, 2036

            
	
              I-45-A

            	
              (2)

            	
              $

            	
              373,901.73
                

            	
              July
                25, 2036

            
	
              I-45-B

            	
              (2)

            	
              $

            	
              373,901.73
                

            	
              July
                25, 2036

            
	
              I-46-A

            	
              (2)

            	
              $

            	
              359,563.32
                

            	
              July
                25, 2036

            
	
              I-46-B

            	
              (2)

            	
              $

            	
              359,563.32
                

            	
              July
                25, 2036

            
	
              I-47-A

            	
              (2)

            	
              $

            	
              345,224.90
                

            	
              July
                25, 2036

            
	
              I-47-B

            	
              (2)

            	
              $

            	
              345,224.90
                

            	
              July
                25, 2036

            
	
              I-48-A

            	
              (2)

            	
              $

            	
              347,155.07
                

            	
              July
                25, 2036

            
	
              I-48-B

            	
              (2)

            	
              $

            	
              347,155.07
                

            	
              July
                25, 2036

            
	
              I-49-A

            	
              (2)

            	
              $

            	
              317,926.77
                

            	
              July
                25, 2036

            
	
              I-49-B

            	
              (2)

            	
              $

            	
              317,926.77
                

            	
              July
                25, 2036

            
	
              I-50-A

            	
              (2)

            	
              $

            	
              305,518.52
                

            	
              July
                25, 2036

            
	
              I-50-B

            	
              (2)

            	
              $

            	
              305,518.52
                

            	
              July
                25, 2036

            
	
              I-51-A

            	
              (2)

            	
              $

            	
              293,661.76
                

            	
              July
                25, 2036

            
	
              I-51-B

            	
              (2)

            	
              $

            	
              293,661.76
                

            	
              July
                25, 2036

            
	
              I-52-A

            	
              (2)

            	
              $

            	
              282,080.73
                

            	
              July
                25, 2036

            
	
              I-52-B

            	
              (2)

            	
              $

            	
              282,080.73
                

            	
              July
                25, 2036

            
	
              I-53-A

            	
              (2)

            	
              $

            	
              271,051.18
                

            	
              July
                25, 2036

            
	
              I-53-B

            	
              (2)

            	
              $

            	
              271,051.18
                

            	
              July
                25, 2036

            
	
              I-54-A

            	
              (2)

            	
              $

            	
              6,631,240.93
                

            	
              July
                25, 2036

            
	
              I-54-B

            	
              (2)

            	
              $

            	
              6,631,240.93
                

            	
              July
                25, 2036

            
	
              II

            	
              (2)

            	
              $

            	
              101,375,663.64
                

            	
              July
                25, 2036

            
	
              II-1-A

            	
              (2)

            	
              $

            	
              10,712,063.40
                

            	
              July
                25, 2036

            
	
              II-1-B

            	
              (2)

            	
              $

            	
              10,712,063.40
                

            	
              July
                25, 2036

            
	
              II-2-A

            	
              (2)

            	
              $

            	
              10,365,579.75
                

            	
              July
                25, 2036

            
	
              II-2-B

            	
              (2)

            	
              $

            	
              10,365,579.75
                

            	
              July
                25, 2036

            
	
              II-3-A

            	
              (2)

            	
              $

            	
              9,875,120.38
                

            	
              July
                25, 2036

            
	
              II-3-B

            	
              (2)

            	
              $

            	
              9,875,120.38
                

            	
              July
                25, 2036

            
	
              II-4-A

            	
              (2)

            	
              $

            	
              9,408,208.43
                

            	
              July
                25, 2036

            
	
              II-4-B

            	
              (2)

            	
              $

            	
              9,408,208.43
                

            	
              July
                25, 2036

            
	
              II-5-A

            	
              (2)

            	
              $

            	
              8,963,274.09
                

            	
              July
                25, 2036

            
	
              II-5-B

            	
              (2)

            	
              $

            	
              8,963,274.09
                

            	
              July
                25, 2036

            
	
              II-6-A

            	
              (2)

            	
              $

            	
              8,539,868.83
                

            	
              July
                25, 2036

            
	
              II-6-B

            	
              (2)

            	
              $

            	
              8,539,868.83
                

            	
              July
                25, 2036

            
	
              II-7-A

            	
              (2)

            	
              $

            	
              8,136,198.56
                

            	
              July
                25, 2036

            
	
              II-7-B

            	
              (2)

            	
              $

            	
              8,136,198.56
                

            	
              July
                25, 2036

            
	
              II-8-A

            	
              (2)

            	
              $

            	
              7,752,039.02
                

            	
              July
                25, 2036

            
	
              II-8-B

            	
              (2)

            	
              $

            	
              7,752,039.02
                

            	
              July
                25, 2036

            
	
              II-9-A

            	
              (2)

            	
              $

            	
              7,385,820.38
                

            	
              July
                25, 2036

            
	
              II-9-B

            	
              (2)

            	
              $

            	
              7,385,820.38
                

            	
              July
                25, 2036

            
	
              II-10-A

            	
              (2)

            	
              $

            	
              7,037,318.38
                

            	
              July
                25, 2036

            
	
              II-10-B

            	
              (2)

            	
              $

            	
              7,037,318.38
                

            	
              July
                25, 2036

            
	
              II-11-A

            	
              (2)

            	
              $

            	
              6,704,963.19
                

            	
              July
                25, 2036

            
	
              II-11-B

            	
              (2)

            	
              $

            	
              6,704,963.19
                

            	
              July
                25, 2036

            
	
              II-12-A

            	
              (2)

            	
              $

            	
              6,388,530.55
                

            	
              July
                25, 2036

            
	
              II-12-B

            	
              (2)

            	
              $

            	
              6,388,530.55
                

            	
              July
                25, 2036

            
	
              II-13-A

            	
              (2)

            	
              $

            	
              95,198,681.12
                

            	
              July
                25, 2036

            
	
              II-13-B

            	
              (2)

            	
              $

            	
              95,198,681.12
                

            	
              July
                25, 2036

            
	
              II-14-A

            	
              (2)

            	
              $

            	
              1,257,657.15
                

            	
              July
                25, 2036

            
	
              II-14-B

            	
              (2)

            	
              $

            	
              1,257,657.15
                

            	
              July
                25, 2036

            
	
              II-15-A

            	
              (2)

            	
              $

            	
              1,187,463.38
                

            	
              July
                25, 2036

            
	
              II-15-B

            	
              (2)

            	
              $

            	
              1,187,463.38
                

            	
              July
                25, 2036

            
	
              II-16-A

            	
              (2)

            	
              $

            	
              1,123,100.40
                

            	
              July
                25, 2036

            
	
              II-16-B

            	
              (2)

            	
              $

            	
              1,123,100.40
                

            	
              July
                25, 2036

            
	
              II-17-A

            	
              (2)

            	
              $

            	
              1,063,671.16
                

            	
              July
                25, 2036

            
	
              II-17-B

            	
              (2)

            	
              $

            	
              1,063,671.16
                

            	
              July
                25, 2036

            
	
              II-18-A

            	
              (2)

            	
              $

            	
              972,396.83
                

            	
              July
                25, 2036

            
	
              II-18-B

            	
              (2)

            	
              $

            	
              972,396.83
                

            	
              July
                25, 2036

            
	
              II-19-A

            	
              (2)

            	
              $

            	
              901,754.53
                

            	
              July
                25, 2036

            
	
              II-19-B

            	
              (2)

            	
              $

            	
              901,754.53
                

            	
              July
                25, 2036

            
	
              II-20-A

            	
              (2)

            	
              $

            	
              865,872.73
                

            	
              July
                25, 2036

            
	
              II-20-B

            	
              (2)

            	
              $

            	
              865,872.73
                

            	
              July
                25, 2036

            
	
              II-21-A

            	
              (2)

            	
              $

            	
              830,887.97
                

            	
              July
                25, 2036

            
	
              II-21-B

            	
              (2)

            	
              $

            	
              830,887.97
                

            	
              July
                25, 2036

            
	
              II-22-A

            	
              (2)

            	
              $

            	
              797,697.31
                

            	
              July
                25, 2036

            
	
              II-22-B

            	
              (2)

            	
              $

            	
              797,697.31
                

            	
              July
                25, 2036

            
	
              II-23-A

            	
              (2)

            	
              $

            	
              765,852.21
                

            	
              July
                25, 2036

            
	
              II-23-B

            	
              (2)

            	
              $

            	
              765,852.21
                

            	
              July
                25, 2036

            
	
              II-24-A

            	
              (2)

            	
              $

            	
              735,128.41
                

            	
              July
                25, 2036

            
	
              II-24-B

            	
              (2)

            	
              $

            	
              735,128.41
                

            	
              July
                25, 2036

            
	
              II-25-A

            	
              (2)

            	
              $

            	
              1,176,923.10
                

            	
              July
                25, 2036

            
	
              II-25-B

            	
              (2)

            	
              $

            	
              1,176,923.10
                

            	
              July
                25, 2036

            
	
              II-26-A

            	
              (2)

            	
              $

            	
              649,012.09
                

            	
              July
                25, 2036

            
	
              II-26-B

            	
              (2)

            	
              $

            	
              649,012.09
                

            	
              July
                25, 2036

            
	
              II-27-A

            	
              (2)

            	
              $

            	
              623,670.57
                

            	
              July
                25, 2036

            
	
              II-27-B

            	
              (2)

            	
              $

            	
              623,670.57
                

            	
              July
                25, 2036

            
	
              II-28-A

            	
              (2)

            	
              $

            	
              599,226.09
                

            	
              July
                25, 2036

            
	
              II-28-B

            	
              (2)

            	
              $

            	
              599,226.09
                

            	
              July
                25, 2036

            
	
              II-29-A

            	
              (2)

            	
              $

            	
              575,902.92
                

            	
              July
                25, 2036

            
	
              II-29-B

            	
              (2)

            	
              $

            	
              575,902.92
                

            	
              July
                25, 2036

            
	
              II-30-A

            	
              (2)

            	
              $

            	
              553,252.53
                

            	
              July
                25, 2036

            
	
              II-30-B

            	
              (2)

            	
              $

            	
              553,252.53
                

            	
              July
                25, 2036

            
	
              II-31-A

            	
              (2)

            	
              $

            	
              531,723.45
                

            	
              July
                25, 2036

            
	
              II-31-B

            	
              (2)

            	
              $

            	
              531,723.45
                

            	
              July
                25, 2036

            
	
              II-32-A

            	
              (2)

            	
              $

            	
              510,867.15
                

            	
              July
                25, 2036

            
	
              II-32-B

            	
              (2)

            	
              $

            	
              510,867.15
                

            	
              July
                25, 2036

            
	
              II-33-A

            	
              (2)

            	
              $

            	
              490,907.90
                

            	
              July
                25, 2036

            
	
              II-33-B

            	
              (2)

            	
              $

            	
              490,907.90
                

            	
              July
                25, 2036

            
	
              II-34-A

            	
              (2)

            	
              $

            	
              471,845.69
                

            	
              July
                25, 2036

            
	
              II-34-B

            	
              (2)

            	
              $

            	
              471,845.69
                

            	
              July
                25, 2036

            
	
              II-35-A

            	
              (2)

            	
              $

            	
              453,232.01
                

            	
              July
                25, 2036

            
	
              II-35-B

            	
              (2)

            	
              $

            	
              453,232.01
                

            	
              July
                25, 2036

            
	
              II-36-A

            	
              (2)

            	
              $

            	
              435,739.63
                

            	
              July
                25, 2036

            
	
              II-36-B

            	
              (2)

            	
              $

            	
              435,739.63
                

            	
              July
                25, 2036

            
	
              II-37-A

            	
              (2)

            	
              $

            	
              418,471.51
                

            	
              July
                25, 2036

            
	
              II-37-B

            	
              (2)

            	
              $

            	
              418,471.51
                

            	
              July
                25, 2036

            
	
              II-38-A

            	
              (2)

            	
              $

            	
              402,324.70
                

            	
              July
                25, 2036

            
	
              II-38-B

            	
              (2)

            	
              $

            	
              402,324.70
                

            	
              July
                25, 2036

            
	
              II-39-A

            	
              (2)

            	
              $

            	
              386,402.15
                

            	
              July
                25, 2036

            
	
              II-39-B

            	
              (2)

            	
              $

            	
              386,402.15
                

            	
              July
                25, 2036

            
	
              II-40-A

            	
              (2)

            	
              $

            	
              371,376.65
                

            	
              July
                25, 2036

            
	
              II-40-B

            	
              (2)

            	
              $

            	
              371,376.65
                

            	
              July
                25, 2036

            
	
              II-41-A

            	
              (2)

            	
              $

            	
              356,799.67
                

            	
              July
                25, 2036

            
	
              II-41-B

            	
              (2)

            	
              $

            	
              356,799.67
                

            	
              July
                25, 2036

            
	
              II-42-A

            	
              (2)

            	
              $

            	
              342,895.47
                

            	
              July
                25, 2036

            
	
              II-42-B

            	
              (2)

            	
              $

            	
              342,895.47
                

            	
              July
                25, 2036

            
	
              II-43-A

            	
              (2)

            	
              $

            	
              329,439.79
                

            	
              July
                25, 2036

            
	
              II-43-B

            	
              (2)

            	
              $

            	
              329,439.79
                

            	
              July
                25, 2036

            
	
              II-44-A

            	
              (2)

            	
              $

            	
              316,656.90
                

            	
              July
                25, 2036

            
	
              II-44-B

            	
              (2)

            	
              $

            	
              316,656.90
                

            	
              July
                25, 2036

            
	
              II-45-A

            	
              (2)

            	
              $

            	
              304,098.27
                

            	
              July
                25, 2036

            
	
              II-45-B

            	
              (2)

            	
              $

            	
              304,098.27
                

            	
              July
                25, 2036

            
	
              II-46-A

            	
              (2)

            	
              $

            	
              292,436.68
                

            	
              July
                25, 2036

            
	
              II-46-B

            	
              (2)

            	
              $

            	
              292,436.68
                

            	
              July
                25, 2036

            
	
              II-47-A

            	
              (2)

            	
              $

            	
              280,775.10
                

            	
              July
                25, 2036

            
	
              II-47-B

            	
              (2)

            	
              $

            	
              280,775.10
                

            	
              July
                25, 2036

            
	
              II-48-A

            	
              (2)

            	
              $

            	
              282,344.93
                

            	
              July
                25, 2036

            
	
              II-48-B

            	
              (2)

            	
              $

            	
              282,344.93
                

            	
              July
                25, 2036

            
	
              II-49-A

            	
              (2)

            	
              $

            	
              258,573.23
                

            	
              July
                25, 2036

            
	
              II-49-B

            	
              (2)

            	
              $

            	
              258,573.23
                

            	
              July
                25, 2036

            
	
              II-50-A

            	
              (2)

            	
              $

            	
              248,481.48
                

            	
              July
                25, 2036

            
	
              II-50-B

            	
              (2)

            	
              $

            	
              248,481.48
                

            	
              July
                25, 2036

            
	
              II-51-A

            	
              (2)

            	
              $

            	
              238,838.24
                

            	
              July
                25, 2036

            
	
              II-51-B

            	
              (2)

            	
              $

            	
              238,838.24
                

            	
              July
                25, 2036

            
	
              II-52-A

            	
              (2)

            	
              $

            	
              229,419.27
                

            	
              July
                25, 2036

            
	
              II-52-B

            	
              (2)

            	
              $

            	
              229,419.27
                

            	
              July
                25, 2036

            
	
              II-53-A

            	
              (2)

            	
              $

            	
              220,448.82
                

            	
              July
                25, 2036

            
	
              II-53-B

            	
              (2)

            	
              $

            	
              220,448.82
                

            	
              July
                25, 2036

            
	
              II-54-A

            	
              (2)

            	
              $

            	
              5,393,259.07
                

            	
              July
                25, 2036

            
	
              II-54-B

            	
              (2)

            	
              $

            	
              5,393,259.07
                

            	
              July
                25, 2036

            
	
              P

            	
              (3)

            	
              $

            	
              100.00
                

            	
              July
                25, 2036

            

    

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the
                Distribution Date in the month following the maturity date for the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC I Regular
                Interest.

            
	
              (2)

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC I Pass-Through
                Rate” herein.

            
	
              (3)

            	
              The
                REMIC I Regular Interest LT-P will not be entitled to distributions
                of
                interest.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    REMIC
      II

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the REMIC I Regular Interest) for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC II.” The R-II Interest will represent the sole class of
“residual interests” in REMIC II for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the designation, the Uncertificated
      REMIC
      II Pass-Through Rate, the Initial Uncertificated Principal Balance, and for
      purposes of satisfying Treasury regulation Section 1.860G-1(a)(4)(iii), the
“latest possible maturity date” for each of the REMIC II Regular Interests. None
      of the REMIC II Regular Interests will be certificated.

     

    
      	
              Designation

            	
              Initial
                Uncertificated

              Principal
                Balance

            	
              Uncertificated

              REMIC
                II

              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              LT-AA

            	
              $

            	
              601,740,748.90

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IA1

            	
              $

            	
              2,625,985.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA1

            	
              $

            	
              1,403,875.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA2

            	
              $

            	
              206,320.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA3

            	
              $

            	
              465,035.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IIA4

            	
              $

            	
              60,515.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M1

            	
              $

            	
              230,255.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M2

            	
              $

            	
              208,765.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M3

            	
              $

            	
              128,940.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M4

            	
              $

            	
              110,520.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M5

            	
              $

            	
              104,380.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M6

            	
              $

            	
              95,170.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M7

            	
              $

            	
              92,100.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M8

            	
              $

            	
              79,820.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-M9

            	
              $

            	
              64,470.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-B1

            	
              $

            	
              64,470.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-B2

            	
              $

            	
              61,400.00

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-ZZ

            	
              $

            	
              6,278,403.45

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-IO

            	
              $

            	
              (4)

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-P

            	
              $

            	
              100.00

            	
              (3)

            	
              July
                25, 2036

            
	
              LT-1SUB

            	
              $

            	
              15,204.06

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-1GRP

            	
              $

            	
              67,723.77

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-2SUB

            	
              $

            	
              12,365.57

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-2GRP

            	
              $

            	
              55,080.47

            	
              (2)

            	
              July
                25, 2036

            
	
              LT-XX

            	
              $

            	
              613,870,798.49

            	
              (2)

            	
              July
                25, 2036

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the Distribution Date in the month following the maturity date for
                the
                Mortgage Loan with the latest maturity date has been designated as
                the
                “latest possible maturity date” for each REMIC II Regular
                Interest.

            
	
              (2)

            	
              Calculated
                in accordance with the definition of “Uncertificated REMIC II Pass-Through
                Rate” herein.

            
	
              (3)

            	
              The
                REMIC II Regular Interest LT-P will not be entitled to distributions
                of
                interest.

            
	
              (4)

            	
              REMIC
                II Regular Interest LT-IO will not have an Uncertificated Principal
                Balance, but will accrue interest on its Uncertificated Notional
                Amount,
                as defined herein.

            

    

    

    

    REMIC
      III

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the REMIC II Regular Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC III”. The R-III Interest will represent the sole class
      of “residual interests” in REMIC III for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC III created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	 	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                I-A-1

            	
              $

            	
              525,197,000.00

            	 	
              Class
                I-A-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-1

            	
              $

            	
              280,775,000.00

            	 	
              Class
                II-A-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-2

            	
              $

            	
              41,264,000.00

            	 	
              Class
                II-A-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-3

            	
              $

            	
              93,007,000.00

            	 	
              Class
                II-A-3 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                II-A-4

            	
              $

            	
              12,103,000.00

            	 	
              Class
                II-A-4 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-1

            	
              $

            	
              46,051,000.00

            	 	
              Class
                M-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-2

            	
              $

            	
              41,753,000.00

            	 	
              Class
                M-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-3

            	
              $

            	
              25,788,000.00

            	 	
              Class
                M-3 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-4

            	
              $

            	
              22,104,000.00

            	 	
              Class
                M-4 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-5

            	
              $

            	
              20,876,000.00

            	 	
              Class
                M-5 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-6

            	
              $

            	
              19,034,000.00

            	 	
              Class
                M-6 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-7

            	
              $

            	
              18,420,000.00

            	 	
              Class
                M-7 Pass-Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-8

            	
              $

            	
              15,964,000.00

            	 	
              Class
                M-8 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                M-9

            	
              $

            	
              12,894,000.00

            	 	
              Class
                M-9 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                B-1

            	
              $

            	
              12,894,000.00

            	 	
              Class
                B-1 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                B-2

            	
              $

            	
              12,280,000.00

            	 	
              Class
                B-2 Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                X Interest(2)

            	
              $

            	
              27,638,344.70

            	 	
              Class
                X Pass Through Rate

            	
              July
                25, 2036

            
	
              Class
                P Interest

            	
              $

            	
              100.00

            	 	
              N/A(3)

            	
              July
                25, 2036

            
	
              Class
                IO Interest

            	
              $

            	
              (4)

            	 	
              (5)

            	
              July
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              The
                Class X Interest will not accrue interest on their Certificate Principal
                Balance, but will accrue interest at the Class X Pass-Through Rate
                on the
                Certificate Notional Balance of the Class X Interest outstanding
                from time
                to time which shall equal the aggregate of the Uncertificated Principal
                Balances of the REMIC II Regular Interests (other than REMIC II Regular
                Interest LT-P). 

            
	
              (3)

            	
              The
                Class P Interest will not be entitled to distributions of
                interest.

            
	
              (4)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                a
                Pass-Through Rate, but will be entitled to 100% of the amounts distributed
                on REMIC II Regular Interest LT-IO. 

            
	
              (5)

            	
              For
                federal income tax purposes, the Class IO Interest will not have
                an
                Uncertificated Principal Balance, but will have a notional amount
                equal to
                the Uncertificated Notional Amount of REMIC II Regular Interest
                IO.

            

    

    

    REMIC
      IV

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class X Interest Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC IV”. The R-4 Interest will represent the sole class of
“residual interests” in REMIC IV for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC IV created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                X

            	
              $
                27,638,344.70

            	
              (2)

            	
              July
                25, 2036

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the Distribution Date in the second month following the maturity
                date for
                the Mortgage Loan with the latest maturity date has been designated
                as the
                “latest possible maturity date” for the Class X
                Certificates.

            
	
              (2)

            	
              The
                Class X Certificates will be entitled to 100% of amounts distributed
                on
                the Class X Interest. 

            

    

    

     

    REMIC
      V

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class P Interest Interests as a
      REMIC for federal income tax purposes, and such segregated pool of assets will
      be designated as “REMIC V”. The R-5 Interest will represent the sole class of
“residual interests” in REMIC V for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC V created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Principal
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Class
                P

            	
              $100.00

            	
              (2)

            	
              July
                25, 2036

            

    

    ___________________

    
      	
              (1)

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

            
	
              (2)

            	
              The
                Class P Certificates will be entitled to 100% of amounts distributed
                on
                the Class P Interest. 

            

    

    

     

    REMIC
      VI

     

    As
      provided herein, the Securities Administrator will make an election to treat
      the
      segregated pool of assets consisting of the Class IO Interest as a REMIC for
      federal income tax purposes, and such segregated pool of assets will be
      designated as “REMIC VI”. The R-6 interest will represent the sole class of
“residual interests” in REMIC VI for purposes of the REMIC Provisions. The
      following table irrevocably sets forth the Class designation, Pass-Through
      Rate
      and Initial Certificate Principal Balance for each Class of Certificates that
      represents one or more of the “regular interests” in REMIC VI created
      hereunder:

     

    
      	
              Class
                Designation

            	
              Initial
                Certificate

              Notional
                Balance

            	
              Pass-Through
                Rate

            	
              Assumed
                Final Distribution Date(1)

            
	
              Swap-IO

            	
              (2)

            	
              (3)

            	
              July
                25, 2036

            

    

    ___________________

    
      	
              (1)

            	
              For
                purposes of Section 1.860G-1(a)(4)(iii) of the Treasury regulations,
                the Distribution Date in the second month following the maturity
                date for
                the Mortgage Loan with the latest maturity date has been designated
                as the
                “latest possible maturity date” for REMIC VI Regular Interest
                Swap-IO.

            
	
              (2)

            	
              REMIC
                VI Regular Interest Swap-IO will have not a Certificate Notional
                Balance
                but will be entitled to 100% of amounts distributed on the Class
                IO
                Interest.

            
	
              (3)

            	
              REMIC
                VI Regular Interest Swap-IO will be entitled to 100% of amounts
                distributed on the Class IO Interest.

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.01  Defined
      Terms.

     

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

     

    Accepted
      Master Servicing Practices:
      With
      respect to any Mortgage Loan, as applicable, either (x) those customary mortgage
      master servicing practices of prudent mortgage servicing institutions that
      master service mortgage loans of the same type and quality as such Mortgage
      Loan
      in the jurisdiction where the related Mortgaged Property is located, to the
      extent applicable to the Master Servicer (except in its capacity as successor
      to
      the Servicer), or (y) as provided in Section 3.01 hereof, but in no event
      below the standard set forth in clause (x).

     

    Accepted
      Servicing Practices:
      As
      defined in Section 3.01.

     

    Account:
      Either
      the Distribution Account or the Custodial Account.

     

    Accrual
      Period:
      With
      respect to the Senior Certificates, the Subordinate Certificates and the Class
      X
      Certificates and any Distribution Date, the period commencing on the immediately
      preceding Distribution Date (or with respect to the first Accrual Period, the
      Closing Date) and ending on the day immediately preceding the related
      Distribution Date. All calculations of interest on the Senior Certificates
      and
      Subordinate Certificates will be based on a 360-day year and the actual number
      of days elapsed in the related Accrual Period. All calculations of interest
      on
      the Class X Certificates, REMIC I Regular Interests and REMIC II Regular
      Interests will be based on a 360-day year consisting of twelve 30-day
      months.

     

    Additional
      Disclosure Notification:
      Has the
      meaning set forth in Section 5.14(a) of this Agreement.

     

    Additional
      Form 10-D Disclosure:
      Has the
      meaning set forth in Section 5.14(a) of this Agreement.

     

    Additional
      Form 10-K Disclosure:
      Has the
      meaning set forth in Section 5.14(e) of this Agreement.

     

    Adjustment
      Date:
      With
      respect to each adjustable rate Mortgage Loan, the first day of the month in
      which the Mortgage Rate of such Mortgage Loan changes pursuant to the related
      Mortgage Note. The first Adjustment Date following the Cut-Off Date as to each
      adjustable rate Mortgage Loan is set forth in the Loan Schedule.

     

    Advance:
      An
      advance of delinquent payments of principal or interest in respect of a Mortgage
      Loan required to be made by the Servicer or by the Master Servicer pursuant
      to
      Section 5.01 of this Agreement.

     

    Advance
      Facility:
      As
      defined in Section 5.01(b)(i).

     

    Advance
      Facility Notice:
      As
      defined in Section 5.01(b)(ii).

     

    Advance
      Financing Person:
      As
      defined in Section 5.01(b)(i).

     

    Advance
      Reimbursement Amount:
      As
      defined in Section 5.01(b)(ii).

     

    Affected
      Party:
      As
      defined in the Swap Agreement.

     

    Affiliate:
      With
      respect to any Person, (i) any other Person who, directly or indirectly, is
      in
      control of, controlled by or under common control with, such Person or (ii)
      any
      other Person who is a director, officer or employee (a) of such Person, (b)
      of
      any subsidiary or parent company of such Person or (c) of any Person described
      in clause (i) above. For the purpose of this definition, control of a Person
      shall mean the power, direct or indirect, (x) to vote more than 50% of the
      securities having ordinary voting power for the election of directors or
      managers of such Person or (y) to direct or cause the direction of the
      management and policies of such Person whether by contract or
      otherwise.

     

    Aggregate
      Loan Balance:
      With
      respect to the Mortgage Loans and any Distribution Date, the aggregate of the
      Stated Principal Balances of the Mortgage Loans as of the last day of the
      related Due Period.

     

    Aggregate
      Loan Group Balance:
      With
      respect to either Loan Group I or Loan Group II and any Distribution Date,
      the
      aggregate of the Stated Principal Balances of the Mortgage Loans in the related
      Loan Group as of the last day of the related Due Period.

     

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

     

    Amounts
      Held for Future Distribution:
      As to
      any Distribution Date, the aggregate amount held in the Servicer’s Custodial
      Account at the close of business on the immediately preceding Determination
      Date
      on account of (i) all Scheduled Payments or portions thereof received in respect
      of the related Mortgage Loans due after the related Due Period and (ii)
      Principal Prepayments and Liquidation Proceeds received in respect of the
      related Mortgage Loans after the last day of the related Prepayment
      Period.

     

    Applied
      Loss Amount:
      With
      respect to the Senior Certificates and the Subordinate Certificates and any
      Distribution Date, the excess of the aggregate Certificate Principal Balance
      of
      the Senior Certificates and the Subordinate Certificates over the Aggregate
      Loan
      Balance of the Mortgage Loans after giving effect to all Realized Losses
      incurred with respect to the Mortgage Loans during the related Due Period and
      payments of principal to the Senior Certificates and Subordinate Certificates
      on
      such Distribution Date.

     

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

     

    Assumed
      Final Distribution Date:
      The
      Distribution Date in July 2036.

     

    Authorized
      Servicer Representative:
      Any
      Servicing Officer or other authorized representative of the Servicer involved
      in, or responsible for, the administration and servicing of the Mortgage Loans
      whose name and facsimile signature appear on a list of such authorized
      representatives furnished to the Trustee and the Master Servicer by the Servicer
      on the Closing Date, as such list may from time to time be amended.

     

    Available
      Distribution Amount:
      The sum
      of the Interest Remittance Amount and Principal Remittance Amount, exclusive
      of
      amounts set forth in Section 5.08.

     

    Balloon
      Mortgage Loan:
      A
      Mortgage Loan that provides for the payment of the unamortized principal balance
      of such Mortgage Loan in a single payment, that is substantially greater than
      the preceding monthly payment at the maturity of such Mortgage
      Loan.

     

    Balloon
      Payment:
      A
      payment of the unamortized principal balance of a Mortgage Loan in a single
      payment, that is substantially greater than the preceding Monthly Payment at
      the
      maturity of such Mortgage Loan.

     

    Bankruptcy
      Code:
      Title
      11 of the United States Code.

     

    Basis
      Risk Cap Agreement:
      Shall
      mean the basis risk cap agreement between the Trustee and the Basis Risk Cap
      Provider, for the benefit of the Holders of the Senior Certificates and the
      Subordinate Certificates.

     

    Basis
      Risk Cap Provider:
      HSBC
      Bank USA, National Association, or any successor thereto.

     

    Basis
      Risk Shortfall Reserve Fund:
      The
      segregated non-interest bearing trust account created and maintained by the
      Securities Administrator pursuant to Section 5.11 hereof.

     

    Basis
      Risk Shortfall:
      With
      respect to any Class of Senior Certificates or Subordinate Certificates and
      any
      Distribution Date, the sum of (i) the excess, if any, of the related Current
      Interest (calculated without regard to the applicable Net Funds Cap) over the
      related Current Interest (as it may have been limited by the applicable Net
      Funds Cap) for the applicable Distribution Date; (ii) any amount described
      in
      clause (i) remaining unpaid from prior Distribution Dates; and (iii) interest
      on
      the amount in clause (ii) for the related Accrual Period calculated on the
      basis
      of the lesser of (x) One-Month LIBOR plus the applicable Certificate Margin
      and
      (y) the applicable Maximum Interest Rate.

     

    Book-Entry
      Certificates:
      Any of
      the Certificates that shall be registered in the name of the Depository or
      its
      nominee, the ownership of which is reflected on the books of the Depository
      or
      on the books of a person maintaining an account with the Depository (directly,
      as a “Depository Participant”, or indirectly, as an indirect participant in
      accordance with the rules of the Depository and as described in
      Section 6.06). As of the Closing Date, each Class of Senior Certificates
      and Subordinate Certificates constitutes a Class of Book-Entry
      Certificates.

     

    Business
      Day:
      Any day
      other than (i) a Saturday or a Sunday, or (ii) a day on which banking
      institutions in the State of New York, the State of Delaware, the State of
      Maryland, the State of Minnesota, the State of New Jersey, the city in which
      any
      Corporate Trust Office of the Securities Administrator is located or the States
      in which the Servicer’s servicing operations are located are authorized or
      obligated by law or executive order to be closed.

     

    Carryforward
      Interest:
      With
      respect to any Class of Senior Certificates and any Class of Subordinate
      Certificates and any Distribution Date, the sum of (i) the amount, if any,
      by
      which (x) the sum of (A) Current Interest for that Class of Certificates for
      the
      immediately preceding Distribution Date and (B) any unpaid Carryforward Interest
      for such Class from previous Distribution Dates exceeds (y) the actual amount
      distributed to such Class in respect of interest on the immediately preceding
      Distribution Date and (ii) interest on such amount for the related Accrual
      Period at the applicable Pass-Through Rate.

     

    Certificate:
      Any one
      of the certificates of any Class executed and authenticated by the Securities
      Administrator in substantially the forms attached hereto as Exhibits A-1 through
      A-6.

     

    Certificate
      Margin:
      With
      respect to each Distribution Date on or prior to the first possible Optional
      Termination Date with respect to the Mortgage Loans, the Certificate Margins
      for
      the Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4, Class
      M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class
      M-8, Class M-9, Class B-1 and Class B-2 Certificates are 0.140%, 0.060%, 0.120%,
      0.170%, 0.250%, 0.290%, 0.320%, 0.350%, 0.390%, 0.410%, 0.480%, 0.800%, 1.250%,
      2.300%, 2.300% and 2.300%, respectively. With respect to each Distribution
      Date
      following the first possible Optional Termination Date, the Certificate Margins
      for the Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4,
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8, Class M-9, Class B-1 and Class B-2 Certificates are 0.280%, 0.120%,
      0.240%, 0.340%, 0.500%, 0.435%, 0.480%, 0.525%, 0.585%, 0.615%, 0.720%, 1.200%,
      1.875%, 3.450%, 3.450% and 3.450%, respectively.

     

    Certificate
      Notional Balance:
      With
      respect to the Class X Certificates and any Distribution Date, the
      Uncertificated Principal Balance of the REMIC II Regular Interests (other than
      REMIC II Regular Interest LT-P) for such Distribution Date. As of the Closing
      Date, the Certificate Notional Balance of the Class X Certificates is equal
      to
      $27,638,344.70.

     

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

     

    Certificate
      Principal Balance:
      As to
      any Senior Certificate, Subordinate Certificate or Class P Certificate and
      as of
      any Distribution Date, the Initial Certificate Principal Balance of such
      Certificate plus any Subsequent Recoveries added to the Certificate Principal
      Balance pursuant to Section 5.05(d) less (i) the sum of (a) all amounts
      distributed with respect to such Certificate in reduction of the Certificate
      Principal Balance thereof on previous Distribution Dates pursuant to
      Section 5.04 and (b) with respect to any Class of Subordinate Certificates,
      any reductions in the Certificate Principal Balance of such Certificate deemed
      to have occurred in connection with the allocations of Realized Losses, if
      any,
      plus (ii) with respect to the Subordinate Certificates, any Subsequent
      Recoveries added to the Certificate Principal Balance of any such Certificate
      pursuant to Section 5.05(d), in each case up to the amount of Applied Loss
      Amounts but only to the extent that any such Applied Loss Amount has not been
      paid to any Class of Certificates as a Deferred Amount or previously increased
      due to other Subsequent Recoveries. With respect to the Class X Certificates
      and
      any date of determination, the excess, if any, of (i) the then Aggregate Loan
      Balance over (ii) the then aggregate Certificate Principal Balance of the
      Publicly Offered Certificates and the Class B Certificates. References herein
      to
      the Certificate Principal Balance of a Class of Certificates shall mean the
      Certificate Principal Balances of all Certificates in such Class. 

     

    Certificate
      Register:
      The
      register maintained pursuant to Section 6.02.

     

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

     

    Certification
      Parties:
      Has the
      meaning set forth in Section 3.18 of this Agreement.

     

    Certifying
      Person:
      Has the
      meaning set forth in Section 3.18 of this Agreement.

     

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

     

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

     

    Class
      I-A-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.14% or (B) after the first
      possible Optional Termination Date, 0.28% and (ii) the applicable Net Funds
      Cap.

     

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

     

    Class
      II-A-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.06% or (B) after the first
      possible Optional Termination Date, 0.12% and (ii) the applicable Net Funds
      Cap.

     

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

     

    Class
      II-A-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.12% or (B) after the first
      possible Optional Termination Date, 0.24% and (ii) the applicable Net Funds
      Cap.

     

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

     

    Class
      II-A-3 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.17% or (B) after the first
      possible Optional Termination Date, 0.34% and (ii) the applicable Net Funds
      Cap.

     

    Class
      II-A-4 Certificate:
      Any
      Certificate designated as a “Class II-A-4 Certificate” on the face thereof, in
      the form of Exhibit A-1 hereto, representing the right to its Percentage
      Interest of distributions provided for the Class II-A-4 Certificates as set
      forth herein and evidencing (i) a REMIC Regular Interest in REMIC III, (ii)
      the
      right to receive the related Basis Risk Shortfall and (iii) the obligation
      to
      pay any Class IO Distribution Amount.

     

    Class
      II-A-4 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.25% (B) after the first possible
      Optional Termination Date, 0.50% (ii) the applicable Net Funds Cap.

     

    Class
      B Certificates:
      The
      Class B-1 Certificates and Class B-2 Certificates.

     

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

     

    Class
      B-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 2.30% or (B) after the first
      possible Optional Termination Date, 3.45% and (ii) the applicable Net Funds
      Cap.

     

    Class
      B-1 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates and the Mezzanine Certificates, in each case, after
      giving effect to payments on such Distribution Date and (ii) the Certificate
      Principal Balance of the Class B-1 Certificates immediately prior to such
      Distribution Date exceeds (y) the lesser of (A) the product of (i) 93.50% and
      (ii) the Aggregate Loan Balance for such Distribution Date and (B) the amount,
      if any, by which (i) the Aggregate Loan Balance for such Distribution Date
      exceeds (ii) 0.50% of the Aggregate Loan Balance as of the Cut-off
      Date.

     

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

     

    Class
      B-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 2.30% or (B) after the first
      possible Optional Termination Date, 3.45% and (ii) the applicable Net Funds
      Cap.

     

    Class
      B-2 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, the Mezzanine Certificates and the Class B-1
      Certificates, in each case, after giving effect to payments on such Distribution
      Date and (ii) the Certificate Principal Balance of the Class B-2 Certificates
      immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
      product of (i) 95.50% and (ii) the Aggregate Loan Balance for such Distribution
      Date and (B) the amount, if any, by which (i) the Aggregate Loan Balance for
      such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Balance as
      of
      the Cut-off Date.

     

    Class
      IO Distribution Amount:
      As defined in Section 5.12(g) hereof. For
      purposes of clarity, the Class IO Distribution Amount for any Distribution
      Date
      shall equal the amount payable to the Supplemental Interest Trust on such
      Distribution Date in excess of the amount payable on the Class IO Interest
      on
      such Distribution Date, all as further provided in Section 5.12(g)
      hereof.

     

    Class
      IO Interest:
      An
      uncertificated interest in the Trust Fund held by the Trustee, evidencing a
      REMIC Regular Interest in REMIC III for purposes of the REMIC
      Provisions.

     

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

     

    Class
      M-1 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.29% or (B) after the first
      possible Optional Termination Date, 0.435% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-1 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, in each case, after giving effect to payments on
      such Distribution Date and (ii) the Certificate Principal Balance of the Class
      M-1 Certificates immediately prior to such Distribution Date exceeds (y) the
      lesser of (A) the product of (i) 62.60% and (ii) the Aggregate Loan Balance
      for
      such Distribution Date and (B) the amount, if any, by which (i) the Aggregate
      Loan Balance for such Distribution Date exceeds (ii) 0.50% of the Aggregate
      Loan
      Balance as of the Cut-off Date.

     

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

     

    Class
      M-2 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.32% or (B) after the first
      possible Optional Termination Date, 0.48% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-2 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates and the Class M-1 Certificates, in each case, after
      giving effect to payments on such Distribution Date and (ii) the Certificate
      Principal Balance of the Class M-2 Certificates immediately prior to such
      Distribution Date exceeds (y) the lesser of (A) the product of (i) 69.40% and
      (ii) the Aggregate Loan Balance for such Distribution Date and (B) the amount,
      if any, by which (i) the Aggregate Loan Balance for such Distribution Date
      exceeds (ii) 0.50% of the Aggregate Loan Balance as of the Cut-off
      Date.

     

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

     

    Class
      M-3 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.35% or (B) after the first
      possible Optional Termination Date, 0.525% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-3 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1 Certificates and Class M-2 Certificates,
      in each case, after giving effect to payments on such Distribution Date and
      (ii)
      the Certificate Principal Balance of the Class M-3 Certificates immediately
      prior to such Distribution Date exceeds (y) the lesser of (A) the product of
      (i)
      73.60% and (ii) the Aggregate Loan Balance for such Distribution Date and (B)
      the amount, if any, by which (i) the Aggregate Loan Balance for such
      Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Balance as of the
      Cut-off Date.

     

    Class
      M-4 Certificate:
      Any
      Certificate designated as a “Class M-4 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-4 Certificates as set forth herein and
      evidencing (i) a REMIC Regular Interest in REMIC III, (ii) the right to receive
      the related Basis Risk Shortfall and (iii) the obligation to pay any Class
      IO
      Distribution Amount.

     

    Class
      M-4 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.39% or (B) after the first
      possible Optional Termination Date, 0.585% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-4 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2 and Class M-3 Certificates,
      in
      each case, after giving effect to payments on such Distribution Date and (ii)
      the Certificate Principal Balance of the Class M-4 Certificates immediately
      prior to such Distribution Date exceeds (y) the lesser of (A) the product of
      (i)
      77.20% and (ii) the Aggregate Loan Balance for such Distribution Date and (B)
      the amount, if any, by which (i) the Aggregate Loan Balance for such
      Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Balance as of the
      Cut-off Date.

     

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

     

    Class
      M-5 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.41% or (B) after the first
      possible Optional Termination Date, 0.615% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-5 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3 and Class M-4
      Certificates, in each case, after giving effect to payments on such Distribution
      Date and (ii) the Certificate Principal Balance of the Class M-5 Certificates
      immediately prior to such Distribution Date exceeds (y) the lesser of (A) the
      product of (i) 80.60% and (ii) the Aggregate Loan Balance for such Distribution
      Date and (B) the amount, if any, by which (i) the Aggregate Loan Balance for
      such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan Balance as
      of
      the Cut-off Date.

     

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

     

    Class
      M-6 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.48% or (B) after the first
      possible Optional Termination Date, 0.72% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-6 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4 and
      Class
      M-5 Certificates, in each case, after giving effect to payments on such
      Distribution Date and (ii) the Certificate Principal Balance of the Class M-6
      Certificates immediately prior to such Distribution Date exceeds (y) the lesser
      of (A) the product of (i) 83.70% and (ii) the Aggregate Loan Balance for such
      Distribution Date and (B) the amount, if any, by which (i) the Aggregate Loan
      Balance for such Distribution Date exceeds (ii) 0.50% of the Aggregate Loan
      Balance as of the Cut-off Date.

     

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

     

    Class
      M-7 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 0.80% or (B) after the first
      possible Optional Termination Date, 1.20% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-7 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5 and Class M-6 Certificates, in each case, after giving effect to payments
      on
      such Distribution Date and (ii) the Certificate Principal Balance of the Class
      M-7 Certificates immediately prior to such Distribution Date exceeds (y) the
      lesser of (A) the product of (i) 86.70% and (ii) the Aggregate Loan Balance
      for
      such Distribution Date and (B) the amount, if any, by which (i) the Aggregate
      Loan Balance for such Distribution Date exceeds (ii) 0.50% of the Aggregate
      Loan
      Balance as of the Cut-off Date.

     

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

     

    Class
      M-8 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 1.25% or (B) after the first
      possible Optional Termination Date, 1.875% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-8 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6 and Class M-7 Certificates, in each case, after giving effect
      to
      payments on such Distribution Date and (ii) the Certificate Principal Balance
      of
      the Class M-8 Certificates immediately prior to such Distribution Date exceeds
      (y) the lesser of (A) the product of (i) 89.30% and (ii) the Aggregate Loan
      Balance for such Distribution Date and (B) the amount, if any, by which (i)
      the
      Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.50% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Class
      M-9 Certificate:
      Any
      Certificate designated as a “Class M-9 Certificate” on the face thereof, in the
      form of Exhibit A-2 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class M-9 Certificates as set forth herein and
      evidencing (i) a REMIC Regular Interest in REMIC III, (ii) the right to receive
      the related Basis Risk Shortfall and (iii) the obligation to pay any Class
      IO
      Distribution Amount.

     

    Class
      M-9 Pass-Through Rate:
      With
      respect to each Distribution Date, a per annum rate equal to the lesser of
      (i)
      the sum of One-Month LIBOR for that Distribution Date plus (A) on or prior
      to
      the first possible Optional Termination Date, 2.30% or (B) after the first
      possible Optional Termination Date, 3.45% and (ii) the applicable Net Funds
      Cap.

     

    Class
      M-9 Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the sum of (i) the Certificate Principal Balances
      of the Senior Certificates, Class M-1, Class M-2, Class M-3, Class M-4, Class
      M-5, Class M-6, Class M-7 and Class M-8 Certificates, in each case, after giving
      effect to payments on such Distribution Date and (ii) the Certificate Principal
      Balance of the Class M-9 Certificates immediately prior to such Distribution
      Date exceeds (y) the lesser of (A) the product of (i) 91.40% and (ii) the
      Aggregate Loan Balance for such Distribution Date and (B) the amount, if any,
      by
      which (i) the Aggregate Loan Balance for such Distribution Date exceeds (ii)
      0.50% of the Aggregate Loan Balance as of the Cut-off Date.

     

    Class
      P Certificate:
      Any
      Certificate designated as a “Class P Certificate” on the face thereof, in the
      form of Exhibit A-5 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class P Certificates as set forth herein and
      evidencing a
      REMIC
      Regular Interest in REMIC V.

     

    Class
      P Certificate Account:
      The
      Eligible Account established and maintained by the Securities Administrator
      pursuant to Section 5.09.

     

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

     

    Class
      R Certificate:
      Any
      Certificate designated as a “Class R” Certificate on the face thereof in the
      form of Exhibit A-6 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class R Certificates as set forth herein and
      evidencing the Class R-I Interest, Class R-II Interest and Class R-III
      Interest.

     

    Class
      R-X Certificate:
      The
      Class R-X Certificate executed by the Trustee, and authenticated and delivered
      by the Certificate Registrar, substantially in the form annexed hereto as
      Exhibit A-6 and evidencing the ownership of the Class R-IV Interest, the Class
      R-V Interest and the Class R-VI Interest.

     

    Class
      R-I Interest:
      The
      uncertificated residual interest in REMIC I.

     

    Class
      R-II Interest:
      The
      uncertificated residual interest in REMIC II.

     

    Class
      R-III Interest:
      The
      uncertificated residual interest in REMIC III.

     

    Class
      R-IV Interest:
      The
      uncertificated residual interest in REMIC IV.

     

    Class
      R-V Interest:
      The
      uncertificated residual interest in REMIC V.

     

    Class
      R-VI Interest:
      The
      uncertificated residual interest in REMIC VI.

     

    Class
      X Certificate:
      Any
      Certificate designated as a “Class X Certificate” on the face thereof, in the
      form of Exhibit A-4 hereto, representing the right to its Percentage Interest
      of
      distributions provided for the Class X Certificates as set forth herein and
      evidencing (i) a REMIC Regular Interest in REMIC IV, (ii) the obligation to
      pay
      Basis Risk Shortfall and (iii) the obligation to pay any Class IO Distribution
      Amount. 

     

    Class
      X Distribution Amount:
      With
      respect to any Distribution Date and the Class X Certificates, the sum of (i)
      the Excess Basis Risk Cap Payment, (ii) the Current Interest and Carryforward
      Interest and (iii) any Overcollateralization Release Amount for such
      Distribution Date remaining after payments pursuant to items 1 through 25 of
      Section 5.04(a)(iii)(1)(B); provided, however that on and after the
      Distribution Date on which the Certificate Principal Balances of the Senior
      Certificates and the Subordinate Certificates have been reduced to zero, the
      Class X Distribution Amount shall include the Overcollateralization
      Amount.

     

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

     

    Class
      X Pass-Through Rate:
      On any
      Distribution Date, a per annum rate equal to the percentage equivalent of a
      fraction, the numerator of which is the sum of the amounts calculated pursuant
      to clauses (A) through (R) below, and the denominator of which is the aggregate
      of the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA,
      REMIC II Regular Interest LT-IA1, REMIC II Regular Interest LT-IIA1, REMIC
      II
      Regular Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular
      Interest LT-IIA4, REMIC II Regular Interest LT-M1, REMIC II Regular Interest
      LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC
      II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular
      Interest LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest
      LT-M9, REMIC II Regular Interest LT-B1, REMIC II Regular Interest LT-B2 and
      REMIC II Regular Interest LT-ZZ. For purposes of calculating the Pass-Through
      Rate for the Class X Interest, the numerator is equal to the sum of the
      following components:

     

    (A)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-AA
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-AA;

     

    (B)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IA1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IA1;

     

    (C)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA1,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA1;

     

    (D)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA2;

     

    (E)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA3,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA3;

     

    (F)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-IIA4,
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-IIA4;

     

    (G)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M1;

     

    (H)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M2;

     

    (I)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M3
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M3;

     

    (J)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M4
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M4; 

     

    (K)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M5
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M5; 

     

    (L)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M6
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M6;

     

    (M)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M7
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M7;

     

    (N)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M8
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M8;

     

    (O)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-M9
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M9;

     

    (P)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B1
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B1;

     

    (Q)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-B2
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-B2; and

     

    (R)  the
      Uncertificated REMIC II Pass-Through Rate for REMIC II Regular Interest LT-ZZ
      minus the Marker Rate, applied to an amount equal to the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-ZZ.

     

    The
      Class
      X Certificates will be entitled to 100% of amounts distributed on the Class X
      Interest.

     

    Cleanup
      Call:
      As
      defined in Section 10.01.

     

    Closing
      Date:
      October
      31, 2006.

     

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

     

    Combined
      Loan-to-Value Ratio:
      With
      respect to any Mortgage Loan as of any Determination Date, the ratio on such
      Determination Date of the Stated Principal Balance of the Mortgage Loan and
      any
      other mortgage loan which is secured by a lien on the related Mortgaged Property
      to the Appraised Value of the Mortgaged Property.

     

    Commission:
      Shall
      mean the United States Securities and Exchange Commission.

     

    Compensating
      Interest:
      With
      respect to any Distribution Date and (i) the Servicer, an amount equal the
      aggregate amount of Prepayment Interest Shortfalls resulting from prepayments
      in
      full on the Mortgage Loans received during the related Prepayment Period and
      partial prepayments received during the related Prepayment Period to the extent
      applied prior to the Due Date in the month of the Distribution Date, provided,
      however that the amount of Compensating Interest required to be paid in respect
      of the Mortgage Loans shall not exceed the applicable Servicing Fee payable
      to
      the Servicer on such Distribution Date, or (ii) the Master Servicer, will be
      an
      amount equal to any Prepayment Interest Shortfalls required to be funded by
      the
      Servicer and not funded, up to the aggregate Master Servicing Fee (exclusive
      of
      the portion of such fee payable to the Master Servicer in its capacity as Credit
      Risk Manager) for such Distribution Date.

     

    Corporate
      Trust Office:
      The
      principal corporate trust office of the Trustee which office at the date of
      the
      execution of this instrument is located at 452 Fifth Avenue, New York, New
      York
      10018, Attention: Nomura Home Equity Loan, Inc., 2006-FM2 or at such other
      address as the Trustee may designate from time to time by notice to the
      Certificateholders, the Depositor, the Master Servicer, the Securities
      Administrator and the Servicer. The office of the Securities Administrator,
      which for purposes of Certificate transfers and surrender is located at Wells
      Fargo Bank, N.A., Sixth Street and Marquette Avenue, Minneapolis, Minnesota
      55479, Attention: Corporate Trust Services - Client Manager (NHEL 2006-FM2),
      and
      for all other purposes is located at Wells Fargo Bank, N.A., P.O. Box 98,
      Columbia, Maryland 21046, Attention: Corporate Trust Services - Client Manager
      (NHEL 2006-FM2) (or for overnight deliveries, at 9062 Old Annapolis Road,
      Columbia, Maryland 21045, Attention: Corporate Trust Services - Client Manager
      (NHEL 2006-FM2)).

     

    Corresponding
      Certificate:
      With
      respect to:

     

    
      	
              (i)

            	
              REMIC
                II Regular Interest LT-IA1, the Class I-A-1
                Certificates;

            
	
              (ii)

            	
              REMIC
                II Regular Interest LT-IIA1, the Class II-A-1
                Certificates;

            
	
              (iii)

            	
              REMIC
                II Regular Interest LT-IIA2, the Class II-A-2
                Certificates;

            
	
              (iv)

            	
              REMIC
                II Regular Interest LT-IIA3, the Class II-A-3
                Certificates;

            
	
              (v)

            	
              REMIC
                II Regular Interest LT-IIA4, the Class II-A-4
                Certificates;

            
	
              (vi)

            	
              REMIC
                II Regular Interest LT-M1, the Class M-1 Certificates;

            
	
              (vii)

            	
              REMIC
                II Regular Interest LT-M2, the Class M-2 Certificates;

            
	
              (viii)

            	
              REMIC
                II Regular Interest LT-M3, the Class M-3 Certificates;

            
	
              (ix)

            	
              REMIC
                II Regular Interest LT-M4, the Class M-4 Certificates; 

            
	
              (x)

            	
              REMIC
                II Regular Interest LT-M5, the Class M-5 Certificates;

            
	
              (xi)

            	
              REMIC
                II Regular Interest LT-M6, the Class M-6 Certificates;

            
	
              (xii)

            	
              REMIC
                II Regular Interest LT-M7, the Class M-7 Certificates;

            
	
              (xiii)

            	
              REMIC
                II Regular Interest LT-M8, the Class M-8 Certificates;

            
	
              (xiv)

            	
              REMIC
                II Regular Interest LT-M9, the Class M-9 Certificates;

            
	
              (xv)

            	
              REMIC
                II Regular Interest LT-B1, the Class B-1 Certificates;

            
	
              (xvi)

            	
              REMIC
                II Regular Interest LT-B2, the Class B-2 Certificates;

            
	
              (xvii)

            	
              REMIC
                II Regular Interest LT-P and the Class P Interest, the Class P
                Certificates.

            

    

    

    Credit
      Risk Manager:
      Wells
      Fargo Bank, National Association, and its successors and assigns.

     

    Current
      Interest:
      With
      respect to any Class of Senior Certificates and Subordinate Certificates and
      any
      Distribution Date, the amount of interest accruing at the applicable
      Pass-Through Rate on the related Certificate Principal Balance during the
      related Accrual Period; provided, that as to each Class of Senior Certificates
      and Subordinate Certificates, the Current Interest will be reduced by a pro
      rata
      portion of any Net Interest Shortfalls to the extent not covered by excess
      interest. No Current Interest will be payable with respect to any Class of
      Senior Certificate or Subordinate Certificate after the Distribution Date on
      which the outstanding Certificate Principal Balance of such Certificate has
      been
      reduced to zero.

     

    Custodial
      Account:
      The
      account established and maintained by the Servicer with respect to receipts
      on
      the related Mortgage Loans and related REO Properties in accordance with
      Section 3.26(b).

     

    Custodial
      Agreement:
      The
      Custodial Agreement dated as of October 1, 2006 among Wells Fargo, in its
      capacity as Custodian, the Servicer and the Trustee.

     

    Custodian:
      Wells
      Fargo Bank, N.A., or any successor thereto appointed pursuant to the Custodial
      Agreement.

     

    Cut-off
      Date:
      October
      1, 2006.

     

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

     

    DBRS:
      Dominion Bond Rating Service or its successor in interest.

     

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

     

    Defaulting
      Party:
      As
      defined in the Swap Agreement.

     

    Deferred
      Amount:
      With
      respect to any Class of Subordinate Certificates and any Distribution Date,
      the
      amount by which (x) the aggregate of the Applied Loss Amounts previously applied
      in reduction of the Certificate Principal Balance thereof exceeds (y) the
      aggregate of amounts previously paid in reimbursement thereof and the amount
      by
      which the Certificate Principal Balance of any such Class has been increased
      due
      to the collection of Subsequent Recoveries.

     

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

     

    Definitive
      Certificates:
      As
      defined in Section 6.06.

     

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

     

    Delinquency
      Rate:
      With
      respect to the Mortgage Loans and any calendar month will be, generally, the
      fraction, expressed as a percentage, the numerator of which is the Aggregate
      Loan Balance of all Mortgage Loans sixty (60) or more days delinquent (including
      all Mortgage Loans in bankruptcy or foreclosure and all REO Properties) as
      of
      the close of business on the last day of such month, and the denominator of
      which is the Aggregate Loan Balance of all Mortgage Loans as of the close of
      the
      last day of the related Due Period.

     

    Delinquent:
      A
      Mortgage Loan is “delinquent” if any payment due thereon is not made pursuant to
      the terms of such Mortgage Loan by the close of business on the day such payment
      is scheduled to be due. A Mortgage Loan is “30 days delinquent” if such payment
      has not been received by the close of business on the corresponding day of
      the
      month immediately succeeding the month in which such payment was due, or, if
      there is no such corresponding day (e.g., as when a 30-day month follows a
      31-day month in which a payment was due on the 31st day of such month), then
      on
      the last day of such immediately succeeding month. Similarly for “60 days
      delinquent,” “90 days delinquent” and so on.

     

    Denomination:
      With
      respect to each Certificate, the amount set forth on the face thereof as the
      “Initial Certificate Principal Balance of this Certificate”.

     

    Depositor:
      Nomura
      Home Equity Loan, Inc., a Delaware corporation, or its successor in
      interest.

     

    Depository:
      The
      initial Depository shall be The Depository Trust Company (“DTC”), the nominee of
      which is Cede & Co., or any other organization registered as a “clearing
      agency” pursuant to Section 17A of the Exchange Act. The Depository shall
      initially be the registered Holder of the Book-Entry Certificates. The
      Depository shall at all times be a “clearing corporation” as defined in
      Section 8-102(a)(5) of the Uniform Commercial Code of the State of New
      York.

     

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

     

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

     

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

     

    Distribution
      Account:
      The
      separate Eligible Account created and maintained by the Securities Administrator
      pursuant to Section 3.31 in the name of the Trustee for the benefit of the
      Certificateholders and designated “HSBC Bank USA, National Association, in trust
      for registered holders of Nomura Home Equity Loan, Inc., Asset-Backed
      Certificates, Series 2006-FM2”. Funds in the Distribution Account shall be held
      in trust for the Certificateholders for the uses and purposes set forth in
      this
      Agreement.

     

    Distribution
      Date:
      The
      twenty-fifth (25th)
      day of
      each calendar month after the initial issuance of the Certificates, or if such
      twenty-fifth (25th)
      day is
      not a Business Day, the next succeeding Business Day, commencing in November
      2006.

     

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

     

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

     

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

     

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

     

    ERISA
      Restricted Certificate:
      Each of
      the Class X, Class P and Residual Certificates.

     

    Escrow
      Account:
      Shall
      mean the account or accounts maintained by the Servicer pursuant to
      Section 3.29. Each Escrow Account shall be an Eligible
      Account.

     

    Excess
      Basis Risk Cap Payment:
      With
      respect to any Distribution Date, the excess, if any, of (1) the cap payments
      made by the Basis Risk Cap Provider under the Basis Risk Cap Agreement with
      respect to the Senior Certificates and the Subordinate Certificates over (2)
      the
      amount of the unpaid Basis Risk Shortfall attributable to the Senior
      Certificates and the Subordinate Certificates for such Distribution
      Date.

     

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

     

    Exchange
      Act:
      Securities and Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

     

    Exemption:
      Prohibited Transaction Exemption 93-32, as amended from time to
      time.

     

    Expense
      Fee Rate:
      The sum
      of the Master Servicer Fee Rate and Servicing Fee Rate attributable to the
      Mortgage Loans.

     

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

     

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

     

    Final
      Recovery Determination:
      With
      respect to any defaulted Mortgage Loan or any REO Property (other than a
      Mortgage Loan or REO Property purchased by the Sponsor or the Master Servicer
      pursuant to or as contemplated by Section 2.03(c) or Section 10.01), a
      determination made by the Servicer pursuant to this Agreement that all Insurance
      Proceeds, Liquidation Proceeds and other payments or recoveries which the
      Servicer, in its reasonable good faith judgment, expects to be finally
      recoverable in respect thereof have been so recovered. The Servicer shall
      maintain records of each Final Recovery Determination made thereby.

     

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

     

    Fitch:
      Fitch
      Ratings and its successor in interest.

     

    Form
      8-K Disclosure Information:
      As
      defined in Section 5.14(c).

     

    Freddie
      Mac:
      Federal
      Home Loan Mortgage Corporation, or any successor thereto.

     

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

     

    Group
      I Certificates:
      The
      Class I-A-1 Certificates.

     

    Group
      I Allocation Amount:
      With
      respect to any Distribution Date, the product of the Senior Principal Payment
      Amount for that Distribution Date and a fraction the numerator of which is
      the
      Principal Remittance Amount derived from the Group I Mortgage Loans and the
      denominator of which is the Principal Remittance Amount, in each case for that
      Distribution Date.

     

    Group
      I Allocation Percentage:
      With
      respect to any Distribution Date, the Aggregate Loan Group Balance of the Group
      I Mortgage Loans divided by the Aggregate Loan Balance.

     

    Group
      I Excess Interest Amount:
      With
      respect to any Distribution Date, the product of the Monthly Excess Interest
      required to be distributed on that Distribution Date pursuant to Section
      5.04(a)(iii)(1)(A) and a fraction the numerator of which is the Principal
      Remittance Amount derived from the Group I Mortgage Loans and the denominator
      of
      which is the Principal Remittance Amount, in each case for that Distribution
      Date.

     

    Group
      I Mortgage Loans:
      Those
      Mortgage Loans identified on the Mortgage Loan Schedule as Group I Mortgage
      Loans.

     

    Group
      II Certificates:
      The
      Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates.

     

    Group
      II Allocation Amount:
      With
      respect to any Distribution Date, the product of the Senior Principal Payment
      Amount for that Distribution Date and a fraction the numerator of which is
      the
      Principal Remittance Amount derived from the Group II Mortgage Loans and the
      denominator of which is the Principal Remittance Amount, in each case for that
      Distribution Date.

     

    Group
      II Allocation Percentage:
      With
      respect to any Distribution Date, the Aggregate Loan Group Balance of the Group
      II Mortgage Loans divided by the Aggregate Loan Balance.

     

    Group
      II Excess Interest Amount:
      With
      respect to any Distribution Date, the product of the Monthly Excess Interest
      required to be distributed on that Distribution Date pursuant to Section
      5.04(a)(iii)(1)(A) and a fraction the numerator of which is the Principal
      Remittance Amount derived from the Group II Mortgage Loans and the denominator
      of which is the Principal Remittance Amount, in each case for that Distribution
      Date.

     

    Group
      II Mortgage Loans:
      Those
      Mortgage Loans identified on the Mortgage Loan Schedule as Group II Mortgage
      Loans.

     

    Indemnified
      Persons:
      The
      Trustee, the Servicer (including any successor to the Servicer), the Master
      Servicer, the Securities Administrator, the Custodian and their officers,
      directors, agents and employees and, with respect to the Trustee, any separate
      co-trustee and its officers, directors, agents and employees.

     

    Independent:
      When
      used with respect to any specified Person, any such Person who (a) is in fact
      independent of the Depositor, the Master Servicer, the Securities Administrator,
      the Servicer, the Sponsor, any originator and their respective Affiliates,
      (b)
      does not have any direct financial interest in or any material indirect
      financial interest in the Depositor, the Master Servicer, the Securities
      Administrator, the Servicer, the Sponsor, any originator or any Affiliate
      thereof, and (c) is not connected with the Depositor, the Master Servicer,
      the
      Securities Administrator, the Servicer, the Sponsor, any originator or any
      Affiliate thereof as an officer, employee, promoter, underwriter, trustee,
      partner, director or Person performing similar functions; provided, however,
      that a Person shall not fail to be Independent of the Depositor, the Master
      Servicer, the Securities Administrator, the Servicer, the Sponsor, any
      originator or any Affiliate thereof merely because such Person is the beneficial
      owner of one percent (1%) or less of any class of securities issued by the
      Depositor, the Master Servicer, the Securities Administrator, the Servicer,
      the
      Sponsor, any originator or any Affiliate thereof, as the case may be. When
      used
      with respect to any accountants, a Person who is “independent” within the
      meaning of Rule 2-01(B) of the Securities and Exchange Commission’s Regulation
      S-X. Independent means, when used with respect to any other Person, a Person
      who
      (A) is in fact independent of another specified Person and any affiliate of
      such
      other Person, (B) does not have any material direct or indirect financial
      interest in such other Person or any affiliate of such other Person, (C) is
      not
      connected with such other Person or any affiliate of such other Person as an
      officer, employee, promoter, underwriter, Securities Administrator, partner,
      director or Person performing similar functions and (D) is not a member of
      the
      immediate family of a Person defined in clause (B) or (C) above.

     

    Index:
      As of
      any Adjustment Date, the index applicable to the determination of the Mortgage
      Rate on each adjustable rate Mortgage Loan which will generally be based on
      Six-Month LIBOR.

     

    Initial
      Certificate Principal Balance:
      With
      respect to any Certificate, the Certificate Principal Balance of such
      Certificate or any predecessor Certificate on the Closing Date.

     

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

     

    Insurance
      Proceeds:
      Proceeds paid in respect of the Mortgage Loans pursuant to any Insurance Policy
      or any other insurance policy covering a Mortgage Loan, to the extent such
      proceeds are payable to the mortgagee under the Mortgage, the Servicer of the
      related Mortgage Loan or the trustee under the deed of trust and are not applied
      to the restoration of the related Mortgaged Property or released to the
      Mortgagor in accordance with the servicing standard set forth in
      Section 3.01 hereof, other than any amount included in such Insurance
      Proceeds in respect of Insured Expenses.

     

    Insured
      Expenses:
      Expenses covered by any Insurance Policy with respect to the Mortgage
      Loans.

     

    Interest
      Determination Date:
      The
      second LIBOR Business Day preceding the commencement of each Accrual
      Period.

     

    Interest
      Rate Cap Agreement:
      The
      interest rate cap agreement between the Trustee and the Interest Rate Cap
      Provider, for the benefit of the Holders of the Senior Certificates and the
      Subordinate Certificates.

     

    Interest
      Rate Cap Provider:
      HSBC Bank USA, National Association, or any successor thereto.

     

    Interest
      Remittance Amount:
      With
      respect to any Distribution Date and each Loan Group, the portion of the
      Available Distribution Amount for such Distribution Date, generally equal to
      (i)
      the sum, without duplication, of (a) all scheduled interest received during
      the
      related Due Period with respect to the related Mortgage Loans less the Servicing
      Fee, the Master Servicing Fee, the fee payable to any provider of lender-paid
      mortgage insurance, if any, and Prepayment Interest Excess, if any, with respect
      to the related Mortgage Loans, (b) all Advances relating to interest with
      respect to the related Mortgage Loans made on or prior to the related Remittance
      Date, (c) all Compensating Interest allocable to that Loan Group with respect
      to
      the related Mortgage Loans and required to be remitted by the Servicer or the
      Master Servicer pursuant to this Agreement, as applicable, with respect to
      such
      Distribution Date, (d) Liquidation Proceeds and Subsequent Recoveries with
      respect to the related Mortgage Loans collected during the related Prepayment
      Period (to the extent such Liquidation Proceeds and Subsequent Recoveries relate
      to interest), (e) all amounts relating to interest with respect to each related
      Mortgage Loan repurchased by the Sponsor pursuant to Sections 2.02 and 2.03
      and
      (f) all amounts in respect of interest paid by the Master Servicer pursuant
      to
      Section 10.01 to the extent remitted by the Master Servicer to the
      Distribution Account pursuant to this Agreement, minus (ii) all amounts required
      to be reimbursed by the Trust pursuant to Sections 3.27, 3.32, 7.03 or as
      otherwise set forth in this Agreement or the Custodial Agreement,
      allocated
      to the respective Loan Group on a pro rata basis, based on the Aggregate Loan
      Group Balance as of the last day of the related Due Period, to the extent such
      amounts are attributable to both Loan Groups, and otherwise allocated to the
      Loan Group to which such amounts are attributable.

     

    Interest
      Shortfall:
      With
      respect to any Distribution Date, the aggregate shortfall, if any, in
      collections of interest (adjusted to the related Net Mortgage Rates) on Mortgage
      Loans resulting from (a) Principal Prepayments in full received during the
      related Prepayment Period, (b) partial Principal Prepayments received during
      the
      related Prepayment Period to the extent applied prior to the Due Date in the
      month of the Distribution Date and (c) interest payments on certain of the
      Mortgage Loans being limited pursuant to the provisions of the Relief
      Act.

     

    ISDA
      Master Agreement:
      The
      ISDA Master Agreement dated as of October 31, 2006, as amended and supplemented
      from time to time, between the Swap Provider and the Trustee, as trustee on
      behalf of the Supplemental Interest Trustee.

     

    Last
      Scheduled Distribution Date:
      With
      respect to the Certificates, the Distribution Date in July 2036.

     

    Latest
      Possible Maturity Date:
      The
      first Distribution Date following the final scheduled maturity date of the
      Mortgage Loan in the Trust Fund having the latest scheduled maturity date as
      of
      the Cut-off Date. For purposes of the Treasury Regulations under Code
      Section 860A through 860G, the latest possible maturity date of each
      regular interest issued by each REMIC shall be the Latest Possible Maturity
      Date.

     

    LIBOR
      Business Day:
      Any day
      other than a Saturday or a Sunday or a day on which banking institutions in
      the
      State of New York or in the city of London, England are required or authorized
      by law to be closed.

     

    LIBOR
      Determination Date:
      The
      second LIBOR Business Day before the first day of the related Accrual
      Period.

     

    Liquidated
      Loan:
      With
      respect to any Distribution Date, a defaulted Mortgage Loan that has been
      liquidated through deed-in-lieu of foreclosure, foreclosure sale, trustee’s sale
      or other realization as provided by applicable law governing the real property
      subject to the related Mortgage and any security agreements and as to which
      the
      Servicer has certified in the related Prepayment Period in writing to the
      Securities Administrator that it has made a Final Recovery
      Determination.

     

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

     

    Loan
      Group:
      Either
      Loan Group I or Loan Group II. “Loan Group I” refers to the Group I Mortgage
      Loans and “Loan Group II” refers to the Group II Mortgage Loans.

     

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

     

    Majority
      Class X Certificateholder:
      The
      Holder of a 50.01% or greater Percentage Interest in the Class X
      Certificates.

     

    Marker
      Rate:
      With
      respect to the Class X Interest and any Distribution Date, a per annum rate
      equal to two (2) times the weighted average of the Uncertificated REMIC II
      Pass-Through Rates for REMIC II Regular Interest LT-IA1, REMIC II Regular
      Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular Interest
      LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest LT-M1,
      REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II
      Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ, with the per
      annum rate on each such REMIC II Regular Interest (other than REMIC II Regular
      Interest LT-ZZ) subject to a cap equal to the Pass-Through Rate on the
      Corresponding Certificate for the purpose of this calculation; and with the
      per
      annum rate on REMIC II Regular Interest LT-ZZ subject to a cap of zero for
      the
      purpose of this calculation; provided, however, that for this purpose, the
      calculation of the Uncertificated REMIC II Pass-Through Rate and the related
      cap
      with respect to each such REMIC II Regular Interest (other than REMIC II Regular
      Interest LT-ZZ) shall be multiplied by a fraction, the numerator of which is
      the
      actual number of days in the Accrual Period and the denominator of which is
      thirty (30).

     

    Master
      Servicer:
      As of
      the Closing Date, Wells Fargo Bank, N.A. and thereafter, its respective
      successors in interest who meet the qualifications of this Agreement. The Master
      Servicer and the Securities Administrator shall at all times be the same Person
      or Affiliates.

     

    Master
      Servicing Fee:
      With
      respect to each Mortgage Loan and for any calendar month, an amount equal to
      one
      twelfth of the product of the Master Servicing Fee Rate multiplied by the Stated
      Principal Balance of the Mortgage Loans as of the Due Date in the preceding
      calendar month. The Master Servicing Fee includes the Credit Risk Manager’s
      fee.

     

    Master
      Servicing Fee Rate:
      0.0110%
      per annum.

     

    Master
      Servicing Compensation:
      The
      Master Servicing Fee plus all income and gain realized from any investment
      of
      funds in the Distribution Account.

     

    Master
      Servicer Default:
      One or
      more of the events described in Section 8.01(b).

     

    Maximum
      Interest Rate:
      With
      respect to any Distribution Date and the related Accrual Period and the related
      Senior Certificates, an annual rate equal to the weighted average of the Maximum
      Mortgage Interest Rates of the adjustable rate Mortgage Loans and the mortgage
      rates of the fixed rate Mortgage Loans in the related Loan Group as stated
      on
      the Mortgage Loan Schedule minus the weighted average Expense Fee Rate of the
      Mortgage Loans in the related Loan Group. With respect to any Distribution
      Date
      and the related Accrual Period and the Subordinate Certificates,
      an
      annual rate equal to the weighted average of the Maximum Mortgage Interest
      Rates
      of the adjustable rate Mortgage Loans and the mortgage rates of the fixed rate
      Mortgage Loans as stated on the Mortgage Loan Schedule minus the weighted
      average Expense Fee Rate of the Mortgage Loans. The calculation of the Maximum
      Interest Rate will be based on a 360-day year and the actual number of days
      elapsed during the related Accrual Period.

     

    Maximum
      Mortgage Interest Rate:
      With
      respect to each adjustable rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the maximum interest rate thereunder.

     

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

     

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

     

    Mezzanine
      Certificates:
      The
      Class M-1, Class M-2, Class, M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8 and Class M-9 Certificates.

     

    MIN:
      The
      Mortgage Identification Number for Mortgage Loans registered with MERS on the
      MERS® System.

     

    Minimum
      Mortgage Interest Rate:
      With
      respect to each adjustable rate Mortgage Loan, the percentage set forth in
      the
      related Mortgage Note as the minimum Mortgage Rate thereunder.

     

    Minimum
      Servicing Requirements:
      With
      respect to a Successor Servicer appointed pursuant to Section 7.06(b)
      hereunder:

     

    (i)  the
      proposed Successor Servicer is (1) an Affiliate of the Master Servicer that
      services mortgage loans similar to the Mortgage Loans in the jurisdictions
      in
      which the related Mortgaged Properties are located or (2) the proposed Successor
      Servicer has a rating of at least “Above Average” by S&P and either a rating
      of at least “RPS2” by Fitch or a rating of at least “SQ2” by Moody’s;
      and

     

    (ii)  the
      proposed Successor Servicer has a net worth of at least
      $25,000,000.

     

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

     

    Monthly
      Excess Cashflow:
      With
      respect to any Distribution Date, means the sum of (a) the Monthly Excess
      Interest, (b) the Overcollateralization Release Amount, if any, for such
      Distribution Date, and (c) the Principal Remittance Amount remaining following
      payments of the Principal Payment Amount to the Supplemental Interest Trust
      in
      respect of any Net Swap Payment and any Swap Termination Payment owed to the
      Swap Provider and remaining unpaid after distribution of the Interest Remittance
      Amount to the Senior Certificates and Subordinate Certificates in respect of
      principal.

     

    Monthly
      Excess Interest:
      With
      respect to any Distribution Date, the excess of (x) the Interest Remittance
      Amount for such Distribution Date over (y) the sum of any Net Swap Payment
      and
      any Swap Termination Payment payable to the Supplemental Interest Trust and
      owed
      to the Swap Provider and Current Interest and Carryforward Interest on the
      Senior Certificates and Subordinate Certificates, in each case for such
      Distribution Date.

     

    Monthly
      Statement:
      The
      statement delivered to the Certificateholders pursuant to
      Section 5.06.

     

    Moody’s:
      Moody’s
      Investors Service, Inc. or its successor in interest.

     

    Mortgage:
      The
      mortgage, deed of trust or other instrument creating a first or second lien
      on,
      or first or second priority security interest in, a Mortgaged Property securing
      a Mortgage Note.

     

    Mortgage
      File:
      The
      Mortgage Loan Documents pertaining to a particular Mortgage Loan and any
      additional documents delivered to the Trustee to be added to the Mortgage File
      pursuant to this Agreement.

     

    Mortgage
      Loan Documents:
      As
      defined in Section 2.01.

     

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

     

    Mortgage
      Loan Purchase Agreement:
      The
      Mortgage Loan Purchase Agreement dated as of October 31, 2006, between the
      Sponsor, as seller and the Depositor, as purchaser, a form of which is attached
      hereto as Exhibit
      C.

     

    Mortgage
      Loan Schedule:
      The
      list of Mortgage Loans (as from time to time amended by the Servicer of the
      related Mortgage Loans to reflect the deletion of Deleted Mortgage Loans and
      the
      addition of Replacement Mortgage Loans pursuant to the provisions of this
      Agreement) transferred to the Trustee as part of the Trust Fund and from time
      to
      time subject to this Agreement, setting forth the following information with
      respect to each Mortgage Loan:

     

    (i)  the
      Mortgage Loan identifying number;

     

    (ii)  a
      code
      indicating whether the Mortgaged Property is owner-occupied;

     

    (iii)  the
      type
      of Residential Dwelling constituting the Mortgaged Property;

     

    (iv)  the
      original months to maturity;

     

    (v)  the
      original date of the Mortgage Loan and the remaining months to maturity from
      the
      Cut-off Date, based on the original amortization schedule;

     

    (vi)  the
      Loan-to-Value Ratio or Combined Loan-to-Value Ratio, as applicable, at
      origination;

     

    (vii)  the
      Mortgage Rate in effect immediately following the Cut-off Date;

     

    (viii)  the
      date
      on which the first Monthly Payment was due on the Mortgage Loan;

     

    (ix)  the
      stated maturity date;

     

    (x)  the
      amount of the Monthly Payment at origination;

     

    (xi)  the
      amount of the Monthly Payment as of the Cut-off Date;

     

    (xii)  the
      last
      Due Date on which a Monthly Payment was actually applied to the unpaid Stated
      Principal Balance;

     

    (xiii)  the
      original principal amount of the Mortgage Loan;

     

    (xiv)  the
      Stated Principal Balance of the Mortgage Loan as of the close of business on
      the
      Cut-off Date;

     

    (xv)  with
      respect to each adjustable rate Mortgage Loan, the first Adjustment
      Date;

     

    (xvi)  with
      respect to each adjustable rate Mortgage Loan, the Gross Margin;

     

    (xvii)  a
      code
      indicating the purpose of the loan (i.e., purchase financing, rate/term
      refinancing, cash-out refinancing);

     

    (xviii)  with
      respect to each adjustable rate Mortgage Loan, the Maximum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xix)  with
      respect to each adjustable rate Mortgage Loan, the Minimum Mortgage Rate under
      the terms of the Mortgage Note;

     

    (xx)  the
      Mortgage Rate at origination;

     

    (xxi)  with
      respect to each adjustable rate Mortgage Loan, the Periodic Rate
      Cap;

     

    (xxii)  with
      respect to each adjustable rate Mortgage Loan, the first Adjustment Date
      immediately following the Cut-off Date;

     

    (xxiii)  with
      respect to each adjustable rate Mortgage Loan, the Index;

     

    (xxiv)  the
      date
      on which the first Monthly Payment was due on the Mortgage Loan and, if such
      date is not consistent with the Due Date currently in effect, such Due
      Date;

     

    (xxv)  a
      code
      indicating whether the Mortgage Loan is an adjustable rate Mortgage Loan or
      a
      fixed rate Mortgage Loan;

     

    (xxvi)  a
      code
      indicating the documentation style (i.e., full, stated or limited);

     

    (xxvii)  a
      code
      indicating if the Mortgage Loan is subject to a primary insurance policy or
      lender paid mortgage insurance policy and the name of the insurer;

     

    (xxviii)  the
      Appraised Value of the Mortgaged Property;

     

    (xxix)  the
      sale
      price of the Mortgaged Property, if applicable;

     

    (xxx)  a
      code
      indicating whether the Mortgage Loan is subject to a Prepayment Charge, the
      term
      of such Prepayment Charge and the amount of such Prepayment Charge;

     

    (xxxi)  the
      product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
      etc.);

     

    (xxxii)  the
      Mortgagor’s debt to income ratio;

     

    (xxxiii)  the
      FICO
      score at origination; 

     

    (xxxiv)  the
      related Loan Group; and

     

    (xxxv)  the
      Servicer.

     

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

     

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

     

    Mortgage
      Rate:
      With
      respect to each Mortgage Loan, the annual rate at which interest accrues on
      such
      Mortgage Loan from time to time in accordance with the provisions of the related
      Mortgage Note, which rate with respect to each adjustable rate Mortgage Loan
      (A)
      as of any date of determination until the first Adjustment Date following the
      Cut-off Date shall be the rate set forth in the Mortgage Loan Schedule as the
      Mortgage Rate in effect immediately following the Cut-off Date and (B) as of
      any
      date of determination thereafter shall be the rate as adjusted on the most
      recent Adjustment Date equal to the sum, rounded to the nearest 0.125% as
      provided in the Mortgage Note, of the Index, as most recently available as
      of a
      date prior to the Adjustment Date as set forth in the related Mortgage Note,
      plus the related Gross Margin; provided that the Mortgage Rate on such
      adjustable rate Mortgage Loan on any Adjustment Date shall never be more than
      the lesser of (i) the sum of the Mortgage Rate in effect immediately prior
      to
      the Adjustment Date plus the related Periodic Rate Cap, if any, and (ii) the
      related Maximum Mortgage Rate, and shall never be less than the greater of
      (i)
      the Mortgage Rate in effect immediately prior to the Adjustment Date less the
      Periodic Rate Cap, if any, and (ii) the related Minimum Mortgage Rate. With
      respect to each Mortgage Loan that becomes an REO Property, as of any date
      of
      determination, the annual rate determined in accordance with the immediately
      preceding sentence as of the date such Mortgage Loan became an REO
      Property.

     

    Mortgaged
      Property:
      The
      underlying property securing a Mortgage Loan.

     

    Mortgagor:
      The
      obligor on a Mortgage Note.

     

    Net
      Funds Cap:
      With
      respect to any Distribution Date and the Group I Certificates, a per annum
      rate
      equal to the product of (I)(a) a fraction, expressed as a percentage, the
      numerator of which is the Optimal Interest Remittance Amount for such
      Distribution Date and the denominator of which is the aggregate Stated Principal
      Balance of the Group I Mortgage Loans for the immediately preceding Distribution
      Date, minus (b) the sum of (1) the Group I Allocation Percentage of any Net
      Swap
      Payment payable to the Swap Provider on such Distribution Date, divided by
      the
      outstanding Stated Principal Balance of the Group I Mortgage Loans for the
      immediately preceding Distribution Date, and (2) the Group I Allocation
      Percentage of any Swap Termination Payment (unless such payment is the result
      of
      a Swap Provider Trigger Event and to the extent not paid by the Securities
      Administrator from any upfront payment received pursuant to any replacement
      swap
      agreement that may be entered into by the Supplemental Interest Trust Trustee)
      payable to the Swap Provider on such Distribution Date, divided by the
      outstanding aggregate Stated Principal Balance of the Group I Mortgage Loans
      for
      the immediately preceding Distribution Date and (II) 12. The Net Funds Cap
      with
      respect to the Group I Certificates will be adjusted to an effective rate
      reflecting the accrual of interest on an actual/360 basis. With respect to
      any
      Distribution Date and the REMIC III Regular Interests the ownership of which
      is
      represented by the Group I Certificates, a per annum rate equal to the weighted
      average (adjusted for the actual number of days elapsed in the related Accrual
      Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II Regular
      Interest LT-1GRP, weighted on the basis of the Uncertificated Principal Balance
      of such REMIC II Regular Interest immediately prior to such Distribution
      Date

     

    With
      respect to any Distribution Date and the Group II Certificates, a per annum
      rate
      equal to the product of (I)(a) a fraction, expressed as a percentage, the
      numerator of which is the Optimal Interest Remittance Amount for such
      Distribution Date and the denominator of which is the aggregate Stated Principal
      Balance of the Group II Mortgage Loans for the immediately preceding
      Distribution Date, minus (b) the sum of (1) the Group II Allocation Percentage
      of any Net Swap Payment payable to the Swap Provider on such Distribution Date,
      divided by the outstanding Stated Principal Balance of the Group II Mortgage
      Loans for the immediately preceding Distribution Date, and (2) the Group II
      Allocation Percentage of any Swap Termination Payment (unless such payment
      is
      the result of a Swap Provider Trigger Event and to the extent not paid by the
      Securities Administrator from any upfront payment received pursuant to any
      replacement swap agreement that may be entered into by the Supplemental Interest
      Trust Trustee) payable to the Swap Provider on such Distribution Date, divided
      by the outstanding aggregate Stated Principal Balance of the Group II Mortgage
      Loans for the immediately preceding Distribution Date and (II) 12. With respect
      to any Distribution Date and the REMIC III Regular Interests the ownership
      of
      which is represented by the Group II Certificates, a per annum rate equal to
      the
      weighted average (adjusted for the actual number of days elapsed in the related
      Accrual Period) of the Uncertificated REMIC II Pass-Through Rate on REMIC II
      Regular Interest LT-2GRP, weighted on the basis of the Uncertificated Principal
      Balance of such REMIC II Regular Interest immediately prior to such Distribution
      Date.

     

    With
      respect to any Distribution Date and the Subordinate Certificates, a per annum
      rate equal to the weighted average (weighted on the basis of the results of
      subtracting from the aggregate Stated Principal Balance of each Loan Group
      the
      current aggregate Certificate Principal Balance of the related Senior
      Certificates) of the Net Funds Cap for the Group I Certificates and the Net
      Funds Cap for the Group II Certificates. For federal income tax purposes, the
      equivalent of the foregoing shall be expressed as the weighted average of the
      Uncertificated REMIC II Pass-Through Rates on REMIC II Regular Interest LT-1SUB
      and REMIC II Regular Interest LT-2SUB, in each case subject to a cap and a
      floor
      equal Net Funds Cap for the Group I Certificates and the Net Funds Cap for
      the
      Group II Certificates, respectively, weighted in each case on the basis of
      the
      Uncertificated Principal Balance of each such REMIC II Regular Interest. With
      respect to any Distribution Date and the REMIC III Regular Interests the
      ownership of which is represented by the Subordinate Certificates, a per annum
      rate equal to the weighted average (adjusted for the actual number of days
      elapsed in the related Accrual Period) of (a) REMIC II Regular Interest LT-1SUB,
      subject to a cap and a floor equal to the Uncertificated REMIC II Pass-Through
      Rate on REMIC II Regular Interest LT-1GRP and (b) REMIC II Regular Interest
      LT-2SUB, subject to a cap and a floor equal to the Uncertificated REMIC II
      Pass-Through Rate on REMIC II Regular Interest LT-2GRP, in each case as
      determined for such Distribution Date, weighted on the basis of the
      Uncertificated Principal Balance of each such REMIC II Regular Interest
      immediately prior to such Distribution Date.

     

    Net
      Interest Shortfalls:
      Shall
      mean Interest Shortfalls net of payments by the Servicer or the Master Servicer
      in respect of Compensating Interest.

     

    Net
      Mortgage Rate:
      As to
      each Mortgage Loan, and at any time, the per annum rate equal to the related
      Mortgage Rate less the sum of (i) the Expense Fee Rate and (ii) the rate at
      which the fee payable to any provider of lender-paid mortgage insurance is
      calculated, if applicable.

     

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

     

    Net
      WAC Rate Carryover Amount:
      With
      respect to each class of Senior Certificates and Subordinate Certificates and
      any Distribution Date on which the related Pass-Through Rate is reduced by
      the
      Net WAC Rate Cap, an amount equal to the sum of (i) the excess of (x) the amount
      of interest such Class would have been entitled to receive on such Distribution
      Date if the Pass-Through Rate applicable to such Class would not have been
      reduced by the Net WAC Rate Cap on such Distribution Date over (y) the amount
      of
      interest paid on such Distribution Date to such Class plus (ii) the related
      Net
      WAC Rate Carryover Amount for the previous Distribution Date not previously
      distributed to such Class.

     

    Non-Book-Entry
      Certificate:
      Any
      Certificate other than a Book-Entry Certificate.

     

    Nonrecoverable
      Advance:
      With
      respect any Mortgage Loan, any portion of an Advance or Servicing Advance
      previously made or proposed to be made by the Servicer pursuant to this
      Agreement or the Master Servicer as Successor Servicer, that, in the good faith
      judgment of the Servicer or the Master Servicer as Successor Servicer, will
      not
      or, in the case of a proposed Advance or Servicing Advance, would not, be
      ultimately recoverable by it from the related Mortgagor, related Liquidation
      Proceeds, Insurance Proceeds or otherwise.

     

    Notional
      Amount:
      For
      each Distribution Date, an amount equal to the lesser of (a) the Aggregate
      Loan
      Balance of the Mortgage Loans on the Business Day immediately preceding such
      Distribution Date and (b) the Swap Notional Amount for such Distribution Date
      as
      set forth in the Swap Agreement.

     

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

     

    One-Month
      LIBOR:
      With
      respect to any Accrual Period (other than the first Accrual Period), the rate
      determined by the Securities Administrator on the related Interest Determination
      Date on the basis of the rate for U.S. dollar deposits for one month that
      appears on Telerate Screen Page 3750 as of 11:00 a.m. (London time) on such
      Interest Determination Date. If such rate does not appear on such page (or
      such
      other page as may replace that page on that service, or if such service is
      no
      longer offered, such other service for displaying One-Month LIBOR or comparable
      rates as may be reasonably selected by the Securities Administrator), One-Month
      LIBOR for the applicable Accrual Period will be the Reference Bank Rate. If
      no
      such quotations can be obtained by the Securities Administrator and no Reference
      Bank Rate is available, One-Month LIBOR will be One-Month LIBOR applicable
      to
      the preceding Accrual Period. The establishment of One-Month LIBOR on each
      Interest Determination Date by the Securities Administrator and the Securities
      Administrator’s calculation of the rate of interest applicable to the Senior
      Certificates and the Subordinate Certificates for the related Accrual Period
      shall, in the absence of manifest error, be final and binding. With respect
      to
      the first Accrual period, One-Month LIBOR shall equal 5.320% per
      annum.

     

    Opinion
      of Counsel:
      A
      written opinion of counsel, who may be counsel for the Sponsor, the Master
      Servicer, the Depositor or the Servicer, reasonably acceptable to each addressee
      of such opinion; provided that with respect to Section 2.05, 7.05 or 11.01,
      or the interpretation or application of the REMIC Provisions, such counsel
      must
      (i) in fact be independent of the Sponsor, the Master Servicer Depositor and
      the
      Servicer, (ii) not have any direct financial interest in the Sponsor, the
      Depositor, the Master Servicer or the Servicer or in any Affiliate of any of
      them, and (iii) not be connected with the Sponsor, the Depositor, the Master
      Servicer or the Servicer as an officer, employee, promoter, underwriter,
      trustee, partner, director or person performing similar functions.

     

    Optimal
      Interest Remittance Amount:
      With
      respect to any Distribution Date
      and (A)
      the Senior Certificates,
      will be
      equal to the excess of (i) the product of (1)(x) the weighted average Net
      Mortgage Rates of the Mortgage Loans in
      the
      related Loan Group as
      of the
      first day of the related Due Period divided by (y) 12 and (2) the Aggregate
      Loan
      Balance of the Mortgage Loans in
      the
      related Loan Group for
      the
      immediately preceding Distribution Date, over (ii) any expenses that reduce
      the
      Interest Remittance Amount that did not arise as a result of a default or
      delinquency of the Mortgage Loans in
      the
      related Loan Group or
      were
      not taken into account in computing the Expense
      Fee Rate, and (B) the Subordinate Certificates, will be equal to the excess
      of
      (i) the product of (1)(x) the weighted average Net Mortgage Rates of the
      Mortgage Loans as of the first day of the related Due Period divided by (y)
      12
      and (2) the Aggregate Loan Balance of the Mortgage Loans for the immediately
      preceding Distribution Date, over (ii) any expenses that reduce the Interest
      Remittance Amount that did not arise as a result of a default or delinquency
      of
      the Mortgage Loans or were not taken into account in computing the Expense
      Fee
      Rate.

     

    Optional
      Termination:
      The
      termination of the Trust Fund created hereunder as a result of the purchase
      of
      all of the Mortgage Loans and any related REO Property pursuant to
      Section 10.01.

     

    Optional
      Termination Date:
      The
      first Distribution Date on which the Master Servicer may purchase, at its
      option, the Mortgage Loans and related REO Properties as described in
      Section 10.01.

     

    OTS:
      The
      Office of Thrift Supervision or any successor thereto.

     

    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 Securities Administrator or delivered to the
      Securities Administrator for cancellation; and

     

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

     

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

     

    Overcollateralization
      Amount:
      With
      respect to any Distribution Date, the excess, if any, of (a) the Aggregate
      Loan
      Balance for such Distribution Date over (b) the aggregate Certificate Principal
      Balance of the Senior Certificates and the Subordinate Certificates on such
      Distribution Date (after taking into account the payment of 100% of the
      Principal Remittance Amount on such Distribution Date.

     

    Overcollateralization
      Deficiency Amount:
      With
      respect to any Distribution Date, the amount, if any, by which (x) the Targeted
      Overcollateralization Amount for such Distribution Date exceeds (y) the
      Overcollateralization Amount for such Distribution Date, calculated for this
      purpose after giving effect to the reduction on such Distribution Date of the
      aggregate Certificate Principal Balance of the Senior Certificates and the
      Subordinate Certificates resulting from the payment of the Principal Remittance
      Amount on such Distribution Date, but prior to allocation of any Applied Loss
      Amount on such Distribution Date.

     

    Overcollateralization
      Release Amount:
      With
      respect to any Distribution Date, the lesser of (x) the Principal Remittance
      Amount for such Distribution Date and (y) the amount, if any, by which (1)
      the
      Overcollateralization Amount for such date exceeds (2) the Targeted
      Overcollateralization Amount for such Distribution Date.

     

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

     

    Pass-Through
      Rate:
      The
      Class I-A-1 Pass-Through
      Rate,
      Class
      II-A-1 Pass-Through Rate, Class II-A-2 Pass-Through Rate, Class II-A-3
      Pass-Through Rate, Class II-A-4 Pass-Through Rate, Class M-1 Pass-Through Rate,
      Class M-2 Pass-Through Rate, Class M-3 Pass-Through Rate, Class M-4 Pass-Through
      Rate, Class M-5 Pass-Through Rate, Class M-6 Pass-Through Rate, Class M-7
      Pass-Through Rate, Class M-8 Pass-Through Rate, Class M-9 Pass-Through Rate,
      Class B-1 Pass-Through Rate and Class B-2 Pass-Through Rate, as applicable.
      With
      respect to Class X Certificates, 100% of the interest distributable to the
      Class
      X Interest, expressed as a per annum rate.

     

    Payahead:
      Any
      Scheduled Payment intended by the related Mortgagor to be applied in a Due
      Period subsequent to the Due Period in which such payment was
      received.

     

    PCAOB:
      Shall
      mean the Public Company Accounting Oversight Board.

     

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

     

    Periodic
      Rate Cap:
      With
      respect to the Adjustment Date for any adjustable rate Mortgage Loan, the fixed
      percentage set forth in the related Mortgage Note, which is the maximum amount
      by which the Mortgage Rate for such adjustable rate Mortgage Loan may increase
      or decrease (without regard to the Maximum Mortgage Interest Rate or the Minimum
      Mortgage Interest Rate) on such Adjustment Date from the Mortgage Rate in effect
      immediately prior to such Adjustment Date.

     

    Permitted
      Investments:
      At any
      time, any one or more of the following obligations and securities:

     

    (i)  direct
      obligations of, or obligations fully guaranteed as to timely payment of
      principal and interest by, the United States or any agency thereof, provided
      such obligations are unconditionally backed by the full faith and credit of
      the
      United States;

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (ix)  units
      of
      money market funds registered under the Investment Company Act of 1940 including
      funds managed or advised by the Trustee, the Master Servicer or an Affiliate
      of
      either, having a rating by S&P of AAAm or AAAm-G, if rated by Moody’s, rated
      Aaa, Aa1 or Aa2 and if rated by Fitch, F1, F2 or F3;

     

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

     

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

     

    provided,
      however, that no instrument described hereunder shall evidence either the right
      to receive (a) only interest with respect to the obligations underlying such
      instrument or (b) both principal and interest payments derived from obligations
      underlying such instrument and the interest and principal payments with respect
      to such instrument provide a yield to maturity at par greater than 120% of
      the
      yield to maturity at par of the underlying obligations.

     

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

     

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

     

    Prepayment
      Assumption:
      The
      assumed rate of prepayment, as described in the Prospectus Supplement relating
      to each Class of Publicly Offered Certificates.

     

    Prepayment
      Charge:
      With
      respect to any Principal Prepayment, any prepayment premium, penalty or charge
      payable by a Mortgagor in connection with any Principal Prepayment on a Mortgage
      Loan pursuant to the terms of the related Mortgage Note (other than any Servicer
      Prepayment Charge Payment Amount) as shown on the Prepayment Charge
      Schedule.

     

    Prepayment
      Charge Schedule:
      As of
      any date, the list of Mortgage Loans providing for a Prepayment Charge included
      in the Trust Fund on such date, attached hereto as Exhibit K (including the
      prepayment charge summary attached thereto). The Depositor shall deliver or
      cause the delivery of the Prepayment Charge Schedule to the Servicer, the Master
      Servicer and the Trustee on the Closing Date. The Prepayment Charge Schedule
      shall set forth the following information with respect to each Prepayment
      Charge: 

     

    
      	
              (i)

            	
              the
                Mortgage Loan identifying number;

            
	 	 
	
              (ii)

            	
              a
                code indicating the type of Prepayment Charge;

            
	 	 
	
              (iii)

            	
              the
                date on which the first Monthly Payment was due on the related Mortgage
                Loan;

            
	 	 
	
              (iv)

            	
              the
                term of the related Prepayment Charge;

            
	 	 
	
              (v)

            	
              the
                original Stated Principal Balance of the related Mortgage Loan;
                and

            
	 	 
	
              (vi)

            	
              the
                Stated Principal Balance of the related Mortgage Loan as of the Cut-off
                Date.

            

    

    

    Prepayment
      Interest Shortfall:
      With
      respect to any Distribution Date, for each Mortgage Loan that was the subject
      of
      a Principal Prepayment during the portion of the related Prepayment Period
      occurring in the month prior to the month in which such Distribution Date occurs
      (other than a Principal Prepayment in full resulting from the purchase of a
      Mortgage Loan pursuant to Section 2.02, 2.03, 3.24 or 10.01 hereof), the
      amount, if any, (A) by which (i) one month’s interest at the applicable Net
      Mortgage Rate on the Stated Principal Balance of such Mortgage Loan immediately
      prior to such prepayment exceeds (ii) the amount of interest paid or collected
      in connection with such Principal Prepayment, (B) less the sum of (a) the
      Servicing Fee, (b) the Master Servicing Fee (exclusive of the portion of such
      fee payable to the Master Servicer in its capacity as Credit Risk Manager)
      and
      (c) the fee payable to any provider of lender-paid mortgage insurance, if
      any.

     

    Prepayment
      Period:
      With
      respect to any Distribution Date, the 16th day of the immediately preceding
      calendar month (or with respect to the first Prepayment Period, the Closing
      Date) through the 15th day of the month in which such Distribution Date
      occurs.

     

    Principal
      Payment Amount:
      With
      respect to each Distribution Date, the Principal Remittance Amount for such
      date
      minus the Overcollateralization Release Amount, if any, for such Distribution
      Date.

     

    Principal
      Prepayment:
      Any
      Mortgagor payment or other recovery of (or proceeds with respect to) principal
      on a Mortgage Loan (including loans purchased or repurchased under Sections
      2.02, 2.03, 3.26 and 10.01 hereof) that is received in advance of its scheduled
      Due Date and is not accompanied by an amount as to interest representing
      scheduled interest due on any Due Date 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.

     

    Principal
      Remittance Amount:
      With
      respect to any Distribution Date and each Loan Group, (i) the sum, without
      duplication, of (a) the principal portion of all Scheduled Payments on the
      related Mortgage Loans due during the related Due Period whether or not received
      on or prior to the related Determination Date, (b) the principal portion of
      all
      unscheduled collections (other than Payaheads) including Insurance Proceeds,
      Condemnation Proceeds, Subsequent Recoveries and all full and partial Principal
      Prepayments exclusive of Prepayment Charges or penalties collected during the
      related Prepayment Period, to the extent applied as recoveries of principal
      on
      the related Mortgage Loans, (c) the Stated Principal Balance of each related
      Mortgage Loan that was repurchased by the Sponsor during the related Prepayment
      Period pursuant to Sections 2.02, 2.03 and 3.24, (d) the aggregate of all
      Substitution Adjustment Amounts received during the related Prepayment Period
      for the related Determination Date in connection with the substitution of
      Mortgage Loans in the related Loan Group pursuant to Section 2.03(c), (e)
      amounts in respect of principal on the related Mortgage Loans paid by the Master
      Servicer pursuant to Section 10.01, (f) all Liquidation Proceeds and
      Subsequent Recoveries with respect to the Mortgage Loans collected during the
      related Prepayment Period (to the extent such Liquidation Proceeds and
      Subsequent Recoveries relate to principal), in each case to the extent remitted
      by the Servicer to the Distribution Account pursuant to this Agreement and
      (g)
      the principal portion of Payaheads previously received on the Mortgage Loans
      and
      intended for application in the related Due Period, minus (ii) all amounts
      required to be reimbursed by the Trust pursuant to Sections 4.02 and 9.05
      or as otherwise set forth in this Agreement or the Custodial Agreement and
      to
      the extent not reimbursed from the Interest Remittance Amount for
      such
      Distribution Date,
      allocated to the respective Loan Group on a pro rata basis, based on the
      Aggregate Loan Group Balance as of the last day of the related Due Period,
      to
      the extent such amounts are attributable to both Loan Groups, and otherwise
      allocated to the Loan Group to which such amount are attributable.

     

    Private
      Certificate:
      Each of
      the Class B-1 Certificates,
      Class
      B-2 Certificates, Class X Certificates, Class P Certificates and Residual
      Certificates.

     

    Prospectus
      Supplement:
      The
      Prospectus Supplement dated October 30, 2006 relating to the offering of the
      Publicly Offered Certificates.

     

    Publicly
      Offered Certificates:
      Any
      Certificates other than the Private Certificates.

     

    PUD:
      A
      planned unit development.

     

    Purchase
      Price:
      With
      respect to any Mortgage Loan required to be repurchased by the Sponsor pursuant
      to Section 2.02, 2.03 or elected to be repurchased by the Sponsor pursuant
      to Section 3.24 hereof, and as confirmed by an Officer’s Certificate from the
      Sponsor to the Trustee, an amount equal to the sum of (i) 100% of the
      outstanding principal balance of the Mortgage Loan as of the date of such
      purchase plus, (ii) 30 days’ accrued interest thereon at the applicable Net
      Mortgage Rate, plus any portion of the Servicing Fee, Master Servicing Fee,
      Servicing Advances and Advances payable to the Servicer or Master Servicer,
      as
      applicable, with respect to such Mortgage Loan plus (iii) any costs and damages
      of the Trust Fund in connection with any violation by such Mortgage Loan of
      any
      abusive or predatory lending law, including any expenses incurred by the Trustee
      with respect to such Mortgage Loan prior to the purchase thereof.

     

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

     

    Realized
      Loss:
      With
      respect to each Mortgage Loan as to which a Final Recovery Determination has
      been made, an amount (not less than zero) equal to (i) the Stated Principal
      Balance of such Mortgage Loan as of the commencement of the calendar month
      in
      which the Final Recovery Determination was made, plus (ii) accrued interest
      from
      the Due Date as to which interest was last paid by the Mortgagor through the
      end
      of the calendar month in which such Final Recovery Determination was made,
      calculated in the case of each calendar month during such period (A) at an
      annual rate equal to the annual rate at which interest was then accruing on
      such
      Mortgage Loan and (B) on a principal amount equal to the Stated Principal
      Balance of such Mortgage Loan as of the close of business on the Distribution
      Date during such calendar month, minus (iii) the proceeds, if any, received
      in
      respect of such Mortgage Loan during the calendar month in which such Final
      Recovery Determination was made, net of amounts that are payable therefrom
      to
      the Servicer pursuant to this Agreement. To the extent the Servicer receives
      Subsequent Recoveries with respect to any Mortgage Loan, the amount of the
      Realized Loss with respect to that Mortgage Loan will be reduced to the extent
      that Subsequent Recoveries are applied to reduce the Certificate Principal
      Balance of any Class of Certificates on any Distribution Date.

     

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

     

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

     

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

     

    In
      addition, to the extent the Servicer receives Subsequent Recoveries with respect
      to any Mortgage Loan, the amount of the Realized Loss with respect to that
      Mortgage Loan will be reduced to the extent such Subsequent Recoveries are
      applied to reduce the Certificate Principal Balance of any Class of Certificates
      on any Distribution Date.

     

    Record
      Date:
      With
      respect to the Senior Certificates and Subordinate Certificates and any
      Distribution Date, so long as such Certificates are Book-Entry Certificates,
      the
      Business Day preceding such Distribution Date, and otherwise, the close of
      business on the last Business Day of the month preceding the month in which
      such
      Distribution Date occurs. With respect to the Class X, Class P and Residual
      Certificates and any Distribution Date, the close of business on the last
      Business Day of the month preceding the month in which such Distribution Date
      occurs.

     

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

     

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

     

    Regular
      Certificate:
      Any
      Certificate other than a Residual Certificate.

     

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

     

    Relevant
      Servicing Criteria:
      Means
      with respect to any Servicing Function Participant, the Servicing Criteria
      applicable to such party, as set forth on Exhibit
      L
      attached
      hereto. For clarification purposes, multiple parties can have responsibility
      for
      the same Relevant Servicing Criteria. With respect to a Servicing Function
      Participant engaged by the Master Servicer, the Securities Administrator or
      the
      Servicer, the term “Relevant Servicing Criteria” may refer to a portion of the
      Relevant Servicing Criteria applicable to such party.

     

    Relief
      Act:
      The
      Servicemembers Civil Relief Act of 2003, as amended from time to time or similar
      state or local laws.

     

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

     

    REMIC
      I:
      The
      segregated pool of assets subject hereto, constituting the primary trust created
      hereby and to be administered hereunder, with respect to which a REMIC election
      is to be made, consisting of (i) the Mortgage Loans and all interest accruing
      and principal due with respect thereto after the Cut-off Date to the extent
      not
      applied in computing the Cut-off Date Principal Balance thereof and all related
      Prepayment Charges; (ii) the related Mortgage Files, (iii) the
      Custodial Account (other than any amounts representing any Servicer Prepayment
      Charge Payment Amount), the Distribution Account, the Class P Certificate
      Account and such assets that are deposited therein from time to time, together
      with any and all income, proceeds and payments with respect thereto; (iv)
      property that secured a Mortgage Loan and has been acquired by foreclosure,
      deed
      in lieu of foreclosure or otherwise; (v) the mortgagee’s rights under the
      Insurance Policies with respect to the Mortgage Loans; (vi) the rights under
      the
      Mortgage Loan Purchase Agreement, and (vii) all proceeds of the foregoing,
      including proceeds of conversion, voluntary or involuntary, of any of the
      foregoing into cash or other liquid property. Notwithstanding
      the foregoing, however, REMIC I specifically excludes (i) all payments and
      other
      collections of principal and interest due on the Mortgage Loans on or before
      the
      Cut-off Date, (ii) all Prepayment Charges payable in connection with Principal
      Prepayments on the Mortgage Loans made before the Cut-off Date, (iii) the Basis
      Risk Cap Agreement, (iv) the Basis Risk Shortfall Reserve Fund, (v) the Swap
      Agreement, (vi) the Supplemental Interest Trust, and (vii) the Interest Rate
      Cap
      Agreement.

     

    REMIC
      I Group I Regular Interests:
      REMIC I
      Regular Interest I and REMIC I Regular Interest I-1-A through REMIC I Regular
      Interest I-60-B as designated in the Preliminary Statement hereto.

     

    REMIC
      I Group II Regular Interests:
      REMIC I
      Regular Interest II and REMIC I Regular Interest II-1-A through REMIC I Regular
      Interest II-60-B as designated in the Preliminary Statement hereto.

     

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

     

    REMIC
      II:
      The
      segregated pool of assets consisting of all of the REMIC I Regular Interests
      conveyed in trust to the Trustee, for the benefit of the Holders of the REMIC
      II
      Regular Interests and the Holders of the Class R (as holders of the Class R-II
      Interest), pursuant to Article II hereunder, and all amounts deposited therein,
      with respect to which a separate REMIC election is to be made.

     

    REMIC
      II Interest Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      the
      aggregate Stated Principal Balance of the Mortgage Loans and REO Properties
      then
      outstanding and (ii) the Uncertificated REMIC II Pass-Through Rate for REMIC
      II
      Regular Interest LT-AA minus the Marker Rate, divided by (b) 12.

     

    REMIC
      II Marker Allocation Percentage:
      50% of
      any amount payable or loss attributable from the Mortgage Loans, which shall
      be
      allocated to REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-IA1,
      REMIC II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC
      II
      Regular Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular
      Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest
      LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC
      II Regular Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular
      Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest
      LT-B1, REMIC II Regular Interest LT-B2 and REMIC II Regular Interest
      LT-ZZ.

     

    REMIC
      II Overcollateralization Amount:
      With
      respect to any date of determination, (i) 0.50% of the aggregate Uncertificated
      Principal Balances of the REMIC II Regular Interests minus (ii) the aggregate
      of
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-IA1,
      REMIC
      II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-P, in each case
      as of
      such date of determination.

     

    REMIC
      II Principal Loss Allocation Amount:
      With
      respect to any Distribution Date, an amount equal to (a) the product of (i)
      0.50% of aggregate Stated Principal Balance of the Mortgage Loans and REO
      Properties then outstanding and (ii) 1 minus a fraction, the numerator of which
      is two times the aggregate of the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-IA1, REMIC II Regular Interest LT-IIA1, REMIC II Regular
      Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular Interest
      LT-IIA4, REMIC II Regular Interest LT-M1, REMIC II Regular Interest LT-M2,
      REMIC
      II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular
      Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular Interest
      LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC
      II Regular Interest LT-B1, REMIC II Regular Interest LT-B2 and the denominator
      of which is the aggregate of the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-IA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ.

     

    REMIC
      II Regular Interests:
      REMIC
      II Regular Interest LT-AA, REMIC II Regular Interest LT-IA, REMIC II Regular
      Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular Interest
      LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest LT-M1,
      REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC II
      Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2, REMIC II Regular Interest LT-ZZ, REMIC II Regular
      Interest LT-P, REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP,
      REMIC II Regular Interest LT-XX and REMIC II Regular Interest
      LT-IO.

     

    REMIC
      II Regular Interest LT-AA:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-AA shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IA1:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IA1 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IIA1:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IIA1
      shall
      accrue interest at the related Uncertificated REMIC II Pass-Through Rate in
      effect from time to time, and shall be entitled to distributions of principal,
      subject to the terms and conditions hereof, in an aggregate amount equal to
      its
      initial Uncertificated Principal Balance as set forth in the
      Preliminary
      Statement hereto.

     

    REMIC
      II Regular Interest LT-IIA2:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IIA2 shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IIA3:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IIA3 shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IIA4:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IIA4 shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-B1:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-B1 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-B2:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-B2 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-IO:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-IO shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, subject to the terms and
      conditions hereof.

     

    REMIC
      II Regular Interest LT-M1:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M1 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M2:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M2 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M3:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M3 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M4:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M4 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M5:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M5 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M6:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M6 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M7:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M7 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M8:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M8 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-M9:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-M9 shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-1SUB:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-1SUB shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-1GRP:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-1GRP shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-2SUB:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-2SUB shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-2GRP:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-2GRP shall accrue interest at the related Uncertificated REMIC
      II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-P:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-P shall be entitled to distributions of principal, subject to the
      terms and conditions hereof, in an aggregate amount equal to its initial
      Uncertificated Principal Balance as set forth in the Preliminary Statement
      hereto.

     

    REMIC
      II Regular Interest LT-ZZ:
      One of
      the separate non-certificated beneficial ownership interests in REMIC II issued
      hereunder and designated as a Regular Interest in REMIC II. REMIC II Regular
      Interest LT-ZZ shall accrue interest at the related Uncertificated REMIC II
      Pass-Through Rate in effect from time to time, and shall be entitled to
      distributions of principal, subject to the terms and conditions hereof, in
      an
      aggregate amount equal to its initial Uncertificated Principal Balance as set
      forth in the Preliminary Statement hereto.

     

    REMIC
      II Regular Interest LT-ZZ Maximum Interest Deferral Amount:
      With
      respect to any Distribution Date, the excess of (i) accrued interest at the
      Uncertificated REMIC II Pass-Through Rate applicable to REMIC II Regular
      Interest LT-ZZ for such Distribution Date on a balance equal to the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-ZZ minus the
      REMIC II Overcollateralization Amount, in each case for such Distribution Date,
      over (ii) the Uncertificated Accrued Interest on REMIC II Regular Interest
      LT-IA1, REMIC II Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2,
      REMIC II Regular Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC
      II
      Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular
      Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular Interest
      LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC
      II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular
      Interest LT-B1 and REMIC II Regular Interest LT-B2 for such Distribution Date,
      with the rate on each such REMIC II Regular Interest subject to a cap equal
      to
      the related Pass-Through Rate.

     

    REMIC
      II Sub
      WAC Allocation Percentage:
      50% of
      any amount payable or loss attributable from the Mortgage Loans, which shall
      be
      allocated to REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX.

     

    REMIC
      II Subordinated Balance Ratio:
      The
      ratio among the Uncertificated Principal Balances of each REMIC II Regular
      Interest ending with the designation “SUB”, equal to the ratio between, with
      respect to each such REMIC II Regular Interest, the excess of (x) the aggregate
      Stated Principal Balance of the Group I Mortgage Loans and the Group II Mortgage
      Loans, as applicable, over (y) the current Certificate Principal Balance of
      the
      related Senior Certificates.

     

    REMIC
      II Targeted Overcollateralization Amount:
      0.50%
      of the Targeted Overcollateralization Amount.

     

    REMIC
      III:
      The
      segregated pool of assets consisting of all of the REMIC II Regular Interests
      conveyed in trust to the Trustee, for the benefit of the REMIC III
      Certificateholders pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    REMIC
      III Certificate:
      Any
      Regular Certificate, other than a Class X Certificate or Class P Certificate,
      or
      Class R Certificate.

     

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

     

    REMIC
      III Regular Interest:
      Any of
      the Class X Interest, Class P Interest, Class IO Interest, and any “regular
      interest” in REMIC III the ownership of which is represented by a Senior
      Certificate or Subordinate Certificate.

     

    REMIC
      IV:
      The
      segregated pool of assets consisting of all the Class X Interest conveyed in
      trust to the Trustee, for the benefit of the Holders of the Regular Certificates
      and the Class R-X Certificate (in respect of the Class R-IV Interest), pursuant
      to Section 2.07 hereunder, and all amounts deposited therein, with respect
      to
      which a separate REMIC election is to be made.

     

    REMIC
      V:
      The
      segregated pool of assets consisting of all of the Class P Interest conveyed
      in
      trust to the Trustee, for the benefit of the Holders of the Class P Certificates
      and the Holders of the Class R-X Certificate (in respect of the Class R-V
      Interest), pursuant to Section 2.07 hereunder, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

    REMIC
      VI:
      The
      segregated pool of assets consisting of all of the Class IO Interest conveyed
      in
      trust to the Trustee, for the benefit of the Holders of REMIC VI Regular
      Interest IO and the Holders of the Class R-X Certificate (in respect of the
      Class R-VI Interest), pursuant to Section 2.07, and all amounts deposited
      therein, with respect to which a separate REMIC election is to be
      made.

     

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

     

    REMIC
      Opinion:
      Shall
      mean an Opinion of Counsel to the effect that the proposed action will not
      have
      an adverse affect on any REMIC created hereunder.

     

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

     

    REMIC
      Regular Interest:
      Any
      REMIC I Regular Interest, REMIC II Regular Interest, Regular Certificate or
      Class IO Interest.

     

    Remittance
      Date:
      Shall
      mean not later than 3:00 p.m. Eastern Time on the twenty-third (23rd) day of
      the
      month and if such day is not a Business Day, the immediately preceding Business
      Day.

     

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

     

    Replacement
      Mortgage Loan:
      A
      Mortgage Loan or Mortgage Loans in the aggregate substituted by the Sponsor
      for
      a Deleted Mortgage Loan, which must, on the date of such substitution, as
      confirmed in a request for release in accordance with the terms of the Custodial
      Agreement, (i) have a Stated Principal Balance, after deduction of the principal
      portion of the Scheduled Payment due in the month of substitution, not in excess
      of, and not less than 90% of, the Stated Principal Balance of the Deleted
      Mortgage Loan; (ii) have an adjustable Mortgage Rate not less than or more
      than
      1% per annum higher than the Mortgage Rate of the Deleted Mortgage Loan; (iii)
      have the same or higher credit quality characteristics than that of the Deleted
      Mortgage Loan; (iv) have a Loan-to-Value Ratio or Combined Loan-to-Value Ratio
      no higher than that of the Deleted Mortgage Loan; (v) have a remaining term
      to
      maturity no greater than (and not more than one year less than) that of the
      Deleted Mortgage Loan; (vi) have the same lien priority as the Deleted Mortgage
      Loan; (vii) constitute the same occupancy type as the Deleted Mortgage Loan
      or
      be owner occupied; (viii) have a Maximum Mortgage Interest Rate not less than
      the Maximum Mortgage Interest Rate on the Deleted Loan; (ix) have a Minimum
      Mortgage Interest Rate not less than the Minimum Mortgage Interest Rate of
      the
      Deleted Loan, if applicable; (x) have a Gross Margin equal to the Gross Margin
      of the Deleted Loan; (xi) have a next Adjustment Date not more than two months
      later than the next Adjustment Date on the Deleted Loan, if applicable; and
      (xii) comply with each representation and warranty set forth in the Mortgage
      Loan Purchase Agreement.

     

    Reportable
      Event:
      Has the
      meaning set forth in Section 5.14(c) of this Agreement.

     

    Reporting
      Party:
      The
      Servicer, the Master Servicer, the Securities Administrator, the Custodian
      under
      the Custodial Agreement, and any Servicing Function Participant engaged by
      such
      parties.

     

    Required
      Insurance Policy:
      With
      respect to any Mortgage Loan, any insurance policy that is required to be
      maintained from time to time under this Agreement.

     

    Residual
      Certificates:
      The
      Class R Certificates and the Class R-X Certificates.

     

    Responsible
      Officer:
      With
      respect to the Trustee and the Securities Administrator, any Vice President,
      any
      Assistant Vice President, the Secretary, any Assistant Secretary, any Trust
      Officer, any other officer customarily performing functions similar to those
      performed by any of the above designated officers or other officers of the
      Trustee or the Securities Administrator specified by the Trustee or the
      Securities Administrator, as the case may be, having direct responsibility
      over
      this Agreement and customarily performing functions similar to those performed
      by any one of the designated officers, as to whom, with respect to a particular
      matter, such matter is referred because of such officer’s knowledge of and
      familiarity with the particular subject.

     

    Responsible
      Party:
      The
      party indicated on Exhibit N as the entity primarily responsible for reporting
      the information set forth therein to the Securities Administrator pursuant
      to
      Section 5.14.

     

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

     

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

     

    Sarbanes-Oxley
      Certification:
      A
      written certification signed by an officer of the Master Servicer that complies
      with (i) the Sarbanes-Oxley Act of 2002, as amended from time to time, and
      (ii)
      Exchange Act Rules 13a-14(d) and 15d-14(d), as in effect from time to time;
      provided that if, after the Closing Date (a) the Sarbanes-Oxley Act of 2002
      is
      amended, (b) the Rules referred to in clause (ii) are modified or superseded
      by
      any subsequent statement, rule or regulation of the Commission or any statement
      of a division thereof, or (c) any future releases, rules and regulations are
      published by the Commission from time to time pursuant to the Sarbanes-Oxley
      Act
      of 2002, which in any such case affects the form or substance of the required
      certification and results in the required certification being, in the reasonable
      judgment of the Master Servicer, materially more onerous than the form of the
      required certification as of the Closing Date, the Sarbanes-Oxley Certification
      shall be as agreed to by the Master Servicer, the Depositor and the Seller
      following a negotiation in good faith to determine how to comply with any such
      new requirements.

     

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

     

    Securities
      Act:
      The
      Securities Act of 1933, as amended, and the rules and regulations promulgated
      thereunder.

     

    Securities
      Administrator:
      As of
      the Closing Date, Wells Fargo Bank, N.A. and thereafter, its respective
      successors in interest that meet the qualifications of this Agreement. The
      Securities Administrator and the Master Servicer shall at all times be the
      same
      Person or Affiliates.

     

    Senior
      Certificates:
      The
      Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates.

     

    Senior
      Enhancement Percentage:
      With
      respect to any Distribution Date will be the fraction, expressed as a
      percentage, the numerator of which is the sum of the aggregate Certificate
      Principal Balance of the Subordinate Certificates and the Overcollateralization
      Amount, in each case after giving effect to payments on such Distribution Date
      (assuming no Trigger Event is in effect), and the denominator of which is the
      Aggregate Loan Balance for such Distribution Date.

     

    Senior
      Principal Payment Amount:
      With
      respect to any Distribution Date on or after the Stepdown Date and as long
      as a
      Trigger Event is not in effect with respect to such Distribution Date, the
      amount, if any, by which (x) the Certificate Principal Balances of the Senior
      Certificates, in each case, immediately prior to such Distribution Date exceed
      (y) the lesser of (A) the product of (i) 55.10% and (ii) the Aggregate Loan
      Balance for such Distribution Date and (B) the amount, if any, by which (i)
      the
      Aggregate Loan Balance for such Distribution Date exceeds (ii) 0.50% of the
      Aggregate Loan Balance as of the Cut-off Date.

     

    Service(s)(ing):
      In
      accordance with Regulation AB, the act of servicing and administering the
      Mortgage Loans or any other assets of the Trust Fund by an entity that meets
      the
      definition of “servicer” set forth in Item 1101 of Regulation AB and is subject
      to the disclosure requirements set forth in 1108 of Regulation AB. For
      clarification purposes, any uncapitalized occurrence of this term shall have
      the
      meaning commonly understood by participants in the residential mortgage-backed
      securitization market.

     

    Servicer:
      Shall
      mean Equity One, Inc., or any successor thereto appointed hereunder in
      connection with the servicing and administration of the Mortgage
      Loans.

     

    Servicer
      Default:
      As
      defined in Section 8.01.

     

    Servicer
      Prepayment Charge Payment Amount:
      The
      amount payable by the Servicer in respect of any waived Prepayment Charges
      pursuant to Section 3.01.

     

    Servicing
      Advances:
      All
      customary, reasonable and necessary “out of pocket” costs and expenses
      (including reasonable legal fees) incurred prior to, on or after the Cut-off
      Date in the performance by the Servicer of its servicing obligations hereunder,
      including, but not limited to, the cost of (i) the preservation, restoration,
      inspection, valuation and protection of a Mortgaged Property, (ii) any
      enforcement or judicial proceedings, including foreclosures, and including
      any
      expenses incurred in relation to any such proceedings that result from the
      Mortgage Loan being registered in the MERS® System, (iii) the management and
      liquidation of any REO Property (including, without limitation, realtor’s
      commissions), (iv) compliance with any obligations under Section 3.07
      hereof to cause insurance to be maintained, (v) payment of taxes, (vi) obtaining
      broker price opinions and (vii) obtaining any legal documentation required
      to be
      included in the Mortgage File and/or correcting any outstanding title issues
      (i.e., any lien or encumbrance on the Mortgaged Property that prevents the
      effective enforcement of the intended lien position) reasonably necessary for
      the Servicer to perform its obligations under this Agreement. Servicing Advances
      also include any reasonable “out-of-pocket” cost and expenses (including legal
      fees) incurred by the Servicer in connection with executing and recording
      instruments of satisfaction, deeds of reconveyance or Assignments to the extent
      not recovered from the Mortgagor or otherwise payable under this Agreement.
      The
      Servicer shall not be required to make any Servicing Advances that would
      constitute a Nonrecoverable Advance, provided that the Servicer delivers an
      Officer’s Certificate to the Master Servicer and the Trustee certifying that
      such Servicing Advance would constitute a Nonrecoverable Advance.

     

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

     

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

     

    Servicing
      Fee Rate:
      0.50%
      per annum.

     

    Servicing
      Function Participant:
      Means
      any Subservicer or Subcontractor of the Servicer, the Master Servicer and the
      Securities Administrator or the Custodian, respectively. For purposes of Section
      5.14(e), such term also shall include the Servicer, the Master Servicer, the
      Securities Administrator and the Custodian.

     

    Servicing
      Officer:
      Any
      officer of the Servicer or the Master Servicer, as applicable, involved in,
      or
      responsible for, the administration and the servicing of Mortgage Loans, whose
      name and specimen signature appear on a list of Servicing Officers furnished
      by
      the Servicer or the Master Servicer, as applicable, to the Master Servicer,
      Securities Administrator, the Trustee and the Depositor on the Closing Date,
      as
      such list may from time to time be amended.

     

    Six-Month
      LIBOR:
      The per
      annum rate equal to the average of interbank offered rates for Six-Month U.S.
      dollar-denominated deposits in the London market based on quotations of major
      banks as published in The Wall Street Journal and most recently available as
      of
      the time specified in the related Mortgage Note.

     

    Sponsor:
      Nomura
      Credit & Capital, Inc., a Delaware corporation, and its successors and
      assigns, in its capacity as seller of the Mortgage Loans to the
      Depositor.

     

    Startup
      Day:
      The
      Startup Day for REMIC I, REMIC II and REMIC III formed hereunder shall be the
      Closing Date. The Startup Day for REMIC IV, REMIC V and REMIC VI shall be
      _________________.

     

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

     

    Stepdown
      Date:
      The
      later to occur of (x) the Distribution Date in November 2009 and (y) the first
      Distribution Date on which the Senior Enhancement Percentage (calculated for
      this purpose only after taking into account distributions of principal on the
      Mortgage Loans, but prior to any distributions to the holders of the Publicly
      Offered Certificates and the Class B Certificates on such Distribution Date)
      is
      greater than or equal to 44.90%.

     

    Subcontractor:
      Any
      vendor, subcontractor or other Person who is not responsible for the overall
      servicing of Mortgage Loans but performs one or more discrete functions
      identified in Item 1122(d) of Regulation AB with respect to any Mortgage Loans
      under the direction or authority of the Servicer (or a Subservicer of the
      Servicer), the Master Servicer, the Trustee, the Custodian or the Securities
      Administrator and is determined by the Person engaging such vendor,
      subcontractor or other Person to be “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB.

     

    Subordinate
      Certificates:
      Shall
      mean, collectively, the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5,
      Class M-6, Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2
      Certificates.

     

    Subsequent
      Recoveries:
      All
      amounts received during the related Prepayment Period by the Servicer
      specifically related to a defaulted Mortgage Loan or disposition of an REO
      Property prior to the related Prepayment Period that resulted in a Realized
      Loss, after the liquidation or disposition of such defaulted Mortgage
      Loan.

     

    Subservicer:
      Shall
      mean any Person who is identified in Item 1122(d) of Regulation AB that services
      the Mortgage Loans on behalf of the Servicer, and is responsible for the
      performance (whether directly or through subservicers or Subcontractors) of
      a
      substantial portion of the material servicing functions required to be performed
      by such Person under this Agreement or any subservicing agreement. The initial
      subservicer shall be Popular Mortgage Servicing, Inc., an affiliate of the
      Servicer.

     

    Subservicing
      Agreement:
      Any
      agreement entered into between the Servicer and a Subservicer with respect
      to
      the subservicing of any Mortgage Loan by such Subservicer subject to Section
      3.03 of this Agreement.

     

    Substitution
      Adjustment Amount:
      As
      defined in Section 2.03(c).

     

    Successor
      Servicer:
      The
      Master Servicer or any successor to the Servicer appointed pursuant to
      Section 8.02 of this Agreement after the occurrence of a Servicer Default
      or upon the resignation of the Servicer pursuant to this Agreement.

     

    Supplemental
      Interest Trust:
      The
      corpus of a trust created pursuant to Section 5.12 of this Agreement and
      designated as the “Supplemental Interest Trust,” consisting of the Swap
      Agreement, the Interest Rate Cap Agreement, the Class IO Interest and the right
      to receive payments in respect of the Class IO Distribution Amount. For the
      avoidance of doubt, the Supplemental Interest Trust does not constitute a part
      of the Trust Fund.

     

    Supplemental
      Interest Trust Trustee:
      HSBC
      Bank USA, National Association, as trustee on behalf of the Supplemental
      Interest Trust.

     

    Swap
      Agreement:
      The
      interest rate swap agreement, dated October 31, 2006, between the Supplemental
      Interest Trust Trustee, and the Swap Provider, which agreement provides for
      Net
      Swap Payments and Swap Termination Payments to be paid, as provided therein,
      together with any schedules, confirmations or other agreements relating thereto,
      attached hereto as Exhibit
      P.

     

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

     

    Swap
      Provider:
      The
      swap provider under the Swap Agreement either (a) entitled to receive payments
      from the Supplemental Interest Trust or (b) required to make payments to the
      Supplemental Interest Trust, in either case pursuant to the terms of the Swap
      Agreement, and any successor in interest or assign. Initially, the Swap Provider
      shall be HSBC
      Bank USA, National Association.

     

    Swap
      Provider Trigger Event:
      A Swap
      Provider Trigger Event shall have occurred if any of the following has occurred:
      an Event of Default (under the Swap Agreement) with respect to which the Swap
      Provider is a Defaulting Party, a Termination Event (under the Swap Agreement)
      with respect to which the Swap Provider is the sole Affected Party or an
      Additional Termination Event (under the Swap Agreement) with respect to which
      the Swap Provider is the sole Affected Party.

     

    Swap
      Termination Payment:
      Upon
      the designation of an “Early Termination Date” as defined in the Swap Agreement,
      the payment to be made by the Supplemental Interest Trust to the Swap Provider,
      or by the Swap Provider to the Supplemental Interest Trust, as applicable,
      pursuant to the terms of the Swap Agreement upon the occurrence of an early
      termination.

     

    Targeted
      Overcollateralization Amount:
      With
      respect to any Distribution Date prior to the Stepdown Date, 2.25% of the
      Aggregate Loan Balance as of the Cut-off Date; with respect to any Distribution
      Date on or after the Stepdown Date and with respect to which a Trigger Event
      is
      not in effect, the greater of (a) 4.50% of the Aggregate Loan Balance for such
      Distribution Date, or (b) 0.50% of the Aggregate Loan Balance as of the Cut-off
      Date; with respect to any Distribution Date on or after the Stepdown Date with
      respect to which a Trigger Event is in effect, the Targeted
      Overcollateralization Amount for such Distribution Date will be equal to the
      Targeted Overcollateralization Amount for the Distribution Date immediately
      preceding such Distribution Date. Notwithstanding the foregoing, on and after
      any Distribution Date following the reduction of the aggregate Certificate
      Principal Balance of the Senior Certificates and the Subordinate Certificates
      to
      zero, the Targeted Overcollateralization Amount shall be zero.

     

    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. The holder of the greatest Percentage Interest in a
      Class of Residual Certificates shall be the Tax Matters Person for the related
      REMIC. The Securities Administrator, or any successor thereto or assignee
      thereof shall serve as tax administrator hereunder and as agent for the related
      Tax Matters Person.

     

    Termination
      Price:
      The
      price, calculated as set forth in Section 10.01, to be paid in connection
      with the purchase of the Mortgage Loans pursuant to
      Section 10.01.

     

    Transaction
      Party:
      Shall
      mean the Depositor, the Sponsor, the Trustee, the Servicer, the Master Servicer,
      the Securities Administrator, the Custodian, the Basis Risk Cap Provider, the
      Swap Provider and the Interest Rate Cap Provider.

     

    Transfer
      Affidavit:
      As
      defined in Section 6.02(c).

     

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

     

    Trigger
      Event:
      With
      respect to any Distribution Date, a Trigger Event is in effect if either (i)
      the
      Delinquency Rate as of the last day of the related Due Period exceeds 35.63%
      of
      the Senior Enhancement Percentage for such Distribution Date or (ii) the
      cumulative Realized Losses as a percentage of the original Aggregate Loan
      Balance on the Closing Date for such Distribution Date is greater than the
      percentage set forth in the following table:

     

    
      	
              Distribution
                Date

            	
              Percentage

            
	
              November
                2009 - October 2010

            	
              3.45%*

            
	
              November
                2010 - October 2011

            	
              5.40%*

            
	
              November
                2011 - October 2012

            	
              6.95%*

            
	
              November
                2012 and thereafter

            	
              7.80%*

            

    

    

    *The
      cumulative loss percentages set forth above are applicable to the first
      Distribution Date in the corresponding range of Distribution Dates. The
      cumulative loss percentage for each succeeding Distribution Date in a range
      increases incrementally by 1/12 of the positive difference between the
      percentage applicable
      to the first Distribution Date in that range and the percentage applicable
      to
      the first Distribution
      Date in the succeeding range.

     

    Trust
      Fund:
      Collectively, the assets of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V,
      REMIC VI, the Basis Risk Shortfall Reserve Fund and the Basis Risk Cap
      Agreement. For the avoidance of doubt, the Trust Fund does not include the
      Supplemental Interest Trust.

     

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

     

    Uncertificated
      Accrued Interest:
      With
      respect to each Uncertificated REMIC Regular Interest on each Distribution
      Date,
      an amount equal to one month’s interest at the related Uncertificated
      Pass-Through Rate on the Uncertificated Principal Balance of such REMIC Regular
      Interest. In each case, Uncertificated Accrued Interest will be reduced by
      any
      Prepayment Interest Shortfalls and shortfalls resulting from application of
      the
      Relief Act (allocated to such REMIC Regular Interests as set forth in Sections
      1.02 and 5.07).

     

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

     

    With
      respect to REMIC II Regular Interest LT-IO and each Distribution Date listed
      below, the aggregate Uncertificated Principal Balance of the REMIC 1 Regular
      Interests ending with the designation “A” listed below: 

     

    
      	
              Distribution
                Date

            	
              REMIC
                1 Regular Interests

            
	
              1
                -
                7

            	
              I-1-A
                through I-54-A and II-1-A through II-54-A 

            
	
              8

            	
              I-2-A
                through I-54-A and II-2-A through II-54-A 

            
	
              9

            	
              I-3-A
                through I-54-A and II-3-A through II-54-A 

            
	
              10

            	
              I-4-A
                through I-54-A and II-4-A through II-54-A 

            
	
              11

            	
              I-5-A
                through I-54-A and II-5-A through II-54-A 

            
	
              12

            	
              I-6-A
                through I-54-A and II-6-A through II-54-A 

            
	
              13

            	
              I-7-A
                through I-54-A and II-7-A through II-54-A 

            
	
              14

            	
              I-8-A
                through I-54-A and II-8-A through II-54-A 

            
	
              15

            	
              I-9-A
                through I-54-A and II-9-A through II-54-A 

            
	
              16

            	
              I-10-A
                through I-54-A and II-10-A through II-54-A 

            
	
              17

            	
              I-11-A
                through I-54-A and II-11-A through II-54-A 

            
	
              18

            	
              I-12-A
                through I-54-A and II-12-A through II-54-A 

            
	
              19

            	
              I-13-A
                through I-54-A and II-13-A through II-54-A 

            
	
              20

            	
              I-14-A
                through I-54-A and II-14-A through II-54-A 

            
	
              21

            	
              I-15-A
                through I-54-A and II-15-A through II-54-A 

            
	
              22

            	
              I-16-A
                through I-54-A and II-16-A through II-54-A 

            
	
              23

            	
              I-17-A
                through I-54-A and II-17-A through II-54-A 

            
	
              24

            	
              I-18-A
                through I-54-A and II-18-A through II-54-A 

            
	
              25

            	
              I-19-A
                through I-54-A and II-19-A through II-54-A 

            
	
              26

            	
              I-20-A
                through I-54-A and II-20-A through II-54-A 

            
	
              27

            	
              I-21-A
                through I-54-A and II-21-A through II-54-A 

            
	
              28

            	
              I-22-A
                through I-54-A and II-22-A through II-54-A 

            
	
              29

            	
              I-23-A
                through I-54-A and II-23-A through II-54-A 

            
	
              30

            	
              I-24-A
                through I-54-A and II-24-A through II-54-A 

            
	
              31

            	
              I-25-A
                through I-54-A and II-25-A through II-54-A 

            
	
              32

            	
              I-26-A
                through I-54-A and II-26-A through II-54-A 

            
	
              33

            	
              I-27-A
                through I-54-A and II-27-A through II-54-A 

            
	
              34

            	
              I-28-A
                through I-54-A and II-28-A through II-54-A 

            
	
              35

            	
              I-29-A
                through I-54-A and II-29-A through II-54-A 

            
	
              36

            	
              I-30-A
                through I-54-A and II-30-A through II-54-A 

            
	
              37

            	
              I-31-A
                through I-54-A and II-31-A through II-54-A 

            
	
              38

            	
              I-32-A
                through I-54-A and II-32-A through II-54-A 

            
	
              39

            	
              I-33-A
                through I-54-A and II-33-A through II-54-A 

            
	
              40

            	
              I-34-A
                through I-54-A and II-34-A through II-54-A 

            
	
              41

            	
              I-35-A
                through I-54-A and II-35-A through II-54-A 

            
	
              42

            	
              I-36-A
                through I-54-A and II-36-A through II-48-A

            
	
              43

            	
              I-37-A
                through I-54-A and II-37-A through II-48-A

            
	
              44

            	
              I-38-A
                through I-54-A and II-38-A through II-48-A

            
	
              45

            	
              I-39-A
                through I-54-A and II-39-A through II-48-A

            
	
              46

            	
              I-40-A
                through I-54-A and II-40-A through II-48-A

            
	
              47

            	
              I-41-A
                through I-54-A and II-41-A through II-48-A

            
	
              48

            	
              I-42-A
                through I-54-A and II-42-A through II-48-A

            
	
              49

            	
              I-43-A
                through I-54-A and II-43-A through II-48-A

            
	
              50

            	
              I-44-A
                through I-54-A and II-44-A through II-48-A

            
	
              51

            	
              I-45-A
                through I-54-A and II-45-A through II-48-A

            
	
              52

            	
              I-46-A
                through I-54-A and II-46-A through II-48-A

            
	
              53

            	
              I-47-A
                through I-54-A and II-47-A through II-54-A

            
	
              54

            	
              I-48-A
                through I-54-A and II-48-A through II-54-A

            
	
              55

            	
              I-49-A
                through I-54-A and II-49-A through II-54-A

            
	
              56

            	
              I-50-A
                through I-54-A and II-50-A through II-54-A

            
	
              57

            	
              I-51-A
                through I-54-A and II-51-A through II-54-A

            
	
              58

            	
              I-52-A
                through I-54-A and II-52-A through II-54-A

            
	
              59

            	
              I-53-A
                and I-54-A and II-53-A and II-54-A

            
	
              60

            	
              I-54-A
                and II-54-A 

            
	
              thereafter

            	
              $0.00

            

    

    

    Uncertificated
      Principal Balance:
      With
      respect to each REMIC Regular Interest (other than REMIC II Regular Interest
      LT-IO), the principal amount of such REMIC Regular Interest outstanding as
      of
      any date of determination. As of the Closing Date, the Uncertificated Principal
      Balance of each such REMIC Regular Interest shall equal the amount set forth
      in
      the Preliminary Statement hereto as its initial Uncertificated Principal
      Balance. On each Distribution Date, the Uncertificated Principal Balance of
      each
      REMIC Regular Interest shall be reduced by all distributions of principal made
      on such REMIC Regular Interest on such Distribution Date pursuant to Section
      5.07 and, if and to the extent necessary and appropriate, shall be further
      reduced on such Distribution Date by Realized Losses as provided in Section
      5.07. The Uncertificated Principal Balance of each REMIC Regular Interest shall
      never be less than zero.

     

    Uncertificated
      Pass-Through Rate:
      The
      Uncertificated REMIC I Pass-Through Rate or Uncertificated REMIC II Pass-Through
      Rate.

     

    Uncertificated
      REMIC I Pass-Through Rate:
      With
      respect to REMIC I Regular Interest I, a per annum rate equal to the weighted
      average Net Mortgage Rate of Loan
      Group I.
      With
      respect to each REMIC
      I
      Group
      I
      Regular Interest ending with the designation “A”, a per annum rate equal to the
      weighted average Net Mortgage Rate of Loan
      Group I
      multiplied by 2, subject to a maximum rate of 10.50%. With respect to each
      REMIC
      I Regular Interest ending with the designation “B”, the greater of (x) a per
      annum rate equal to the excess, if any, of (i) 2 multiplied by the weighted
      average Net Mortgage Rate of Loan
      Group I over (ii) 10.50% and (y) 0.00%. With respect to REMIC I Regular Interest
      II, a per annum rate equal to the weighted average Net Mortgage Rate of Loan
      Group II. With respect to each REMIC I Group II Regular Interest ending with
      the
      designation “A”, a per annum rate equal to the weighted average Net Mortgage
      Rate of Loan Group II multiplied by 2, subject to a maximum rate of 10.50%.
      With
      respect to each REMIC I Group II Regular Interest ending with the designation
      “B”, the greater of (x) a per annum rate equal to the excess, if any, of (i) 2
      multiplied by the weighted average Net Mortgage Rate of Loan Group II over
      (ii)
10.50%
      and (y) 0.00%.

     

    Uncertificated
      REMIC II Pass-Through Rate:
      With
      respect to REMIC II Regular Interest LT-AA, REMIC II Regular Interest
      LT-IA1,
      REMIC II Regular Interest LT-IIA1,
      REMIC
      II Regular Interest LT-IIA2,
      REMIC
      II Regular Interest LT-IIA3,
      REMIC
      II Regular Interest LT-IIA4,
      REMIC
      II Regular Interest LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular
      Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC II Regular Interest
      LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC
      II Regular Interest LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular
      Interest LT-B1, REMIC II Regular Interest LT-B2,
      REMIC II
      Regular Interest LT-ZZ,
      REMIC
      II Regular Interest LT-1SUB, REMIC II Regular Interest LT-2SUB, and REMIC II
      Regular Interest LT-XX,
      a
      per
      annum rate (but not less than zero) equal to the weighted average of (w) with
      respect to REMIC I Regular Interest I, REMIC
      I
      Regular Interest II, the
      Uncertificated REMIC I Pass-Through Rate for such REMIC I Regular Interest
      for
      each such Distribution Date, (x) with respect to REMIC I Regular Interests
      ending with the designation “B”, the weighted average of the Uncertificated
      REMIC I Pass-Through Rates for such REMIC I Regular Interests, weighted on
      the
      basis of the Uncertificated Principal Balance of such REMIC I Regular Interests
      for each such Distribution Date and (y) with respect to REMIC I Regular
      Interests ending with the designation “A”, for each Distribution Date listed
      below, the weighted average of the rates listed below for each such REMIC I
      Regular Interest listed below, weighted on the basis of the Uncertificated
      Principal Balance of each such REMIC I Regular Interest for each such
      Distribution Date:

     

    
      	
              Distribution
                Date

            	
              REMIC
                1 Regular Interest

            	
              Rate

            
	
              1
                -
                6

            	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              I-1-A
                through I-54-A

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

            
	 	
              II-1-A
                through II-54-A

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

            
	
              8

            	
              I-2-A
                through I-54-A

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

            
	 	
              II-2-A
                through II-54-A

            	
              2
                multiplied by Swap LIBOR, subject to a maximum rate Uncertificated
                REMIC 1
                Pass-Through Rate

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              I-3-A
                through I-54-A

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

            
	 	
              II-3-A
                through II-54-A

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

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              I-4-A
                through I-54-A

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

            
	 	
              II-4-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              I-5-A
                through I-54-A

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

            
	 	
              II-5-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              I-6-A
                through I-54-A

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

            
	 	
              II-6-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              I-7-A
                through I-54-A

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

            
	 	
              II-7-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              I-8-A
                through I-54-A

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

            
	 	
              II-8-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              I-9-A
                through I-54-A

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

            
	 	
              II-9-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              I-10-A
                through I-54-A

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

            
	 	
              II-10-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              I-11-A
                through I-54-A

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

            
	 	
              II-11-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              I-12-A
                through I-54-A

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

            
	 	
              II-12-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              I-13-A
                through I-54-A

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

            
	 	
              II-13-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              I-14-A
                through I-54-A

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

            
	 	
              II-14-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              I-15-A
                through I-54-A

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

            
	 	
              II-15-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              I-16-A
                through I-54-A

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

            
	 	
              II-16-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              I-17-A
                through I-54-A

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

            
	 	
              II-17-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              I-18-A
                through I-54-A

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

            
	 	
              II-18-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              I-19-A
                through I-54-A

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

            
	 	
              II-19-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              I-20-A
                through I-54-A

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

            
	 	
              II-20-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              I-21-A
                through I-54-A

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

            
	 	
              II-21-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              I-22-A
                through I-54-A

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

            
	 	
              II-22-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              I-23-A
                through I-54-A

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

            
	 	
              II-23-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              I-24-A
                through I-54-A

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

            
	 	
              II-24-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              I-25-A
                through I-54-A

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

            
	 	
              II-25-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              I-26-A
                through I-54-A

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

            
	 	
              II-26-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              I-27-A
                through I-54-A

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

            
	 	
              II-27-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              I-28-A
                through I-54-A

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

            
	 	
              II-28-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              I-29-A
                through I-54-A

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

            
	 	
              II-29-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              I-30-A
                through I-54-A

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

            
	 	
              II-30-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              I-31-A
                through I-54-A

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

            
	 	
              II-31-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              I-32-A
                through I-54-A

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

            
	 	
              II-32-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              I-33-A
                through I-54-A

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

            
	 	
              II-33-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              I-34-A
                through I-54-A

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

            
	 	
              II-34-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              I-35-A
                through I-54-A

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

            
	 	
              II-35-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              I-36-A
                and I-54-A

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

            
	 	
              II-36-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              I-37-A
                and I-54-A

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

            
	 	
              II-37-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              I-38-A
                through I-54-A

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

            
	 	
              II-38-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              I-39-A
                through I-54-A

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

            
	 	
              II-39-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              I-40-A
                through I-54-A

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

            
	 	
              II-40-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              I-41-A
                through I-54-A

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

            
	 	
              II-41-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              I-42-A
                through I-54-A

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

            
	 	
              II-42-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              I-43-A
                through I-54-A

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

            
	 	
              II-43-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              I-44-A
                through I-54-A

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

            
	 	
              II-44-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              I-45-A
                through I-54-A

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

            
	 	
              II-45-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              I-46-A
                through I-54-A

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

            
	 	
              II-46-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              I-47-A
                and I-54-A

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

            
	 	
              II-47-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              I-48-A
                through I-54-A

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

            
	 	
              II-48-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              I-49-A
                and I-54-A

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

            
	 	
              II-49-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              I-50-A
                and I-54-A

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

            
	 	
              II-50-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              I-51-A
                through I-54-A

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

            
	 	
              II-15-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              I-52-A
                through I-54-A

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

            
	 	
              II-52-A
                through II-54-A

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

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              I-53-A
                and I-54-A

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

            
	 	
              II-53-A
                and II-54-A

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

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              I-54-A

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

            
	 	
              II-54-A

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

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	 	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

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

     

    
      	
              Distribution
                Date

            	
              REMIC
                1 Regular Interest

            	
              Rate

            
	
              1
                -
                6

            	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              I-1-A
                through I-54-A

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

            
	
              8

            	
              I-2-A
                through I-54-A

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

            
	 	
              I-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              I-3-A
                through I-54-A

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

            
	 	
              I-1-A
                and I-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              I-4-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              I-5-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              I-6-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              I-7-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              I-8-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              I-9-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              I-10-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              I-11-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              I-12-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              I-13-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              I-14-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              I-15-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              I-16-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              I-17-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              I-18-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              I-19-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              I-20-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              I-21-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              I-22-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              I-23-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              I-24-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              I-25-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              I-26-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              I-27-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              I-28-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              I-29-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              I-30-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              I-31-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              I-32-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              I-33-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              I-34-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              I-35-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              I-36-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              I-37-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              I-38-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              I-39-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              I-40-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              I-41-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              I-42-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              I-43-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              I-44-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              I-45-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              I-46-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              I-47-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-46-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              I-48-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              I-49-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              I-50-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              I-51-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              I-52-A
                through I-54-A

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

            
	 	
              I-1-A
                through I-51-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              I-53-A
                and I-54-A

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

            
	 	
              I-1-A
                through I-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              I-54-A

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

            
	 	
              I-1-A
                through I-53-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              I-1-A
                through I-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

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

     

    
      	
              Distribution
                Date

            	
              REMIC
                1 Regular Interest

            	
              Rate

            
	
              1
                -
                6

            	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              7

            	
              II-1-A
                through II-54-A

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

            
	
              8

            	
              II-2-A
                through II-54-A

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

            
	 	
              II-1-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              9

            	
              II-3-A
                through II-54-A

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

            
	 	
              II-1-A
                and II-2-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              10

            	
              II-4-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-3-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              11

            	
              II-5-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-4-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              12

            	
              II-6-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-5-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              13

            	
              II-7-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-6-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              14

            	
              II-8-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-7-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              15

            	
              II-9-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-8-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              16

            	
              II-10-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-9-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              17

            	
              II-11-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-10-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              18

            	
              II-12-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-11-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              19

            	
              II-13-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-12-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              20

            	
              II-14-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-13-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              21

            	
              II-15-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-14-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              22

            	
              II-16-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-15-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              23

            	
              II-17-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-16-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              24

            	
              II-18-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-17-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              25

            	
              II-19-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-18-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              26

            	
              II-20-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-19-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              27

            	
              II-21-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-20-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              28

            	
              II-22-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-21-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              29

            	
              II-23-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-22-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              30

            	
              II-24-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-23-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              31

            	
              II-25-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-24-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              32

            	
              II-26-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-25-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              33

            	
              II-27-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-26-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              34

            	
              II-28-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-27-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              35

            	
              II-29-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-28-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              36

            	
              II-30-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-29-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              37

            	
              II-31-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-30-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              38

            	
              II-32-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-31-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              39

            	
              II-33-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-32-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              40

            	
              II-34-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-33-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              41

            	
              II-35-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-34-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              42

            	
              II-36-A
                and II-54-A

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

            
	 	
              II-1-A
                through II-35-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              43

            	
              II-37-A
                and II-54-A

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

            
	 	
              II-1-A
                through II-36-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              44

            	
              II-38-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-37-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              45

            	
              II-39-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-38-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              46

            	
              II-40-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-39-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              47

            	
              II-41-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-40-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              48

            	
              II-42-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-41-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              49

            	
              II-43-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-42-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              50

            	
              II-44-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-43-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              51

            	
              II-45-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              52

            	
              II-46-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-45-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              53

            	
              II-47-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-44-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              54

            	
              II-48-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-47-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              55

            	
              II-49-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-48-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              56

            	
              II-50-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-49-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              57

            	
              II-51-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-50-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              58

            	
              II-52-A
                through II-54-A

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

            
	 	
              II-1-A
                through II-51A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              59

            	
              II-53-A
                and II-54-A

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

            
	 	
              II-1-A
                through II-52-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              60

            	
              II-54-A

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

            
	 	
              II-1-A
                through II-58-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            
	
              thereafter

            	
              II-1-A
                through II-54-A

            	
              Uncertificated
                REMIC 1 Pass-Through Rate

            

    

    

     

    Uncertificated
      REMIC Regular Interest:
      The
      REMIC I Regular Interests, the REMIC II Regular Interests and the Class IO
      Interest.

     

    Voting
      Rights:
      The
      portion of the voting rights of all the Certificates that is allocated to any
      Certificate for purposes of the voting provisions hereunder. Voting Rights
      shall
      be allocated (i) 98% to the Certificates (other than the Class X, Class P
      and the Residual Certificates) and (ii) 1% to each of the Class X Certificates
      and the Class P Certificates. Voting rights will be allocated among the
      Certificates of each such Class in accordance with their respective Percentage
      Interests. The Residual Certificates will not be allocated any voting
      rights.

     

    Section
      1.02  Allocation
      of Certain Interest Shortfalls.

     

    For
      purposes of calculating the amount of the Interest Remittance Amount for any
      Distribution Date, (1) the aggregate amount of any Net Interest Shortfalls
      in
      respect of the Mortgage Loans for any Distribution Date shall reduce the
      Interest Remittance Amount on a pro rata basis based on, and to the extent
      of,
      one month’s interest at the then applicable respective Pass-Through Rate on the
      respective Certificate Principal Balance of each Class of Senior Certificates
      and Subordinate Certificates and (2) the aggregate amount of any Realized Losses
      allocated to the Subordinate Certificates and Basis Risk Shortfalls allocated
      to
      the Senior Certificates and the Subordinate Certificates for any Distribution
      Date shall be allocated to the Class X Certificates based on, and to the extent
      of, one month’s interest at the then applicable respective Pass-Through Rate on
      the Certificate Principal Balance thereof on any Distribution Date.

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC I Group I Regular Interests for any Distribution Date the aggregate amount
      of any Net Interest Shortfalls incurred in respect of Loan Group I for any
      Distribution Date shall be allocated first,
      to
      REMIC I Regular Interest I and to the REMIC I Group I Regular Interests ending
      with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and then, to REMIC
      I
      Group I Regular Interests ending with the designation “A”, pro rata based on,
      and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest. For purposes of
      calculating the amount of Uncertificated Accrued Interest for the REMIC I Group
      II Regular Interests for any Distribution the aggregate amount of any Net
      Interest Shortfalls incurred in respect of Loan Group II for any Distribution
      Date shall be allocated first,
      REMIC I Regular Interest II and to the REMIC I Group II Regular Interests ending
      with the designation “B”, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest, and then, to REMIC
      I
      Group II Regular Interests ending with the designation “A”, pro rata based on,
      and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rates on the respective Uncertificated
      Principal Balances of each such REMIC I Regular Interest. 

     

    For
      purposes of calculating the amount of Uncertificated Accrued Interest for the
      REMIC II Regular Interests for any Distribution Date: 

     

    The
      REMIC
      II Marker Allocation Percentage of the aggregate amount of any Net Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated among
      REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-IA1, REMIC II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC I Regular Interest LT-ZZ, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC I Pass-Through Rate on the respective Uncertificated
      Principal Balance of each such REMIC I Regular Interest.

     

    The
      REMIC
      II Sub WAC Allocation Percentage of the aggregate amount of any Net Interest
      Shortfalls incurred in respect of the Mortgage Loans for any Distribution Date
      shall be allocated to the Uncertificated Accrued Interest payable to REMIC
      II
      Regular Interest LT-1SUB, REMIC II Regular Interest LT-1GRP, REMIC II Regular
      Interest LT-2SUB, REMIC II Regular Interest LT-2GRP and REMIC II Regular
      Interest LT-XX, pro
      rata
      based
      on, and to the extent of, one month’s interest at the then applicable respective
      Uncertificated REMIC II Pass-Through Rate on the respective Uncertificated
      Principal Balance of each such REMIC II Regular Interest.

     

    

     

    ARTICLE
      II

    CONVEYANCE
      OF TRUST FUND

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      2.01  Conveyance
      of Trust Fund.

     

    The
      Sponsor hereby sells, transfers, assigns, sets over and otherwise conveys to
      the
      Depositor, without recourse, all the right, title and interest of the Sponsor
      in
      and to the assets in the Trust Fund and
      the
      Supplemental Interest Trust.

     

    The
      Sponsor has entered into this Agreement in consideration for the purchase of
      the
      Mortgage Loans by the Depositor and has agreed to take the actions specified
      herein.

     

    The
      Depositor, concurrently with the execution and delivery hereof, hereby sells,
      transfers, assigns, sets over and otherwise conveys to the Trustee for the
      use
      and benefit of the Certificateholders, without recourse, all the right, title
      and interest of the Depositor in and to the Trust Fund and the Supplemental
      Interest Trust.

     

    Concurrently
      with the execution and delivery of this Agreement, the Depositor does hereby
      assign to the Trustee all of its rights and interest under the Mortgage Loan
      Purchase Agreement, to the extent of the Mortgage Loans sold under the Mortgage
      Loan Purchase Agreement. The Trustee hereby accepts such assignment, and shall
      be entitled to exercise all rights of the Depositor under the Mortgage Loan
      Purchase Agreement as if, for such purpose, it were the Depositor. The foregoing
      sale, transfer, assignment, set-over, deposit and conveyance does not and is
      not
      intended to result in creation or assumption by the Trustee of any obligation
      of
      the Depositor, the Sponsor or any other Person in connection with the Mortgage
      Loans or any other agreement or instrument relating thereto except as
      specifically set forth herein.

     

    In
      connection with such sale, the Depositor does hereby deliver to, and deposit
      with the Custodian pursuant to the Custodial Agreement the documents with
      respect to each Mortgage Loan as described under Section 2 of the Custodial
      Agreement (the “Mortgage Loan Documents”). In connection with such delivery and
      as further described in the Custodial Agreement, the Custodian will be required
      to review such Mortgage Loan Documents and deliver to the Trustee, the
      Depositor, the Servicer and the Sponsor certifications (in the forms attached
      to
      the Custodial Agreement) with respect to such review with exceptions noted
      thereon. In addition, under the Custodial Agreement the Depositor will be
      required to cure certain defects with respect to the Mortgage Loan Documents
      for
      the related Mortgage Loans after the delivery thereof by the Depositor to the
      Custodian as more particularly set forth therein.

     

    Notwithstanding
      anything to the contrary contained herein, the parties hereto acknowledge that
      the functions of the Trustee with respect to the custody, acceptance, inspection
      and release of the Mortgage Files, including but not limited to certain
      insurance policies and documents contemplated by this Agreement, and preparation
      and delivery of the certifications shall be performed by the Custodian pursuant
      to the terms and conditions of the Custodial Agreement.

     

    The
      Depositor shall deliver or cause to be delivered to the Servicer copies of
      all
      trailing documents required to be included in the related Mortgage File at
      the
      same time the originals or certified copies thereof are delivered to the
      Custodian, such documents including the mortgagee policy of title insurance
      and
      any Mortgage Loan Documents upon return from the recording office. The Servicer
      shall not be responsible for any custodial fees or other costs incurred in
      obtaining such documents and the Depositor shall cause the Servicer to be
      reimbursed for any such costs the Servicer may incur in connection with
      performing its obligations under this Agreement.

     

    The
      Mortgage Loans permitted by the terms of this Agreement to be included in the
      Trust are limited to (i) Mortgage Loans (which the Depositor acquired pursuant
      to the Mortgage Loan Purchase Agreement, which contains, among other
      representations and warranties, a representation and warranty of the Sponsor
      that no Mortgage Loan is a “High-Cost Home Loan” as defined in the New Jersey
      Home Ownership Act effective November 27, 2003, as defined in the New Mexico
      Home Loan Protection Act effective January 1, 2004), as defined in the
      Massachusetts Predatory Home Loan Practices Act, effective November 7, 2004
      (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home Loan Practices
      Act,
      effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9) and
      (ii) Qualified Substitute Mortgage Loans (which, by definition as set forth
      herein and referred to in the Mortgage Loan Purchase Agreement, are required
      to
      conform to, among other representations and warranties, the representation
      and
      warranty of the Sponsor that no Qualified Substitute Mortgage Loan is a
“High-Cost Home Loan” as defined in the New Jersey Home Ownership Act effective
      November 27, 2003, as defined in the New Mexico Home Loan Protection Act
      effective January 1, 2004, as defined in the Massachusetts Predatory Home Loan
      Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as
      defined in the Indiana Home Loan Practices Act, effective January 1, 2005 (Ind.
      Code Ann. Sections 24-9-1 through 24-9-9). The Depositor and the Trustee on
      behalf of the Trust understand and agree that it is not intended that any
      mortgage loan be included in the Trust that is a “High-Cost Home Loan” as
      defined in the New Jersey Home Ownership Act effective November 27, 2003, as
      defined in the New Mexico Home Loan Protection Act effective January 1, 2004,
      as
      defined in the Massachusetts Predatory Home Loan Practices Act, effective
      November 7, 2004 (Mass. Ann. Laws Ch. 183C) or as defined in the Indiana Home
      Loan Practices Act, effective January 1, 2005 (Ind. Code Ann. Sections 24-9-1
      through 24-9-9).

     

    Section
      2.02  Acceptance
      of the Mortgage Loans.

     

    (a)  Based
      on
      the initial trust receipt received by it from the Custodian pursuant to the
      Custodial Agreement, the Trustee acknowledges receipt, subject to the provisions
      of Section 2.01 hereof and Section 2 of the Custodial Agreement, of
      the Mortgage Loan Documents and all other assets included in the definition
      of
“REMIC I” under clauses (i), (ii) (iii), (v) and (vi) (to the extent of amounts
      deposited into the Distribution Account) and declares that it holds (or the
      Custodian on its behalf holds) and will hold such documents and the other
      documents delivered to it constituting a Mortgage Loan Document, and that it
      holds (or the Custodian on its behalf holds) or will hold all such assets and
      such other assets included in the definition of “REMIC I” in trust for the
      exclusive use and benefit of all present and future
      Certificateholders.

     

    (b)  In
      conducting the review of the Mortgage Files in accordance with the Custodial
      Agreement, the Custodian on the Trustee’s behalf will ascertain whether all
      required documents have been executed and received and whether those documents
      relate to the Mortgage Loans identified in Exhibit B to this Agreement, as
      supplemented. If the Custodian finds any document constituting part of the
      Mortgage File not to have been executed or received, or to be unrelated to
      the
      Mortgage Loans identified in Exhibit B, the Sponsor shall correct or cure any
      such defect or, if prior to the end of the second anniversary of the Closing
      Date, the Sponsor may substitute for the related Mortgage Loan a Replacement
      Mortgage Loan, which substitution shall be accomplished in the manner and
      subject to the conditions set forth in Section 2.03 or shall deliver to the
      Trustee an Opinion of Counsel to the effect that such defect does not materially
      or adversely affect the interests of the Certificateholders in such Mortgage
      Loan within sixty (60) days from the date of notice from the Custodian of the
      defect and if the Sponsor fails to correct or cure the defect or deliver such
      opinion within such period, the Sponsor will, subject to Section 2.03,
      within ninety (90) days from the notification of the Custodian, purchase such
      Mortgage Loan at the Purchase Price; provided, however, that if such defect
      relates solely to the inability of the Sponsor to deliver the Mortgage,
      assignment thereof to the Custodian, or intervening assignments thereof with
      evidence of recording thereon because such documents have been submitted for
      recording and have not been returned by the applicable jurisdiction, the Sponsor
      shall not be required to purchase such Mortgage Loan if the Sponsor delivers
      such documents promptly upon receipt, but in no event later than 360 days after
      the Closing Date.

     

    (c)  No
      later
      than 180 days after the Closing Date, the Custodian on the Trustee’s behalf will
      review, for the benefit of the Certificateholders, the Mortgage Files and will
      execute and deliver or cause to be executed and delivered to the Sponsor, the
      Servicer and the Trustee, a final trust receipt substantially in the form
      annexed to the Custodial Agreement. In conducting such review, the Custodian
      on
      the Trustee’s behalf and in accordance with the terms of the Custodial Agreement
      will ascertain whether each document required to be recorded has been returned
      from the recording office with evidence of recording thereon and the Custodian
      on the Trustee’s behalf has received either an original or a copy thereof, as
      required in the Custodial Agreement. If the Custodian finds that any document
      with respect to a Mortgage Loan has not been received, or is unrelated to the
      Mortgage Loans identified in Exhibit B or appears to be defective on its face,
      the Custodian shall note such defect in the exception report attached the final
      trust receipt issued pursuant to the Custodial Agreement and the Sponsor shall
      correct or cure any such defect or, if prior to the end of the second
      anniversary of the Closing Date, the Sponsor may substitute for the related
      Mortgage Loan a Replacement Mortgage Loan, which substitution shall be
      accomplished in the manner and subject to the conditions set forth in
      Section 2.03 or shall deliver to the Trustee an Opinion of Counsel to the
      effect that such defect does not materially or adversely affect the interests
      of
      Certificateholders in such Mortgage Loan within 60 days from the date of notice
      from the Trustee of the defect and if the Sponsor is unable within such period
      to correct or cure such defect, or to substitute the related Mortgage Loan
      with
      a Replacement Mortgage Loan or to deliver such opinion, the Sponsor shall,
      subject to Section 2.03, within 90 days from the notification of the
      Trustee, purchase such Mortgage Loan at the Purchase Price; provided, however,
      that if such defect relates solely to the inability of the Sponsor to deliver
      the Mortgage, assignment thereof to the Trustee or intervening assignments
      thereof with evidence of recording thereon, because such documents have not
      been
      returned by the applicable jurisdiction, the Sponsor shall not be required
      to
      purchase such Mortgage Loan, if the Sponsor delivers such documents promptly
      upon receipt, but in no event later than 360 days after the Closing
      Date.

     

    (d)  In
      the
      event that a Mortgage Loan is purchased by the Sponsor in accordance with
      subsections 2.02(a) or (b) above or Section 2.03, the Sponsor shall remit
      the applicable Purchase Price to the Servicer for deposit in the Custodial
      Account and shall provide written notice to the Securities Administrator
      detailing the components of the Purchase Price, signed by an authorized officer.
      Upon receipt of notice of the deposit of the Purchase Price in the Custodial
      Account and upon receipt of a request for release (in the form attached to
      the
      Custodial Agreement) with respect to such Mortgage Loan, the Custodian, on
      behalf of the Trustee, will release to the Sponsor the related Mortgage File
      and
      the Trustee shall execute and deliver all instruments of transfer or assignment,
      without recourse, furnished to it by the Sponsor, as are necessary to vest
      in
      the Sponsor title to and rights under the Mortgage Loan. Such purchase shall
      be
      deemed to have occurred on the date on which the deposit into the Custodial
      Account was made. The Securities Administrator shall promptly notify the Rating
      Agencies of such repurchase. The obligation of the Sponsor to cure, repurchase
      or substitute for any Mortgage Loan as to which a defect in a constituent
      document exists shall be the sole remedies respecting such defect available
      to
      the Certificateholders or to the Securities Administrator on their behalf.
      The
      Sponsor shall promptly reimburse the Securities Administrator for any fees,
      costs and expenses (including all reasonable and documented attorneys fees
      and
      expenses) incurred by the Securities Administrator in respect of enforcing
      the
      remedies for such breach.

     

    (e)  The
      Sponsor shall deliver to the Custodian the Mortgage Note and other documents
      constituting the Mortgage File with respect to any Replacement Mortgage Loan,
      which the Custodian will review as provided in the Custodial Agreement,
      provided, that the Closing Date referred to therein shall instead be the date
      of
      delivery of the Mortgage File with respect to each Replacement Mortgage
      Loan.

     

    Section
      2.03  Representations,
      Warranties and Covenants of the Servicer, the Sponsor and the Master
      Servicer.

     

    (a)  The
      Servicer hereby represents and warrants to, and covenants with, the Sponsor,
      the
      Depositor, the Master Servicer, the Securities Administrator and the Trustee
      as
      follows, as of the Closing Date:

     

    (i)  It
      is
      duly organized and is validly existing and in good standing under the laws
      of
      the state of its formation and either it, or one or more Subservicers engaged
      by
      it, is duly authorized and qualified to transact any and all business
      contemplated by this Agreement to be conducted by the Servicer in any state
      in
      which a Mortgaged Property 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, in each case, the ability of the party performing the servicing function
      to service the related Mortgage Loans in accordance with the terms of this
      Agreement and to perform any of the Servicer’s other obligations under this
      Agreement in accordance with the terms hereof.

     

    (ii)  It,
      or
      one or more Subservicers engaged by it, has the full power and authority to
      service each Mortgage Loan, and to execute, deliver and perform, and to enter
      into and consummate the transactions contemplated by this Agreement and has
      duly
      authorized by all necessary corporate action on its part the execution, delivery
      and performance of this Agreement; and this Agreement, assuming the due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes its legal, valid and binding obligation, enforceable against it
      in
      accordance with its terms, except that (a) the enforceability hereof may be
      limited by bankruptcy, insolvency, moratorium, receivership and other similar
      laws relating to creditors’ rights generally and (b) the remedy of specific
      performance and injunctive and other forms of equitable relief may be subject
      to
      equitable defenses and to the discretion of the court before which any
      proceeding therefor may be brought and further subject to public policy with
      respect to indemnity and contribution under applicable securities
      law.

     

    (iii)  The
      execution and delivery of this Agreement by it, the servicing of the Mortgage
      Loans by it and its Subservicers under this Agreement, the consummation of
      any
      other of the transactions contemplated by this Agreement, and the fulfillment
      of
      or compliance with the terms hereof are in its ordinary course of business
      and
      will not (A) result in a material breach of any term or provision of its charter
      or by-laws 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 it is a party or by
      which
      it may be bound, or (C) constitute a material violation of any statute, order
      or
      regulation applicable to it of any court, regulatory body, administrative agency
      or governmental body having jurisdiction over it; and it is not in breach or
      violation of any material indenture or other material agreement or instrument,
      or in violation of any statute, order or regulation of any court, regulatory
      body, administrative agency or governmental body having jurisdiction over it
      which breach or violation may materially impair its ability to perform or meet
      any of its obligations under this Agreement.

     

    (iv)  It
      is an
      approved servicer of conventional mortgage loans for Fannie Mae or Freddie
      Mac.

     

    (v)  No
      litigation is pending or, to the best of its knowledge, threatened in writing,
      against it that would materially and adversely affect the execution, delivery
      or
      enforceability of this Agreement or its ability to service the related Mortgage
      Loans or to perform any of its other obligations under this Agreement in
      accordance with the terms hereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for its execution, delivery and performance of, or compliance
      with, this Agreement or the consummation of the transactions contemplated
      hereby, or if any such consent, approval, authorization or order is required,
      it
      has obtained the same.

     

    (vii)  The
      Servicer has accurately and fully reported, and will continue to accurately
      and
      fully report its borrower credit files to each of the credit repositories in
      a
      timely manner materially in accordance with the Fair Credit Reporting Act and
      its implementing legislation.

     

    (viii)  The
      Servicer is a member of MERS in good standing, and will comply in all material
      respects with the rules and procedures of MERS in connection with the servicing
      of the Mortgage Loans that are registered with MERS.

     

    (ix)  The
      Servicer will not waive any Prepayment Charge with respect to a Mortgage Loan
      serviced by it unless it is waived in accordance with the standard set forth
      in
      Section 3.01.

     

    If
      the
      covenant set forth in Section 2.03(a)(ix) above is breached by the
      Servicer, the Servicer will pay the amount of such waived Prepayment Charge,
      for
      the benefit of the Holders of the Class P Certificates, by depositing such
      amount into the Custodial Account within ninety (90) days of the earlier of
      discovery by the Servicer or receipt of notice by the Servicer of such breach.
      Notwithstanding the foregoing, or anything to the contrary contained in this
      Agreement, the Servicer shall have no liability for a waiver of any Prepayment
      Charge in the event that the Servicer’s determination to make such a waiver was
      made by the Servicer in reliance on information properly received by the
      Servicer from any Person in accordance with the terms of this
      Agreement.

     

    (b)  The
      Sponsor hereby represents and warrants to and covenants with, the Depositor,
      the
      Servicer, the Master Servicer, the Securities Administrator and the Trustee
      as
      follows, as of the Closing Date:

     

    (i)  The
      Sponsor is duly organized, validly existing and in good standing under the
      laws
      of the State of Delaware and is duly authorized and qualified to transact any
      and all business contemplated by this Agreement to be conducted by the Sponsor
      in any state in which a Mortgaged Property is located or is otherwise not
      required under applicable law to effect such qualification and, in any event,
      is
      in compliance with the doing business laws of any such state, to the extent
      necessary to ensure its ability to enforce each Mortgage Loan, to sell the
      Mortgage Loans in accordance with the terms of this Agreement and to perform
      any
      of its other obligations under this Agreement in accordance with the terms
      hereof.

     

    (ii)  The
      Sponsor has the full corporate power and authority to sell each Mortgage Loan,
      and to execute, deliver and perform, and to enter into and consummate the
      transactions contemplated by this Agreement and has duly authorized by all
      necessary corporate action on the part of the Sponsor the execution, delivery
      and performance of this Agreement; and this Agreement, assuming the due
      authorization, execution and delivery hereof by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Sponsor, enforceable
      against the Sponsor in accordance with its terms, except that (a) the
      enforceability hereof may be limited by bankruptcy, insolvency, moratorium,
      receivership and other similar laws relating to creditors’ rights generally and
      (b) the remedy of specific performance and injunctive and other forms of
      equitable relief may be subject to equitable defenses and to the discretion
      of
      the court before which any proceeding therefor may be brought and further
      subject to public policy with respect to indemnity and contribution under
      applicable securities law.

     

    (iii)  The
      execution and delivery of this Agreement by the Sponsor, the sale of the
      Mortgage Loans by the Sponsor under this Agreement, the consummation of any
      other of the transactions contemplated by this Agreement, and the fulfillment
      of
      or compliance with the terms hereof are in the ordinary course of business
      of
      the Sponsor and will not (A) result in a material breach of any term or
      provision of the charter or by-laws of the Sponsor or (B) materially conflict
      with, result in a material breach, violation or acceleration of, or result
      in a
      material default under, the terms of any other material agreement or instrument
      to which the Sponsor is a party or by which it may be bound, or (C) constitute
      a
      material violation of any statute, order or regulation applicable to the Sponsor
      of any court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Sponsor; and the Sponsor is not in breach or violation
      of
      any material indenture or other material agreement or instrument, or in
      violation of any statute, order or regulation of any court, regulatory body,
      administrative agency or governmental body having jurisdiction over it which
      breach or violation may materially impair the Sponsor’s ability to perform or
      meet any of its obligations under this Agreement.

     

    (iv)  The
      Sponsor is an approved seller of conventional mortgage loans for Fannie Mae
      or
      Freddie Mac and is a mortgagee approved by the Secretary of Housing and Urban
      Development pursuant to sections 203 and 211 of the National Housing
      Act.

     

    (v)  No
      litigation is pending or, to the best of the Sponsor’s knowledge, threatened,
      against the Sponsor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Sponsor
      to
      sell the Mortgage Loans or to perform any of its other obligations under this
      Agreement in accordance with the terms hereof.

     

    (vi)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Sponsor
      of,
      or compliance by the Sponsor with, this Agreement or the consummation of the
      transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, the Sponsor has obtained the
      same.

     

    (vii)  The
      representations and warranties set forth in Section 8 of the Mortgage Loan
      Purchase Agreement are true and correct as of the Closing Date.

     

    (viii)  No
      Mortgage Loan is subject to the Home Ownership and Equity Protection Act of
      1994
      or any comparable law and no Mortgage Loan is classified and/or defined as
      a
“high cost”, “covered”, “high risk home” or “predatory” loan under any other
      state, federal or local law or regulation or ordinance (or a similarly
      classified loan using different terminology under a law imposing heightened
      regulatory scrutiny or additional legal liability for residential mortgage
      loans
      having high interest rates, points and/or fees).

     

    (ix)  No
      loan
      is a High Cost Loan or Covered Loan, as applicable (as such terms are defined
      in
      Appendix E of the Standard & Poor's Glossary For File Format For LEVELS®
Version 5.7 Revised (attached hereto as Exhibit O) and no Mortgage Loan
      originated on or after October 1, 2002 through March 6, 2003 is governed by
      the
      Georgia Fair Lending Act.

     

    (x)  Any
      and
      all requirements of any federal, state or local law including, without
      limitation, usury, truth in lending, real estate settlement procedures, consumer
      credit protection, equal credit opportunity, fair housing, predatory, abusive
      lending or disclosure laws applicable to the origination and servicing of the
      Mortgage Loans have been complied with in all material respects.

     

    (c)  Upon
      discovery by any of the parties hereto of a breach of a representation or
      warranty set forth in Section 2.03(b)(viii), (ix) and (x) and
      Section 8 of the Mortgage Loan Purchase Agreement that materially and
      adversely affects the interests of the Certificateholders in any Mortgage Loan,
      the party discovering such breach shall give prompt written notice thereof
      to
      the other parties. The Sponsor hereby covenants with respect to the
      representations and warranties set forth in Section 2.03(b)(viii), (ix) and
      (x) and Section 8 of the Mortgage Loan Purchase Agreement, that within
      ninety (90) days of the discovery of a breach of any representation or warranty
      set forth therein that materially and adversely affects the interests of the
      Certificateholders in any Mortgage Loan, it shall cure such breach in all
      material respects and, if such breach is not so cured, (i) prior to the second
      anniversary of the Closing Date, remove such Mortgage Loan (a “Deleted Mortgage
      Loan”) from the Trust Fund and substitute in its place a Replacement Mortgage
      Loan, in the manner and subject to the conditions set forth in this Section;
      or
      (ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee
      at
      the Purchase Price in the manner set forth below; provided that any such
      substitution pursuant to (i) above or repurchase pursuant to (ii) above shall
      not be effected prior to the delivery to the Trustee of an Opinion of Counsel
      if
      required by Section 2.05 and any such substitution pursuant to (i) above
      shall not be effected prior to the additional delivery to the Custodian of
      a
      request for release in accordance with the Custodial Agreement. The Sponsor
      shall promptly reimburse the Trustee for any expenses reasonably incurred by
      the
      Trustee in respect of enforcing the remedies for such breach. To enable the
      Servicer to amend the Mortgage Loan Schedule, the Sponsor shall, unless it
      cures
      such breach in a timely fashion pursuant to this Section 2.03, promptly
      notify the Trustee whether it intends either to repurchase, or to substitute
      for, the Mortgage Loan affected by such breach. With respect to the
      representations and warranties in Section 8 of the Mortgage Loan Purchase
      Agreement that are made to the best of the Sponsor’s knowledge, if it is
      discovered by any of the Depositor, the Sponsor 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 Mortgage Loan,
      notwithstanding the Sponsor’s lack of knowledge with respect to the substance of
      such representation or warranty, the Sponsor shall nevertheless be required
      to
      cure, substitute for or repurchase the affected Mortgage Loan in accordance
      with
      the foregoing. Notwithstanding the foregoing, any breach of a representation
      or
      warranty contained in clauses (viii), (xxxvii), (xxxix), (xliv), (xlv), (xlvi),
      (xlvii), (xlviii), (l), (lv), (lvi), (lvii), (lviii), (lix), (lx) and/or (lxi)
      of Section 8 of the Mortgage Loan Purchase Agreement shall be automatically
      deemed to materially and adversely affect the interests of the
      Certificateholders.

     

    With
      respect to any Replacement Mortgage Loan or Loans, the Sponsor shall deliver
      to
      the Custodian for the benefit of the Certificateholders such documents and
      agreements as are required by Section 2 of the Custodial Agreement. No
      substitution will be made in any calendar month after the Determination Date
      for
      such month. Scheduled Payments due with respect to Replacement Mortgage Loans
      in
      the Due Period related to the Distribution Date on which such proceeds are
      to be
      distributed shall not be part of the Trust Fund and will be retained by the
      Sponsor. For the month of substitution, distributions to Certificateholders
      will
      include the Scheduled Payment due on any Deleted Mortgage Loan for the related
      Due Period and thereafter the Sponsor shall be entitled to retain all amounts
      received in respect of such Deleted Mortgage Loan. The Servicer shall amend
      the
      Mortgage Loan Schedule for the benefit of the Certificateholders to reflect
      the
      removal of such Deleted Mortgage Loan and the substitution of the Replacement
      Mortgage Loan or Loans and shall deliver the amended Mortgage Loan Schedule
      to
      the Trustee, the Master Servicer and the Securities Administrator. Upon such
      substitution, the Replacement Mortgage Loan or Loans shall be subject to the
      terms of this Agreement in all respects, and the Sponsor shall be deemed to
      have
      made with respect to such Replacement Mortgage Loan or Loans, as of the date
      of
      substitution, the representations and warranties set forth in Section 8 of
      the Mortgage Loan Purchase Agreement with respect to such Mortgage Loan. Upon
      any such substitution and receipt of notice of the deposit into the Custodial
      Account of the amount required to be deposited therein in connection with such
      substitution as described in the following paragraph and receipt by the
      Custodian of a request for release for such Mortgage Loan in accordance with
      the
      Custodial Agreement, the Custodian on behalf of the Trustee shall release to
      the
      Sponsor the Mortgage File relating to such Deleted Mortgage Loan and held for
      the benefit of the Certificateholders and the Trustee shall execute and deliver
      at the Sponsor’s direction such instruments of transfer or assignment as have
      been prepared by the Sponsor, in each case without recourse, as shall be
      necessary to vest in the Sponsor, or its respective designee, title to the
      Trustee’s interest in any Deleted Mortgage Loan substituted for pursuant to this
      Section 2.03. Neither the Trustee nor the Custodian shall have any further
      responsibility with regard to such Mortgage File.

     

    For
      any
      month in which the Sponsor substitutes one or more Replacement Mortgage Loans
      for a Deleted Mortgage Loan, the Securities Administrator will determine the
      amount (if any) by which the aggregate principal balance of all the Replacement
      Mortgage Loans as of the date of substitution is less than the Stated Principal
      Balance (after application of the principal portion of the Scheduled Payment
      due
      in the month of substitution) of such Deleted Mortgage Loan. An amount equal
      to
      the aggregate of such deficiencies, described in the preceding sentence for
      any
      Distribution Date (such amount, the “Substitution Adjustment Amount”) shall be
      remitted to the Servicer for deposit in the Custodial Account by the Sponsor
      delivering such Replacement Mortgage Loan on or before the Determination Date
      for the Distribution Date relating to the Prepayment Period during which the
      related Mortgage Loan was required to be purchased or replaced
      hereunder.

     

    In
      the
      event that the Sponsor shall be required to repurchase a Mortgage Loan, the
      Purchase Price therefor shall be remitted to the Servicer for deposit in the
      Custodial Account, on or before the Determination Date immediately following
      the
      date on which the Sponsor was required to repurchase such Mortgage Loan. The
      Purchase Price shall be remitted by the Servicer to the Securities Administrator
      on the Remittance Date occurring in the month immediately following the month
      in
      which the Purchase Price was deposited in the Custodial Account. In addition,
      upon such deposit of the Purchase Price, the delivery of an Officer’s
      Certificate by the Servicer to the Trustee certifying that the Purchase Price
      has been deposited in the Custodial Account, the delivery of an Opinion of
      Counsel if required by Section 2.05 and the receipt of a Request for
      Release, the Trustee shall release the related Mortgage File held for the
      benefit of the related Certificateholders to the Sponsor, and the Trustee shall
      execute and deliver at such Person’s direction the related instruments of
      transfer or assignment prepared by the Sponsor, in each case without recourse,
      as shall be necessary to transfer title from the Trustee for the benefit of
      the
      Certificateholders and transfer the Trustee’s interest to the Sponsor to any
      Mortgage Loan purchased pursuant to this Section 2.03. It is understood and
      agreed that the obligation under this Agreement of the Sponsor to cure,
      repurchase or replace any Mortgage Loan as to which a breach has occurred or
      is
      continuing shall constitute the sole remedies against the Sponsor respecting
      such breach available to Certificateholder, the Depositor or the
      Trustee.

     

    (d)  The
      Master Servicer hereby represents, warrants and covenants with the Servicer,
      the
      Depositor and the Trustee as follows, as of the Closing Date:

     

    (i)  The
      Master Servicer is a national banking association duly formed, validly existing
      and in good standing under the laws of the United States of America and is
      duly
      authorized and qualified to transact any and all business contemplated by this
      Agreement to be conducted by the Master Servicer;

     

    (ii)  The
      Master Servicer has the full power and authority to conduct its business as
      presently conducted by it and to execute, deliver and perform, and to enter
      into
      and consummate, all transactions contemplated by this Agreement. The Master
      Servicer has duly authorized the execution, delivery and performance of this
      Agreement, has duly executed and delivered this Agreement, and this Agreement,
      assuming due authorization, execution and delivery by the other parties hereto,
      constitutes a legal, valid and binding obligation of the Master Servicer,
      enforceable against it in accordance with its terms except as the enforceability
      thereof may be limited by bankruptcy, insolvency, reorganization or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      principles of equity;

     

    (iii)  The
      execution and delivery of this Agreement by the Master Servicer, the
      consummation by the Master Servicer of any other of the transactions herein
      contemplated, and the fulfillment of or compliance with the terms hereof are
      in
      the ordinary course of business of the Master Servicer and will not (A) result
      in a breach of any term or provision of charter and by-laws of the Master
      Servicer or (B) conflict with, result in a breach, violation or acceleration
      of,
      or result in a default under, the terms of any other material agreement or
      instrument to which the Master Servicer is a party or by which it may be bound,
      or any statute, order or regulation applicable to the Master Servicer of any
      court, regulatory body, administrative agency or governmental body having
      jurisdiction over the Master Servicer; and the Master Servicer is not a party
      to, bound by, or in breach or violation of any indenture or other agreement
      or
      instrument, or subject to or in violation of any statute, order or regulation
      of
      any court, regulatory body, administrative agency or governmental body having
      jurisdiction over it, which materially and adversely affects or, to the Master
      Servicer’s knowledge, would in the future materially and adversely affect, (x)
      the ability of the Master Servicer to perform its obligations under this
      Agreement or (y) the business, operations, financial condition, properties
      or
      assets of the Master Servicer taken as a whole;

     

    (iv)  The
      Master Servicer does not believe, nor does it have any reason or cause to
      believe, that it cannot perform each and every covenant made by it and contained
      in this Agreement;

     

    (v)  No
      litigation is pending against the Master Servicer that would materially and
      adversely affect the execution, delivery or enforceability of this Agreement
      or
      the ability of the Master Servicer to perform any of its other obligations
      hereunder in accordance with the terms hereof,

     

    (vi)  There
      are
      no actions or proceedings against, or investigations known to it of, the Master
      Servicer before any court, administrative or other tribunal (A) that might
      prohibit its entering into this Agreement, (B) seeking to prevent the
      consummation of the transactions contemplated by this Agreement or (C) that
      might prohibit or materially and adversely affect the performance by the Master
      Servicer of its obligations under, or validity or enforceability of, this
      Agreement; and

     

    (vii)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Master
      Servicer of, or compliance by the Master Servicer with, this Agreement or the
      consummation by it of the transactions contemplated by this Agreement, except
      for such consents, approvals, authorizations or orders, if any, that have been
      obtained prior to the Closing Date.

     

    (e)  The
      representations and warranties set forth in Section 2.03 shall survive
      delivery of the respective Mortgage Loans and Mortgage Files to the Trustee
      or
      the Custodian for the benefit of the Certificateholders.

     

    Section
      2.04  Representations
      and Warranties of the Depositor.

     

    The
      Depositor hereby represents and warrants to, and covenants, with the Servicer,
      the Sponsor, the Master Servicer, the Securities Administrator and the Trustee
      as follows, as of the date hereof and as of the Closing Date:

     

    (i)  The
      Depositor is duly organized and is validly existing as a corporation in good
      standing under the laws of the State of Delaware and has full power and
      authority (corporate and other) necessary to own or hold its properties and
      to
      conduct its business as now conducted by it and to enter into and perform its
      obligations under this Agreement.

     

    (ii)  The
      Depositor has the full corporate power and authority to execute, deliver and
      perform, and to enter into and consummate the transactions contemplated by,
      this
      Agreement and has duly authorized, by all necessary corporate action on its
      part, the execution, delivery and performance of this Agreement; and this
      Agreement, assuming the due authorization, execution and delivery hereof by
      the
      other parties hereto, constitutes a legal, valid and binding obligation of
      the
      Depositor, enforceable against the Depositor in accordance with its terms,
      subject, as to enforceability, to (i) bankruptcy, insolvency, moratorium
      receivership and other similar laws relating to creditors’ rights generally and
      (ii) 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 and further
      subject to public policy with respect to indemnity and contribution under
      applicable securities law.

     

    (iii)  The
      execution and delivery of this Agreement by the Depositor, the consummation
      of
      the transactions contemplated by this Agreement, and the fulfillment of or
      compliance with the terms hereof are in the ordinary course of business of
      the
      Depositor and will not (A) result in a material breach of any term or provision
      of the charter or by-laws of the Depositor or (B) materially conflict with,
      result in a material breach, violation or acceleration of, or result in a
      material default under, the terms of any other material agreement or instrument
      to which the Depositor is a party or by which it may be bound or (C) constitute
      a material violation of any statute, order or regulation applicable to the
      Depositor of any court, regulatory body, administrative agency or governmental
      body having jurisdiction over the Depositor; and the Depositor is not in breach
      or violation of any material indenture or other material agreement or
      instrument, or in violation of any statute, order or regulation of any court,
      regulatory body, administrative agency or governmental body having jurisdiction
      over it which breach or violation may materially impair the Depositor’s ability
      to perform or meet any of its obligations under this Agreement.

     

    (iv)  No
      litigation is pending, or, to the best of the Depositor’s knowledge, threatened,
      against the Depositor that would materially and adversely affect the execution,
      delivery or enforceability of this Agreement or the ability of the Depositor
      to
      perform its obligations under this Agreement in accordance with the terms
      hereof.

     

    (v)  No
      consent, approval, authorization or order of any court or governmental agency
      or
      body is required for the execution, delivery and performance by the Depositor
      of, or compliance by the Depositor with, this Agreement or the consummation
      of
      the transactions contemplated hereby, or if any such consent, approval,
      authorization or order is required, the Depositor has obtained the
      same.

     

    The
      Depositor hereby represents and warrants to the Trustee as of the Closing Date,
      following the transfer of the Mortgage Loans to it by the Sponsor, the Depositor
      had good title to the Mortgage Loans and the related Mortgage Notes were subject
      to no offsets, claims, defenses or counterclaims.

     

    It
      is
      understood and agreed that the representations and warranties set forth in
      this
      Section 2.04 shall survive delivery of the Mortgage Files to the Trustee or
      the Custodian for the benefit of the Certificateholders. Upon discovery by
      the
      Depositor, the Servicer, the Master Servicer or the Trustee of a breach of
      such
      representations and warranties, the party discovering such breach shall give
      prompt written notice to the others and to each Rating Agency.

     

    Section
      2.05  Delivery
      of Opinion of Counsel in Connection with Substitutions and
      Repurchases.

     

    (a)  Notwithstanding
      any contrary provision of this Agreement, with respect to any Mortgage Loan
      that
      is not in default or as to which default is not imminent, no repurchase or
      substitution pursuant to Sections 2.02 or 2.03 shall be made unless the Sponsor
      delivers to the Trustee an Opinion of Counsel, addressed to the Trustee, to
      the
      effect that such repurchase or substitution would not (i) result in the
      imposition of the tax on “prohibited transactions” of REMIC I, REMIC II or REMIC
      III or contributions after the Closing Date, as defined in sections 860F(a)(2)
      and 860G(d) of the Code, respectively or (ii) cause any of REMIC I, REMIC II
      or
      REMIC III to fail to qualify as a REMIC at any time that any Certificates are
      outstanding. Any Mortgage Loan as to which repurchase or substitution was
      delayed pursuant to this paragraph shall be repurchased or the substitution
      therefor shall occur (subject to compliance with Sections 2.02 or 2.03) upon
      the
      earlier of (a) the occurrence of a default or imminent default with respect
      to
      such Mortgage Loan and (b) receipt by the Trustee of an Opinion of Counsel
      to
      the effect that such repurchase or substitution, as applicable, will not result
      in the events described in clause (i) or clause (ii) of the preceding
      sentence.

     

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

     

    Section
      2.06  Issuance
      of the REMIC I Regular Interests.

     

    The
      Trustee acknowledges the assignment to it of the Mortgage Loans and the delivery
      to the Custodian on its behalf of the related Mortgage Files, subject to the
      provisions of Section 2.01 and Section 2.02, together with the
      assignment to it of all other assets included in REMIC I, the receipt of which
      is hereby acknowledged. The interests evidenced by the Class R-I Interest,
      together with the REMIC I Regular Interests, constitute the entire beneficial
      ownership interest in REMIC I. The rights of the Holders of the Class R-I
      Interest and REMIC I (as holder of the REMIC I Regular Interests) to receive
      distributions from the proceeds of REMIC I in respect of the Class R-I Interest
      and the REMIC I Regular Interests, respectively, and all ownership interests
      evidenced or constituted by the Class R-I Interest and the REMIC I Regular
      Interests, shall be as set forth in this Agreement.

     

    Section
      2.07  Conveyance
      of the REMIC I Regular Interests; Issuance and Conveyance of the REMIC II
      Regular Interests, the Class X Interest, the Class P Interest and the Class
      IO
      Interest.

     

    (a)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without
      recourse, all the right, title and interest of the Depositor in and to the
      REMIC
      I Regular Interests for the benefit of the Class R-II Interest and REMIC II
      (as
      holder of the REMIC I Regular Interests). The Trustee acknowledges receipt
      of
      the REMIC I Regular Interests and declares that it holds and will hold the
      same
      in trust for the exclusive use and benefit of all present and future Holders
      of
      the Class R-II Interest and REMIC II (as holder of the REMIC I Regular
      Interests). The rights of the Holder of the Class R-II Interest and REMIC II
      (as
      holder of the REMIC I Regular Interests) to receive distributions from the
      proceeds of REMIC II in respect of the Class R-II Interest and the REMIC II
      Regular Interests, respectively, and all ownership interests evidenced or
      constituted by the Class R-II Interest and the REMIC II Regular Interests,
      shall
      be as set forth in this Agreement. The Class R-II Interest and the REMIC II
      Regular Interests shall constitute the entire beneficial ownership interest
      in
      REMIC II.

     

    (b)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without
      recourse, all the right, title and interest of the Depositor in and to the
      REMIC
      II Regular Interests for the benefit of the Class R-III Interest and REMIC
      III
      (as holder of the REMIC II Regular Interests). The Trustee acknowledges receipt
      of the REMIC II Regular Interests and declares that it holds and will hold
      the
      same in trust for the exclusive use and benefit of all present and future
      Holders of the Class R-III Interest and REMIC III (as holder of the REMIC II
      Regular Interests). The rights of the Holder of the Class R-III Interest and
      REMIC III (as holder of the REMIC II Regular Interests) to receive distributions
      from the proceeds of REMIC III in respect of the Class R-III Interest and the
      Regular Certificates (other than the Class X and Class P Certificates), the
      Class X Interest, the Class P Interest and the Class IO Interest, respectively,
      and all ownership interests evidenced or constituted by the Class R-III Interest
      and the Regular Certificates (other than the Class X and Class P Certificates),
      the Class X Interest, the Class P Interest and the Class IO Interest, shall
      be
      as set forth in this Agreement. The Class R-III Interest, the Regular
      Certificates (other than the Class X and Class P Certificates), the Class X
      Interest, the Class P Interest and the Class IO Interest shall constitute the
      entire beneficial ownership interest in REMIC III.

     

    (c)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without
      recourse, all the right, title and interest of the Depositor in and to the
      Class
      X Interest for the benefit of the Class R-IV Interest and REMIC IV (as holder
      of
      the Class X Interest). The Trustee acknowledges receipt of the Class X Interest
      and declares that it holds and will hold the same in trust for the exclusive
      use
      and benefit of all present and future Holders of the Class R-IV Interest and
      REMIC IV (as holder of the Class X Interest). The rights of the Holder of the
      Class R-IV Interest and REMIC IV (as holder of the Class X Interest) to receive
      distributions from the proceeds of REMIC IV in respect of the Class R-IV
      Interest, the Class X Certificates, and all ownership interests evidenced or
      constituted by the Class R-IV Interest and the Class X Certificates, shall
      be as
      set forth in this Agreement. The Class R-IV Interest and the Class X
      Certificates shall constitute the entire beneficial ownership interest in REMIC
      IV.

     

    (d)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without
      recourse, all the right, title and interest of the Depositor in and to the
      Class
      P Interest for the benefit of the Class R-V Interest and REMIC V (as holder
      of
      the Class P Interest). The Trustee acknowledges receipt of the Class P Interest
      and declares that it holds and will hold the same in trust for the exclusive
      use
      and benefit of all present and future Holders of the Class R-V Interest and
      REMIC V (as holder of the Class P Interest). The rights of the Holder of the
      Class R-V Interest and REMIC V (as holder of the Class P Interest) to receive
      distributions from the proceeds of REMIC V in respect of the Class R-V Interest,
      the Class P Certificates, and all ownership interests evidenced or constituted
      by the Class R-V Interest and the Class P Certificates, shall be as set forth
      in
      this Agreement. The Class R-V Interest and the Class P Certificates shall
      constitute the entire beneficial ownership interest in REMIC V.

     

    (e)  The
      Depositor, concurrently with the execution and delivery hereof, does hereby
      transfer, assign, set over and otherwise convey to the Trustee, without
      recourse, all the right, title and interest of the Depositor in and to the
      Class
      IO Interest for the benefit of the Class R-VI Interest and REMIC VI (as holder
      of the Class IO Interest). The Trustee acknowledges receipt of the Class IO
      Interest and declares that it holds and will hold the same in trust for the
      exclusive use and benefit of all present and future Holders of the Class R-VI
      Interest and REMIC VI (as holder of the Class IO Interest). The rights of the
      Holder of the Class R-VI Interest and REMIC VI (as holder of the Class IO
      Interest) to receive distributions from the proceeds of REMIC VI in respect
      of
      the Class R-VI Interest, the REMIC VI Regular Interest IO Certificates, and
      all
      ownership interests evidenced or constituted by the Class R-VI Interest and
      the
      REMIC VI Regular Interest IO Certificates, shall be as set forth in this
      Agreement. The Class R-VI Interest and the REMIC VI Regular Interest IO
      Certificates shall constitute the entire beneficial ownership interest in REMIC
      VI.

     

    Section
      2.08  Issuance
      of Class R Certificates and Class R-X Certificates.

     

    (a)  The
      Trustee acknowledges the assignment to it of the REMIC I Regular Interests
      and
      the REMIC II Regular Interests and, concurrently therewith and in exchange
      therefor, pursuant to the written request of the Depositor executed by an
      officer of the Depositor, the Securities Administrator has executed,
      authenticated and delivered to or upon the order of the Depositor, the Class
      R
      Certificates in authorized denominations. 

     

    (b)  The
      Trustee acknowledges the assignment to it of the Class X Interest, Class P
      Interest and Class IO Interest and, concurrently therewith and in exchange
      therefor, pursuant to the written request of the Depositor executed by an
      officer of the Depositor, the Securities Administrator has executed,
      authenticated and delivered to or upon the order of the Depositor, the Class
      R-X
      Certificates in authorized denominations.

     

    Section
      2.09  Establishment
      of Trust.

     

    The
      Depositor does hereby establish, pursuant to the further provisions of this
      Agreement and the laws of the State of New York, an express trust to be known,
      for convenience, as “Nomura Home Equity Loan, Inc., Home Equity Loan Trust,
      Series 2006-FM2” and does hereby appoint HSBC Bank USA, National Association, as
      Trustee in accordance with the provisions of this Agreement.

     

    Section
      2.10  Purpose
      and Powers of the Trust.

     

    The
      purpose of the common law trust, as created hereunder, is to engage in the
      following activities:

     

    (a)  acquire
      and hold the Mortgage Loans and the other assets of the Trust Fund and the
      proceeds therefrom;

     

    (b)  to
      issue
      the Certificates sold to the Depositor in exchange for the Mortgage
      Loans;

     

    (c)  to
      make
      payments on the Certificates;

     

    (d)  to
      engage
      in those activities that are necessary, suitable or convenient to accomplish
      the
      foregoing or are incidental thereto or connected therewith; and

     

    (e)  subject
      to compliance with this Agreement, to engage in such other activities as may
      be
      required in connection with conservation of the Trust Fund and the making of
      distributions to the Certificateholders.

     

    The
      trust
      is hereby authorized to engage in the foregoing activities. The Trustee shall
      not cause the trust to engage in any activity other than in connection with
      the
      foregoing or other than as required or authorized by the terms of this Agreement
      while any Certificate is outstanding, and this Section 2.10 may not be amended,
      without the consent of the Certificateholders evidencing 51% or more of the
      aggregate voting rights of the Certificates.

     

    ARTICLE
      III

    ADMINISTRATION
      AND SERVICING OF THE MORTGAGE LOANS; ACCOUNTS

     

    Section
      3.01  Servicer
      to act as Servicer of the Mortgage Loans.

     

    The
      Servicer shall service and administer the Mortgage Loans on behalf of the Trust
      Fund and in the best interest of and for the benefit of the Certificateholders
      (as determined by the Servicer in its reasonable judgment) in accordance with
      the terms of this Agreement and the Mortgage Loans and to the extent consistent
      with such terms and in accordance with and exercising the same care in
      performing those practices that the Servicer customarily employs and exercises
      in servicing and administering mortgage loans for its own account and of the
      same type as such Mortgage Loans in the jurisdiction where the related Mortgaged
      Property is located (including, compliance with all applicable federal, state
      and local laws).

     

    To
      the
      extent consistent with the foregoing, the Servicer shall seek the timely and
      complete recovery of principal and interest on the Mortgage Notes related to
      the
      Mortgage Loans and shall waive a Prepayment Charge only under the following
      circumstances: (i) such waiver is standard and customary in servicing similar
      mortgage loans and (ii) either (A) such waiver is related to a default or
      reasonably foreseeable default and would, in the reasonable judgment of the
      Servicer, maximize recovery of total proceeds taking into account the value
      of
      such Prepayment Charge and the related Mortgage Loan and, if such waiver is
      made
      in connection with a refinancing of the related Mortgage Loan, such refinancing
      is related to a default or a reasonably foreseeable default or (B) such waiver
      is made in connection with a refinancing of the related Mortgage Loan unrelated
      to a default or a reasonably foreseeable default where (x) the related Mortgagor
      has stated to the Servicer an intention to refinance the related Mortgage Loan
      and (y) the Servicer has concluded in its reasonable judgment that the waiver
      of
      such Prepayment Charge would induce such Mortgagor to refinance with the
      Servicer, (iii) the Servicer reasonably believes such Prepayment Charge is
      unenforceable in accordance with applicable law or the collection of such
      related Prepayment Charge would otherwise violate applicable law or (iv) the
      Servicer has not been provided with information sufficient to enable it to
      collect the Prepayment Charge. If a Prepayment Charge is waived as permitted
      by
      meeting both of the standards described in clauses (i) and (ii)(B) above, then
      the Servicer is required to pay the amount of such waived Prepayment Charge
      (the
“Servicer Prepayment Charge Payment Amount”), for the benefit of the Holders of
      the Class P Certificates, by depositing such amount into the Custodial Account
      within ninety (90) days of notice or discovery of such waiver meeting the
      standard set forth in both clauses (i) and (ii)(B) above; provided, however,
      that the Servicer shall not waive more than five-percent (5%) of the Prepayment
      Charges (by number of Prepayment Charges) set forth on the Prepayment Charge
      Schedule in accordance with clauses (i) and (ii)(B) above. Notwithstanding
      any
      other provisions of this Agreement, any payments made by the Servicer in respect
      of any waived Prepayment Charges pursuant to clauses (i) and (ii)(B) above
      and
      the preceding sentence shall be deemed to be paid outside of the Trust
      Fund.

     

    Subject
      only to the above-described applicable servicing standards (the “Accepted
      Servicing Practices”) and the terms of this Agreement and of the respective
      Mortgage Loans, the Servicer shall have full power and authority, acting alone
      and/or through subservicers as provided in Section 3.03, to do or cause to
      be done any and all things that it may deem necessary or desirable in connection
      with such servicing and administration, including but not limited to, the power
      and authority, subject to the terms hereof (i) to execute and deliver, on behalf
      of the Certificateholders and the Trustee, customary consents or waivers and
      other instruments and documents, (ii) to consent to transfers of any related
      Mortgaged Property and assumptions of the Mortgage Notes and related Mortgages
      (but only in the manner provided herein), (iii) to collect any Insurance
      Proceeds and other Liquidation Proceeds, and (iv) subject to Section 3.09,
      to effectuate foreclosure or other conversion of the ownership of the Mortgaged
      Property securing any Mortgage Loan.

     

    Without
      limiting the generality of the foregoing, the Servicer, in its own name or
      in
      the name of the Trust, the Depositor or the Trustee, is hereby authorized and
      empowered by the Trust, the Depositor and the Trustee, when the Servicer
      believes it appropriate in its reasonable judgment, to execute and deliver,
      on
      behalf of the Trustee, the Depositor, the Certificateholders or any of them,
      any
      and all instruments of satisfaction or cancellation, or of partial or full
      release or discharge and all other comparable instruments, with respect to
      the
      Mortgage Loans, and with respect to the related Mortgaged Properties held for
      the benefit of the Certificateholders. The Servicer shall prepare and deliver
      to
      the Depositor and/or the Trustee such documents requiring execution and delivery
      by any or all of them as are necessary or appropriate to enable the Servicer
      to
      service and administer the Mortgage Loans. Upon receipt of such documents,
      the
      Depositor and/or the Trustee shall execute such documents and deliver them
      to
      the Servicer. In addition, the Trustee shall execute, at the written request
      of
      the Servicer, and furnish to it any special or limited powers of attorney in
      the
      form of Exhibit
      S
      hereto
      applicable to all locations in which the Mortgaged Properties are located and
      other documents necessary or appropriate to enable the Servicer to carry out
      its
      servicing and administrative duties hereunder, provided such limited powers
      of
      attorney or other documents shall be prepared by the Servicer and submitted
      to
      the Trustee for review prior to execution. Notwithstanding anything to the
      contrary herein, the Trustee shall in no way be liable or responsible for the
      willful malfeasance of the Servicer, or for the wrongful or negligent actions
      taken by the Servicer, while the Servicer is acting pursuant to the powers
      granted to it in this paragraph.

     

    In
      accordance with the standards of the first paragraph of this Section 3.01,
      the Servicer shall advance or cause to be advanced funds as necessary for the
      purpose of effecting the payment of taxes and assessments on the Mortgaged
      Properties relating to the Mortgage Loans in order to preserve the lien on
      the
      Mortgaged Property, which advances shall be reimbursable in the first instance
      from related collections from the Mortgagors pursuant to Section 3.27, and
      further as provided in Section 3.32. All costs incurred by the Servicer, if
      any, in effecting the payments of such taxes and assessments on the related
      Mortgaged Properties and related insurance premiums shall not, for the purpose
      of calculating monthly distributions to the Certificateholders, be added to
      the
      Stated Principal Balance under the related Mortgage Loans, notwithstanding
      that
      the terms of such Mortgage Loans so permit. 

     

    Section
      3.02  Due-on-Sale
      Clauses; Assumption Agreements.

     

    (a)  Except
      as
      otherwise provided in this Section 3.02, when any Mortgaged Property has
      been or is about to be conveyed by the Mortgagor, the Servicer shall to the
      extent that it has knowledge of such conveyance, enforce any due-on-sale clause
      contained in any Mortgage Note or Mortgage, to the extent permitted under
      applicable law and governmental regulations, but only to the extent that such
      enforcement will not adversely affect or jeopardize coverage under any Required
      Insurance Policy. Notwithstanding the foregoing, the Servicer shall not be
      required to exercise such rights with respect to a Mortgage Loan if the Person
      to whom the related Mortgaged Property has been conveyed or is proposed to
      be
      conveyed satisfies the terms and conditions contained in the Mortgage Note
      and
      Mortgage related thereto and the consent of the mortgagee under such Mortgage
      Note or Mortgage is not otherwise so required under such Mortgage Note or
      Mortgage as a condition to such transfer. In the event that the Servicer is
      prohibited by law from enforcing any such due-on-sale clause, or if coverage
      under any Required Insurance Policy would be adversely affected, or if
      nonenforcement is otherwise permitted hereunder, the Servicer is authorized,
      subject to Section 3.02(b), to take or enter into an assumption and
      modification agreement from or with the person to whom such property has been
      or
      is about to be conveyed, pursuant to which such person becomes liable under
      the
      Mortgage Note and, unless prohibited by applicable state law, the Mortgagor
      remains liable thereon, provided that the related Mortgage Loan shall continue
      to be covered (if so covered before the Servicer enters into such an agreement)
      by the applicable Required Insurance Policies. The Servicer, subject to
      Section 3.02(b), is also authorized with the prior approval of the insurers
      under any Required Insurance Policies to enter into a substitution of liability
      agreement with such Person, pursuant to which the original Mortgagor is released
      from liability and such Person is substituted as Mortgagor and becomes liable
      under the Mortgage Note. Notwithstanding the foregoing, the Servicer shall
      not
      be deemed to be in default under this Section 3.02(a) by reason of any
      transfer or assumption that it reasonably believes it is restricted by law
      from
      preventing.

     

    (b)  Subject
      to the Servicer’s duty to enforce any due-on-sale clause to the extent set forth
      in Section 3.02(a), in any case in which a Mortgaged Property has been
      conveyed to a Person by a Mortgagor, and such Person is to enter into an
      assumption agreement or modification agreement or supplement to the Mortgage
      Note or Mortgage that requires the signature of the Trustee, or if an instrument
      of release signed by the Trustee is required releasing the Mortgagor from
      liability on the related Mortgage Loan, the Servicer shall prepare and deliver
      or cause to be prepared and delivered to the Trustee for signature and shall
      direct, in writing, the Trustee to execute the assumption agreement with the
      Person to whom the Mortgaged Property is to be conveyed and such modification
      agreement or supplement to the Mortgage Note or Mortgage or other instruments
      as
      are reasonable or necessary to carry out the terms of the Mortgage Note or
      Mortgage or otherwise to comply with any applicable laws regarding assumptions
      or the transfer of the Mortgaged Property to such Person. In connection with
      any
      such assumption, no material term of the Mortgage Note (including, but not
      limited to, the Mortgage Rate, the amount of the Scheduled Payment, the Index,
      Gross Margin, Periodic Rate Cap, Adjustment Date, Maximum Interest Rate or
      Minimum Mortgage Interest Rate, and any other term affecting the amount or
      timing of payment on the related Mortgage Loan) may be changed. In addition,
      the
      substitute Mortgagor and the Mortgaged Property must be acceptable to the
      Servicer in accordance with the servicing standard set forth in
      Section 3.01. The Servicer shall notify the Trustee that any such
      substitution or assumption agreement has been completed by forwarding to the
      Custodian 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.

     

    Section
      3.03  Subservicers.

     

    The
      Servicer shall perform all of its servicing responsibilities hereunder or may
      cause a Subservicer to perform any such servicing responsibilities on its
      behalf, but the use by the Servicer of a Subservicer shall not release the
      Servicer from any of its obligations hereunder with respect to the related
      Mortgage Loans. Any subservicing arrangement and the terms of the related
      Subservicing Agreement must provide for the servicing of such Mortgage Loans
      in
      a manner consistent with the servicing arrangements contemplated hereunder
      and
      the Servicer shall cause any Subservicer to comply with the provisions of this
      Agreement (including, without limitation, to provide the information required
      to
      be delivered under Sections 3.13, 3.14 and 3.18 hereof), to the same extent
      as
      if such Subservicer were the Servicer. Each Subservicer shall be (i) authorized
      to transact business in the state or states where the related Mortgaged
      Properties it is to service are situated, if and to the extent required by
      applicable law to enable the Subservicer to perform its obligations hereunder
      and under the Subservicing Agreement and (ii) a Freddie Mac or Fannie Mae
      approved mortgage servicer. The Servicer shall promptly, upon request, provide
      to the Master Servicer, the Trustee and the Depositor a written description
      (in
      form and substance reasonably satisfactory to the Master Servicer, the Trustee
      and the Depositor) of the role and function of each Subservicer utilized by
      the
      Servicer, specifying (i) the identity of each such Subservicer, (ii) which
      (if
      any) of such Subservicer are “participating in the servicing function” within
      the meaning of Item 1122 of Regulation AB, and (iii) which elements of the
      Servicing Criteria will be addressed in assessments of compliance provided
      by
      each Subservicer identified pursuant to clause (ii) of this subsection. The
      Servicer shall be responsible for obtaining from each Subservicer and delivering
      to the Master Servicer any annual statement of compliance, assessment of
      compliance, attestation report and Sarbanes-Oxley related certification required
      to be delivered by such Subservicer under Sections 3.13, 3.14 and 3.18, in
      each
      case, as and when required to be delivered. The Servicer shall pay all fees
      of
      each of its Subservicers from its own funds.

     

    Notwithstanding
      the foregoing, with respect to the Mortgage Loans, the Servicer shall be
      entitled to outsource one or more separate servicing functions to any Person
      that does not meet the eligibility requirements for a Subservicer (each such
      Person, a “Subcontractor”), so long as such outsourcing does not constitute the
      delegation of the Servicer’s obligation to perform all or substantially all of
      the servicing of the related Mortgage Loans to such Subcontractor. The Servicer
      shall promptly, upon request, provide to the Master Servicer, the Trustee and
      the Depositor a written description (in form and substance reasonably
      satisfactory to the Master Servicer, the Trustee and the Depositor) of the
      role
      and function of each Subcontractor utilized by the Servicer, specifying (i)
      the
      identity of each such Subcontractor “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB and (ii) which elements of
      the
      Servicing Criteria will be addressed in assessments of compliance provided
      by
      each such Subcontractor identified pursuant to clause (i) of this subsection.
      In
      such event, the use by the Servicer of any such Subcontractor shall not release
      the Servicer from any of its obligations hereunder and the Servicer shall remain
      responsible hereunder for all acts and omissions of such Subcontractor as fully
      as if such acts and omissions were those of the Servicer, and the Servicer
      shall
      pay all fees and expenses of the Subcontractor from the Servicer’s own
      funds.

     

    As
      a
      condition to the utilization of any Subcontractor determined to be
“participating in the servicing function” within the meaning of Item 1122 of
      Regulation AB, the Servicer shall cause any such Subcontractor used by it for
      the benefit of the Master Servicer, the Trustee and the Depositor to comply
      with
      the provisions of Sections 3.13, 3.14 and 3.18 of this Agreement to the same
      extent as if such Subcontractor were the Servicer. The Servicer shall be
      responsible for obtaining from each Subcontractor and delivering to the Master
      Servicer, the Trustee and any Depositor any annual statement of compliance,
      assessment of compliance, attestation report and Sarbanes-Oxley related
      certification required to be delivered by such Subcontractor under Sections
      3.13, 3.14 and 3.18, in each case as and when required to be
      delivered.

     

    At
      the
      cost and expense of the Servicer, without any right of reimbursement from its
      Custodial Account, the Servicer shall be entitled to terminate the rights and
      responsibilities of a Subservicer or Subcontractor and arrange for any servicing
      responsibilities to be performed by a successor Subservicer or Subcontractor;
      provided, however, that nothing contained herein shall be deemed to prevent
      or
      prohibit the Servicer, at its option, from electing to service the Mortgage
      Loans itself. In the event that the Servicer’s responsibilities and duties under
      this Agreement are terminated pursuant to Section 8.01, the Servicer shall
      at its own cost and expense terminate the rights and responsibilities of each
      Subservicer and Subcontractor with respect to the Mortgage Loans effective
      as of
      the date of the Servicer’s termination. The Servicer shall pay all fees,
      expenses or penalties necessary in order to terminate the rights and
      responsibilities of each Subservicer and Subcontractor from the Servicer’s own
      funds without reimbursement from the Trust Fund.

     

    Notwithstanding
      the foregoing, the Servicer shall not be relieved of its obligations hereunder
      with respect to the Mortgage Loans and shall be obligated to the same extent
      and
      under the same terms and conditions as if it alone were servicing and
      administering the Mortgage Loans. The Servicer shall be entitled to enter into
      an agreement with a Subservicer or Subcontractor, as applicable, for
      indemnification of the Servicer by the Subservicer or Subcontractor, as
      applicable, and nothing contained in this Agreement shall be deemed to limit
      or
      modify such indemnification.

     

    Any
      Subservicing Agreement and any other transactions or services relating to the
      Mortgage Loans involving a Subservicer or Subcontractor shall be deemed to
      be
      between such Subservicer or Subcontractor and the Servicer alone, and neither
      the Master Servicer nor the Trustee shall have any obligations, duties or
      liabilities with respect to such Subservicer or Subcontractor including any
      obligation, duty or liability of Master Servicer or the Trustee to pay such
      Subservicer’s or Subcontractor’s fees and expenses. For purposes of remittances
      to the Securities Administrator pursuant to this Agreement, the Servicer shall
      be deemed to have received a payment on a Mortgage Loan when a Subservicer
      or
      Subcontractor has received such payment.

     

    Section
      3.04  Documents,
      Records and Funds in Possession of the Servicer To Be Held for
      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 Mortgage Loan coming into the possession of the Servicer from time to
      time
      and shall account fully to the Securities Administrator for any funds received
      by the Servicer or that otherwise are collected by the Servicer as Liquidation
      Proceeds or Insurance Proceeds in respect of any such Mortgage Loan. All
      Mortgage Files and funds collected or held by, or under the control of, the
      Servicer in respect of any Mortgage Loans, whether from the collection of
      principal and interest payments or from Liquidation Proceeds, including but
      not
      limited to, any funds on deposit in the Custodial 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 Custodial Account,
      the
      Distribution Account or in any Escrow Account, or any funds that otherwise
      are
      or may become due or payable to the Trustee for the benefit of the
      Certificateholders, to any claim, lien, security interest, judgment, levy,
      writ
      of attachment or other encumbrance, or assert by legal action or otherwise
      any
      claim or right of set off against any Mortgage File or any funds collected
      on,
      or in connection with, a Mortgage Loan, except, however, that the Servicer
      shall
      be entitled to set off against and deduct from any such funds any amounts that
      are properly due and payable to it under this Agreement.

     

    Section
      3.05  Maintenance
      of Hazard Insurance.

     

    (a)  The
      Servicer shall cause to be maintained for each Mortgage Loan hazard insurance
      with extended coverage on the Mortgaged Property in an amount which is at least
      equal to the lesser of (i) the Stated Principal Balance of such Mortgage Loan
      and (ii) the amount necessary to fully compensate for any damage or loss to
      the
      improvements that are a part of such property on a replacement cost basis,
      in
      each case in an amount not less than such amount as is necessary to avoid the
      application of any coinsurance clause contained in the related hazard insurance
      policy. The Servicer shall also cause to be maintained hazard insurance with
      extended coverage on each REO Property in an amount which is at least equal
      to
      the lesser of (i) the maximum insurable value of the improvements which are
      a
      part of such REO Property and (ii) the Stated Principal Balance of the related
      Mortgage Loan at the time it became an REO Property. The Servicer will comply
      in
      the performance of this Agreement with all reasonable rules and requirements
      of
      each insurer under any such hazard policies. Any amounts collected by the
      Servicer under any such policies (other than amounts to be applied to the
      restoration or repair of the property subject to the related Mortgage or amounts
      to be released to the Mortgagor in accordance with the procedures that the
      Servicer would follow in servicing loans held for its own account, subject
      to
      the terms and conditions of the related Mortgage and Mortgage Note and in
      accordance with the servicing standard set forth in Section 3.01) shall be
      deposited in the Custodial Account, subject to withdrawal pursuant to
      Section 3.27. Any cost incurred by the Servicer in maintaining any such
      insurance shall not, for the purpose of calculating distributions to
      Certificateholders, be added to the Stated Principal Balance of the related
      Mortgage Loan, notwithstanding that the terms of such Mortgage Loan so permit.
      It is understood and agreed that no earthquake or other additional insurance
      is
      to be required of any Mortgagor 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 a Mortgaged Property or REO Property is at any time
      in
      an area identified in the Federal Register by the Federal Emergency Management
      Agency as having special flood hazards and flood insurance has been made
      available, the Servicer shall cause to be maintained a flood insurance policy
      in
      respect thereof. Such flood insurance shall be in an amount equal to the lesser
      of (i) the Stated Principal Balance of the related Mortgage Loan and (ii) the
      maximum amount of such insurance available for the related Mortgaged Property
      under the national flood insurance program (assuming that the area in which
      such
      Mortgaged Property is located is participating in such program).

     

    In
      the
      event that the Servicer shall obtain and maintain a blanket policy with an
      insurer having a General Policy Rating of B:VI or better in Best’s Key Rating
      Guide (or such other rating that is comparable to such rating) insuring against
      hazard losses on all of the Mortgage Loans, it shall conclusively be deemed
      to
      have satisfied its obligations as set forth in the first two sentences of this
      Section 3.05, it being understood and agreed that such policy may contain a
      deductible clause, in which case the Servicer shall, in the event that there
      shall not have been maintained on the related Mortgaged Property or REO Property
      a policy complying with the first two sentences of this Section 3.05, and
      there shall have been one or more losses which would have been covered by such
      policy, deposit to the Custodial Account maintained by the Servicer from its
      own
      funds the amount not otherwise payable under the blanket policy because of
      such
      deductible clause. In connection with its activities as administrator and
      servicer of the Mortgage Loans, the Servicer agrees to prepare and present,
      on
      behalf of itself, the Trustee and Certificateholders, claims under any such
      blanket policy in a timely fashion in accordance with the terms of such
      policy.

     

    (b)  The
      Servicer shall keep in force during the term of this Agreement a policy or
      policies of insurance covering errors and omissions for failure in the
      performance of its obligations under this Agreement, which policy or policies
      shall be in such form and amount that would meet the requirements of Fannie
      Mae
      or Freddie Mac if it were the purchaser of the Mortgage Loans, unless the
      Servicer has obtained a waiver of such requirements from Fannie Mae or Freddie
      Mac. The Servicer shall provide the Master Servicer, upon request, with copies
      of such insurance policies and fidelity bond (or waiver thereof). The Servicer
      shall also maintain a fidelity bond in the form and amount that would meet
      the
      requirements of Fannie Mae or Freddie Mac, unless the Servicer has obtained
      a
      waiver of such requirements from Fannie Mae or Freddie Mac. The Servicer shall
      be deemed to have complied with this provision if one of its Affiliates has
      such
      errors and omissions and fidelity bond coverage and, by the terms of such
      insurance policy or fidelity bond, the coverage afforded thereunder extends
      to
      the Servicer. Any such errors and omissions policy and fidelity bond shall
      by
      its terms not be cancelable without thirty (30) days’ prior written notice to
      the Master Servicer. The Servicer shall also cause its subservicers to maintain
      a policy of insurance covering errors and omissions and a fidelity bond which
      would meet such requirements.

     

    Section
      3.06  Presentment
      of Claims and Collection of Proceeds.

     

    The
      Servicer shall prepare and present on behalf of the Trustee and the
      Certificateholders all claims under the applicable Insurance Policies and take
      such reasonable actions (including the negotiation, settlement, compromise
      or
      enforcement of the insured’s claim) as shall be necessary to permit recovery
      under such Insurance Policies. Any proceeds disbursed to the Servicer in respect
      of such Insurance Policies shall, within two Business Days of its receipt,
      be
      deposited in the Custodial Account, except that any amounts realized that are
      to
      be applied to the repair or restoration of the related Mortgaged Property as
      a
      condition precedent to the presentation of claims on the related Mortgage Loan
      to the insurer under any applicable Insurance Policy need not be so deposited
      (or remitted). Notwithstanding any provision to the contrary, the Servicer
      shall
      have no responsibility to a primary mortgage insurance policy unless it has
      been
      made aware of such policy, as reflected on the Mortgage Loan Schedule or
      otherwise and has been provided with adequate information to administer such
      policy.

     

    Section
      3.07  Maintenance
      of Insurance Policies.

     

    Except
      as
      required by applicable law or the related Mortgage Loan documents, the Servicer
      shall not take any action that would result in noncoverage under any applicable
      Insurance Policy of any loss which, but for the actions of the Servicer would
      have been covered thereunder. The Servicer shall use its best efforts to keep
      in
      force and effect (to the extent that the related Mortgage Loan requires the
      Mortgagor to maintain such insurance), any applicable Insurance Policy. The
      Servicer shall not cancel or refuse to renew any Insurance Policy that is in
      effect at the date of the initial issuance of a Mortgage Note and is required
      to
      be kept in force hereunder.

     

    Section
      3.08  [Reserved.]

     

    Section
      3.09  Realization
      Upon Defaulted Mortgage Loans; Determination of Excess Liquidation Proceeds
      and
      Realized Losses; Repurchases of Certain Mortgage Loans.

     

    (a)  The
      Servicer shall use reasonable efforts to foreclose upon or otherwise comparably
      convert the ownership of properties securing such of the Mortgage Loans as
      come
      into and continue in default and as to which no satisfactory arrangements can
      be
      made for collection of delinquent payments. In connection with such foreclosure
      or other conversion, the Servicer shall follow such practices and procedures
      as
      it shall deem necessary or advisable and as shall be normal and usual in its
      general mortgage servicing activities and the requirements of the insurer under
      any Required Insurance Policy; provided that the 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 related
      Mortgage Loan after reimbursement to itself of such expenses and (ii) that
      such
      expenses will be recoverable to it through Liquidation Proceeds (respecting
      which it shall have priority for purposes of withdrawals from the Custodial
      Account). If the Servicer reasonably believes that Liquidation Proceeds with
      respect to any such Mortgage Loan would not be increased as a result of such
      foreclosure or other action, such Mortgage Loan will be charged-off and will
      become a Liquidated Loan. The Servicer will give notice of any such charge-off
      to the Securities Administrator. The Servicer shall be responsible for all
      other
      costs and expenses incurred by it in any such proceedings; provided that such
      costs and expenses shall be Servicing Advances and that it shall be entitled
      to
      reimbursement thereof from the proceeds of liquidation of the related Mortgaged
      Property, as contemplated in Section 3.27. If the Servicer has knowledge
      that a Mortgaged Property that it 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 it, the Servicer shall,
      prior to acquiring the Mortgaged Property, consider such risks and only take
      action in accordance with its established environmental review
      procedures.

     

    With
      respect to any REO Property, the deed or certificate of sale shall be taken
      in
      the name of the Trustee for the benefit of the Certificateholders (or the
      Trustee’s nominee on behalf of the Certificateholders). The Trustee’s name shall
      be placed on the title to such REO Property solely as the Trustee hereunder
      and
      not in its individual capacity. The Servicer shall ensure that the title to
      such
      REO Property references this Agreement and the Trustee’s capacity hereunder.
      Pursuant to its efforts to sell such REO Property, the Servicer shall either
      itself, or through an agent selected by it, protect and conserve such REO
      Property in the same manner and to such extent as is customary in the locality
      where such REO Property is located and may, incident to its conservation and
      protection of the interests of the Certificateholders, rent the same, or any
      part thereof, as the Servicer deems to be in the best interest of the Servicer
      and the Certificateholders for the period prior to the sale of such REO
      Property. The Servicer shall prepare for and deliver to the Securities
      Administrator 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 Securities Administrator to comply with
      the
      reporting requirements of the REMIC Provisions. The net monthly rental income,
      if any, from such REO Property shall be deposited in the Custodial Account
      no
      later than the close of business on each Determination Date. The Servicer shall
      perform the tax reporting and withholding related to foreclosures, abandonments
      and cancellation of indebtedness income as specified by Sections 6050H, 6050J
      and 6050P of the Code by preparing and filing such tax and information returns,
      as may be required.

     

    In
      the
      event that the Trust Fund acquires any Mortgaged Property as aforesaid or
      otherwise in connection with a default or imminent default on a Mortgage Loan,
      the Servicer shall dispose of such Mortgaged Property prior to three years
      after
      its acquisition by the Trust Fund or, at the expense of the Trust Fund, request
      from the Internal Revenue Service more than 60 days prior to the day on which
      such three-year period would otherwise expire, an extension of the three-year
      grace period. The Trustee and the Securities Administrator shall be supplied
      with an Opinion of Counsel (such opinion not to be an expense of the Trustee,
      the Securities Administrator or the Trust Fund) to the effect that the holding
      by the Trust Fund of such Mortgaged Property subsequent to such three-year
      period will not result in the imposition of taxes on “prohibited transactions”
of REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V or REMIC VI as defined in
      section 860F of the Code or cause either REMIC I, REMIC II, REMIC III, REMIC
      IV,
      REMIC V or REMIC VI to fail to qualify as a REMIC at any time that any
      Certificates are outstanding, in which case the Trust Fund may continue to
      hold
      such Mortgaged Property (subject to any conditions contained in such Opinion
      of
      Counsel). Notwithstanding any other provision of this Agreement, no Mortgaged
      Property acquired by the Trust Fund shall be rented (or allowed to continue
      to
      be rented) or otherwise used for the production of income by or on behalf of
      the
      Trust Fund in such a manner or pursuant to any terms that would (i) cause such
      Mortgaged Property to fail to qualify as “foreclosure property” within the
      meaning of section 860G(a)(8) of the Code or (ii) subject either REMIC I, REMIC
      II, REMIC III, REMIC IV, REMIC V or REMIC VI to the imposition of any federal,
      state or local income taxes on the income earned from such Mortgaged Property
      under section 860G(c) of the Code or otherwise, unless the 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 Mortgage Loan shall be
      subject to a determination by the Servicer that the proceeds of such foreclosure
      would exceed the costs and expenses of bringing such a proceeding. The income
      earned from the management of any Mortgaged Properties acquired through
      foreclosure or other judicial proceeding, net of reimbursement to the Servicer
      for expenses incurred (including any property or other taxes) in connection
      with
      such management and net of unreimbursed Servicing Fees, unreimbursed Master
      Servicing Fees, Advances, Servicing Advances and any management fee paid or
      to
      be paid with respect to the management of such Mortgaged Property, shall be
      applied to the payment of principal of, and interest on, the defaulted Mortgage
      Loans (with interest accruing as though such Mortgage Loans were still current)
      and all such income shall be deemed, for all purposes in the Agreement, to
      be
      payments on account of principal and interest on the related Mortgage Notes
      and
      shall be deposited into the Custodial Account. To the extent the income received
      during a Prepayment Period is in excess of the amount attributable to amortizing
      principal and accrued interest at the related Mortgage Rate on the related
      Mortgage Loan, such excess shall be considered to be a partial Principal
      Prepayment for all purposes hereof.

     

    The
      Liquidation Proceeds from any liquidation of a Mortgage Loan, net of any payment
      to the Servicer as provided above, shall be deposited in the Custodial Account
      on the next succeeding Determination Date following receipt thereof for
      distribution on the related Distribution Date, except that any Excess
      Liquidation Proceeds shall be retained by the Servicer as additional servicing
      compensation.

     

    The
      proceeds of any Liquidated Loan, as well as any recovery resulting from a
      partial collection of Liquidation Proceeds or any income from an REO Property,
      shall be applied in the following order of priority: first, to reimburse the
      Servicer for any related unreimbursed Servicing Advances and Servicing Fees,
      pursuant to Section 3.27 or this Section 3.09; second, to reimburse
      the Servicer for any unreimbursed Advances, pursuant to Section 3.27 or
      this Section 3.09; third, to accrued and unpaid interest (to the extent no
      Advance has been made for such amount) on the Mortgage Loan or related REO
      Property, at the Net Mortgage Rate to the first day of the month in which such
      amounts are required to be distributed; and fourth, as a recovery of principal
      of the Mortgage Loan.

     

    (b)  On
      each
      Determination Date, the Servicer shall determine the respective aggregate
      amounts of Excess Liquidation Proceeds and Realized Losses, if any, with respect
      to any Mortgage Loan for the related Prepayment Period and report the same
      to
      the Securities Administrator pursuant to Section 3.28.

     

    (c)  The
      Servicer has no intent to foreclose on any Mortgage Loan based on the
      delinquency characteristics as of the Closing Date; provided, however, that
      the
      foregoing does not prevent the Servicer from initiating foreclosure proceedings
      on any date hereafter if the facts and circumstances of such Mortgage Loans,
      including delinquency characteristics, in the Servicer’s discretion so warrant
      such action.

     

    Section
      3.10  Servicing
      Compensation.

     

    As
      compensation for its activities hereunder, the Servicer shall be entitled to
      retain or withdraw from the Custodial Account out of each payment of interest
      on
      each Mortgage Loan serviced by it included in the Trust Fund an amount equal
      to
      the Servicing Fee. In addition, the Servicer shall be entitled to recover any
      unpaid Servicing Fees payable to it out of Liquidation Proceeds, Insurance
      Proceeds or condemnation proceeds related to the Mortgage Loans serviced by
      the
      Servicer to the extent permitted by Section 3.27.

     

    Additional
      servicing compensation with respect to Mortgage Loans in the form of any Excess
      Liquidation Proceeds, assumption fees, late payment charges, insufficient funds
      charges and ancillary income to the extent such fees or charges are received
      by
      the Servicer, all income and gain net of any losses realized from Permitted
      Investments with respect to funds in or credited to the Custodial Account shall
      be retained by the Servicer to the extent not required to be deposited in the
      Custodial Account pursuant to Section 3.27. The Servicer shall be required
      to pay all expenses incurred by it in connection with its servicing activities
      hereunder (including payment of any premiums for hazard insurance, as required
      by Section 3.05 and maintenance of the other forms of insurance coverage
      required by Section 3.07 and shall not be entitled to reimbursement
      therefor except as specifically provided herein.

     

    Section
      3.11  REO
      Property.

     

    (a)  In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      related Mortgage Loan, the deed or certificate of sale shall be issued to the
      Trustee, or to its nominee, on behalf of the related Certificateholders. The
      Servicer shall sell any REO Property as expeditiously as possible and in
      accordance with the provisions of this Agreement. Pursuant to its efforts to
      sell such REO Property, the Servicer shall protect and conserve such REO
      Property in the manner and to the extent required herein, in accordance with
      the
      REMIC Provisions.

     

    (b)  The
      Servicer shall deposit all funds collected and received in connection with
      the
      operation of any REO Property into the Custodial Account.

     

    (c)  The
      Servicer, upon the final disposition of any REO Property, shall be entitled
      to
      reimbursement for any related unreimbursed Advances, unreimbursed Servicing
      Advances or Servicing Fees from Liquidation Proceeds received in connection
      with
      the final disposition of such REO Property; provided, that any such unreimbursed
      Advances or Servicing Fees as well as any unpaid Servicing Fees may be
      reimbursed or paid, as the case may be, prior to final disposition, out of
      any
      net rental income or other net amounts derived from such REO
      Property.

     

    Section
      3.12  Liquidation
      Reports.

     

    Upon
      the
      foreclosure of any Mortgaged Property or the acquisition thereof by the Trust
      Fund pursuant to a deed-in-lieu of foreclosure, the Servicer shall submit a
      liquidation report to the Trustee containing such information as shall be
      mutually acceptable to it and the Trustee with respect to such Mortgaged
      Property.

     

    Section
      3.13  Annual
      Statement as to Compliance.

     

    (a)  Each
      of
      the Servicer, the Master Servicer and the Securities Administrator shall deliver
      (and shall cause each Servicing Function Participant engaged by it to deliver)
      or otherwise make available to the Depositor and the Securities Administrator
      and in the case of the Master Servicer, to the Trustee on or before March 15
      of
      each year, commencing in March 2007, an Officer’s Certificate stating, as to the
      signer thereof, that (A) a review of such party’s activities during the
      preceding calendar year or portion thereof and of such party’s performance under
      this Agreement has been made under such officer’s supervision and (B) to the
      best of such officer’s knowledge, based on such review, such party has fulfilled
      all its obligations under this Agreement in all material respects throughout
      such year or portion thereof, or, if there has been a failure to fulfill any
      such obligation in any material respect, specifying each such failure known
      to
      such officer and the nature and status thereof.

     

    (b)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements,
      failure of the Servicer to comply timely with this Section 3.13 shall be deemed
      a Servicer Default, without any cure period, and the Master Servicer may, in
      addition to whatever rights the Master Servicer may have under this Agreement
      and at law or in equity or to damages, including injunctive relief and specific
      performance, terminate all the rights and obligations of the Servicer under
      this
      Agreement and in and to the Mortgage Loans and the proceeds thereof without
      compensating the Servicer for the same. The Master Servicer shall so terminate
      the Servicer by delivery of notice thereof via first class mail, facsimile
      or
      electronic mail. This paragraph shall supersede any other provision in this
      Agreement or any other agreement to the contrary other than the final paragraph
      of Section 8.01(a).

     

    (ii) After
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, failure
      of the Servicer to duly perform its obligations under this Section 3.13 on
      or
      before March 31 of each such year or failure to cure such default after the
      period of ten (10) Business Days as provided in Section 8.01(a)(ix) shall be
      deemed a Servicer Default as provided for in Section 8.01(a)(ix). The Master
      Servicer may terminate the Servicer by delivery of notice thereof via first
      class mail, facsimile or electronic mail.

     

    (c)  The
      Master Servicer shall include all annual statements of compliance received
      by it
      from the Servicer with its own annual statement of compliance to be submitted
      to
      the Securities Administrator pursuant to this Section 3.13.

     

    (d)  Copies
      of
      any Master Servicer annual statements of compliance required to be delivered
      hereunder shall be provided to any Certificateholder upon request at the Master
      Servicer’s expense.

     

    (e)  In
      the
      event the Servicer, the Master Servicer or the Securities Administrator is
      terminated or resigns pursuant to the terms of this Agreement, such party shall
      provide an Officer’s Certificate pursuant to this Section 3.13 with respect to
      the period of time it was subject to this Agreement notwithstanding any such
      termination, assignment or resignation.

     

    Section
      3.14  Assessments
      of Compliance and Attestation Reports.

     

    (a)  By
      March
      15 of
      each
      year, commencing in March 2007,
      the
      Servicer, the Master Servicer and the Securities Administrator, each at its
      own
      expense and pursuant to Item 1122(a) of Regulation AB, shall furnish or
      otherwise make available, and shall cause any Servicing Function Participant
      engaged by it to furnish, which in each case shall not be an expense of the
      Trust Fund, to the Securities Administrator and the Depositor, a report on
      an
      assessment of compliance with the Relevant Servicing Criteria that contains
      (A)
      a statement by such party of its responsibility for assessing compliance with
      the Relevant Servicing Criteria, (B) a statement that such party used the
      Relevant Servicing Criteria to assess compliance with the Relevant Servicing
      Criteria, (C) such party’s assessment of compliance with the Relevant Servicing
      Criteria for the period consisting of the prior calendar year, including, if
      there has been any material instance of noncompliance with the Relevant
      Servicing Criteria, a discussion of each such failure and the nature and status
      thereof, and (D) a statement that a registered public accounting firm has issued
      an attestation report on such party’s assessment of compliance with the Relevant
      Servicing Criteria for the period consisting of the prior calendar year,
      however, notwithstanding anything herein to the contrary, no Subcontractor
      will
      be required to deliver any assessment of compliance in any such given year
      in
      which a Form 10-K is not required to be filed.

     

    (b)  No
      later
      than February 1 of each year, commencing in February 2007, the Servicer and
      the
      Master Servicer shall forward to the Securities Administrator and the Depositor
      the name of each Servicing Function Participant engaged by it and what Relevant
      Servicing Criteria will be addressed in the report on assessment of compliance
      prepared by such Servicing Function Participant (provided, however, that the
      Master Servicer need not provide such information to the Securities
      Administrator so long as the Master Servicer and the Securities Administrator
      are the same entity). When the Servicer and the Master Servicer (or any
      Servicing Function Participant engaged by either of them) submit their
      assessments of compliance to the Securities Administrator, such parties will
      also at such time include the assessment of compliance (and attestation pursuant
      to paragraph (c) below) of each Servicing Function Participant engaged by it.
      

     

    Promptly
      after receipt of each such report on assessment of compliance, (i) the Depositor
      shall review each such report and, if applicable, consult with the Servicer,
      the
      Master Servicer, the Securities Administrator and any Servicing Function
      Participant engaged by such parties as to the nature of any material instance
      of
      noncompliance with the Relevant Servicing Criteria by each such party, and
      (ii)
      the Securities Administrator shall confirm that the assessments of compliance,
      taken as a whole, address all of the Servicing Criteria and taken individually
      address the Relevant Servicing Criteria for each party as set forth on Exhibit
      L
      and notify the Depositor of any exceptions. 

     

    In
      the
      event a Servicing Function Participant is terminated, assigns its rights and
      obligations under or resigns pursuant to the terms of this Agreement, or any
      other applicable agreement, as the case may be, such party shall provide, or
      cause a Servicing Function Participant engaged by it to provide, a report on
      assessment of compliance pursuant to this Section 3.14 with respect to the
      period of time it was subject to this Agreement or any other applicable
      agreement, as the case may be, notwithstanding any such termination, assignment
      or resignation.

     

    The
      Master Servicer shall include all annual reports on assessment of compliance
      received by it from the Servicer with its own assessment of compliance to be
      submitted to the Securities Administrator pursuant to this Section.

     

    (c)  By
      March
      15 of each year, commencing in March 2007, the Servicer, the Master Servicer
      and
      the Securities Administrator, each at its own expense, shall cause, and shall
      cause any Servicing Function Participant engaged by such party to cause, which
      in each case shall not be an expense of the Trust Fund, a registered public
      accounting firm (which may also render other services to such Servicing Function
      Participants) and that is a member of the American Institute of Certified Public
      Accountants to furnish an attestation report to the Master Servicer, the
      Securities Administrator and the Depositor to the effect that (i) it has
      obtained a representation regarding certain matters from the management of
      such
      party, which includes an assertion that such party has complied with the
      Relevant Servicing Criteria, and (ii) on the basis of an examination conducted
      by such firm in accordance with standards for attestation engagements issued
      or
      adopted by the PCAOB, it is expressing an opinion as to whether such party’s
      compliance with the Relevant Servicing Criteria was fairly stated in all
      material respects, or it cannot express an overall opinion regarding such
      party’s assessment of compliance with the Relevant Servicing Criteria; however,
      notwithstanding anything herein to the contrary, no Subcontractor will be
      required to deliver any assessment of compliance in any such given year in
      which
      a Form 10-K is not required to be filed.

     

    (d)  In
      the
      event that an overall opinion cannot be expressed, such registered public
      accounting firm shall state in such report why it was unable to express such
      an
      opinion. Such report must be available for general use and not contain
      restricted use language.

     

    Promptly
      after receipt of each such report on assessment of compliance and attestation
      report from a Servicing Function Participant, the Securities Administrator
      shall
      confirm that each assessment of compliance submitted pursuant to paragraph
      (a)
      above is coupled with an attestation meeting the requirements of this Section
      and notify the Depositor of any exceptions. 

     

    The
      Master Servicer shall include each such attestation report furnished to it
      by
      the Servicer with its own attestation to be submitted to the Securities
      Administrator pursuant to this Section.

     

    In
      the
      event any Servicing Function Participant is terminated, assigns its rights
      and
      obligations under or resigns pursuant to the terms of this Agreement, or any
      other applicable agreement, as the case may be, such party shall cause a
      registered public accounting firm to provide an attestation pursuant to this
      Section 3.14 or such other agreement with respect to the period of time it
      was
      subject to this Agreement or such other agreement, as the case may be,
      notwithstanding any such termination, assignment or resignation.

     

    (e)  (i)
      For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements,
      failure of the Servicer to comply timely with this Section 3.14 shall be deemed
      a Servicer Default as to the Servicer in accordance with Section 8.01(a)(viii),
      automatically, without notice and without any cure period, and the Master
      Servicer may, in addition to whatever rights the Master Servicer may have under
      this Agreement and at law or in equity or to damages, including injunctive
      relief and specific performance, terminate all the rights and obligations of
      the
      Servicer under this Agreement and in and to the Mortgage Loans and the proceeds
      thereof without compensating the Servicer for the same. The Master Servicer
      shall so terminate the Servicer by delivery of notice thereof via first class
      mail, facsimile or electronic mail. This paragraph shall supersede any other
      provision in this Agreement or any other agreement to the contrary other than
      the final paragraph of Section 8.01(a).

     

    (ii) After
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, failure
      of the Servicer to perform its obligations under this Section 3.14 on or before
      March 31 of each such year or failure to cure such default after the period
      of
      ten (10) Business Days as provided in Section 8.01(a)(ix) shall be deemed a
      Servicer Default as provided for in Section 8.01(a)(ix). The Master Servicer
      may
      terminate the Servicer by delivery of notice thereof via first class mail,
      facsimile or electronic mail.

     

    (f)  For
      the
      avoidance of doubt, it is understood that the assessments of compliance,
      attestation reports and other information required to be provided under this
      Section 3.14 shall be based on the activities of the applicable party that
      it
      performs with respect to asset-backed securities transactions taken as a whole
      involving such party that are backed by the same asset type as the Mortgage
      Loans. 

     

    Section
      3.15  Books
      and Records.

     

    The
      Servicer shall be responsible for maintaining, and shall maintain, a complete
      set of books and records for the Mortgage Loans which shall be appropriately
      identified in the Servicer’s computer system to clearly reflect the ownership of
      the Mortgage Loans by the Trust. In particular, the Servicer shall maintain
      in
      its possession, available for inspection by the Trustee and the Master Servicer
      and shall deliver to the Trustee or the Master Servicer upon reasonable prior
      request and during normal business hours, evidence of compliance in all material
      respects with all federal, state and local laws, rules and regulations. To
      the
      extent that original documents are not required for purposes of realization
      of
      Liquidation Proceeds or Insurance Proceeds, documents maintained by the Servicer
      may be in the form of microfilm or microfiche or such other reliable means
      of
      recreating original documents, including, but not limited to, optical imagery
      techniques so long as the Servicer complies with the requirements of Accepted
      Servicing Practices.

     

    The
      Servicer shall maintain with respect to each Mortgage Loan and shall upon
      reasonable prior request and during normal business hours make available for
      inspection by the Trustee and the Master Servicer the related servicing file
      during the time such Mortgage Loan is subject to this Agreement and thereafter
      in accordance with applicable law.

     

    Section
      3.16  The
      Trustee.

     

    The
      Trustee shall furnish the Servicer with any powers of attorney and other
      documents prepared and submitted by the Servicer to the Trustee in a form
      agreeable to the Trustee and necessary or appropriate to enable the Servicer
      to
      service and administer the related Mortgage Loans and REO
      Properties.

     

    The
      Trustee shall provide access to the records and documentation in possession
      of
      the Trustee regarding the related Mortgage Loans and REO Property and the
      servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee; provided, however, that, unless otherwise required by law,
      the
      Trustee shall not be required to provide access to such records and
      documentation if the provision thereof would violate the legal right to privacy
      of any Mortgagor. The Trustee shall allow representatives of the above entities
      to photocopy any of the records and documentation and shall provide equipment
      for that purpose at a charge that covers the Trustee’s actual
      costs.

     

    The
      Trustee shall execute and deliver as directed in writing by the Servicer any
      court pleadings, requests for trustee’s sale or other documents necessary or
      desirable to (i) the foreclosure or trustee’s sale with respect to a Mortgaged
      Property; (ii) any legal action brought to obtain judgment against any Mortgagor
      on the Mortgage Note; (iii) obtain a deficiency judgment against the Mortgagor;
      or (iv) enforce any other rights or remedies provided by the Mortgage Note
      or
      otherwise available at law or equity.

     

    Section
      3.17  REMIC-Related
      Covenants.

     

    For
      as
      long as each REMIC shall exist, the Trustee and the Securities Administrator
      shall act in accordance herewith to treat each REMIC as a REMIC, and the Trustee
      and the Securities Administrator shall comply with any directions of the
      Sponsor, the Servicer or the Master Servicer with respect to such treatment.
      In
      particular, the Trustee shall not (a) knowingly sell or permit the sale of
      all
      or any portion of the Mortgage Loans or of any investment of deposits in an
      Account unless such sale is as a result of a repurchase of the Mortgage Loans
      pursuant to this Agreement or the Trustee has received a REMIC Opinion prepared
      at the expense of the Trust Fund; and (b) other than with respect to a
      substitution pursuant to the Mortgage Loan Purchase Agreement or
      Section 2.04 of this Agreement, as applicable, accept any contribution to
      any REMIC after the Startup Day without receipt of a REMIC Opinion.

     

    Section
      3.18  Annual
      Sarbanes-Oxley Certification; Additional Information.

     

    (a)  The
      Servicer, the Master Servicer and the Securities Administrator shall and shall
      cause any Servicing Function Participant engaged by such party to, provide
      to
      the Certifying Person, by March 15 of each year in which the Trust Fund is
      subject to the reporting requirements of the Exchange Act, a certification
      (each, a “Back-Up
      Certification”),
      in
      the form attached hereto as Exhibit
      M,
      upon
      which the Certifying Person, the entity for which the Certifying Person acts
      as
      an officer, and such entity’s officers, directors and Affiliates (collectively
      with the Certifying Person, “Certification
      Parties”)
      can
      reasonably rely. The senior officer of the Master Servicer in charge of the
      master servicing function shall prepare a Sarbanes-Oxley Certification and
      sign
      the same on behalf of the Trust Fund serving as the “Certifying Person”. Such
      officer of the Certifying Person can be contacted by e-mail at or
      by
      facsimile at (410) 715-2380. In the event the Servicer, the Master Servicer
      or
      the Securities Administrator, or any Servicing Function Participant engaged
      by
      such party, is terminated or resigns pursuant to the terms of this Agreement,
      or
      any other applicable agreement, as the case may be, such party shall provide
      a
      Back-Up Certification to the Certifying Person pursuant to this Section 3.18
      with respect to the period of time it was subject to this Agreement or any
      other
      applicable agreement, as the case may be.

     

    Notwithstanding
      the foregoing, (i) the Master Servicer and the Securities Administrator shall
      not be required to deliver a Back-Up Certification to each other if each is
      the
      same Person and the Master Servicer is the Certifying Person and (ii) the Master
      Servicer shall not be obligated to execute any Sarbanes-Oxley Certification
      in
      the event that it does not receive a Back-Up Certification from any party
      required to deliver such Back-Up Certification pursuant to this Section, the
      Servicing Agreement or the Custodial Agreement; provided, however, in the event
      the Master Servicer shall not be required to execute a Sarbanes-Oxley
      Certification pursuant to clause (ii), the Master Servicer shall prepare such
      Sarbanes-Oxley Certification and deliver it to the Depositor for
      execution.

     

    (b)  The
      Servicer shall provide (or shall cause each Subservicer or Subcontractor to
      provide) to the Master Servicer, the Securities Administrator and the Depositor
      prompt notice and a description of the occurrence of any of the following:
      

     

    (i)  any
      Servicer Default under the terms of this Agreement, any merger, consolidation
      or
      sale of substantially all of the assets of the Servicer, the Servicer’s
      engagement of any Subservicer to perform or assist in the performance of any
      of
      the Servicer’s obligations under this Agreement, any material litigation or
      governmental proceedings involving the Servicer (or its Subservicer or
      Subcontractor, as applicable) that is material to any REMIC III
      Certificateholder, Class X Certificateholder or Class P Certificateholder and
      any affiliation or other significant relationship between the Servicer (or
      its
      Subservicer or Subcontractor, as applicable) and any other Transaction Parties
      and Fremont Investment & Loan of a type required to be reported under Item
      1119 of Regulation AB.

     

    (ii)  the
      appointment of a Subservicer or a Successor Servicer by the Servicer or its
      designee; provided, such notice and description required under this clause
      (ii)
      shall be delivered at least fifteen (15) calendar days prior to the effective
      date of such event and shall be in writing and in form and substance reasonably
      satisfactory to the Sponsor, Depositor, Master Servicer and Securities
      Administrator in order to comply with the Depositor’s reporting obligations
      under Item 6.02 of Form 8-K.

     

    (iii)  If
      the
      Servicer or any Servicing Function Participant engaged by the Servicer has
      knowledge of the occurrence during a particular due period of any of the events
      described in this clause (iii), then no later than ten days prior to the
      deadline for the filing the next Distribution Report on Form 10-D to be filed
      in
      respect of the Trust Fund with respect to such Due Period, the Servicer shall
      provide (or cause such Subservicer to provide) to the Master Servicer and
      Securities Administrator notice of the occurrence of any of the following events
      along with all information, data, and materials related thereto as may be
      required to be included in such Distribution Report on Form 10-D (as specified
      in the provisions of Regulation AB referenced below):

     

    (A)  any
      material modifications, extensions or waivers of pool asset terms, fees,
      penalties or payments during the distribution period or that have cumulatively
      become material over time (Item 1121(a)(11) of Regulation AB);

     

    (B)  material
      breaches of pool asset representations or warranties or transaction covenants
      of
      the Servicer (Item 1121(a)(12) of Regulation AB); and

     

    (C)  information
      regarding any material pool asset changes (such as additions, substitutions
      or
      repurchases).

     

    (c)  The
      Servicer shall provide to the Master Servicer and the Securities Administrator
      such additional information as the Master Servicer may reasonably request,
      including evidence of the authorization of the person signing any certification
      or statement, financial information and reports on behalf of the Servicer,
      and
      of the fidelity bond and errors and omissions insurance policy required to
      be
      maintained by the Servicer pursuant to this Agreement, and such other
      information related to the performance by the Servicer or any Servicing Function
      Participant engaged by the Servicer of its obligations hereunder or other
      applicable agreement.

     

    Section
      3.19  Release
      of Mortgage Files.

     

    (a)  Upon
      becoming aware of the payment in full of any Mortgage Loan, or the receipt
      by
      the Servicer of a notification that payment in full has been escrowed in a
      manner customary for such purposes for payment to Certificateholders on the
      next
      Distribution Date, the Servicer will (or if the Servicer does not, the Master
      Servicer may) promptly furnish to the Trustee and the Custodian, on behalf
      of
      the Trustee, two copies of a request for release substantially in the form
      attached to the Custodial Agreement signed by an Authorized Servicer
      Representative or in a mutually agreeable electronic format which will, in
      lieu
      of a signature on its face, originate from an Authorized Servicer Representative
      (which certification shall include a statement to the effect that all amounts
      received in connection with such payment that are required to be deposited
      in
      the Custodial Account pursuant to Article V have been or will be so deposited)
      and shall request that the Custodian, on behalf of the Trustee, deliver to
      the
      Servicer the related Mortgage File. Within three (3) Business Days of receipt
      of
      such certification and request, the Custodian, on behalf of the Trustee, shall
      release the related Mortgage File to the Servicer and the Trustee and the
      Custodian shall have no further responsibility with regard to such Mortgage
      File. Upon any such payment in full, the Servicer is authorized, to give, as
      agent for the Trustee, as the mortgagee under the Mortgage that secured the
      related Mortgage Loan, an instrument of satisfaction (or assignment of mortgage
      without recourse) regarding the Mortgaged Property subject to the Mortgage,
      which instrument of satisfaction or assignment, as the case may be, shall be
      delivered to the Person or Persons entitled thereto against receipt therefor
      of
      such payment, it being understood and agreed that no expenses incurred in
      connection with such instrument of satisfaction or assignment, as the case
      may
      be, shall be chargeable to the Custodial Account unless determined to be a
      Servicing Advance.

     

    (b)  From
      time
      to time and as appropriate for the servicing or foreclosure of any Mortgage
      Loan
      and in accordance with this Agreement, the Trustee shall execute such documents
      as shall be prepared and furnished to the Trustee by the Servicer (in form
      reasonably acceptable to the Trustee) and as are necessary to the prosecution
      of
      any such proceedings. The Custodian, on behalf of the Trustee, shall, within
      three (3) Business Days following written request of the Servicer, and delivery
      to the Custodian, on behalf of the Trustee, of two copies of a request for
      release signed by an Authorized Servicer Representative substantially in the
      form attached to the Custodial Agreement (or in a mutually agreeable electronic
      format which will, in lieu of a signature on its face, originate from an
      Authorized Servicer Representative), release the related Mortgage File held
      in
      its possession or control to the Servicer. Such request for release shall
      obligate the Servicer to return the Mortgage File to the Custodian on behalf
      of
      the Trustee, when the need therefor by such Person no longer exists unless
      the
      related Mortgage Loan shall be liquidated, in which case, upon receipt of a
      certificate of an Authorized Servicer Representative similar to that hereinabove
      specified, the Mortgage File shall be released by the Custodian, on behalf
      of
      the Trustee, to the Servicer.

     

    Section
      3.20  Documents,
      Records and Funds in Possession of the Servicer to be held for
      Trustee.

     

    (a)
       The
      Servicer (to the extent required by this Agreement) shall transmit to the
      Trustee or the Custodian such documents and instruments coming into the
      possession of the Servicer from time to time as are required by the terms hereof
      to be delivered to the Trustee or the Custodian. Any funds received by
the
      Servicer
      in
      respect of any Mortgage Loan or which otherwise are collected by the Servicer
      as
      Liquidation Proceeds or Insurance Proceeds in respect of any Mortgage Loan
      shall
      be held for the benefit of the Trustee and the Certificateholders subject to
      the
      right of the Servicer to retain its Servicing Fee and other amounts as provided
      in this Agreement.

     

    Section
      3.21  Possession
      of Certain Insurance Policies and Documents.

     

    The
      Servicer shall retain possession and custody of the originals (to the extent
      available) of any Insurance Policies, or certificate of insurance if applicable,
      and any certificates of renewal as to the foregoing as may be issued from time
      to time that comes into the possession of the Servicer, as contemplated by
      this
      Agreement. Until all amounts distributable in respect of the Certificates have
      been distributed in full, the Trustee (or the Custodian, as directed by the
      Trustee) shall retain possession and custody of each Mortgage File in accordance
      with and subject to the terms and conditions of this Agreement.

     

    Section
      3.22  [Reserved].

     

    Section
      3.23  UCC.

     

    The
      Sponsor agrees to execute and file continuation statements for any Uniform
      Commercial Code financing statements which the Sponsor has informed the Trustee
      were filed on the Closing Date in connection with the Trust. The Sponsor shall
      file any financing statements or amendments and continuation statements thereto
      required by any change in the Uniform Commercial Code.

     

    Section
      3.24  Optional
      Purchase of Defaulted Mortgage Loans.

     

    With
      respect to any Mortgage Loan which is delinquent in payment by ninety-one (91)
      days or more or is an REO Property, the Sponsor shall have the right to purchase
      such Mortgage Loan or REO Property from the Trust at a price equal to the
      Purchase Price. The Purchase Price shall be remitted to the Servicer for deposit
      in the Custodial Account and remitted by the Servicer to the Securities
      Administrator on the Remittance Date in the month immediately following the
      month in which the Purchase Price was deposited in the Custodial
      Account.

     

    If
      at any
      time the Sponsor remits to the Servicer a payment for deposit in the Custodial
      Account covering the amount of the Purchase Price for such a Mortgage Loan
      and
      the Servicer delivers an Officer’s Certificate to the Trustee certifying that
      the Purchase Price has been deposited in the Custodial Account, the Trustee
      shall execute the assignment of such Mortgage Loan at the request of the Sponsor
      without recourse to the Sponsor which shall succeed to all the Trustee’s, right,
      title and interest in and to such Mortgage Loan, and all security and documents
      relative thereto. Such assignment shall be an assignment outright and not for
      security. The Sponsor will thereupon own such Mortgage, and all such security
      and documents, free of any further obligation to the Trustee or the
      Certificateholders with respect thereto. The Sponsor shall be responsible for
      any transfer costs incurred with respect to a Mortgage Loan purchased pursuant
      to this Section 3.24.

     

    If
      the
      Sponsor repurchases a Mortgage Loan pursuant to this Section 3.24, the Servicer
      shall continue to service such Mortgage Loan unless the Sponsor shall repurchase
      the servicing rights thereon on terms mutually agreed to by the Sponsor and
      the
      Servicer. Notwithstanding the foregoing, the Master Servicer shall have no
      obligation to master service any Mortgage Loan that has been so
      repurchased.

     

    Section
      3.25  [Reserved].

     

    Section
      3.26  Collection
      of Mortgage Loan Payments; Custodial Account.

     

    (a)  The
      Servicer shall make reasonable efforts in accordance with Accepted Servicing
      Practices to collect all payments called for under the terms and provisions
      of
      the Mortgage Loans to the extent such procedures shall be consistent with this
      Agreement and the terms and provisions of any related Required Insurance Policy.
      Consistent with the foregoing, the Servicer may in its discretion (i) waive
      any
      late payment charge and (ii) extend the due dates for payments due on a Mortgage
      Note for a Mortgage Loan for a period not greater than 180 days; provided,
      however no such extension shall be materially adverse to the Certificateholders
      as reasonably determined by the Servicer. In the event of any such arrangement,
      the Servicer shall make Advances on the related Mortgage Loan during the
      scheduled period in accordance with the amortization schedule of such Mortgage
      Loan without modification thereof by reason of such arrangements, and shall
      be
      entitled to reimbursement therefor in accordance with Section 5.01. The
      Servicer shall not be required to institute or join in litigation with respect
      to collection of any payment (whether under a Mortgage, Mortgage Note or
      otherwise or against any public or governmental authority with respect to a
      taking or condemnation) if it reasonably believes that enforcing the provision
      of the Mortgage or other instrument pursuant to which such payment is required
      is prohibited by applicable law. In addition, if (x) a Mortgage Loan is in
      default or default is imminent or (y) the Servicer delivers to the Trustee
      and
      the Securities Administrator a REMIC Opinion, the Servicer may, (A) amend the
      related Mortgage Note to reduce the Mortgage Rate applicable thereto and (B)
      amend any Mortgage Note for a Mortgage Loan to extend the maturity
      thereof.

     

    (b)  The
      Servicer shall establish and maintain a segregated Custodial Account (which
      shall at all times be an Eligible Account) with a depository institution in
      the
      name of the Servicer for the benefit of the Trustee on behalf of the
      Certificateholders and designated “HSBC Bank USA, National Association, as
      trustee for registered holders of Nomura Home Equity Loan, Inc., Asset-Backed
      Certificates, Series 2006-FM2.” On behalf of the Trust Fund, the Servicer shall
      deposit or cause to be deposited in the clearing account in which it customarily
      deposits payments and collection on mortgage loans in connection with its
      mortgage loan servicing activities on a daily basis and in no event more than
      one Business Day after the Servicer’s receipt thereof, and shall thereafter
      deposit in the Custodial Account, in no event more than two Business Days after
      the Servicer’s receipt thereof, except as otherwise specifically provided
      herein, the following payments and collections remitted by subservicers or
      received by it in respect of the Mortgage Loans subsequent to the Cut-off Date
      (other than in respect of principal and interest due on the Mortgage Loans
      on or
      before the Cut-off Date) and the following amounts required to be deposited
      hereunder:

     

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

     

    (ii)  all
      payments on account of interest on the Mortgage Loans net of the Servicing
      Fee
      permitted under Section 3.10;

     

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

     

    (iv)  any
      amount required to be deposited by the Servicer pursuant to Section 3.26(c)
      in connection with any losses on Permitted Investments;

     

    (v)  any
      amounts required to be deposited by the Servicer pursuant to
      Section 3.05;

     

    (vi)  any
      amounts required to be deposited by the Servicer pursuant to
      Section 5.02;

     

    (vii)  any
      amounts paid by an Advance Financing Person in respect of Advances or Servicing
      Advances;

     

    (viii)  any
      Prepayment Charges collected by the Servicer in connection with the Principal
      Prepayment of any of the Mortgage Loans and any Servicer Prepayment Charge
      Payment Amounts;

     

    (ix)  the
      Purchase Price with respect to any Mortgage Loans serviced by the Servicer
      and
      purchased by the Sponsor pursuant to Section 2.02 or 2.03, any amounts
      which are to be treated pursuant to Section 2.04 of this Agreement as the
      payment of such a Purchase Price and the Purchase Price with respect to any
      Mortgage Loans serviced by the Servicer and purchased by the Sponsor pursuant
      to
      Section 3.24; and

     

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

     

    The
      foregoing requirements for deposit by the Servicer into the Custodial Account
      shall be exclusive, it being understood and agreed that, without limiting the
      generality of the foregoing, payments in the nature of late payment charges
      or
      assumption fees, if collected, need not be deposited by the Servicer. In the
      event that the Servicer shall deposit any amount not required to be deposited
      and not otherwise subject to withdrawal pursuant to Section 3.27, it may at
      any time withdraw or direct the institution maintaining the Custodial Account,
      to withdraw such amount from the Custodial Account, any provision herein to
      the
      contrary notwithstanding. Such withdrawal or direction may be accomplished
      by
      delivering written notice thereof to the institution maintaining the Custodial
      Account, that describes the amounts deposited in error in such Custodial
      Account. The Servicer shall maintain adequate records with respect to all
      withdrawals made pursuant to this Section. All funds deposited in the Custodial
      Account shall be held in trust for the Certificateholders until withdrawn in
      accordance with Section 3.27.

     

    (c)  The
      institution that maintains the Custodial Account, or other authorized entity
      shall invest the funds in the Custodial Account, in the manner directed by
      the
      Servicer, in Permitted Investments which shall mature not later than the next
      succeeding Remittance Date and shall not be sold or disposed of prior to its
      maturity. All such Permitted Investments shall be made in the name of the
      Trustee, for the benefit of the Certificateholders. All income and gain net
      of
      any losses realized from any such investment shall be for the benefit of the
      Servicer as servicing compensation and shall be remitted to it monthly as
      provided herein. The amount of any net losses (after application of all income
      and gains) incurred in the Servicer’s Custodial Account in respect of any such
      investments shall be deposited by the Servicer into the Custodial Account
      immediately as realized, out of its own funds.

     

    (d)  The
      Servicer shall give at least thirty (30) days’ advance notice to the Trustee,
      the Securities Administrator, the Master Servicer the Sponsor, each Rating
      Agency and the Depositor of any proposed change of location of the Custodial
      Account prior to any change thereof.

     

    Section
      3.27  Permitted
      Withdrawals From the Custodial Account.

     

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

     

    (i)  to
      pay
      itself (to the extent not previously paid to or withheld by it), as servicing
      compensation in accordance with Section 3.10, that portion of any payment
      of interest that equals the Servicing Fee for the period with respect to which
      such interest payment was made, and, as additional servicing compensation,
      those
      other amounts set forth in Section 3.10;

     

    (ii)  to
      reimburse itself or an Advance Financing Person for (A) any unreimbursed
      Advances to the extent of amounts received which represent late recoveries
      of
      payments of principal and/or interest (net of the related Servicing Fees),
      Liquidation Proceeds and Insurance Proceeds on the related Mortgage Loans with
      respect to which such Advances were made in accordance with the provisions
      of
      Section 5.01; and (B) any unreimbursed Advances with respect to the final
      liquidation of a Mortgage Loan that are Nonrecoverable Advances, but only to
      the
      extent that late recoveries of payments of principal and/or interest,
      Liquidation Proceeds and Insurance Proceeds received with respect to such
      Mortgage Loan are insufficient to reimburse the Servicer or an Advance Financing
      Person for such unreimbursed Advances or (C) subject to Section 3.27(b),
      any unreimbursed Advances to the extent of Amounts Held For Future Distribution
      funds held in the Custodial Account relating to the Mortgage Loans that were
      not
      included in the Available Distribution Amount for the preceding Distribution
      Date;

     

    (iii)  to
      reimburse itself or an Advance Financing Person for any Nonrecoverable
      Advances;

     

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

     

    (v)  to
      pay
      itself any unpaid Servicing Fees, including any unpaid Servicing Fees to the
      extent not recoverable from Liquidation Proceeds, Insurance Proceeds or other
      amounts received with respect to any Liquidated Loan, and to reimburse itself
      or
      any Advance Financing Person for any unreimbursed Servicing Advances, provided,
      however, that the Servicer’s or such Advance Financing Person’s right to
      reimbursement for Servicing Advances pursuant to this subclause (v) with respect
      to any Mortgage Loan shall be limited to amounts received on particular Mortgage
      Loan(s) (including, for this purpose, late recoveries of payments of principal
      and/or interest, Liquidation Proceeds, Insurance Proceeds, condemnation proceeds
      and purchase and repurchase proceeds) that represent late recoveries of the
      payments for which such Servicing Advances were made;

     

    (vi)  to
      pay to
      the Sponsor or the Depositor with respect to each Mortgage Loan or property
      acquired in respect thereof that has been purchased pursuant to
      Section 2.02, 2.03 or 3.24, all amounts received thereon and not taken into
      account in determining the related Stated Principal Balance of such repurchased
      Mortgage Loan;

     

    (vii)  to
      pay
      any expenses reimbursable pursuant to Section 7.04;

     

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

     

    (ix)  to
      transfer such funds to a different Custodial Account as permitted by Section
      3.26; and

     

    (x)  to
      clear
      and terminate the Custodial Account upon termination of this Agreement pursuant
      to Section 10.01 hereof.

     

    In
      addition, no later than 3:00 p.m. Eastern time on the Remittance Date, the
      Servicer shall withdraw from the Custodial Account and remit to the Securities
      Administrator (a) all amounts deposited in the Custodial Account as of the
      close
      of business on the last day of the related Due Period (net of charges against
      or
      withdrawals from the Custodial Account pursuant to this Section 3.27(a)),
      plus (b) all Advances, if any, which the Servicer is obligated to make pursuant
      to Section 5.01, minus (c) any amounts attributable to Principal
      Prepayments, Liquidation Proceeds, Insurance Proceeds or condemnation proceeds
      received after the applicable Prepayment Period, which amounts shall be remitted
      on the following Remittance Date, together with any Compensating Interest
      required to be deposited in the Custodial Account in connection with such
      Principal Prepayment in accordance with Section 5.02, and minus (d) any
      amounts attributable to Scheduled Payments collected but due on a Due Date
      or
      Due Dates subsequent to the first day of the month in which such Remittance
      Date
      occurs, which amounts shall be remitted on the Remittance Date next succeeding
      the Due Date related to such Scheduled Payment.

     

    With
      respect to any remittance received by the Securities Administrator after the
      Business Day on which such payment was due, the Securities Administrator shall
      send written notice thereof to the Servicer. The Servicer shall pay to the
      Securities Administrator interest on any such late payment by the Servicer
      at an
      annual rate equal to Prime Rate (as defined in The Wall Street Journal) plus
      one
      percentage point, but in no event greater than the maximum amount permitted
      by
      applicable law. Such interest shall be paid by the Servicer to the Securities
      Administrator on the date such late payment is made and shall cover the period
      commencing with the day following the Business Day on which such payment was
      due
      and ending with the Business Day on which such payment is made, both inclusive.
      The payment by the Servicer of any such interest, or the failure of the
      Securities Administrator to notify the Servicer of such interest, shall not
      be
      deemed an extension of time for payment or a waiver of any Servicer Default
      by
      the Servicer.

     

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

     

    (b)  Notwithstanding
      the foregoing, any Amounts Held For Future Distribution withdrawn by the
      Servicer as permitted in Section 3.27(a)(ii) in reimbursement of Advances
      previously made by the Servicer shall be appropriately reflected in the
      Servicer’s records and replaced by the Servicer by deposit in the Custodial
      Account, no later than the close of business on the Remittance Date immediately
      following the Due Period or Prepayment Period for which such amounts relate.
      The
      Securities Administrator will notify the Servicer and the Master Servicer by
      the
      close of business on the Business Day prior to the Distribution Date in the
      event that the amount remitted by the Servicer to the Securities Administrator
      on such date is less than the Advances required to be made by the Servicer
      for
      the related Distribution Date.

     

    Section
      3.28  Reports
      to Master Servicer.

     

    Not
      later
      than 3:00 p.m. Eastern time on the eighteenth (18th) calendar day of each month
      (or if such eighteenth calendar day is not a Business Day, the immediately
      following Business Day), the Servicer shall furnish to the Master Servicer
      (i)
      (a) monthly loan data in a mutually agreed-upon format, (b) default loan data
      in
      the format set forth in Exhibit X-1 hereto (or in such other format mutually
      agreed-upon between the Servicer and the Master Servicer) and (c) information
      regarding realized losses and gains in the format set forth in Exhibit X-2
      hereto (or in such other format mutually agreed between the Servicer and the
      Master Servicer), in each case relating to the period ending on the last day
      of
      the preceding calendar month, (ii) all such information reasonably required
      pursuant to clause (i)(a) above on a magnetic tape, electronic mail, or other
      similar media reasonably acceptable to the Master Servicer and (iii) all
      supporting documentation with respect to the information required pursuant
      to
      clause (i)(c) above.

     

    Section
      3.29  Collection
      of Taxes; Assessments and Similar Items; Escrow Accounts.

     

    To
      the
      extent required by the Mortgage Note related to a Mortgage Loan, the Servicer
      shall establish and maintain one or more accounts (each, an “Escrow Account”)
      and deposit, promptly upon receipt, and retain therein all collections from
      the
      Mortgagors (or Servicing Advances made by the Servicer) for the payment of
      taxes, assessments, hazard insurance premiums or comparable items for the
      account of the Mortgagors. Nothing herein shall require the Servicer to compel
      a
      Mortgagor to establish an Escrow Account in violation of applicable
      law.

     

    Withdrawals
      of amounts so collected from the Escrow Accounts may be made only to effect
      timely payment of taxes, assessments, hazard insurance premiums, condominium
      or
      PUD association dues, or comparable items, to reimburse the Servicer out of
      related collections for any payments made with respect to each Mortgage Loan
      pursuant to Section 3.01 (with respect to taxes and assessments and
      insurance premiums) and Section 3.05 (with respect to hazard insurance), to
      refund to any Mortgagors any sums as may be determined to be overages, to pay
      interest, if required by law or the terms of the related Mortgage or Mortgage
      Note, to such Mortgagors on balances in the Escrow Account, to remove amounts
      deposited in error or to clear and terminate the Escrow Account at the
      termination of this Agreement in accordance with Section 10.01 thereof. The
      Escrow Account shall not be a part of the Trust Fund.

     

    
      	Section
              3.30  	
              Adjustments
                to Mortgage Rate and Scheduled Payment.

            

    

     

    On
      each
      applicable Adjustment Date, the Mortgage Rate with respect to each adjustable
      rate Mortgage Loan shall be adjusted, in compliance with the requirements of
      the
      related Mortgage and Mortgage Note, to equal the sum of the Index plus the
      Gross
      Margin (rounded in accordance with the related Mortgage Note) subject to the
      applicable Periodic Rate Cap, Maximum Mortgage Interest Rate and Minimum
      Mortgage Interest Rate, as set forth in the Mortgage Note. The Servicer shall
      execute and deliver the notices required by each Mortgage and Mortgage Note,
      applicable laws and regulations regarding interest rate adjustments. The
      Servicer shall also provide timely notification to the Master Servicer of all
      applicable data and information regarding such interest rate adjustments and
      the
      Servicer’s methods of implementing such interest rate adjustments. Upon the
      discovery by the Servicer or the Master Servicer that the Servicer has failed
      to
      adjust a Mortgage Rate or a Scheduled Payment pursuant to the terms of the
      related Mortgage Note and Mortgage, the Servicer shall immediately deposit
      in
      the Custodial Account from its own funds the amount of any interest loss caused
      thereby without reimbursement therefor.

     

    Section
      3.31  Distribution
      Account.

     

    (a)  The
      Securities Administrator shall establish and maintain in the name of the
      Trustee, for the benefit of the Certificateholders, the Distribution Account
      as
      a segregated non-interest bearing trust account or accounts. The Securities
      Administrator will deposit in the Distribution Account as identified by the
      Securities Administrator and as received by the Securities Administrator, the
      following amounts:

     

    (i)  All
      payments and recoveries in respect of principal on the Mortgage Loans,
      including, without limitation, Principal Prepayments, Subsequent Recoveries,
      Liquidation Proceeds, Insurance Proceeds, condemnation proceeds and all payments
      and recoveries in respect of interest on the Mortgage Loans withdrawn by the
      Servicer from the Custodial Account and remitted by the Servicer to the
      Securities Administrator;

     

    (ii)  Any
      Advance and any Compensating Interest Payments;

     

    (iii)  Any
      Prepayment Charges collected by the Servicer in connection with the Principal
      Prepayment of any of the Mortgage Loans (including any Servicer Prepayment
      Charge Payment Amounts);

     

    (iv)  Any
      Insurance Proceeds or Liquidation Proceeds received by or on behalf of the
      Securities Administrator or which were not deposited in a Custodial
      Account;

     

    (v)  The
      Purchase Price with respect to any Mortgage Loans purchased by the Sponsor
      or
      Section 2.02 or 2.03, any amounts which are to be treated pursuant to
      Section 2.04 of this Agreement as the payment of such a Purchase Price, the
      Purchase Price with respect to any Mortgage Loans purchased by the Sponsor
      pursuant to Section 3.24, and all proceeds of any Mortgage Loans or
      property acquired with respect thereto repurchased by the Master Servicer
      pursuant to Section 10.01;

     

    (vi)  Any
      amounts required to be deposited with respect to losses on investments of
      deposits in an Account; and

     

    (vii)  Any
      other
      amounts received by or on behalf of the Securities Administrator and required
      to
      be deposited in the Distribution Account pursuant to this
      Agreement.

     

    (b)  All
      amounts deposited to the Distribution Account shall be held by the Securities
      Administrator in the name of the Trustee in trust for the benefit of the
      Certificateholders in accordance with the terms and provisions of this
      Agreement. The requirements for crediting the Distribution Account shall be
      exclusive, it being understood and agreed that, without limiting the generality
      of the foregoing, payments in the nature of late payment charges or assumption,
      tax service, statement account or payoff, substitution, satisfaction, release
      and other like fees and charges, need not be credited by the Securities
      Administrator to the Distribution Account.

     

    (c)  The
      amount at any time credited to the Distribution Account may be invested by
      the
      Securities Administrator in Permitted Investments that mature no later than
      the
      Business Day prior to the next succeeding Distribution Date as directed by
      the
      Master Servicer, unless the investment is managed by the Securities
      Administrator or an affiliate of the Securities Administrator, in which case
      such Permitted Investments may mature on the Distribution Date. All such
      investment income shall be for the benefit of the Master Servicer, and any
      losses incurred shall be deposited by the Master Servicer in the Distribution
      Account immediately as realized.

     

    Section
      3.32  Permitted
      Withdrawals and Transfers from the Distribution Account.

     

    (a)  The
      Securities Administrator will from time to time make or cause to be made such
      withdrawals or transfers from the Distribution Account pursuant to this
      Agreement for the following purposes:

     

    (i)  to
      pay to
      the Trustee any expenses recoverable by the Trustee pursuant to this
      Agreement.

     

    (ii)  to
      reimburse the Master Servicer as Successor Servicer or the Servicer for any
      Advance or Servicing Advance of its own funds, the right of the Master Servicer
      as Successor Servicer or the Servicer to reimbursement pursuant to this
      subclause (ii) being limited to amounts received on a particular Mortgage Loan
      (including, for this purpose, the Purchase Price therefor, Insurance Proceeds,
      Liquidation Proceeds and condemnation proceeds) which represent late payments
      or
      recoveries of the principal of or interest on such Mortgage Loan respecting
      which such Advance or Servicing Advance was made;

     

    (iii)  to
      reimburse the Master Servicer or the Servicer from Insurance Proceeds or
      Liquidation Proceeds relating to a particular Mortgage Loan for amounts expended
      by the Master Servicer as Successor Servicer or the Servicer in good faith
      in
      connection with the restoration of the related Mortgaged Property which was
      damaged by an uninsured cause or in connection with the liquidation of such
      Mortgage Loan;

     

    (iv)  to
      reimburse the Master Servicer as Successor Servicer or the Servicer from
      Insurance Proceeds relating to a particular Mortgage Loan for insured expenses
      incurred with respect to such Mortgage Loan and to reimburse the Master Servicer
      as Successor Servicer or the Servicer from Liquidation Proceeds from a
      particular Mortgage Loan for Liquidation Expenses incurred with respect to
      such
      Mortgage Loan;

     

    (v)  to
      reimburse the Master Servicer as Successor Servicer or the Servicer for advances
      of funds pursuant to this Agreement, and the right to reimbursement pursuant
      to
      this subclause being limited to amounts received on the related Mortgage Loan
      (including, for this purpose, the Purchase Price therefor, Insurance Proceeds,
      Liquidation Proceeds and condemnation proceeds) which represent late recoveries
      of the payments for which such advances were made;

     

    (vi)  to
      reimburse the Master Servicer as Successor Servicer or the Servicer for any
      Advance or advance, after a Realized Loss has been allocated with respect to
      the
      related Mortgage Loan if the Advance or advance has not been reimbursed pursuant
      to clauses (ii) and (v);

     

    (vii)  [reserved];

     

    (viii)  to
      reimburse the Trustee or the Securities Administrator for expenses, costs and
      liabilities incurred by and reimbursable to it pursuant to this Agreement
      (including the expenses of the Securities Administrator in connection with
      a tax
      audit in connection with the performance of its obligations pursuant to
      Section 9.13);

     

    (ix)  to
      pay to
      the Trust Fund, as additional servicing compensation, any Excess Liquidation
      Proceeds to the extent not retained by the Servicer;

     

    (x)  to
      reimburse or pay the Servicer any such amounts as are due thereto under this
      Agreement and have not been retained by or paid to the Servicer, to the extent
      provided herein or therein;

     

    (xi)  to
      reimburse the Trustee for expenses incurred in the transfer of servicing
      responsibilities of the terminated Servicer after the occurrence and continuance
      of a Servicer Default to the extent not paid by the terminated
      Servicer;

     

    (xii)  to
      reimburse the Master Servicer for any costs and expenses reimbursable to the
      Master Servicer pursuant to this Agreement;

     

    (xiii)  to
      reimburse the Custodian for expenses, costs and liabilities incurred or
      reimbursable to it pursuant to this Agreement or the Custodial
      Agreement;

     

    (xiv)  to
      remove
      amounts deposited in error; and

     

    (xv)  to
      clear
      and terminate the Distribution Account pursuant to
      Section 10.01.

     

    (b)  The
      Securities Administrator shall keep and maintain separate accounting, on a
      Mortgage Loan by Mortgage Loan basis, for the purpose of accounting for any
      reimbursement from the Distribution Account pursuant to subclauses (ii) through
      (v), inclusive, and (vii) or with respect to any such amounts which would have
      been covered by such subclauses had the amounts not been retained by the
      Securities Administrator without being deposited in the Distribution Account
      under Section 3.31.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute the Available
      Distribution Amount, to the extent of funds on deposit in the Distribution
      Account to the holders of the Certificates in accordance with
      Section 5.04.

     

    
      	Section
              3.33  	
              Credit
                Risk Management Services and Reports; Reliability of Data.

            

    

     

    (a)  The
      Depositor hereby appoints Wells Fargo Bank, National Association as Credit
      Risk
      Manager. The Credit Risk Manager shall perform certain services related to
      servicer review and oversight, monitoring and reporting of various Mortgage
      Loans and the Servicer’s performance, preparation of Mortgage Loan and REO
      Property payment, delinquency and loss information, reconciliation of Prepayment
      Charge collections by such Servicer and monitoring information related to
      insurance claims and foreclosures. If the Credit Risk Manager is not also acting
      as the Master Servicer, the Servicer shall furnish to the Credit Risk Manager
      a
      copy of all reports required to be provided by the Servicer to the Master
      Servicer pursuant to Section 3.28, which reports shall be provided in electronic
      format. No later than the end of each calendar month, the Credit Risk Manager
      shall prepare and make available certain reports containing various performance,
      payment, delinquency and loss information and information related to insurance
      claims and foreclosures. Such reports shall be made available through the
      facilities of Wells Fargo’s corporate trust services website, currently located
      at www.CTSLink.com,
      and
      shall be in a format and contain such content as is mutually agreed upon by
      the
      Sponsor and the Credit Risk Manager. None of the Trustee, the Securities
      Administrator, the Servicer or the Master Servicer shall have any obligation
      to
      review such reports or otherwise monitor or supervise the activities of the
      Credit Risk Manager.

     

    (b)  The
      Transaction Parties acknowledge and agree that the reports that are compiled
      and
      prepared by the Credit Risk Manager are based on information provided to the
      Credit Risk Manager by the Servicer, the Master Servicer and from various
      unaffiliated third parties, including other Persons involved in the servicing
      and administration of the related Mortgage Loans or related REO Properties.
      The
      Credit Risk Manager makes no representation or warranty as to the accuracy
      or
      completeness of any such information or data, and the Credit Risk Manager shall
      not be responsible for any misstatements, omissions, errors, or inaccuracies
      in
      any such reports or information resulting from any misstatements, omissions,
      errors, or inaccuracies in any information or data provided by third
      parties.

     

    
      	Section
              3.34  	
              Intellectual
                Property and Confidentiality.

            

    

     

    The
      Transaction Parties acknowledge and agree that the Credit Risk Manager’s
      services hereunder involve the use of various data, information, templates,
      processes, ideas, inventions, technology, software, algorithms, mathematical
      models, analytical tools, evaluative processes, parameters, measurements,
      methods, know-how, techniques, business practices, functionalities, ideas and
      concepts developed or utilized by the Credit Risk Manager or its affiliates
      in
      connection with the Credit Risk Manager’s performance of the credit risk
      management services and various other services (collectively, “Wells
      Fargo Intellectual Property”),
      and
      that all such Wells Fargo Intellectual Property is the sole and exclusive
      property of the Credit Risk Manager and its Affiliates and that no license
      for
      use of such Wells Fargo Intellectual Property is granted hereby or can be
      implied by the terms of this Agreement or the activities of the parties
      hereunder. The Transaction Parties covenant and agree to preserve the
      confidentiality of such Wells Fargo Intellectual Property, and further covenant
      and agree that neither the Transaction Parties nor any of their affiliates,
      directors, officers, employees, agents or representatives, including their
      outside counsel, auditors and advisors, respectively, shall use (or otherwise
      appropriate in any respect) any such Wells Fargo Intellectual Property or
      disclose, publicize, transfer, or otherwise compromise the value of any such
      Wells Fargo Intellectual Property, unless such Transaction Party is required
      by
      law or court order to disclose all or any part of the Wells Fargo Intellectual
      Property or except to another Transaction Party.

     

    
      	Section
              3.35  	
              Limitation
                Upon Liability of Credit Risk Manager; Indemnification.

            

    

     

    Neither
      the Credit Risk Manager nor any of the directors, officers, employees, or agents
      of the Credit Risk Manager shall be under any liability to the Servicer, the
      Master Servicer, the Securities Administrator, the Trustee, the
      Certificateholders or the Depositor for any action taken or for refraining
      from
      the taking of any action in good faith pursuant to this Agreement in reliance
      upon information provided by the Servicer, the Master Servicer or any
      Transaction Party or of errors in judgment; provided, however, that this
      provision shall not protect the Credit Risk Manager or any such person against
      any breach of representations or warranties made herein, failure to perform
      its
      obligations hereunder, or any liability which would otherwise be imposed by
      reason of willful misfeasance, bad faith, or gross negligence of the Credit
      Risk
      Manager in the performance of its duties hereunder or by reason of a breach
      of
      its obligations and duties under this Agreement. The Credit Risk Manager and
      any
      officer, employee or agent of the Credit Risk Manager 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. Subject to the terms of this
      Agreement, the Credit Risk Manager shall be under no obligation to appear in,
      prosecute, or defend any legal action which, in its reasonable opinion, may
      involve it in any expense or liability; provided, however, that the Credit
      Risk
      Manager may with the consent of the applicable Transaction Party, and at such
      Transaction Party’s expense, undertake any such action that it may deem
      necessary or desirable in respect to this Agreement and the rights, duties,
      and
      the interests of the parties hereto. 

     

    The
      Credit Risk Manager shall be indemnified by the Trust Fund and held harmless
      thereby against any loss, liability or expense (including reasonable legal
      fees
      and disbursements of counsel) incurred on its part that may be sustained in
      connection with, arising out of, or relating to this Agreement or any action
      taken or not taken by it under this Agreement unless such claims, liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements were imposed on, incurred by or asserted against
      the
      Credit Risk Manager or such other Person solely as a result of (i) the breach
      by
      the Credit Risk Manager of its obligations hereunder, which breach would subject
      the Credit Risk Manager to liability pursuant to the first paragraph of this
      Section or (ii) the breach by a Transaction Party of its obligations under
      this
      Agreement, in which case the related Transaction Party shall indemnify the
      Credit Risk Manager. Notwithstanding the foregoing, neither the Trust Fund
      nor
      the Transaction Parties shall indemnify the Credit Risk Manager for ordinary
      costs and expenses otherwise incurred by the Credit Risk Manager in the
      performance of the Credit Risk Manager’s duties under this Agreement. The
      foregoing indemnification shall survive the termination of this agreement or
      the
      termination, removal or substitution of any party to this Agreement.

     

    Section
      3.36  Resignation
      or Removal of Credit Risk Manager. 

     

    The
      Credit Risk Manager may resign upon thirty (30) days’ prior written notice to
      the Trustee. The Credit Risk Manager may be removed as Credit Risk Manager
      hereunder upon any material breach by the Credit Risk Manager in the performance
      of its duties hereunder following written notice of such breach provided by
      the
      Trustee at the direction of Certificateholders holding not less than a 66-2/3%
      of the Voting Rights and the Credit Risk Manager’s failure to cure such breach
      within a reasonable period following such notice.

     

    ARTICLE
      IV

     

    ADMINISTRATION
      AND MASTER SERVICING OF THE MORTGAGE LOANS

     

    Section
      4.01  The
      Master Servicer. 

     

    The
      Master Servicer shall supervise, monitor and oversee the obligation of the
      Servicer to
      service and administer the Mortgage Loans in accordance with the terms of this
      Agreement, and shall have full power and authority to do any and all things
      which it may deem necessary or desirable in connection with such master
      servicing and administration. In performing its obligations hereunder, the
      Master Servicer shall act in a manner consistent with Accepted Master Servicing
      Practices. Furthermore, the Master Servicer shall oversee and consult with
      the
      Servicer as necessary from time-to-time to carry out the Master Servicer’s
      obligations hereunder, shall receive, review and evaluate all reports,
      information and other data provided to the Master Servicer by the Servicer
      and
      shall enforce the Servicer’s obligation to perform and observe the covenants,
      obligations and conditions to be performed or observed by the Servicer under
      this Agreement. The Master Servicer shall independently and separately monitor
      the Servicer’s servicing activities with respect to each Mortgage Loan,
      reconcile the results of such monitoring with such information provided in
      the
      previous sentence on a monthly basis and coordinate corrective adjustments
      to
      the Servicer’s and Master Servicer’s records, and based on such reconciled and
      corrected information, provide such information relating to the Mortgage Loans
      to the Securities Administrator as shall be necessary to enable it to prepare
      the statements specified in Section 5.06 and any other information and
      statements required to be provided by the Securities Administrator hereunder.
      The Master Servicer shall reconcile the results of its Mortgage Loan monitoring
      with the actual remittances of the Servicer to the Distribution
      Account.

     

    Notwithstanding
      anything in this Agreement to the contrary, the Master Servicer shall not have
      any duty or obligation to enforce any Credit Risk Management Agreement that
      the
      Servicer is a party to (the “Servicer Credit Risk Management Agreement”) or to
      supervise, monitor or oversee the activities of the Credit Risk Manager under
      the Servicer Credit Risk Management Agreement with respect to any action taken
      or not taken by the Servicer pursuant to a recommendation of the Credit Risk
      Manager.

     

    The
      Trustee shall furnish the Servicer and the Master Servicer with any limited
      powers of attorney and other documents in form agreeable to the Trustee
      necessary or appropriate to enable the Servicer and the Master Servicer to
      service or master service and administer the Mortgage Loans and REO Property.
      The Trustee shall have no responsibility for any action of the Master Servicer
      or the Servicer pursuant to any such limited power of attorney or any other
      executed document delivered by the Trustee pursuant to this paragraph and shall
      be indemnified by the Master Servicer and the Servicer for any cost, liability
      or expense arising from the misuse thereof by the Master Servicer or the
      Servicer.

     

    The
      Trustee, the Custodian and the Securities Administrator shall provide access
      to
      the records and documentation in possession of the Trustee, the Custodian or
      the
      Securities Administrator regarding the Mortgage Loans and REO Property and
      the
      servicing thereof to the Certificateholders, the FDIC, and the supervisory
      agents and examiners of the FDIC, such access being afforded only upon
      reasonable prior written request and during normal business hours at the office
      of the Trustee, the Custodian or the Securities Administrator; provided,
      however, that, unless otherwise required by law, none of the Trustee, the
      Custodian or the Securities Administrator shall be required to provide access
      to
      such records and documentation if the provision thereof would violate the legal
      right to privacy of any Mortgagor. The Trustee, the Custodian and the Securities
      Administrator shall allow representatives of the above entities to photocopy
      any
      of the records and documentation and shall provide equipment for that purpose
      at
      a charge that covers the Trustee’s, the Custodian’s or the Securities
      Administrator’s actual costs.

     

    The
      Trustee shall execute and deliver to the Servicer or the Master Servicer upon
      request any court pleadings, requests for trustee’s sale or other documents
      necessary or desirable and, in each case, provided to the Trustee by the
      Servicer or the Master Servicer to (i) the foreclosure or trustee’s sale with
      respect to a Mortgaged Property; (ii) any legal action brought to obtain
      judgment against any Mortgagor on the Mortgage Note or any other Loan Document;
      (iii) obtain a deficiency judgment against the Mortgagor; or (iv) enforce any
      other rights or remedies provided by the Mortgage Note or any other Mortgage
      Loan Document or otherwise available at law or equity.

     

    Section
      4.02  Monitoring of the Servicer.

     

    The
      Master Servicer shall be responsible for monitoring the compliance by the
      Servicer with its duties under this Agreement. In the review of the Servicer’s
      activities, the Master Servicer may rely upon an officer’s certificate of the
      Servicer with regard to its compliance with the terms of this Agreement. In
      the
      event that the Master Servicer, in its judgment, determines that the Servicer
      should be terminated in accordance with this Agreement, or that a notice should
      be sent pursuant to this Agreement with respect to the occurrence of an event
      that, unless cured, would constitute grounds for such termination, the Master
      Servicer shall notify the Sponsor and the Trustee thereof and the Master
      Servicer shall issue such notice or take such other action as it deems
      appropriate.

     

    The
      Master Servicer, for the benefit of the Trustee and the Certificateholders,
      shall enforce the obligations of the Servicer under this Agreement, and the
      Master Servicer shall, in the event that the Servicer fails to perform its
      obligations in accordance with this Agreement, subject to this Section
      and Article VIII, terminate the rights and obligations of the Servicer
      hereunder in accordance with the provisions of Article VIII. Upon such
      termination, the Master Servicer shall act as servicer of the Mortgage Loans
      or
      enter in to a new servicing agreement with a Successor Servicer selected by
      the
      Master Servicer; provided, however, it is understood and acknowledged by the
      parties hereto that there will be a period of transition (not to exceed 90
      days)
      before the actual servicing functions can be fully transferred to the Master
      Servicer, the Trustee or such Successor Servicer. Such enforcement, including,
      without limitation, the legal prosecution of claims and the pursuit of other
      appropriate remedies, shall be in such form and carried out to such an extent
      and at such time as the Master Servicer, in its good faith business judgment,
      would require were it the owner of the Mortgage Loans. The Master Servicer
      shall
      pay the costs of such enforcement, provided that no provision of this Agreement
      shall require the Master Servicer to expend or risk its own funds or otherwise
      incur any financial liability in the performance of any of its duties hereunder,
      or in the exercise of any of its rights or powers, if it shall have reasonable
      grounds for believing that repayment of such funds or adequate indemnity against
      such risk or liability is not reasonably assured to it.

     

    To
      the
      extent that the costs and expenses related to the termination of the Servicer,
      appointment of a Successor Servicer or the transfer and assumption of servicing
      by the Master Servicer (including, without limitation, (i) all legal costs
      and
      expenses and all due diligence costs and expenses associated with an evaluation
      of the potential termination of the Servicer as a result of a Servicer Default
      and (ii) all costs and expenses associated with the complete transfer of
      servicing, including all servicing files and all servicing data and the
      completion, correction or manipulation of such servicing data as may be required
      by the Successor Servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the Successor Servicer to service the
      Mortgage Loans in accordance with this Agreement) are not fully and timely
      reimbursed by the terminated Servicer, the Master Servicer shall be entitled
      to
      reimbursement of such costs and expenses from the Distribution
      Account.

     

    The
      Master Servicer shall require the Servicer to comply with the remittance
      requirements and other obligations set forth in this Agreement.

     

    If
      the
      Master Servicer acts as Successor Servicer, it shall not assume liability for
      the representations and warranties of the Servicer that it
      replaces.

     

    Section
      4.03  Fidelity
      Bond. 

     

    The
      Master Servicer, at its expense, shall maintain in effect a blanket fidelity
      bond and an errors and omissions insurance policy that shall be in such form
      and
      amount generally acceptable for entities serving as master servicers or
      trustees, affording coverage with respect to all directors, officers, employees
      and other Persons acting on such Master Servicer’s behalf, and covering errors
      and omissions in the performance of the Master Servicer’s obligations hereunder.
      Any such errors and omissions policy and fidelity bond may not be cancelable
      without thirty (30) days’ prior written notice to the Trustee.

     

    Section
      4.04  Power
      to Act; Procedures. 

     

    The
      Master Servicer shall master service the Mortgage Loans and shall have full
      power and authority, subject to the REMIC Provisions and the provisions of
      Section 9.13 hereof, to do any and all things that it may deem necessary or
      desirable in connection with the master servicing and administration of the
      Mortgage Loans, including but not limited to the power and authority (i) to
      execute and deliver, on behalf of the 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, (iii) to collect any Insurance Proceeds and
      Liquidation Proceeds, and (iv) to effectuate foreclosure or other conversion
      of
      the ownership of the Mortgaged Property securing any Loan, in each case, in
      accordance with the provisions of this Agreement; provided, however, that the
      Master Servicer shall not (and, consistent with its responsibilities under
      Section 4.02, shall not permit any Servicer to) knowingly or intentionally
      take any action, or fail to take (or fail to cause to be taken) any action
      reasonably within its control and the scope of duties more specifically set
      forth herein, that, under the REMIC Provisions, if taken or not taken, as the
      case may be, would cause any REMIC to fail to qualify as a REMIC or result
      in
      the imposition of a tax upon the Trust Fund (including but not limited to the
      tax on prohibited transactions as defined in Section 860F(a)(2) of the Code
      and the tax on contributions to a REMIC set forth in Section 860G(d) of the
      Code) unless the Master Servicer has received an Opinion of Counsel (but not
      at
      the expense of the Master Servicer) to the effect that the contemplated action
      will not cause any REMIC to fail to qualify as a REMIC or result in the
      imposition of a tax upon any REMIC. The Trustee shall furnish the Master
      Servicer, upon written request from a Servicing Officer of the Master Servicer,
      with any powers of attorney, in form agreeable to the Trustee, empowering the
      Master Servicer, or the Servicer to execute and deliver instruments of
      satisfaction or cancellation, or of partial or full release or discharge, and
      to
      foreclose upon or otherwise liquidate Mortgaged Property, and to appeal,
      prosecute or defend in any court action relating to the Mortgage Loans or the
      Mortgaged Property, in accordance with this Agreement, and the Trustee shall
      execute and deliver such other documents, as the Master Servicer or a Servicer
      may request, to enable the Master Servicer to master service and administer
      the
      Mortgage Loans and carry out its duties hereunder, in each case in accordance
      with Accepted Master Servicing Practices (and the Trustee shall have no
      liability for the misuse of any such powers of attorney by the Master Servicer
      or the Servicer and shall be indemnified by the Master Servicer and the
      Servicer, as applicable, for any costs, liabilities or expenses incurred by
      the
      Trustee in connection with such misuse). If the Master Servicer or the Trustee
      has been advised that it is likely that the laws of the state in which action
      is
      to be taken prohibit such action if taken in the name of the Trustee or that
      the
      Trustee would be adversely affected under the “doing business” or tax laws of
      such state if such action is taken in its name, the Master Servicer shall join
      with the Trustee in the appointment of a co-trustee pursuant to
      Section 9.10 hereof. In the performance of its duties hereunder, the Master
      Servicer shall be an independent contractor and shall not, except in those
      instances where it is taking action authorized pursuant to this Agreement to
      be
      taken by it in the name of the Trustee, be deemed to be the agent of the
      Trustee.

     

    Section
      4.05  Due-on-Sale
      Clauses; Assumption Agreements. 
      

     

    To
      the
      extent Mortgage Loans contain enforceable due-on-sale clauses, the Master
      Servicer shall enforce the Servicer’s obligation to enforce such clauses in
      accordance with this Agreement. If applicable law prohibits the enforcement
      of a
      due-on-sale clause or such clause is otherwise not enforced in accordance with
      this Agreement, and, as a consequence, a Mortgage Loan is assumed, the original
      Mortgagor may be released from liability in accordance with this
      Agreement.

     

    Section
      4.06  Documents,
      Records and Funds in Possession of Master Servicer To Be Held for
      Trustee.

     

    The
      Master Servicer shall transmit to the Trustee or Custodian such documents and
      instruments coming into the possession of the Master Servicer from time to
      time
      as are required by the terms hereof to be delivered to the Trustee or the
      Custodian. Any funds received by the Master Servicer in respect of any Mortgage
      Loan or which otherwise are collected by the Master Servicer as Liquidation
      Proceeds, Insurance Proceeds or Subsequent Recoveries in respect of any Mortgage
      Loan shall be held for the benefit of the Trustee and the Certificateholders
      subject to the Master Servicer’s right to retain or withdraw from the
      Distribution Account the Master Servicing Compensation and other amounts
      provided in this Agreement. The Master Servicer shall, to the extent required
      by
      Article III of this Agreement, enforce the Servicer’s obligation to provide
      access to information and documentation regarding the Mortgage Loans serviced
      by
      the Servicer to the Trustee, its agents and accountants at any time upon
      reasonable request and during normal business hours, and to Certificateholders
      that are savings and loan associations, banks or insurance companies, the OTS,
      the FDIC and the supervisory agents and examiners of such Office and Corporation
      or examiners of any other federal or state banking or insurance regulatory
      authority if so required by applicable regulations of the OTS or other
      regulatory authority, such access to be afforded without charge but only upon
      reasonable request in writing and during normal business hours at the offices
      of
      the Master Servicer designated by it. In fulfilling such a request the Master
      Servicer shall not be responsible for determining the sufficiency of such
      information.

     

    All
      Mortgage Files and funds collected or held by, or under the control of, the
      Master Servicer, in respect of any Mortgage Loans, whether from the collection
      of principal and interest payments or from Liquidation Proceeds or Insurance
      Proceeds, shall be held by the Master Servicer for and on behalf of the Trustee
      and the Certificateholders and shall be and remain the sole and exclusive
      property of the Trustee; provided, however, that the Master Servicer and the
      Servicer shall be entitled to setoff against, and deduct from, any such funds
      any amounts that are properly due and payable to the Master Servicer or the
      Servicer under this Agreement.

     

    Section
      4.07  Standard
      Hazard Insurance and Flood Insurance Policies.

     

    For
      each
      Mortgage Loan, the Master Servicer shall enforce any obligation of the Servicer
      under this Agreement to maintain or cause to be maintained standard fire and
      casualty insurance and, where applicable, flood insurance, all in accordance
      with the provisions of this Agreement. It is understood and agreed that such
      insurance shall be with insurers meeting the eligibility requirements set forth
      in this Agreement, and that no earthquake or other additional insurance is
      to be
      required of any Mortgagor or to be maintained on property acquired in respect
      of
      a defaulted loan, other than pursuant to such applicable laws and regulations
      as
      shall at any time be in force and as shall require such additional
      insurance.

     

    Pursuant
      to Section 3.31, any amounts collected by the Master Servicer, under any
      insurance policies (other than amounts to be applied to the restoration or
      repair of the property subject to the related Mortgage or released to the
      Mortgagor in accordance with this Agreement) shall be deposited into the
      Distribution Account, subject to withdrawal pursuant to
      Section 3.32.

     

    Section
      4.08  Presentment
      of Claims and Collection of Proceeds. 

     

    The
      Master Servicer shall enforce the Servicer’s obligation to, prepare and present
      on behalf of the Trustee and the Certificateholders all claims under any
      insurance policies and take such actions (including the negotiation, settlement,
      compromise or enforcement of the insured’s claim) as shall be necessary to
      realize recovery under such policies. Any proceeds disbursed to the Master
      Servicer (or disbursed to the Servicer and remitted to the Master Servicer)
      in
      respect of such policies, bonds or contracts shall be promptly deposited in
      the
      Distribution Account upon receipt, except that any amounts realized that are
      to
      be applied to the repair or restoration of the related Mortgaged Property as
      a
      condition precedent to the presentation of claims on the related Mortgage Loan
      to the insurer under any applicable insurance policy need not be so deposited
      (or remitted).

     

    Section
      4.09  Maintenance
      of the Primary Mortgage Insurance Policies.

     

    The
      Master Servicer shall not take, or (to the extent within its control) permit
      the
      Servicer (to the extent such action is prohibited under this Agreement) to
      take,
      any action that would result in noncoverage under any primary mortgage insurance
      policy or any loss which, but for the actions of the Master Servicer or the
      Servicer, would have been covered thereunder. The Master Servicer shall use
      its
      best reasonable efforts to enforce the Servicer’s obligation to keep in force
      and effect (to the extent that the related Mortgage Loan requires the Mortgagor
      to maintain such insurance), primary mortgage insurance applicable to each
      Mortgage Loan in accordance with the provisions of this Agreement. The Master
      Servicer shall not, and (to the extent within its control) shall not permit
      the
      Servicer to, cancel or refuse to renew any primary mortgage insurance policy
      that is in effect at the date of the initial issuance of the Mortgage Note
      and
      is required to be kept in force hereunder except in accordance with the
      provisions of this Agreement.

     

    The
      Master Servicer agrees to enforce the Servicer’s obligation to present, on
      behalf of 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 Mortgage Loans. Pursuant to
      Section 3.31 of this Agreement, any amounts collected by the Master Servicer
      or
      the Servicer under any primary mortgage insurance policies shall be deposited
      by
      the Servicer or by the Master Servicer in the Distribution Account, subject
      to
      withdrawal pursuant to Section 3.32.

     

    Section
      4.10  Trustee
      to Retain Possession of Certain Insurance Policies and Documents.

     

    The
      Trustee or the Custodian, shall retain possession and custody of the originals
      (to the extent available) of any primary mortgage insurance policies, or
      certificate of insurance if applicable, and any certificates of renewal as
      to
      the foregoing as may be issued from time to time as contemplated by this
      Agreement. Until all amounts distributable in respect of the Certificates have
      been distributed in full and the Master Servicer and the Servicer otherwise
      has
      fulfilled its obligations under this Agreement, the Trustee or the Custodian
      shall also retain possession and custody of each Mortgage File in accordance
      with and subject to the terms and conditions of this Agreement and the Custodial
      Agreement. The Master Servicer shall promptly deliver or cause to be delivered
      to the Trustee or the Custodian, upon the execution or receipt thereof the
      originals of any primary mortgage insurance policies, any certificates of
      renewal, and such other documents or instruments that constitute Mortgage Loan
      Documents that come into the possession of the Master Servicer from time to
      time.

     

    Section
      4.11  Realization
      Upon Defaulted Loans. 

     

    The
      Master Servicer shall enforce the Servicer’s obligation to foreclose upon,
      repossess or otherwise comparably convert the ownership of Mortgaged Properties
      securing such of the Mortgage Loans as come into and continue in default and
      as
      to which no satisfactory arrangements can be made for collection of delinquent
      payments, all in accordance with this Agreement.

     

    Section
      4.12  Compensation
      for the Master Servicer.

     

    As
      compensation for its services hereunder, the Master Servicer shall be entitled
      to receive the Master Servicing Fee and to retain all income and gain realized
      from any investment of funds in the Distribution Account. The Master Servicer
      shall be required to pay all expenses incurred by it in connection with its
      activities hereunder and shall not be entitled to reimbursement therefor except
      as provided in this Agreement.

     

    The
      amount of the Master Servicing Compensation payable to the Master Servicer
      in
      respect of any Distribution Date shall be reduced in accordance with
      Section 4.14.

     

    Section
      4.13  REO
      Property.

     

    In
      the
      event the Trust Fund acquires ownership of any REO Property in respect of any
      Mortgage Loan, the deed or certificate of sale shall be issued to the Trustee,
      or to its nominee, on behalf of the Certificateholders. The Master Servicer
      shall enforce the Servicer’s obligation to sell, and the Servicer agrees to
      sell, any REO Property as expeditiously as possible and in accordance with
      the
      provisions of this Agreement. Further, the Master Servicer shall enforce the
      Servicer’s obligation to sell any REO Property prior to three (3) years after
      the end of the calendar year of its acquisition by REMIC I, unless (i) the
      Trustee and the Securities Administrator shall have been supplied with an
      Opinion of Counsel to the effect that the holding by the Trust Fund of such
      REO
      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 hereunder to fail to qualify as
      a REMIC at any time that any Certificates are outstanding, in which case the
      Trust Fund may continue to hold such Mortgaged Property (subject to any
      conditions contained in such Opinion of Counsel) or (ii) the Servicer shall
      have
      applied for, prior to the expiration of such three-year period, an extension
      of
      such three-year period in the manner contemplated by Section 856(e)(3) of
      the Code, in which case the three-year period shall be extended by the
      applicable extension period. The Master Servicer shall enforce the Servicer’s
      obligation to protect and conserve, such REO Property in the manner and to
      the
      extent required by this Agreement, in accordance with the REMIC Provisions
      and
      in a manner that does not result in a tax on “net income from foreclosure
      property” or cause such REO Property to fail to qualify as “foreclosure
      property” within the meaning of Section 860G(a)(8) of the
      Code.

     

    The
      Master Servicer shall enforce the Servicer’s obligation to deposit all funds
      collected and received in connection with the operation of any REO Property
      in
      the Custodial Account maintained by the Servicer.

     

    The
      Master Servicer and the Servicer, upon the final disposition of any REO
      Property, shall be entitled to reimbursement for any related unreimbursed
      Advances and other unreimbursed advances as well as any unpaid Servicing Fees
      and Master Servicing Fees from Liquidation Proceeds received in connection
      with
      the final disposition of such REO Property; provided, that any such unreimbursed
      Advances as well as any unpaid Master Servicing Fees may be reimbursed or paid,
      as the case may be, prior to final disposition, out of any net rental income
      or
      other net amounts derived from such REO Property.

     

    Section
      4.14  Obligation
      of the Master Servicer in Respect of Prepayment Interest
      Shortfalls.

     

    The
      Master Servicer shall deposit in the Distribution Account not later than each
      Distribution Date an amount equal to the lesser of (i) the aggregate amounts
      required to be paid by the Servicer under this Agreement with respect to
      Prepayment Interest Shortfalls on the Mortgage Loans for the related
      Distribution Date, and not so paid by the Servicer and (ii) the Master Servicing
      Fee (exclusive of the portion of such fee payable to the Credit Risk Manager)
      for such Distribution Date without reimbursement therefor.

     

    ARTICLE
      V

    ADVANCES
      AND DISTRIBUTIONS

     

    Section
      5.01  Advances;
      Advance Facility.

     

    (a)  The
      Servicer shall make an Advance with respect to any Mortgage Loan serviced by
      it
      and for which an Advance is required hereunder, and deposit such Advance in
      the
      Distribution Account no later than noon Eastern time on the Remittance Date
      in
      immediately available funds. The Servicer shall be obligated to make any such
      Advance only to the extent that such advance would not be a Nonrecoverable
      Advance. If the Servicer shall have determined that it has made a Nonrecoverable
      Advance or that a proposed Advance or a lesser portion of such Advance would
      constitute a Nonrecoverable Advance, the Servicer shall deliver (i) to the
      Securities Administrator for the benefit of the Certificateholders funds
      constituting the remaining portion of such Advance, if applicable, and (ii)
      to
      Master Servicer an Officer’s Certificate setting forth the basis for such
      determination. 

     

    In
      lieu
      of making all or a portion of such Advance from its own funds, the Servicer
      may
      (i) cause to be made an appropriate entry in its records relating to its
      Custodial Account that any Amounts Held for Future Distribution has been used
      by
      it in discharge of its obligation to make any such Advance and (ii) transfer
      such funds from its Custodial Account to the Distribution Account. Any funds
      so
      applied and transferred shall be replaced by the Servicer by deposit in the
      Distribution Account, no later than the close of business on any future
      Remittance Date on which the funds on deposit in its Custodial Account shall
      be
      less than the amount required to be remitted to the Securities Administrator
      on
      such Remittance Date. 

     

    The
      Securities Administrator will notify the Servicer and the Master Servicer by
      the
      close of business on the Business Day prior to the Distribution Date in the
      event that the amount remitted by the Servicer to the Securities Administrator
      on such date is less than the Advances required to be made by the Servicer
      for
      the related Distribution Date.

     

    The
      Servicer shall be entitled to be reimbursed from its Custodial Account for
      all
      Advances of its own funds made pursuant to this Section , as provided in
      Section 3.27 of this Agreement. The obligation to make Advances with
      respect to any Mortgage Loan shall continue until such Mortgage Loan is paid
      in
      full or the related Mortgaged Property or related REO Property has been
      liquidated or until the purchase or repurchase thereof (or substitution
      therefor) from the Trust Fund pursuant to any applicable provision of this
      Agreement, except as otherwise provided in this Section 5.01.

     

    Subject
      to and in accordance with the provisions of Article VIII hereof, in the event
      that the Servicer fails to make such Advance, then the Master Servicer, as
      a
      Successor Servicer, shall be obligated to make such Advance only to the extent
      such Advance, if made, would not constitute a Nonrecoverable Advance, subject
      to
      the provisions of this Section 5.01 and Section 8.02.

     

    (b)  (i)
      The
      Servicer is hereby authorized to enter into a financing or other facility (any
      such arrangement, an “Advance Facility”), the documentation for which complies
      with Section 5.01(b)(v) below, under which (1) the Servicer assigns or
      pledges its rights under this Agreement to be reimbursed for any or all Advances
      and/or Servicing Advances to (i) a Person, which may be a special-purpose
      bankruptcy-remote entity (an “SPV”), (ii) a Person, which may simultaneously
      assign or pledge such rights to an SPV or (iii) a lender (a “Lender”), which, in
      the case of any Person or SPV of the type described in either of the preceding
      clauses (i) or (ii), may directly or through other assignees and/or pledgees,
      assign or pledge such rights to a Person, which may include a trustee acting
      on
      behalf of holders of debt instruments (any such Person or any such Lender,
      an
“Advance Financing Person”), and/or (2) an Advance Financing Person agrees to
      fund all the Advances and/or Servicing Advances required to be made by the
      Servicer pursuant to this Agreement. No consent of the Trustee, the Securities
      Administrator, the Master Servicer, the Certificateholders or any other party
      shall be required before the Servicer may enter into an Advance Facility nor
      shall the Trustee, the Securities Administrator, the Master Servicer, or the
      Certificateholders be a third party beneficiary of any obligation of an Advance
      Financing Person to the Servicer. Notwithstanding the existence of any Advance
      Facility under which an Advance Financing Person agrees to fund Advances and/or
      Servicing Advances, (A) the Servicer (i) shall remain obligated pursuant to
      this
      Agreement to make Advances and/or Servicing Advances pursuant to and as required
      by this Agreement and (ii) shall not be relieved of such obligations by virtue
      of such Advance Facility and (B) neither the Advance Financing Person nor any
      Servicer Assignee (as hereinafter defined) shall have any right to proceed
      against or otherwise contact any Mortgagor for the purpose of collecting any
      payment that may be due with respect to any related Mortgage Loan or enforcing
      any covenant of such Mortgagor under the related Mortgage Loan documents.

     

    (ii)  If
      the
      Servicer enters into an Advance Facility, the Servicer and the related Advance
      Financing Person shall deliver to the Master Servicer and the Securities
      Administrator at the address set forth in Section 11.05 hereof no later
      than the Remittance Date immediately following the effective date of such
      Advance Facility a written notice (an “Advance Facility Notice”), stating (a)
      the identity of the Advance Financing Person and (b) the identity of the Person
      (the “Servicer’s Assignee”) that will, subject to Section 5.01(b)(iii)
      hereof, have the right to make withdrawals from the Custodial Account pursuant
      to Section 3.27 hereof to reimburse previously unreimbursed Advances and/or
      Servicing Advances (“Advance Reimbursement Amounts”). Advance Reimbursement
      Amounts (i) shall consist solely of amounts in respect of Advances and/or
      Servicing Advances for which the Servicer would be permitted to reimburse itself
      in accordance with Section 3.27 hereof, assuming the Servicer had made the
      related Advance(s) and/or Servicing Advance(s) and (ii) shall not consist of
      amounts payable to a Successor Servicer in accordance with Section 3.27
      hereof to the extent permitted under Section 5.01(b)(v) below.

     

    (iii)  Notwithstanding
      the existence of an Advance Facility, the Servicer, on behalf of the Advance
      Financing Person and the Servicer’s Assignee, shall be entitled to receive
      reimbursements of Advances and/or Servicing Advances in accordance with
      Section 3.27 hereof, which entitlement may be terminated by the Advance
      Financing Person pursuant to a written notice to the Master Servicer and the
      Securities Administrator in the manner set forth in Section 11.05 hereof.
      Upon receipt of such written notice, the Servicer shall no longer be entitled
      to
      receive reimbursement for any Advance Reimbursement Amounts and the Servicer’s
      Assignee shall immediately have the right to receive from the Custodial Account
      all Advance Reimbursement Amounts. Notwithstanding the foregoing, and for the
      avoidance of doubt, (i) the Servicer and/or the Servicer’s Assignee shall only
      be entitled to reimbursement of Advance Reimbursement Amounts hereunder from
      withdrawals from the Custodial Account pursuant to Section 3.27 of this
      Agreement and shall not otherwise be entitled to make withdrawals or receive
      amounts that shall be deposited in the Distribution Account pursuant to
      Section 3.31 hereof, and (ii) none of the Trustee or the Certificateholders
      shall have any right to, or otherwise be entitled to, receive any Advance
      Reimbursement Amounts to which the Servicer or the Servicer’s Assignee, as
      applicable, shall be entitled pursuant to Section 3.27 hereof. An Advance
      Facility may be terminated by the joint written direction of the Servicer and
      the related Advance Financing Person. Written notice of such termination shall
      be delivered to the Trustee in the manner set forth in Section 11.05
      hereof. None of the Depositor, Master Servicer, the Securities Administrator
      or
      the Trustee shall, as a result of the existence of any Advance Facility, have
      any additional duty or liability with respect to the calculation or payment
      of
      any Advance Reimbursement Amount, nor, as a result of the existence of any
      Advance Facility, shall the Depositor, Master Servicer, the Securities
      Administrator or the Trustee have any additional responsibility to track or
      monitor the administration of the Advance Facility or the payment of Advance
      Reimbursement Amounts to the Servicer’s Assignee. The Servicer shall indemnify
      the Master Servicer, the Securities Administrator, the Depositor, the Trustee,
      any Successor Servicer and the Trust Fund for any claim, loss, liability or
      damage resulting from any claim by the related Advancing Financing Person,
      except to the extent that such claim, loss, liability or damage resulted from
      or
      arose out of gross negligence, recklessness or willful misconduct on the part
      of
      the Master Servicer, the Securities Administrator, the Depositor, the Trustee
      or
      any Successor Servicer, as the case may be. The Servicer shall maintain and
      provide to any Successor Servicer and, upon request, the Trustee a detailed
      accounting on a loan-by-loan basis as to amounts advanced by, pledged or
      assigned to, and reimbursed to any Advancing Financing Person. The Successor
      Servicer shall be entitled to rely on any such information provided by the
      Servicer, and the Successor Servicer shall not be liable for any errors in
      such
      information.

     

    (iv)  An
      Advance Financing Person who receives an assignment or pledge of rights to
      receive Advance Reimbursement Amounts and/or whose obligations are limited
      to
      the funding of Advances and/or Servicing Advances pursuant to an Advance
      Facility shall not be required to meet the criteria for qualification as the
      Servicer.

     

    (v)  As
      between the Servicer and its Advance Financing Person, on the one hand, and
      a
      Successor Servicer and its Advance Financing Person, if any, on the other hand,
      Advance Reimbursement Amounts on a loan-by-loan basis with respect to each
      Mortgage Loan as to which an Advance and/or Servicing Advance shall have been
      made and be outstanding shall be allocated on a “first-in, first out” basis. In
      the event the Servicer’s Assignee shall have received some or all of an Advance
      Reimbursement Amount related to Advances and/or Servicing Advances that were
      made by a Person other than the Servicer or its related Advance Financing Person
      in error, then the Servicer’s Assignee shall be required to remit any portion of
      such Advance Reimbursement Amount to each Person entitled to such portion of
      such Advance Reimbursement Amount. Without limiting the generality of the
      foregoing, the Servicer shall remain entitled to be reimbursed by the Advance
      Financing Person for all Advances and/or Servicing Advances funded by the
      Servicer to the extent the related Advance Reimbursement Amounts have not been
      assigned or pledged to such Advance Financing Person or the Servicer’s
      Assignee.

     

    (vi)  For
      purposes of any Officer’s Certificate of the Servicer delivered pursuant to
      Section 5.01(a), any Nonrecoverable Advance referred to therein may have
      been made by the Servicer. In making its determination that any Advance or
      Servicing Advance theretofore made has become a Nonrecoverable Advance, the
      Servicer shall apply the same criteria in making such determination regardless
      of whether such Advance or Servicing Advance shall have been made by the
      Servicer.

     

    (vii)  Any
      amendment to this Section 5.01(b) or to any other provision of this
      Agreement that may be necessary or appropriate to effect the terms of an Advance
      Facility as described generally in this Section 5.01(b), including
      amendments to add provisions relating to a Successor Servicer, may be entered
      into by the Master Servicer, the Securities Administrator, the Trustee, the
      Depositor and the Servicer without the consent of any Certificateholder,
      provided such amendment complies with Section 11.01 hereof. All reasonable
      costs and expenses (including attorneys’ fees) of each party hereto of any such
      amendment shall be borne solely by the Servicer. The parties hereto hereby
      acknowledge and agree that: (a) the Advances and/or Servicing Advances financed
      by and/or pledged to an Advance Financing Person under any Advance Facility
      are
      obligations owed to the Servicer payable only from the cash flows and proceeds
      received under this Agreement for reimbursement of Advances and/or Servicing
      Advances only to the extent provided herein, and none of the Master Servicer,
      the Securities Administrator, the Trustee or the Trust are, as a result of
      the
      existence of any Advance Facility, obligated or liable to repay any Advances
      and/or Servicing Advances financed by the Advance Financing Person; (b) the
      Servicer will be responsible for remitting to the related Advance Financing
      Person the applicable amounts collected by it as reimbursement for Advances
      and/or Servicing Advances funded by such Advance Financing Person, subject
      to
      the provisions of this Agreement; and (c) none of the Master Servicer, the
      Securities Administrator or the Trustee shall have any responsibility to track
      or monitor the administration of the financing arrangement between the Servicer
      and any Advance Financing Person.

     

    Section
      5.02  Compensating
      Interest Payments.

     

    In
      the
      event that there is a Prepayment Interest Shortfall arising from a voluntary
      Principal Prepayment in part or in full by the Mortgagor with respect to any
      Mortgage Loan, the Servicer shall, to the extent of the Servicing Fee for such
      Distribution Date, deposit into its Custodial Account, as a reduction of and
      to
      the extent of, the Servicing Fee for such Distribution Date, no later than
      the
      close of business on the Remittance Date immediately preceding such Distribution
      Date, an amount equal to the Prepayment Interest Shortfall; and in case of
      such
      deposit, the Servicer shall not be entitled to any recovery or reimbursement
      from the Depositor, the Trustee, the Sponsor, the Trust Fund, the Master
      Servicer or the Certificateholders.

     

    Section
      5.03  REMIC
      Distributions.

     

    On
      each
      Distribution Date the Securities Administrator, shall be deemed to allocate
      distributions to the REMIC I Regular Interests and REMIC II Regular Interests
      in
      accordance with Section 5.07 hereof.

     

    Section
      5.04  Distributions.

     

    (a)  On
      each
      Distribution Date, the Securities Administrator will withdraw funds on deposit
      in the Distribution Account and make distributions to the Certificateholders
      in
      accordance with the Remittance Report for such Distribution Date, in the
      following order of priority:

     

    (i)  On
      each
      Distribution Date, the Interest Remittance Amount for such Distribution Date,
      to
      the extent of funds in the Distribution Account, will be paid in the following
      order of priority:

     

    
      	(1)  	
              from
                the Interest Remittance Amount for Loan Group I and Loan Group II,
                the
                Group I Allocation Percentage and the Group II Allocation Percentage,
                as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                paid
                to the Supplemental Interest Trust and owed to the Swap Provider
                (unless
                the Swap Provider is a Defaulting Party or the sole Affected Party
                (as
                defined in the ISDA Master Agreement) and to the extent not paid
                by the
                Securities Administrator from any upfront payment received pursuant
                to any
                replacement interest rate swap agreement that may be entered into
                by the
                Supplemental Interest Trust
                Trustee);

            

    

     

    
      	(2)  	
              from
                the remaining Interest Remittance Amount for Loan Group I and Loan
                Group
                II to the Senior Certificates, pro rata based on amounts due, Current
                Interest and Carryforward Interest for each such Class and such
                Distribution Date applied in accordance with the allocation rules
                set
                forth below;

            

    

     

    
      	(3)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-1 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(4)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-2 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(5)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-3 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(6)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-4 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(7)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-5 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(8)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-6 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date; 

            

    

     

    
      	(9)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-7 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date; 

            

    

     

    
      	(10)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-8 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date; 

            

    

     

    
      	(11)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class M-9 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;

            

    

     

    
      	(12)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class B-1 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date; 

            

    

     

    
      	(13)  	
              first,
                from the remaining Interest Remittance Amount for Loan Group II and
                then
                from the remaining Interest Remittance Amount for Loan Group I, to
                the
                Class B-2 Certificates, Current Interest and Carryforward Interest
                for
                such Class and Distribution Date;
                and

            

    

     

    
      	(14)  	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to subclause (iii) below, any such Interest Remittance Amount
                remaining after application pursuant to clauses (1) through (12)
                above for
                such Distribution Date.

            

    

     

    The
      remaining Interest Remittance Amount for Loan Group I and Loan Group II
      distributed pursuant to clause (2) above will be applied to the Senior
      Certificates as follows:

     

    (1) the
      Interest Remittance Amount for Loan Group I will be distributed in the following
      order of priority: (x) first, to the Class I-A-1 Certificates, Current Interest
      and Carryforward Interest for such Class for such Distribution Date; and then
      (y) concurrently, to the Class II-A-1, Class II-A-2, Class II-A-3 and Class
      II-A-4 Certificates, Current Interest and Carryforward Interest for each such
      Class for such Distribution Date, on a pro rata basis based on the entitlement
      of each such Class, after taking into account the distribution of the Interest
      Remittance Amount for Loan Group II on such Distribution Date; and

     

    (2) the
      Interest Remittance Amount for Loan Group II will be distributed in the
      following order of priority: (x) first, concurrently to the Class II-A-1, Class
      II-A-2, Class II-A-3 and Class II-A-4 Certificates, Current Interest and
      Carryforward Interest for each such Class for such Distribution Date, on a
      pro
      rata basis based on the entitlement of each such Class; and then (y) to the
      Class I-A-1 Certificates, Current Interest and Carryforward Interest for such
      Class for such Distribution Date, after taking into account the distribution
      of
      the Interest Remittance Amount for Loan Group I on such Distribution
      Date.

     

    (ii)  The
      Principal Payment Amount will be paid on each Distribution Date as
      follows:

     

    I. On
      each
      Distribution Date (x) prior to the Stepdown Date or (y) with respect to which
      a
      Trigger Event is in effect, the Principal Payment Amount will be paid in the
      following order of priority:

     

    
      	(A)  	
              to
                the Supplemental Interest Trust from the Principal Payment Amount
                derived
                from the Group I Mortgage Loans and the Group II Mortgage Loans,
                the Group
                I Allocation Percentage and the Group II Allocation Percentage, as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                owed
                to the Swap Provider (unless the Swap Provider is a Defaulting Party
                or
                the sole Affected Party (as defined in the ISDA Master Agreement
                and to
                the extent not paid by the Securities Administrator from any upfront
                payment received pursuant to any replacement interest rate swap agreement
                that may be entered into by the Supplemental Interest Trust Trustee))
                to
                the extent not paid from the Interest Remittance Amounts on such
                Distribution Date;

            

    

     

    
      	(B)  	
              (i)from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clause (A) above, to the Class
                I-A-1 Certificates, until the Certificate Principal Balance thereof
                has
                been reduced to zero;

            

    

     

    (ii)
       from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clause (A) above, sequentially, to the Class
      II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4 Certificates, in that order,
      until the Certificate Principal Balance of each such Class has been reduced
      to
      zero; 

     

    
      	(C)  	
              (i)from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clauses (A) and (B) above and
                after the Certificate Principal Balance of the Class I-A-1 Certificates
                has been reduced to zero, sequentially, to the Class II-A-1, Class
                II-A-2,
                Class II-A-3 and Class II-A-4 Certificates, in that order, after
                taking
                into account payments pursuant to clause I(B)(ii) above, until the
                Certificate Principal Balance of each such Class has been reduced
                to
                zero;

            

    

     

    (ii) from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clauses (A) and (B) above and after the
      Certificate Principal Balances of the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 Certificates have been reduced to zero, to the Class I-A-1
      Certificates, after taking into account payments pursuant to clause I(B)(i)
      above, until its Certificate Principal Balance has been reduced to zero;

     

    
      	(D)  	
              to
                the Class M-1 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(E)  	
              to
                the Class M-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(F)  	
              to
                the Class M-3 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(G)  	
              to
                the Class M-4 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(H)  	
              to
                the Class M-5 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(I)  	
              to
                the Class M-6 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(J)  	
              to
                the Class M-7 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(K)  	
              to
                the Class M-8 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(L)  	
              to
                the Class M-9 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(M)  	
              to
                the Class B-1 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero;

            

    

     

    
      	(N)  	
              to
                the Class B-2 Certificates, until its Certificate Principal Balance
                has
                been reduced to zero; and

            

    

     

    
      	(O)  	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to subclause (iii) below, any such Principal Payment Amount
                remaining after application pursuant to clauses I(A) through I(N)
                above.

            

    

     

    The
      foregoing notwithstanding, on and after the Distribution Date on which the
      Aggregate Certificate Principal Balance of each Class of Subordinate
      Certificates has been reduced to zero, distributions to the Group II
      Certificates will be allocated to the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 Certificates, on a pro rata basis based on the Certificate
      Principal Balance of each such Class, until the Certificate Principal Balance
      of
      each such Class has been reduced to zero.

     

    II. On
      each
      Distribution Date (x) on or after the Stepdown Date and (y) with respect to
      which a Trigger Event is not in effect, the Principal Payment Amount will be
      paid in the following order of priority:

     

    
      	(A)  	
              to
                the Supplemental Interest Trust from the Principal Payment Amount
                derived
                from the Group I Mortgage Loans and the Group II Mortgage Loans,
                the Group
                I Allocation Percentage and the Group II Allocation Percentage, as
                applicable, of any Net Swap Payment and any Swap Termination Payment
                owed
                to the Swap Provider (unless the Swap Provider is a Defaulting Party
                or
                the sole Affected Party (as defined in the ISDA Master Agreement
                and to
                the extent not paid by the Securities Administrator from any upfront
                payment received pursuant to any replacement interest rate swap agreement
                that may be entered into by the Supplemental Interest Trust Trustee))
                remaining unpaid after the distribution of the Interest Remittance
                Amounts
                on such Distribution Date;

            

    

     

    
      	(B)  	
              (i)from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clause (A) above, to the Class
                I-A-1
                Certificates, the Group I Allocation Amount until its Certificate
                Principal Balance has been reduced to zero;

            

    

     

    (ii) from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clause (A) above, sequentially, to the Class II-A-1,
      Class II-A-2, Class II-A-3 and Class II-A-4 Certificates, in that order, the
      Group II Allocation Amount until the Certificate Principal Balance of each
      such
      Class has been reduced to zero;

     

    
      	(C)  	
              (i)from
                the Principal Payment Amount derived from the Group I Mortgage Loans
                remaining after payments pursuant to clauses (A) and (B) above,
                sequentially, to the Class II-A-1, Class II-A-2, Class II-A-3 and
                Class
                II-A-4 Certificates, in that order, up to the Group II Allocation
                Amount
                remaining unpaid, after taking into account payments pursuant to
                clause
                II(B)(ii) above, until the Certificate Principal Balance of each
                such
                Class has been reduced to zero;

            

    

     

    (ii) from
      the
      Principal Payment Amount derived from the Group II Mortgage Loans remaining
      after payments pursuant to clauses (A) and (B) above, to the Class I-A-1
      Certificates, up to the Group I Allocation Amount remaining unpaid, after taking
      into account payments pursuant to clause II(B)(i) above, until its Certificate
      Principal Balance has been reduced to zero;

     

    
      	(D)  	
              to
                the Class M-1 Certificates, the Class M-1 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(E)  	
              to
                the Class M-2 Certificates, the Class M-2 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(F)  	
              to
                the Class M-3 Certificates, the Class M-3 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(G)  	
              to
                the Class M-4 Certificates, the Class M-4 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(H)  	
              to
                the Class M-5 Certificates, the Class M-5 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero; 

            

    

     

    
      	(I)  	
              to
                the Class M-6 Certificates, the Class M-6 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(J)  	
              to
                the Class M-7 Certificates, the Class M-7 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(K)  	
              to
                the Class M-8 Certificates, the Class M-8 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(L)  	
              to
                the Class M-9 Certificates, the Class M-9 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(M)  	
              to
                the Class B-1 Certificates, the Class B-1 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero;

            

    

     

    
      	(N)  	
              to
                the Class B-2 Certificates, the Class B-2 Principal Payment Amount
                for
                such Distribution Date, until its Certificate Principal Balance has
                been
                reduced to zero; and

            

    

     

    
      	(O)  	
              for
                application as part of Monthly Excess Cashflow for such Distribution
                Date
                pursuant to subclause (iii) below, any such Principal Payment Amount
                remaining after application pursuant to clauses II(A) through II(N)
                above.

            

    

     

    The
      foregoing notwithstanding, on and after the Distribution Date on which the
      Aggregate Certificate Principal Balance of each Class of Subordinate
      Certificates has been reduced to zero, distributions to the Group II
      Certificates will be allocated to the Class II-A-1, Class II-A-2, Class II-A-3
      and Class II-A-4 Certificates, on a pro rata basis based on the Certificate
      Principal Balance of each such Class, until the Certificate Principal Balance
      of
      each such Class has been reduced to zero.

     

    (iii)  On
      each
      Distribution Date, the Monthly Excess Cashflow will be distributed in the
      following order of priority:

     

    
      	(1)  	
              (A)
                until the aggregate Certificate Principal Balance of the Senior
                Certificates and Subordinate Certificates equals the Aggregate Loan
                Balance for such Distribution Date minus the Targeted
                Overcollateralization Amount for such Distribution Date, on each
                Distribution Date (a) prior to the Stepdown Date or (b) with respect
                to
                which a Trigger Event is in effect, to the extent of Monthly Excess
                Interest for such Distribution Date, to the Senior Certificates and
                Subordinate Certificates, in the following order of
                priority:

            

    

     

    (i)  (a)the
      Group
      I Excess Interest Amount in the following order of priority: (x) first, to
      the
      Class I-A-1 Certificates, until its Certificate Principal Balance has been
      reduced to zero, and then (y) sequentially, to the Class II-A-1, Class II-A-2,
      Class II-A-3 and Class II-A-4 Certificates, in that order, after taking into
      account the distribution of the Group II Excess Interest Amount, until the
      Certificate Principal Balance of each such Class has been reduced to zero;
      

     

    (b) the
      Group
      II Excess Interest Amount in the following order of priority: (x) first,
      sequentially, to the Class II-A-1, Class II-A-2, Class II-A-3 and Class II-A-4
      Certificates, in that order, until the Certificate Principal Balance of each
      such Class has been reduced to zero, and then (y) to the Class I-A-1
      Certificates, after taking into account the distribution of the Group I Excess
      Interest Amount, until its Certificate Principal Balance has been reduced to
      zero; 

     

    (ii)  to
      the
      Class M-1 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (iii)  to
      the
      Class M-2 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (iv)  to
      the
      Class M-3 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (v)  to
      the
      Class M-4 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

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

     

    (vii)  to
      the
      Class M-6 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (viii)  to
      the
      Class M-7 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (ix)  to
      the
      Class M-8 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (x)  to
      the
      Class M-9 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (xi)  to
      the
      Class B-1 Certificates, until its Certificate Principal Balance has been reduced
      to zero; and

     

    (xii)  to
      the
      Class B-2 Certificates, until its Certificate Principal Balance has been reduced
      to zero;

     

    (B) on
      each
      Distribution Date on or after the Stepdown Date and with respect to which a
      Trigger Event is not in effect, to
      fund any principal distributions required to be made on such Distribution Date
      set forth in Section 5.04(a)(ii)II,
      after
      giving effect to the distribution of the Principal Payment Amount for such
      date,
      in accordance with the priorities set forth therein;

     

    
      	(2)  	
              to
                the Class M-1 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(3)  	
              to
                the Class M-2 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(4)  	
              to
                the Class M-3 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(5)  	
              to
                the Class M-4 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(6)  	
              to
                the Class M-5 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(7)  	
              to
                the Class M-6 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(8)  	
              to
                the Class M-7 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(9)  	
              to
                the Class M-8 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(10)  	
              to
                the Class M-9 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(11)  	
              to
                the Class B-1 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(12)  	
              to
                the Class B-2 Certificates, any Deferred Amount for such
                Class;

            

    

     

    
      	(13)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class I-A-1, Class II-A-1, Class II-A-2,
                Class II-A-3 and Class II-A-4 Certificates, concurrently, any Basis
                Risk
                Shortfall for each such Class, on a pro rata basis based on the
                entitlement of each such Class;

            

    

     

    
      	(14)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-1 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(15)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-2 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(16)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-3 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(17)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-4 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(18)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-5 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(19)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-6 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(20)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-7 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(21)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-8 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(22)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class M-9 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(23)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class B-1 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(24)  	
              to
                the Basis Risk Shortfall Reserve Fund and then from the Basis Risk
                Shortfall Reserve Fund to the Class B-2 Certificates, any Basis Risk
                Shortfall for such Class;

            

    

     

    
      	(25)  	
              to
                the Supplemental Interest Trust, any Swap Termination Payment owed
                to the
                Swap Provider in the event of a Swap Provider Trigger Event and the
                Swap
                Provider is a Defaulting Party or the sole Affected Party (as defined
                in
                the ISDA Master Agreement) not paid on prior Distribution Dates and
                to the
                extent not paid by the Securities Administrator from any upfront
                payment
                received pursuant to any replacement interest rate swap agreement
                that may
                be entered into by the Supplemental Interest Trust
                Trustee;

            

    

     

    
      	(26)  	
              to
                the Class X Certificates, the Class X Distribution Amount;
                and

            

    

     

    
      	(27)  	
              to
                the Class R Certificates, any remaining amount. It is not anticipated
                that
                any amounts will be distributed to the Class R Certificates under
                this
                clause (27).

            

    

     

    Notwithstanding
      the foregoing, distributions pursuant to clauses (2) through (24) above on
      any
      Distribution Date will be made after giving effect to payments received pursuant
      to the Basis Risk Cap Agreement, the Swap Agreement and the Interest Rate Cap
      Agreement. 

     

    On
      each
      Distribution Date, the Securities Administrator will deposit all amounts
      received under the Basis Risk Cap Agreement into the Basis Risk Shortfall
      Reserve Fund. On each Distribution Date, the Securities Administrator, after
      making the required distributions of interest and principal to the Certificates
      as described in clauses (i) and (ii) above and after the distribution of the
      Monthly Excess Cashflow as described in clause (iii) above, will make payments
      to the Senior Certificates and Subordinate Certificates, in respect of Basis
      Risk Shortfalls, first from amounts on deposit in the Basis Risk Shortfall
      Reserve Fund which relate to amounts paid under the Basis Risk Cap Agreement,
      second, from amounts paid under the Swap Agreement and available for the payment
      of Basis Risk Shortfalls, third, from amounts paid under the Interest Rate
      Cap
      Agreement and available for the payment of Basis Risk Shortfalls and fourth,
      from amounts on deposit in the Basis Risk Shortfall Reserve Fund which relate
      to
      amounts deposited therein in respect of Monthly Excess Cashflow. Such amounts
      will be distributed to the Senior Certificates and Subordinate Certificates
      in
      the following manner and order of priority: first, concurrently to the Senior
      Certificates, on a pro rata basis, based on the entitlement of each such Class,
      the amount of any Basis Risk Shortfalls allocated to such Class for such
      Distribution Date; second, to the Class M-1 Certificates, the amount of any
      Basis Risk Shortfall allocated to such Class for such Distribution Date for
      such
      Class; third, to the Class M-2 Certificates, the amount of any Basis Risk
      Shortfall allocated to such Class for such Distribution Date for such Class;
      fourth, to the Class M-3 Certificates, the amount of any Basis Risk Shortfalls
      allocated to such Class for such Distribution Date for such Class; fifth, to
      the
      Class M-4 Certificates, the amount of any Basis Risk Shortfalls allocated to
      such Class for such Distribution Date; sixth, to the Class M-5 Certificates,
      the
      amount of any Basis Risk Shortfalls allocated to such Class for such
      Distribution Date; seventh, to the Class M-6 Certificates, the amount of any
      Basis Risk Shortfall allocated to such Class for such Distribution Date for
      such
      Class; eighth, to the Class M-7 Certificates, the amount of any Basis Risk
      Shortfall allocated to such Class for such Distribution Date for such Class;
      ninth, to the Class M-8 Certificates, the amount of any Basis Risk Shortfall
      allocated to such Class for such Distribution Date for such Class; tenth, to
      the
      Class M-9 Certificates, the amount of any Basis Risk Shortfall allocated to
      such
      Class for such Distribution Date for such Class; eleventh, to the Class B-1
      Certificates, the amount of any Basis Risk Shortfall allocated to such Class
      for
      such Distribution Date for such Class; and twelfth, to the Class B-2
      Certificates, the amount of any Basis Risk Shortfall allocated to such Class
      for
      such Distribution Date for such Class.

     

    (iv)  Subject
      to Section 10.02 hereof respecting the final distribution on a Class of
      Senior Certificates or a Class of Subordinate Certificates, on each Distribution
      Date the Securities Administrator shall make distributions to each Holder of
      a
      Senior Certificate or Subordinate Certificate of record on the preceding Record
      Date either by wire transfer in immediately available funds to the account
      of
      such holder at a bank or other entity having appropriate facilities therefor,
      if
      (i) such Holder has so notified the Securities Administrator at least five
      (5)
      Business Days prior to the related Record Date and (ii) such Holder shall hold
      Regular Certificates with aggregate principal denominations of not less than
      $1,000,000 or evidencing a Percentage Interest aggregating ten percent (10%)
      or
      more with respect to such Class or, if not, by check mailed by first class
      mail
      to such Certificateholder at the address of such holder appearing in the
      Certificate Register. Notwithstanding the foregoing, but subject to
      Section 10.02 hereof respecting the final distribution, distributions with
      respect to Senior Certificates and Subordinate Certificates registered in the
      name of a Depository shall be made to such Depository in immediately available
      funds.

     

    (v)  Net
      Swap
      Payments and Swap Termination Payments (other than Swap Termination Payments
      resulting from a Swap Provider Trigger Event) payable by the Supplemental
      Interest Trust to the Swap Provider pursuant to the Swap Agreement shall be
      deducted from Interest Remittance Amount, and to the extent of any such
      remaining amounts due, from Principal Remittance Amount, prior to any
      distributions to the Certificateholders. On each Distribution Date, such amounts
      will be remitted to the Supplemental Interest Trust, first to make any Net
      Swap
      Trust Payment owed to the Swap Provider pursuant to the Swap Agreement for
      such
      Distribution Date, and second to make any Swap Termination Payment (not due
      to a
      Swap Provider Trigger Event) owed to the Swap Provider pursuant to the Swap
      Agreement for such Distribution Date. Any Swap Termination Payment due as a
      result of the occurrence of a Swap Provider Trigger Event owed to the Swap
      Provider pursuant to the Swap Agreement will be subordinated to distributions
      to
      the Holders of the Senior Certificates and Subordinate Certificates and shall
      be
      paid as set forth in Section 5.04(a)(iii)(25).

     

    (b)  On
      each
      Distribution Date, the Securities Administrator shall distribute from the
      amounts received from the Swap Provider in respect of any Net Swap Payment
      then
      on deposit in the Supplemental Interest Trust in the following order of
      priority:

     

    (i)  concurrently
      to the Senior Certificates, on a pro rata basis based on the entitlement of
      each
      such Class, in an amount equal to any Current Interest and any Carryforward
      Interest for such Class or Classes to the extent not covered by the Interest
      Remittance Amount on that Distribution Date and solely to the extent the amount
      of any Carryforward Interest is a result of the allocation of the interest
      portion of Realized Losses;

     

    (ii)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in that order,
      in an amount equal to Current Interest and any Carryforward Interest for such
      Class or Classes to the extent not covered by the Interest Remittance Amount
      on
      that Distribution Date and solely to the extent the amount of any Carryforward
      Interest is as a result of the allocation of the interest portion of Realized
      Losses; 

     

    (iii)  to
      the
      holders of the Senior Certificates and Subordinate Certificates then entitled
      to
      receive distributions in respect of principal, in an amount necessary to
      maintain or restore the Targeted Overcollateralization Amount after taking
      into
      account distributions made pursuant to Section 5.04(iii)(1)(A); 

     

    (iv)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in an amount
      equal to any Deferred Amounts, for such Class or Classes, with interest thereon
      at the applicable Pass-Through Rate, prior to giving effect to amounts available
      to be paid in respect of Deferred Amounts pursuant to Section
      5.04(iii);

     

    (v)  to
      pay
      the Senior Certificates and Subordinate Certificates as follows: first, to
      the
      Senior Certificates, on a pro rata basis based on the entitlement of each such
      Class, based on the aggregate amount of Basis Risk Shortfall Amounts for each
      such Class of Senior Certificates, and second, sequentially, to the Class M-1,
      Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7, Class M-8,
      Class M-9, Class B-1 and Class B-2 Certificates, in that order, any related
      Basis Risk Shortfall Amount for such Class or Classes on such Distribution
      Date;
      and

     

    (vi)
       to
      the
      Class X Certificates, any remaining amounts.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall distribute from the
      amounts received under the Interest Rate Cap Agreement on deposit in the
      Supplemental Interest Trust in the following order of priority:

     

    (i)  concurrently
      to the Senior Certificates, on a pro rata basis based on the entitlement of
      each
      such Class, in an amount equal to any Current Interest and any Carryforward
      Interest for such Class or Classes to the extent not covered by the Interest
      Remittance Amount or Net Swap Payments paid by the Swap Provider on that
      Distribution Date and solely to the extent the amount of any Carryforward
      Interest is a result of the allocation of the interest portion of Realized
      Losses;

     

    (ii)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in that order,
      in an amount equal to Current Interest and any Carryforward Interest for such
      Class or Classes to the extent not covered by the Interest Remittance Amount
      or
      Net Swap Payments paid by the Swap Provider on that Distribution Date and solely
      to the extent the amount of any Carryforward Interest is as a result of the
      allocation of the interest portion of Realized Losses; 

     

    (iii)  to
      the
      holders of the Senior Certificates and Subordinate Certificates then entitled
      to
      receive distributions in respect of principal, in an amount necessary to
      maintain or restore the Targeted Overcollateralization Amount after taking
      into
      account distributions made pursuant to Section 5.04(iii)(1)(A) and Net Swap
      Payments paid by the Swap Provider; 

     

    (iv)  sequentially,
      to the Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class
      M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates, in an amount
      equal to any Deferred Amounts, for such Class or Classes, with interest thereon
      at the applicable Pass-Through Rate, after giving effect to amounts available
      to
      be paid in respect of Deferred Amounts pursuant to Section 5.04(iii) and after
      giving effect to any Net Swap Payment paid by the Swap Provider and available
      to
      pay Deferred Amounts;

     

    (v)  to
      pay
      the Senior Certificates and Subordinate Certificates as follows: first, to
      the
      Senior Certificates, on a pro rata basis based on the entitlement of each such
      Class, based on the aggregate amount of Basis Risk Shortfall Amounts for each
      such Class of Senior Certificates remaining unpaid after taking into account
      any
      Net Swap Payment paid by the Swap Provider and available to pay Basis Risk
      Shortfalls, and second, sequentially, to the Class M-1, Class M-2, Class M-3,
      Class M-4, Class M-5, Class M-6, Class M-7, Class M-8, Class M-9, Class B-1
      and
      Class B-2 Certificates, in that order, any related Basis Risk Shortfall Amount
      for such Class or Classes remaining unpaid after taking into account any Net
      Swap Payment paid by the Swap Provider and available to pay Basis Risk
      Shortfalls on such Distribution Date; and

     

    (vi)
       to
      the
      Class X Certificates, any remaining amounts.

     

    Section
      5.05  Allocation
      of Realized Losses.

     

    (a)  On
      or
      prior to each Determination Date, the Securities Administrator shall determine
      the amount of any Realized Loss in respect of each Mortgage Loan that occurred
      during the immediately preceding calendar month, based solely on the reports
      delivered by the Servicer pursuant to this Agreement.

     

    (b)  The
      interest portion of Realized Losses on the Mortgage Loans shall be allocated
      to
      the Certificates as described in Section 1.02 hereof.

     

    (c)  The
      principal portion of all Realized Losses on the Mortgage Loans shall be
      allocated on each Distribution Date as follows: first, in reduction of payments
      made by the Basis Risk Cap Provider under the Basis Risk Cap Agreement, Net
      Swap
      Payments paid by the Swap Provider under the Interest Rate Swap Agreement,
      payments made by the Interest Rate Cap Provider under the Interest Rate Cap
      Agreement and the Monthly Excess Cashflow for such Distribution date; second,
      to
      the Class X Certificates, until the Certificate Principal Balance thereof has
      been reduced to zero; third, to the Class B-2 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; fourth, to
      the
      Class B-1 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; fifth, to the Class M-9 Certificates, until the Certificate
      Principal Balance thereof has been reduced to zero; sixth, to the Class M-8
      Certificates, until the Certificate Principal Balance thereof has been reduced
      to zero; seventh, to the Class M-7 Certificates, until the Certificate Principal
      Balance thereof has been reduced to zero; eighth, to the Class M-6 Certificates,
      until the Certificate Principal Balance thereof has been reduced to zero; ninth,
      to the Class M-5 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero; tenth, to the Class M-4 certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; eleventh, to
      the
      Class M-3 Certificates, until the Certificate Principal Balance thereof has
      been
      reduced to zero; thirteenth, to the Class M-2 Certificates, until the
      Certificate Principal Balance thereof has been reduced to zero; and fourteenth,
      to the Class M-1 Certificates, until the Certificate Principal Balance thereof
      has been reduced to zero. All such Realized Losses to be allocated to the
      Certificate Principal Balances of the Classes of Subordinate Certificates on
      any
      Distribution Date shall be so allocated after the actual distributions to be
      made on such date as provided above. All references above to the Certificate
      Principal Balance of any Class of Subordinate Certificates shall be to the
      Certificate Principal Balance of such Class immediately prior to the relevant
      Distribution Date, before reduction thereof by any Realized Losses, in each
      case
      to be allocated to such Class of Certificates, on such Distribution
      Date.

     

    Any
      allocation of the principal portion of Realized Losses to a Class of Subordinate
      Certificates on any Distribution Date shall be made by reducing the Certificate
      Principal Balance thereof by the amount so allocated; any allocation of Realized
      Losses to a Class X Certificate shall be made by reducing the amount otherwise
      payable in respect thereof pursuant to Section 5.04(iii)(26). No
      allocations of any Realized Losses shall be made to the Certificate Principal
      Balances of the Senior Certificates or Class P Certificates.

     

    All
      such
      Realized Losses and all other losses allocated to a Class of Certificates
      hereunder will be allocated among the Certificates of such Class in proportion
      to the Percentage Interests evidenced thereby.

     

    (d)  Notwithstanding
      anything to the contrary contained herein, if on any Distribution Date the
      Securities Administrator discovers, based solely on the reports delivered by
      the
      Servicers under this Agreement, that any Subsequent Recoveries have been
      collected by a Servicer with respect to the Mortgage Loans, the amount of such
      Subsequent Recoveries will be applied to increase the Certificate Principal
      Balance of the Class of Subordinate Certificates with the highest payment
      priority to which Realized Losses on the Mortgage Loans have been allocated,
      but
      not by more than the amount of Realized Losses previously allocated to that
      Class of Subordinate Certificates pursuant to this Section 5.05. After the
      Certificate Principal Balances of any Class of Subordinate Certificates have
      been increased up to the amount of Realized Losses allocated thereto pursuant
      to
      this Section 5.05 to the extent that such Applied Loss Amounts have not
      been paid to such certificates as a Deferred Amount, any additional Subsequent
      Recoveries with respect to the Mortgage Loans will be applied to increase the
      Certificate Principal Balance of the remaining Subordinate Certificates,
      beginning with the Class of Subordinate Certificates with the next highest
      payment priority, up to the amount of such Realized Losses previously allocated
      to such Class of Certificates pursuant to this Section 5.05 but only to the
      extent that any such Applied Loss Amount has not been paid to any Class of
      Certificates as a Deferred Amount. Holders of such Certificates will not be
      entitled to any payment in respect of current interest on the amount of such
      increases for any Accrual Period preceding the Distribution Date on which such
      increase occurs. Any such increases shall be applied to the Certificate
      Principal Balance of each Class of Subordinate Certificate in accordance with
      its respective Percentage Interest. 

     

    (e)  With
      respect to the REMIC I Regular Interests, all Realized Losses on the Group
      I
      Mortgage Loans shall be allocated shall be allocated on each Distribution Date
      first, to REMIC I Regular Interest I until the Uncertificated Principal Balance
      has been reduced to zero, and second, to REMIC I Regular Interest I-1-A through
      REMIC I Regular Interest I-60-B, starting with the lowest numerical denomination
      until such REMIC I Regular Interest has been reduced to zero, provided that,
      for
      REMIC I Regular Interests with the same numerical denomination, such Realized
      Losses shall be allocated pro rata between such REMIC I Regular Interests.
      All
      Realized Losses on the Group II Mortgage Loans shall be allocated on each
      Distribution Date first, to REMIC I Regular Interest II until the Uncertificated
      Principal Balance has been reduced to zero, and second, to REMIC I Regular
      Interest II-1-A through REMIC I Regular Interest II-60-B, starting with the
      lowest numerical denomination until such REMIC I Regular Interest has been
      reduced to zero, provided that, for REMIC I Regular Interests with the same
      numerical denomination, such Realized Losses shall be allocated pro rata between
      such REMIC I Regular Interests. 

     

    (f)  The
      REMIC
      II Market Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be allocated on each Distribution Date to the following REMIC II Regular
      Interests in the specified percentages, as follows: first, to Uncertificated
      Accrued Interest payable to the REMIC II Regular Interest LT-AA and REMIC II
      Regular Interest LT-ZZ up to an aggregate amount equal to the REMIC II Interest
      Loss Allocation Amount, 98% and 2%, respectively; second, to the Uncertificated
      Principal Balances of REMIC II Regular Interest LT-AA and REMIC II Regular
      Interest LT-ZZ up to an aggregate amount equal to the REMIC II Principal Loss
      Allocation Amount, 98% and 2%, respectively; third, to the Uncertificated
      Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest
      LT-B2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest LT-B2 has
      been
      reduced to zero; fourth, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-B1 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-B1 has been reduced to zero; fifth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M9 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M9 has been reduced to zero; sixth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M8
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-M8 has been
      reduced to zero; seventh, to the Uncertificated Principal Balances of REMIC
      II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M7 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M7 has been reduced to zero; eighth,
      to
      the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA, REMIC
      II Regular Interest LT-M6 and REMIC II Regular Interest LT-ZZ, 98%, 1% and
      1%,
      respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M6 has been reduced to zero; ninth, to the Uncertificated Principal
      Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M5
      and
      REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the
      Uncertificated Principal Balance of REMIC II Regular Interest LT-M5 has been
      reduced to zero; tenth, to the Uncertificated Principal Balances of REMIC II
      Regular Interest LT-AA, REMIC II Regular Interest LT-M4 and REMIC II Regular
      Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated Principal
      Balance of REMIC II Regular Interest LT-M4 has been reduced to zero; eleventh,
      to the Uncertificated Principal Balances of REMIC II Regular Interest LT-AA,
      REMIC II Regular Interest LT-M3 and REMIC II Regular Interest LT-ZZ, 98%, 1%
      and
      1%, respectively, until the Uncertificated Principal Balance of REMIC II Regular
      Interest LT-M3 has been reduced to zero; twelfth, to the Uncertificated
      Principal Balances of REMIC II Regular Interest LT-AA, REMIC II Regular Interest
      LT-M2 and REMIC II Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until
      the Uncertificated Principal Balance of REMIC II Regular Interest LT-M2 has
      been
      reduced to zero; and thirteenth, to the Uncertificated Principal Balances of
      REMIC II Regular Interest LT-AA, REMIC II Regular Interest LT-M1 and REMIC
      II
      Regular Interest LT-ZZ, 98%, 1% and 1%, respectively, until the Uncertificated
      Principal Balance of REMIC II Regular Interest LT-M1 has been reduced to
      zero.

     

    The
      REMIC
      II Sub WAC Allocation Percentage of all Realized Losses on the Mortgage Loans
      shall be applied after all distributions have been made on each Distribution
      Date first, so as to keep the Uncertificated Principal Balance of each REMIC
      II
      Regular Interest ending with the designation “GRP” equal to 0.01% of the
      aggregate Stated Principal Balance of the Mortgage Loans in the related Loan
      Group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Balance of each such REMIC II Regular Interest
      is equal to 0.01% of the excess of (x) the aggregate Stated Principal Balance
      of
      the Mortgage Loans in the related Loan Group over (y) the current Certificate
      Principal Balance of the Senior Certificate in the related Loan Group (except
      that if any such excess is a larger number than in the preceding distribution
      period, the least amount of Realized Losses shall be applied to such REMIC
      II
      Regular Interests such that the REMIC II Subordinated Balance Ratio is
      maintained); and third, any remaining Realized Losses shall be allocated to
      REMIC II Regular Interest LT-XX.

     

    Section
      5.06  Monthly
      Statements to Certificateholders.

     

    (a)  Not
      later
      than each Distribution Date, the Securities Administrator shall prepare and
      make
      available to each Holder of Certificates, the Depositor, the Servicer and the
      Credit Risk Manager via its website a statement setting forth the following
      information for the Certificates:

     

    (i)  the
      Interest Accrual Period and general Distribution Dates for each Class of
      Certificates;

     

    (ii)  the
      Pass-Through Rate for each Class of Certificates with respect to the current
      Accrual Period;

     

    (iii)  with
      respect to each Loan Group, the total cash flows received and the general
      sources thereof;

     

    (iv)  the
      amount of the related distribution to Holders of each Class allocable to
      principal, separately identifying (A) the aggregate amount of any Principal
      Prepayments included therein, (B) the aggregate of all scheduled payments of
      principal included therein, (C) the Monthly Excess Interest with respect to
      the
      Certificates (if any) and (D) the amount of Prepayment Charges distributed
      to
      the Class P Certificates;

     

    (v)  the
      amount distributed to Holders of each Class on such Distribution Date allocable
      to interest;

     

    (vi)  the
      Certificate Principal Balance of each Class of Certificates, if applicable,
      after giving effect (i) to all distributions allocable to principal on such
      Distribution Date and (ii) the allocation of any Realized Losses for such
      Distribution Date;

     

    (vii)  the
      aggregate amount of P&I Advances included in the distributions on the
      Distribution Date;

     

    (viii)  the
      aggregate amount of Relief Act Interest Shortfalls for such Distribution
      Date;

     

    (ix)  the
      aggregate amount of any Prepayment Interest Shortfall for such Distribution
      Date, to the extent not covered by payments by the Servicer pursuant to
      Section 5.02 of this Agreement or the Master Servicer pursuant to
      Section 4.14 of this Agreement;

     

    (x)  the
      cumulative amount of Realized Losses to date and, in addition, if the
      Certificate Principal Balance of any Class of Certificates have been reduced
      to
      zero, the cumulative amount of any Realized Losses that have not been allocated
      to any Class of Certificates;

     

    (xi)  the
      Overcollateralization Amount and the Senior Enhancement Percentage, any
      Overcollateralization Deficiency Amount and any Overcollateralization Release
      Amount for such Distribution Date

     

    (xii)  with
      respect to each Loan Group, the amount of any Prepayment Charges remitted by
      the
      Servicer;

     

    (xiii)  the
      number, aggregate principal balance, weighted average remaining term to maturity
      and weighted average Mortgage Rate of the Mortgage Loans as of the related
      Due
      Date;

     

    (xiv)  with
      respect to each Loan Group, the number and Scheduled Principal Balance of all
      the Mortgage Loans for the following Distribution Date;

     

    (xv)  the
      number and aggregate principal balance of any Mortgage Loans that were (A)
      delinquent (exclusive of Mortgage Loans in foreclosure) using the “OTS” method
      (not including Liquidated Mortgage Loans as of the end of the related Prepayment
      Period) (1) one scheduled payment is delinquent, (2) two scheduled payments
      are
      delinquent, (3) three scheduled payments are delinquent and (4) foreclosure
      proceedings have been commenced, and loss information for the period; the number
      and aggregate principal balance of any Mortgage Loans in respect of which (A)
      one scheduled payment is delinquent, (B) two scheduled payments are delinquent,
      (C) three or more scheduled payments are delinquent and (D) foreclosure
      proceedings have been commenced, and loss information for the
      period;

     

    (xvi)  with
      respect to any Mortgage Loan that was liquidated during the preceding calendar
      month, the loan number and the Stated Principal Balance of, and Realized Loss
      on, such Mortgage Loan as of the close of business on the Determination Date
      preceding such Distribution Date;

     

    (xvii)  the
      total
      number and principal balance of any real estate owned or REO Properties in
      each
      Loan Group and the Mortgage Loans in the aggregate as of the close of business
      on the Determination Date preceding such Distribution Date;

     

    (xviii)  the
      three
      month rolling average of the percent equivalent of a fraction, the numerator
      of
      which is the Aggregate Loan Group Balance of the Mortgage Loans in a Loan Group
      that are sixty (60) days or more delinquent or are in bankruptcy or foreclosure
      or are REO Properties, and the denominator of which is the Aggregate Loan Group
      Balance of all of the Mortgage Loans in such Loan Group as of the last day
      of
      the related Due Period; 

     

    (xix)  the
      aggregate Servicing Fee received by the Servicer, and the Master Servicing
      Fees,
      if any, received by the Master Servicer during the related Due
      Period;

     

    (xx)  the
      amount, if any, of other fees or expenses accrued and paid, with an
      identification of the payee and the general purpose of such fees;

     

    (xxi)  the
      amount of any Basis Risk Shortfalls and the amount in the Basis Risk Shortfall
      Reserve Fund after all deposits and withdrawals on such Distribution Date;
      

     

    (xxii)  amounts
      payable in respect of the Basis Risk Cap Agreement;

     

    (xxiii)  amounts
      payable in respect of the Swap Agreement;

     

    (xxiv)  amounts
      payable in respect of the Interest Rate Cap Agreement; and

     

    (xxv)  whether
      the Stepdown Date has occurred and whether any Trigger Event is in
      effect.

     

    The
      Securities Administrator may make the foregoing monthly statement (and, at
      its
      option, any additional files containing the same information in an alternative
      format) available each month to Certificateholders via the Securities
      Administrator’s internet website. The Securities Administrator’s internet
      website shall initially be located at “www.ctslink.com”. Assistance in using the
      website can be obtained by calling the Securities Administrator’s customer
      service desk at (301) 815-6600. Parties that are unable to use the above
      distribution options are entitled to have a paper copy mailed to them via first
      class mail by calling the customer service desk and indicating such. The
      Securities Administrator may change the way monthly statements are distributed
      in order to make such distributions more convenient or more accessible to the
      above parties.

     

    The
      Securities Administrator shall be entitled to rely on but shall not be
      responsible for the content or accuracy of any information provided by third
      parties for purposes of preparing such statement and may affix thereto any
      disclaimer it deems appropriate in its reasonable discretion (without suggesting
      liability on the part of any other party hereto).

     

    (b)  The
      Securities Administrator’s responsibility for making the above information
      available to the Certificateholders is limited to the availability, timeliness
      and accuracy of the information provided by the Servicer, the Basis Risk Cap
      Provider, the Swap Provider and the Interest Rate Cap Provider. The Securities
      Administrator will make available a copy of each statement provided pursuant
      to
      this Section 5.06 to each Rating Agency.

     

    (c)  Within
      a
      reasonable period of time after the end of each calendar year, the Securities
      Administrator shall cause to be furnished upon written request to each Person
      who at any time during the calendar year was a Certificateholder, a statement
      containing the information set forth in clauses (a)(i) and (a)(ii) of this
      Section 5.06 aggregated for such calendar year or applicable portion
      thereof during which such Person was a Certificateholder. Such obligation of
      the
      Securities Administrator shall be deemed to have been satisfied to the extent
      that substantially comparable information shall be provided by the Securities
      Administrator pursuant to any requirements of the Code as from time to time
      in
      effect.

     

    (d)  Upon
      filing with the Internal Revenue Service, the Securities Administrator shall
      furnish to the Holders of the Residual Certificates the applicable Form 1066
      and
      each applicable Form 1066Q and shall respond promptly to written requests made
      not more frequently than quarterly by any Holder of a Residual Certificate
      with
      respect to the following matters:

     

    (i)  The
      original projected principal and interest cash flows on the Closing Date on
      each
      Class of regular and residual interests created hereunder and on the Mortgage
      Loans, based on the Prepayment Assumption;

     

    (ii)  The
      projected remaining principal and interest cash flows as of the end of any
      calendar quarter with respect to each Class of regular and residual interests
      created hereunder and the Mortgage Loans, based on the Prepayment
      Assumption;

     

    (iii)  The
      applicable Prepayment Assumption and any interest rate assumptions used in
      determining the projected principal and interest cash flows described
      above;

     

    (iv)  The
      original issue discount (or, in the case of the Mortgage Loans, market discount)
      or premium accrued or amortized through the end of such calendar quarter with
      respect to each Class of regular or residual interests created hereunder and
      to
      the Mortgage Loans, together with each constant yield to maturity used in
      computing the same;

     

    (v)  The
      treatment of losses realized with respect to the Mortgage Loans or the regular
      interests created hereunder, including the timing and amount of any cancellation
      of indebtedness income of a REMIC with respect to such regular interests or
      bad
      debt deductions claimed with respect to the Mortgage Loans;

     

    (vi)  The
      amount and timing of any non-interest expenses of a REMIC; and

     

    (vii)  Any
      taxes
      (including penalties and interest) imposed on the REMIC, including, without
      limitation, taxes on “prohibited transactions,” “contributions” or “net income
      from foreclosure property” or state or local income or franchise
      taxes.

     

    The
      information pursuant to clauses (i), (ii), (iii) and (iv) above shall be
      provided by the Depositor pursuant to Section 9.13.

     

    Section
      5.07  REMIC
      Designations, REMIC I, REMIC II, REMIC III, REMIC IV, REMIC V and REMIC VI
      Allocations.

     

    (a)  The
      Securities Administrator shall elect that each of REMIC I, REMIC II, REMIC
      III,
      REMIC IV, REMIC V and REMIC VI shall be treated as a REMIC under
      Section 860D of the Code. Any inconsistencies or ambiguities in this
      Agreement or in the administration of this Agreement shall be resolved in a
      manner that preserves the validity of such REMIC elections. The REMIC I Regular
      Interests shall constitute the assets of REMIC II. The REMIC II Regular
      Interests shall constitute the assets of REMIC III.

     

    (b)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, shall be distributed by REMIC I to
      REMIC II on account of the REMIC I Group I Regular Interests or withdrawn from
      the Distribution Account and distributed to the Holders of the Class R-I
      Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest I and REMIC I Regular Interest
      I-1-A
      through I-54-B, pro rata, in an amount equal to (A) the Uncertificated Accrued
      Interest for such REMIC I Regular Interests for such Distribution Date, plus
      (B)
      any amounts payable in respect thereof remaining unpaid from previous
      Distribution Dates; 

     

    (ii)  to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, payments of principal shall be allocated to REMIC I Regular Interest
      I,
      then to REMIC I Regular Interests I-1-A through I-54-B starting with the lowest
      numerical denomination until the Uncertificated Principal Balance of each such
      REMIC I Regular Interest is reduced to zero, provided that, for REMIC I Regular
      Interests with the same numerical denomination, such payments of principal
      shall
      be allocated pro rata between such REMIC I Regular Interests; and

     

    (iii)  to
      the
      Holders of REMIC I Regular Interest P, (A) on each Distribution Date, 100%
      of
      the amount paid in respect of Prepayment Charges and (B) on the Distribution
      Date in September 2011 until $100 has been distributed pursuant to this
      clause.

     

    (c)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, shall be distributed by REMIC I to
      REMIC II on account of the REMIC I Group II Regular Interests or withdrawn
      from
      the Distribution Account and distributed to the Holders of the Class R-I
      Interest, as the case may be:

     

    (i)  to
      Holders of each of REMIC I Regular Interest II and REMIC I Regular Interest
      II-1-A through II-54-B, pro rata, in an amount equal to (A) Uncertificated
      Accrued Interest for such REMIC I Regular Interests for such Distribution Date,
      plus (B) any amounts payable in respect thereof remaining unpaid from previous
      Distribution Dates; 

     

    (ii)  to
      the
      extent of amounts remaining after the distributions made pursuant to clause
      (i)
      above, payments of principal shall be allocated as follows: to REMIC I Regular
      Interest II, then to REMIC I Regular interests II-1-A through II-54-B starting
      with the lowest numerical denomination until the Uncertificated Principal
      Balance of each such REMIC I Regular Interest is reduced to zero, provided
      that,
      for REMIC I Regular Interests with the same numerical denomination, such
      payments of principal shall be allocated pro rata between such REMIC I Regular
      Interests.

     

    (d)  On
      each
      Distribution Date, the following amounts, in the following order of priority
      and
      in accordance with the Remittance Report, shall be distributed by REMIC II
      to
      REMIC III on account of the REMIC II Regular Interests or withdrawn from the
      Distribution Account and distributed to the Holders of the Class R-II Interest,
      as the case may be:

     

    (i)  first,
      to
      the Holder of REMIC II Regular Interest LT-IO in an amount equal to (A) the
      Uncertificated Accrued Interest for each such REMIC II Regular Interest for
      such
      Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
      from
      previous Distribution Dates and then to the Holders of REMIC II Regular Interest
      LT-AA, REMIC
      II
      Regular Interest LT-IA1,
      REMIC II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1, REMIC
      II Regular Interest LT-B2 and REMIC II Regular Interest LT-ZZ, pro rata, in
      an
      amount equal to (A) the Uncertificated Accrued Interest for each such REMIC
      II
      Regular Interest for such Distribution Date, plus (B) any amounts in respect
      thereof remaining unpaid from previous Distribution Dates. Amounts payable
      as
      Uncertificated Accrued Interest in respect of REMIC II Regular Interest LT-ZZ
      shall be reduced and deferred when the REMIC II Overcollateralization Amount
      is
      less than the REMIC II Targeted Overcollateralization Amount, by the lesser
      of
      (x) the amount of such difference and (y) the REMIC II Regular Interest LT-ZZ
      Maximum Interest Deferral Amount and such amount will be payable to the Holders
      of REMIC II Regular Interest LT-IA1, REMIC II Regular Interest LT-IIA1, REMIC
      II
      Regular Interest LT-IIA2, REMIC II Regular Interest LT-IIA3, REMIC II Regular
      Interest LT-IIA4, REMIC II Regular Interest LT-M1, REMIC II Regular Interest
      LT-M2, REMIC II Regular Interest LT-M3, REMIC II Regular Interest LT-M4, REMIC
      II Regular Interest LT-M5, REMIC II Regular Interest LT-M6, REMIC II Regular
      Interest LT-M7, REMIC II Regular Interest LT-M8, REMIC II Regular Interest
      LT-M9, REMIC II Regular Interest LT-B1 and REMIC II Regular Interest LT-B2
      in
      the same proportion as the Overcollateralization Deficiency is allocated to
      the
      Corresponding Certificates and the Uncertificated Principal Balance of REMIC
      II
      Regular Interest LT-ZZ shall be increased by such amount;

     

    (ii)  second,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Marker Allocation Percentage of the Interest
      Remittance Amount and the Principal Payment Amount for such Distribution Date
      after the distributions made pursuant to clause (i) above, allocated as
      follows:

     

    (A)  98.00%
      of
      such remainder (other than amounts payable under clause (C) below) to the
      Holders of REMIC II Regular Interest LT-AA and REMIC II Regular Interest LT-P,
      until the Uncertificated Principal Balance of such REMIC II Regular Interest
      is
      reduced to zero, provided, however, that the Uncertificated Principal Balance
      of
      REMIC II Regular Interest LT-P shall not be reduced until the Distribution
      Date
      in September 2011 or any Distribution Date thereafter, at which point such
      amount shall be distributed to REMIC II Regular Interest LT-P, until $100 has
      been distributed pursuant to this clause;

     

    (B)  2.00%
      of
      such remainder, first, to the Holders REMIC II Regular Interest LT-IA1, REMIC
      II
      Regular Interest LT-IIA1, REMIC II Regular Interest LT-IIA2, REMIC II Regular
      Interest LT-IIA3, REMIC II Regular Interest LT-IIA4, REMIC II Regular Interest
      LT-M1, REMIC II Regular Interest LT-M2, REMIC II Regular Interest LT-M3, REMIC
      II Regular Interest LT-M4, REMIC II Regular Interest LT-M5, REMIC II Regular
      Interest LT-M6, REMIC II Regular Interest LT-M7, REMIC II Regular Interest
      LT-M8, REMIC II Regular Interest LT-M9, REMIC II Regular Interest LT-B1 and
      REMIC II Regular Interest LT-B2, 1% in the same proportion as principal payments
      are allocated to the Corresponding Certificates, until the Uncertificated
      Principal Balances of such REMIC II Regular Interests are reduced to zero and
      second, to the Holders of REMIC II Regular Interest LT-ZZ (other than amounts
      payable under the proviso below), until the Uncertificated Principal Balance
      of
      such REMIC II Regular Interest is reduced to zero; and

     

    (C)  any
      remaining amount to the Holders of the Class R Certificates (in respect of
      the
      Class R-II Interest).

     

    provided,
      however, that (i) 98.00% and (ii) 2.00% of any principal payments that are
      attributable to an Overcollateralization Release Amount shall be allocated
      to
      Holders of (i) REMIC II Regular Interest LT-AA and REMIC II Regular Interest
      LT-P, in that order and (ii) REMIC II Regular Interest LT-ZZ, respectively;
      provided that REMIC II Regular Interest LT-P shall not be reduced until the
      Distribution Date in September 2011, at which point such amount shall be
      distributed to REMIC II Regular Interest LT-P, until $100 has been distributed
      pursuant to this clause.

     

    (iii)  third,
      to
      the Holders of REMIC II Regular Interest LT-1SUB, REMIC II Regular Interest
      LT-1GRP, REMIC II Regular Interest LT-2SUB, REMIC II Regular Interest LT-2GRP
      and REMIC II Regular Interest LT-XX, pro rata, in an amount equal to (A) the
      Uncertificated Accrued Interest for each such REMIC II Regular Interest for
      such
      Distribution Date, plus (B) any amounts in respect thereof remaining unpaid
      from
      previous Distribution Dates;

     

    (iv)  fourth,
      to the Holders of REMIC II Regular Interests, in an amount equal to the
      remainder of the REMIC II Sub WAC Allocation Percentage of the Interest
      Remittance Amount and the Principal Payment Amount for such Distribution Date
      after the distributions made pursuant to clause (iii) above, such that
      distributions of principal shall be deemed to be made to the REMIC II Regular
      Interests first, so as to keep the Uncertificated Principal Balance of each
      REMIC II Regular Interest ending with the designation “GRP” equal to 0.01% of
      the aggregate Stated Principal Balance of the Mortgage Loans in the related
      Loan
      Group; second, to each REMIC II Regular Interest ending with the designation
      “SUB,” so that the Uncertificated Principal Balance of each such REMIC II
      Regular Interest is equal to 0.01% of the excess of (x) the aggregate Stated
      Principal Balance of the Mortgage Loans in the related Loan Group over (y)
      the
      current Certificate Principal Balance of the Senior Certificates in the related
      Loan Group (except that if any such excess is a larger number than in the
      preceding distribution period, the least amount of principal shall be
      distributed to such REMIC II Regular Interests such that the REMIC II
      Subordinated Balance Ratio is maintained); and third, any remaining principal
      to
      REMIC II Regular Interest LT-XX;

     

    (v)  all
      amounts paid to the Class X Certificates shall be deemed to be distributed
      to
      the Class X Interest;

     

    (vi)  all
      amounts paid to the Class P Certificates shall be deemed to be distributed
      to
      the Class P Interest; and

     

    (vii)  all
      amounts paid to REMIC VI Regular Interest IO shall be deemed to be distributed
      to the Class IO Interest.

     

    Section
      5.08  Prepayment
      Charges.

     

    On
      each
      Distribution Date, all amounts representing Prepayment Charges in respect of
      the
      Mortgage Loans received during the related Prepayment Period and deposited
      in
      the Distribution Account will be withdrawn from the Distribution Account and
      distributed by the Securities Administrator in accordance with the Remittance
      Report to the Class P Certificates and shall not be available for distribution
      to the holders of any other Class of Certificates. The payment of such
      Prepayment Charges shall not reduce the Certificate Principal Balance of the
      Class P Certificates. The Master Servicer shall not be responsible for
      calculating or otherwise verifying Prepayment Charge amounts.

     

    Section
      5.09  Class
      P Certificate Account.

     

    The
      Securities Administrator shall establish and maintain with itself a separate,
      segregated trust account titled “Wells Fargo Bank, NA, as Securities
      Administrator, for the benefit of Nomura Home Equity Loan, Inc., Home Equity
      Loan Trust 2006-FM2 Class P Certificate Account”. On the Closing Date, the
      Depositor will deposit, or cause to be deposited in the Class P Certificate
      Account $100.00. The amount on deposit in the Class P Certificate Account shall
      be held uninvested. On the September 2011 Distribution Date, the Securities
      Administrator shall withdraw the amount on deposit in the Class P Certificate
      Account and remit such amount to the Holders of the Class P Certificates, in
      reduction of the Certificate Principal Balance thereof. 

     

    Section
      5.10  [Reserved].

     

    Section
      5.11  Basis
      Risk Shortfall Reserve Fund.

     

    (a)  The
      Securities Administrator shall establish a Basis Risk Shortfall Reserve Fund
      on
      behalf of the holders of the Senior Certificates and the Subordinate
      Certificates. The Basis Risk Shortfall Reserve Fund must be an Eligible Account.
      The Basis Risk Shortfall Reserve Fund shall be entitled “Basis Risk Shortfall
      Reserve Fund, HSBC Bank USA, National Association, as Trustee for the benefit
      of
      holders of Nomura Home Equity Loan, Inc., Asset-Backed Certificates, Series
      2006-FM2, Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3, Class II-A-4,
      Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class M-6, Class M-7,
      Class M-8, Class M-9, Class B-1 and Class B-2 Certificates”. On the Closing
      Date, the Depositor will deposit, or cause to be deposited, into the Basis
      Risk
      Shortfall Reserve Fund $1,000. On each Distribution Date as to which there
      is a
      Basis Risk Shortfall payable to any Class of Certificates, the Securities
      Administrator shall deposit the amounts pursuant to paragraphs (13) through
      (24)
      of Section 5.04(a)(iii) into the Basis Risk Shortfall Reserve Fund and the
      Securities Administrator has been directed by the Class X Certificateholder
      to
      distribute such amounts to the Holders of the Senior Certificates and
      Subordinate Certificates in the amounts and priorities set forth in
      Section 5.04(a)(iii).

     

    (b)  The
      Basis
      Risk Shortfall Reserve Fund is an “outside reserve fund” within the meaning of
      Treasury Regulation §1.860G-2(h) and shall be an asset of the Trust Fund but not
      an asset of any REMIC. The Securities Administrator on behalf of the Trust
      shall
      be the nominal owner of the Basis Risk Shortfall Reserve Fund. The Class X
      Certificateholders shall be the beneficial owners of the Basis Risk Shortfall
      Reserve Fund, subject to the power of the Securities Administrator to transfer
      amounts under Section 5.04(a)(iii). Amounts in the Basis Risk Shortfall
      Reserve Fund shall be held either uninvested in a trust or deposit account
      of
      the Securities Administrator with no liability for interest or other
      compensation thereof or, at the written direction of the Majority Class X
      Certificateholder, be invested in Permitted Investments that mature no later
      than the Business Day prior to the next succeeding Distribution Date. All net
      income and gain from such investments shall be distributed to the Majority
      Class
      X Certificateholder, not as a distribution in respect of any interest in any
      REMIC, on such Distribution Date. All amounts earned on amounts on deposit
      in
      the Basis Risk Shortfall Reserve Fund shall be taxable to the Majority Class
      X
      Certificateholder. Any losses on such investments shall be deposited in the
      Basis Risk Shortfall Reserve Fund by the Majority Class X Certificateholder
      out
      of its own funds immediately as realized. In the event that the Majority Class
      X
      Certificateholder shall fail to provide investment instructions to the
      Securities Administrator, the amounts on deposit in the Basis Risk Shortfall
      Reserve Fund shall be held uninvested.

     

    (c)  For
      federal tax return and information reporting, the value of the right of the
      holders of the Senior Certificates and Subordinate Certificates
      to
      receive payments from the Basis Risk Shortfall Reserve Fund in respect of any
      Basis Risk Shortfall shall
      be
      zero dollars ($0.00).

     

    (d)  In
      the
      event that the Basis Risk Cap Agreement is terminated prior to the Distribution
      Date in April 2007 other than in connection with the optional termination of
      the
      Trust, the Securities Administrator, at the direction of the Depositor, shall
      use reasonable efforts to appoint a successor basis risk cap provider using
      any
      cap agreement termination payments paid by the Basis Risk Cap Provider. If
      the
      Securities Administrator is unable to locate a qualified successor basis risk
      cap provider within thirty (30) days of the Early Termination Date (as defined
      in the Basis Risk Cap Agreement), any cap agreement termination payments paid
      by
      the Basis Risk Cap Provider will be deposited into a separate non-interest
      bearing Eligible Account and the Securities Administrator, on each subsequent
      Distribution Date (until the termination date of the Basis Risk Cap Agreement
      or
      the appointment of a successor cap counterparty), will withdraw from the amount
      then remaining on deposit in such reserve account an amount equal to the
      payment, if any, that would have been paid to the Securities Administrator
      by
      the original Basis Risk Cap Provider calculated in accordance with the terms
      of
      the original Basis Risk Cap Agreement, and distribute such amount to the holders
      of the Certificates in accordance with Section 5.04.

     

    Section
      5.12  Supplemental
      Interest Trust.

     

    (a)  On
      the
      Closing Date, the Securities Administrator shall establish and maintain in
      the
      name of the Trustee a separate account for the benefit of the holders of the
      Senior Certificates and Subordinate Certificates (the “Supplemental Interest
      Trust”). The Supplemental Interest Trust 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
      of the Trustee or of the Securities Administrator held pursuant to this
      Agreement. 

     

    (b)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts distributable to the Swap Provider by the
      Supplemental Interest Trust pursuant to Sections 5.04(a)(i)(1),
      5.04(a)(ii)(I)(A), 5.04(a)(ii)(II)(A) and 5.04(a)(iii)(25) of this Agreement.
      On
      each Distribution Date, the Securities Administrator shall distribute any such
      amounts to the Swap Provider pursuant to the Swap Agreement, first to pay any
      Net Swap Payment owed to the Swap Provider for such Distribution Date, and
      second to pay any Swap Termination Payment owed to the Swap
      Provider.

     

    (c)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts received by it from the Swap Provider.
      On
      each Distribution Date, the Securities Administrator shall distribute from
      the
      Supplemental Interest Trust an amount equal to the amount of any Net Swap
      Payment received from the Swap Provider under the Swap Agreement, and make
      the
      distributions required under Section 5.04(b) of this Agreement. 

     

    (d)  On
      each
      Distribution Date, the Securities Administrator shall deposit into the
      Supplemental Interest Trust amounts received by it from the Interest Rate Cap
      Provider. On each Distribution Date, the Securities Administrator shall
      distribute from the Supplemental Interest Trust an amount equal to any amounts
      paid under the Interest Rate Cap Agreement on deposit in the Supplemental
      Interest Trust, and make the distributions required under Section 5.04(c) of
      this Agreement.

     

    (e)  The
      Supplemental Interest Trust constitutes an “outside reserve fund” within the
      meaning of Treasury Regulation § 1.860G-2(h) and is not an asset of any REMIC.
      The Holders of the Class X Certificates shall be the beneficial owner of the
      Supplemental Interest Trust, subject to the power of the Securities
      Administrator to transfer amounts under this Agreement. The Securities
      Administrator shall keep records that accurately reflect the funds on deposit
      in
      the Supplemental Interest Trust. The Securities Administrator shall, at the
      written direction of the holder of the Majority Class X Certificateholder,
      invest amounts on deposit in the Supplemental Interest Trust in Permitted
      Investments. In the absence of written direction to the Securities Administrator
      from the Majority Class X Certificateholder, all funds in the Supplemental
      Interest Trust shall remain uninvested. On each Distribution Date, the
      Securities Administrator shall distribute, not in respect of any REMIC, any
      interest earned on the Supplemental Interest Trust to the Holders of the Class
      X
      Certificates.

     

    (f)  For
      federal income tax purposes, amounts paid to the Supplemental Interest Trust
      on
      each Distribution Date pursuant to Sections 5.04(a)(i)(1), 5.04(a)(ii)(I)(A)
      and
      5.04(a)(ii)(II)(A) (other than any Swap Termination Payments) shall first be
      deemed paid to the Supplemental Interest Trust in respect of the Class IO
      Interest to the extent of the amount distributable on such Class IO Interest
      on
      such Distribution Date, and any remaining amount shall be deemed paid to the
      Supplemental Interest Trust in respect of a Class IO Distribution Amount. For
      federal income tax purposes, the Supplemental Interest Trust will be a
      disregarded entity.

     

    (g)  The
      Securities Administrator shall treat the Holders of Certificates (other than
      the
      Class P, Class X, Class R and Class R-X Certificates) as having entered into
      a
      notional principal contract with respect to the Holders of the Class X
      Certificates. Pursuant to each such notional principal contract, all Holders
      of
      Certificates (other than the Class P, Class X, Class R and Class R-X
      Certificates) shall be treated as having agreed to pay, on each Distribution
      Date, to the Holder 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
      III Regular Interest ownership of which is represented by such Class of
      Certificates over (ii) the amount payable on such Class of Certificates on
      such
      Distribution Date (such excess, a “Class IO Distribution Amount”). A Class IO
      Distribution Amount payable from interest collections shall be allocated pro
      rata among such Certificates based on the amount of interest otherwise payable
      to such Certificates, and a Class IO Distribution Amount payable from principal
      collections shall be allocated to the most subordinate Class of such
      Certificates with an outstanding principal balance to the extent of such
      balance. In addition, pursuant to such notional principal contract, the Holder
      of the Class X Certificates shall be treated as having agreed to pay Basis
      Risk
      Shortfalls to the Holders of the Certificates (other than the Class P, Class
      X,
      Class R and Class R-X Certificates) in accordance with the terms of this
      Agreement. Any payments to such Certificates from amounts deemed received in
      respect of this notional principal contract shall not be payments with respect
      to a Regular Interest in a REMIC within the meaning of Code Section 860G(a)(1).
      However, any payment from the Certificates (other than the Class P, Class X,
      Class R and Class R-X Certificates) of a Class IO Distribution Amount shall
      be
      treated for tax purposes as having been received by the Holders of such
      Certificates in respect of the REMIC III Regular Interest ownership of which
      is
      represented by such Certificates, and as having been paid by such Holders to
      the
      Supplemental Interest Trust pursuant to the notional principal contract. Thus,
      each Certificate (other than the Class P Certificates, Class R Certificates
      and
      Class R-X Certificates) shall be treated as representing not only ownership
      of a
      Regular Interest in REMIC III, but also ownership of an interest in, and
      obligations with respect to, a notional principal contract.

     

    (h)  The
      Sponsor shall provide to the Securities Administrator the value of the right
      of
      the holders of the Senior and Subordinate Certificates to receive payments
      from
      the Supplemental Interest Trust for federal tax return and information reporting
      not later than the December 31, 2006.

     

    (i)  In
      the
      event that the Swap Agreement is terminated prior to the Distribution Date
      occurring in October 2011 other than in connection with the optional termination
      of the Trust, the Securities Administrator on behalf of the Supplemental
      Interest Trust, at the direction of the Depositor, shall use reasonable efforts
      to appoint a successor swap provider using any Swap Termination Payments paid
      by
      the Swap Provider. To the extent the Supplemental Interest Trust is required
      to
      pay a Swap Termination Payment to the Swap Provider, all or a portion of such
      amount received from a replacement swap provider upon entering into a
      replacement interest rate swap agreement or similar agreement will be applied
      to
      the Swap Termination Payment owing to the Swap Provider. If the Securities
      Administrator on behalf of the Supplemental Interest Trust is unable to locate
      a
      qualified successor swap provider within thirty (30) days of the Early
      Termination Date (as defined in the Swap Agreement), any Swap Termination
      Payments paid by the Swap Provider will be deposited into a separate
      non-interest bearing Eligible Account and the Securities Administrator, on
      each
      subsequent Distribution Date (until the termination date of the Swap Agreement
      or the appointment of a successor swap provider), will withdraw the amount
      of
      any Net Swap Payment due to the Supplemental Interest Trust (calculated in
      accordance with the terms of the Swap Agreement) and distribute such Net Swap
      Payment to the holders of the Certificates in accordance with Section
      5.04.

     

    (j)  In
      the
      event that the Interest Rate Cap Agreement is terminated prior to the
      Distribution Date in October 2011 other than in connection with the optional
      termination of the Trust, the Securities Administrator on behalf of the
      Supplemental Interest Trust, at the direction of the Depositor, shall use
      reasonable efforts to appoint a successor interest rate cap provider using
      any
      cap agreement termination payments paid by the Interest Rate Cap Provider.
      If
      the Securities Administrator on behalf of the Supplemental Interest Trust is
      unable to locate a qualified successor interest rate cap provider within thirty
      (30) days of the Early Termination Date (as defined in the Interest Rate Cap
      Agreement), any cap agreement termination payments paid by the Interest Rate
      Cap
      Provider will be deposited into a separate non-interest bearing Eligible Account
      and the Securities Administrator, on each subsequent Distribution Date (until
      the termination date of the Interest Rate Cap Agreement or the appointment
      of a
      successor cap counterparty), will withdraw from the amount then remaining on
      deposit in such reserve account an amount equal to the payment, if any, that
      would have been paid to the Securities Administrator by the original Interest
      Rate Cap Provider calculated in accordance with the terms of the original
      Interest Rate Cap Agreement, and distribute such amount to the holders of the
      Certificates in accordance with Section 5.04.

     

    Section
      5.13  Tax
      Treatment of Swap Payments and Swap Termination Payments.

     

    For
      federal income tax purposes, each holder of a Senior Certificate or Subordinate
      Certificate is deemed to own an undivided beneficial ownership interest in
      a
      REMIC regular interest and the right to receive payments from either the Basis
      Risk Shortfall Reserve Fund or the Supplemental Interest Trust in respect of
      any
      Basis Risk Shortfall Carry-Forward Amounts or the obligation to make payments
      to
      the Supplemental Interest Trust. For federal income tax purposes, the Securities
      Administrator will account for payments to each Senior Certificate and
      Subordinate Certificate as follows: each Senior Certificate and Subordinate
      Certificate will be treated as receiving their entire payment from REMIC III
      (regardless of any Swap Termination Payment or obligation under the Swap
      Agreement) and subsequently paying their portion of any Swap Termination Payment
      in respect of each such Class’ obligation under the Swap Agreement. In the event
      that any such Class is resecuritized in a REMIC, the obligation under the Swap
      Agreement to pay any such Swap Termination Payment (or any shortfall in Net
      Swap
      Payment), will be made by one or more of the REMIC Regular Interests issued
      by
      the resecuritization REMIC subsequent to such REMIC Regular Interest receiving
      its full payment from any such Senior Certificate and Subordinate Certificate.
      Resecuritization of any Senior Certificate and Subordinate Certificate in a
      REMIC will be permissible only if the Securities Administrator hereunder is
      the
      trustee/securities administrator in such resecuritization.

     

    The
      REMIC
      Regular Interest corresponding to a Senior Certificate and Subordinate
      Certificate will be entitled to receive interest and principal payments at
      the
      times and in the amounts equal to those made on the certificate to which it
      corresponds, except that (i) the maximum interest rate of that REMIC regular
      interest will equal the Net Funds Cap computed for this purpose by limiting
      the
      Notional Amount of the Swap Agreement to the aggregate Stated Principal Balance
      of the Mortgage Loans and (ii) any Swap Termination Payment will be treated
      as
      being payable solely from amounts otherwise payable to the Class X Certificates.
      As a result of the foregoing, the amount of distributions and taxable income
      on
      the REMIC Regular Interest corresponding to a Senior Certificate and Subordinate
      Certificate may exceed the actual amount of distributions on the Senior
      Certificate and Subordinate Certificate.

     

    Section
      5.14  Reports
      Filed with Securities and Exchange Commission.

     

    (a)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements, within
      fifteen (15) days after each Distribution Date (subject to permitted extensions
      under the Exchange Act), the Securities Administrator shall prepare and file
      on
      behalf of the Trust Fund any Form 10-D required by the Exchange Act, in form
      and
      substance as required by the Exchange Act. The Securities Administrator shall
      file each Form 10-D with a copy of the related Monthly Statement attached
      thereto. Any disclosure in addition to the Monthly Statement that is required
      to
      be included on Form 10-D (“Additional
      Form 10-D Disclosure”)
      shall
      be reported to the Depositor and the Securities Administrator by the entity
      indicated on Exhibit N and approved by the Depositor pursuant to the following
      paragraph. The Securities Administrator will have no duty or liability for
      any
      failure hereunder to determine or prepare any Additional Form 10-D Disclosure,
      except as set forth in the next paragraph. 

     

    (ii)  As
      set
      forth on Exhibit N hereto, within five (5) calendar days after the related
      Distribution Date, (i) each Transaction Party shall be required to provide
      to
      the Securities Administrator and to the Depositor, to the extent known by a
      responsible officer thereof, in EDGAR-compatible form, or in such other form
      as
      otherwise agreed upon by the Securities Administrator and such party, the form
      and substance of any Additional Form 10-D Disclosure, if applicable, together
      with an Additional Disclosure Notification in the form of Exhibit H hereto
      (an
“Additional
      Disclosure Notification”)
      and
      (ii) the Depositor will approve, as to form and substance, or disapprove, as
      the
      case may be, the inclusion of the Additional Form 10-D Disclosure on Form 10-D.
      The Depositor will be responsible for any reasonable fees and expenses assessed
      or incurred by the Securities Administrator in connection with including any
      Additional Form 10-D Disclosure on Form 10-D pursuant to this paragraph.

     

    (iii)  After
      preparing the Form 10-D, the Securities Administrator shall forward
      electronically a copy of the Form 10-D to the Depositor (provided that such
      Form
      10-D includes any Additional Form 10-D Disclosure). Within two (2) Business
      Days
      after receipt of such copy, but no later than the twelfth (12th) calendar day
      after the Distribution Date, the Depositor shall notify the Securities
      Administrator in writing (which may be furnished electronically) of any changes
      to or approval of such Form 10-D. In the absence of receipt of any written
      changes or approval, the Securities Administrator shall be entitled to assume
      that such Form 10-D is in final form and the Securities Administrator may
      proceed with the execution and filing of the Form 10-D. A duly authorized
      representative of the Master Servicer shall sign each Form 10-D. If a Form
      10-D
      cannot be filed on time or if a previously filed Form 10-D needs to be amended,
      the Securities Administrator will follow the procedures set forth in Section
      5.14(d)(ii). Promptly (but no later than one (1) Business Day) after filing
      with
      the Commission, the Securities Administrator will make available on its internet
      website a final executed copy of each Form 10-D filed by the Securities
      Administrator. Each party to this Agreement acknowledges that the performance
      by
      the Master Servicer and the Securities Administrator of its duties under this
      Section 5.14(a) related to the timely preparation, execution and filing of
      Form
      10-D is contingent upon such parties strictly observing all applicable deadlines
      in the performance of their duties as set forth in this Agreement. Neither
      the
      Master Servicer nor the Securities Administrator shall have any liability for
      any loss, expense, damage, claim arising out of or with respect to any failure
      to properly prepare, execute and/or timely file such Form 10-D, where such
      failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 10-D, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (b)  Each
      of
      Form 10-D and Form 10-K requires the registrant to indicate (by checking “yes”
or “no”) that it “(1) has filed all reports required to be filed by Section 13
      or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
      period that the registrant was required to file such reports), and (2) has
      been
      subject to such filing requirements for the past 90 days.” The Depositor hereby
      represents to the Securities Administrator as of the date hereof that the
      Depositor has (1) filed all such required reports that (a) the Depositor has
      undertaken to file on its own behalf or (b) relate to other securitization
      transactions of the Depositor for which Wells Fargo Bank, National Association,
      in its capacity as Securities Administrator or similar capacity, does not have
      the exclusive obligation to prepare and file during the preceding 12 months;
      provided, however, that the Depositor shall not be obligated to make such
      representation with respect to any filings made by the Securities Administrator
      on behalf of the Depositor, and (2) that it has been subject to such filing
      requirement for the past 90 days. The Depositor shall notify the Securities
      Administrator in writing, no later than the fifth calendar day after the related
      Distribution Date with respect to the filing of a report on Form 10-D and no
      later than March 15th with respect to the filing of a report on Form 10-K,
      if
      the answer to the questions should be “no”. The Securities Administrator shall
      be entitled to rely on such representations in preparing, executing and/or
      filing any such report.

     

    (c)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements, within
      four (4) Business Days after the occurrence of an event set forth on Exhibit
      N
      hereto under the caption “Form 8-K Disclosure Information” or such other event
      requiring disclosure on Form 8-K (each such event, a “Reportable
      Event”),
      or if
      requested by the Depositor, and subject to receipt of such information by the
      Securities Administrator from the entity indicated on Exhibit N as the
      responsible party for providing that information, the Securities Administrator
      shall prepare and file on behalf of the Trust Fund any Form 8-K, as required
      by
      the Exchange Act, provided
      that the
      Depositor shall file the initial Form 8-K in connection with the issuance of
      the
      Certificates. Any disclosure or information related to a Reportable Event or
      that is otherwise required to be included on Form 8-K other than the initial
      Form 8-K (“Form
      8-K Disclosure Information”)
      shall
      be reported by the parties set forth on Exhibit
      N
      to the
      Depositor and the Securities Administrator and directed and approved by the
      Depositor pursuant to the following paragraph, and the Securities Administrator
      will have no duty or liability for any failure hereunder to determine or prepare
      any Form 8-K Disclosure Information or any Form 8-K, except as set forth in
      the
      next paragraph. 

     

    (ii)  As
      set
      forth on Exhibit N hereto, for so long as the Trust Fund is subject to Exchange
      Act reporting requirements, no later than the close of business (New York City
      time) on the second (2nd) Business Day after the occurrence of a Reportable
      Event (i) the Transaction Parties shall be required to provide to the Securities
      Administrator and to the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Form 8-K Disclosure Information, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Form 8-K
      Disclosure Information. The Depositor will be responsible for any reasonable
      fees and expenses assessed or incurred by the Securities Administrator in
      connection with including any Form 8-K Disclosure Information on Form 8-K
      pursuant to this paragraph.

     

    (iii)  After
      preparing the Form 8-K, the Securities Administrator shall forward
      electronically a copy of the Form 8-K to the Depositor. Promptly, but no later
      than the close of business on the third (3rd) Business Day after the Reportable
      Event, the Depositor shall notify the Securities Administrator in writing (which
      may be furnished electronically) of any changes to or approval of such Form
      8-K.
      In the absence of receipt of any written changes or approval, the Securities
      Administrator shall be entitled to assume that such Form 8-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 8-K. A duly authorized representative of the Master Servicer shall
      sign
      each Form 8-K. If a Form 8-K cannot be filed on time or if a previously filed
      Form 8-K needs to be amended, the Securities Administrator will follow the
      procedures set forth in Section 5.14(d)(ii). Promptly (but no later than 1
      Business Day) after filing with the Commission, the Securities Administrator
      will make available on its internet website a final executed copy of each Form
      8-K that it has filed. The parties to this Agreement acknowledge that the
      performance by the Master Servicer and the Securities Administrator of its
      duties under this Section 5.14(c) related to the timely preparation, execution
      and filing of Form 8-K is contingent upon such parties strictly observing all
      applicable deadlines in the performance of their duties under this Agreement.
      Neither the Master Servicer nor the Securities Administrator shall have any
      liability for any loss, expense, damage, claim arising out of or with respect
      to
      any failure to properly prepare, execute and/or timely file such Form 8-K,
      where
      such failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 8-K, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (d)  (i)On
      or
      prior to January 30 of the first year in which the Securities Administrator
      is
      able to do so under applicable law, the Securities Administrator shall prepare
      and file a Form 15 Suspension Notification relating to the automatic suspension
      of reporting in respect of the Trust Fund under the Exchange Act.

     

    (ii)  In
      the
      event that the Securities Administrator is unable to timely file with the
      Commission all or any required portion of any Form 8-K, 10-D or 10-K required
      to
      be filed by this Agreement because required disclosure information was either
      not delivered to it or delivered to it after the delivery deadlines set forth
      in
      this Agreement or for any other reason, the Securities Administrator will
      promptly notify electronically the Depositor. In the case of Form 10-D and
      10-K,
      the parties to this Agreement will cooperate to prepare and file a Form 12b-25
      and a 10-D/A and 10-K/A as applicable, pursuant to Rule 12b-25 of the Exchange
      Act. In the case of Form 8-K, the Securities Administrator will, upon receipt
      of
      all required Form 8-K Disclosure Information and upon the approval and direction
      of the Depositor, include such disclosure information on the next Form 10-D.
      In
      the event that any previously filed Form 8-K, 10-D or 10-K needs to be amended
      in connection with any Additional Form 10-D Disclosure (other than for the
      purpose of restating any monthly report), Additional Form 10-K Disclosure or
      Form 8-K Disclosure Information, the Securities Administrator will
      electronically notify the Depositor and such other parties to the transaction
      as
      are affected by such amendment, and such parties will cooperate to prepare
      any
      necessary 8-K/A, 10-D/A or 10-K/A. Any Form 15, Form 12b-25 or any amendment
      to
      Form 8-K, 10-D or 10-K shall be signed by a duly authorized representative,
      or
      senior officer in charge of master servicing, as applicable, of the Master
      Servicer. The parties to this Agreement acknowledge that the performance by
      the
      Master Servicer and the Securities Administrator of its duties under this
      Section 5.14(c) related to the timely preparation, execution and filing of
      Form
      15, a Form 12b-25 or any amendment to Form 8-K, 10-D or 10-K is contingent
      upon
      each such party performing its duties under this Section. Neither the Master
      Servicer nor the Securities Administrator shall have any liability for any
      loss,
      expense, damage, claim arising out of or with respect to any failure to properly
      prepare, execute and/or timely file any such Form 15, Form 12b-25 or any
      amendments to Forms 8-K, 10-D or 10-K, where such failure results from the
      Securities Administrator’s inability or failure to obtain or receive, on a
      timely basis, any information from any other party hereto needed to prepare,
      arrange for execution or file such Form 15, Form 12b-25 or any amendments to
      Forms 8-K, 10-D or 10-K, not resulting from its own negligence, bad faith or
      willful misconduct.

     

    (e)  (i)For
      so
      long as the Trust Fund is subject to Exchange Act reporting requirements, within
      ninety (90) days after the end of each calendar year or such earlier date as
      may
      be required by the Exchange Act (the “10-K
      Filing Deadline”),
      (it
      being understood that the fiscal year for the Trust Fund ends on December 31
      of
      each year) commencing in March 2007, the Securities Administrator shall prepare
      and file on behalf of the Trust a Form 10-K, in form and substance as required
      by the Exchange Act. Each such Form 10-K shall include the following items,
      in
      each case to the extent they have been delivered to the Securities Administrator
      within the applicable time frames set forth in this Agreement, (i) the annual
      statements of compliance as described under Section 3.13 and the Custodial
      Agreement, (ii)(A) the annual reports on assessment of compliance with servicing
      criteria for each Reporting Party, as described under Section 3.14 and the
      Custodial Agreement, and (B) if any Reporting Party’s report on assessment of
      compliance with servicing criteria described under Section 3.14 identifies
      any
      material instance of noncompliance, disclosure identifying such instance of
      noncompliance, or if any Servicing Function Participant’s report on assessment
      of compliance with servicing criteria described under Section 3.14 is not
      included as an exhibit to such Form 10-K, disclosure that such report is not
      included and an explanation why such report is not included, (iii)(A) the
      registered public accounting firm attestation report for each Servicing Function
      Participant, as described under Section 3.14 and the Custodial Agreement, and
      (B) if any registered public accounting firm attestation report described under
      Section 3.14 identifies any material instance of noncompliance, disclosure
      identifying such instance of noncompliance, or if any such registered public
      accounting firm attestation report is not included as an exhibit to such Form
      10-K, disclosure that such report is not included and an explanation why such
      report is not included, and (iv) a Sarbanes-Oxley Certification as described
      in
      Section 3.18. Any disclosure or information in addition to (i) through (iv)
      above that is required to be included on Form 10-K as set forth on Exhibit
      N
      under Form 10-K (“Additional
      Form 10-K Disclosure”)
      shall
      be reported to the Depositor and the Securities Administrator by the parties
      set
      forth on Exhibit N, and shall be approved by the Depositor pursuant to the
      following paragraph. The Securities Administrator will have no duty or liability
      for any failure hereunder to determine or prepare any Additional Form 10-K
      Disclosure, except as set forth in the next paragraph. 

     

    (ii)  As
      set
      forth on Exhibit N hereto, no later than March 15 of each year that the Trust
      Fund is subject to the Exchange Act reporting requirements, commencing in 2007,
      (i) each Transaction Party shall be required to provide to the Securities
      Administrator and to the Depositor, to the extent known by a responsible officer
      thereof, in EDGAR-compatible form, or in such other form as otherwise agreed
      upon by the Securities Administrator and such party, the form and substance
      of
      any Additional Form 10-K Disclosure, if applicable, together with an Additional
      Disclosure Notification and (ii) the Depositor will approve, as to form and
      substance, or disapprove, as the case may be, the inclusion of the Additional
      Form 10-K Disclosure on Form 10-K. The Depositor will be responsible for any
      reasonable fees and expenses assessed or incurred by the Securities
      Administrator in connection with including any Additional Form 10-K Disclosure
      on Form 10-K pursuant to this paragraph.

     

    (iii)  After
      preparing the Form 10-K, the Securities Administrator shall forward
      electronically a copy of the Form 10-K to the Depositor. Within three (3)
      Business Days after receipt of such copy, but no later than March 25th, the
      Depositor shall notify the Securities Administrator in writing (which may be
      furnished electronically) of any changes to or approval of such Form 10-K.
      In
      the absence of receipt of any written changes or approval, the Securities
      Administrator shall be entitled to assume that such Form 10-K is in final form
      and the Securities Administrator may proceed with the execution and filing
      of
      the Form 10-K. A senior officer of the Master Servicer in charge of the master
      servicing function shall sign the Form 10-K. If a Form 10-K cannot be filed
      on
      time or if a previously filed Form 10-K needs to be amended, the Securities
      Administrator will follow the procedures set forth in Section 5.14(d)(ii).
      Promptly (but no later than one (1) Business Day) after filing with the
      Commission, the Securities Administrator will make available on its internet
      website a final executed copy of each Form 10-K to be filed by the Securities
      Administrator. The parties to this Agreement acknowledge that the performance
      by
      the Master Servicer and the Securities Administrator of its duties under this
      Section 5.14(e) related to the timely preparation, execution and filing of
      Form
      10-K is contingent upon such parties (and any Servicing Function Participant)
      strictly observing all applicable deadlines in the performance of their duties
      under this Section 5.14(e), Section 3.13, Section 3.14 and Section 3.18. Neither
      the Master Servicer nor the Securities Administrator shall have any liability
      for any loss, expense, damage or claim arising out of or with respect to any
      failure to properly prepare and/or timely file such Form 10-K, where such
      failure results from the Securities Administrator’s inability or failure to
      obtain or receive, on a timely basis, any information from any other party
      hereto needed to prepare, arrange for execution or file such Form 10-K, not
      resulting from its own negligence, bad faith or willful misconduct.

     

    (f)  The
      Servicer, the Master Servicer, the Depositor, the Custodian, the Sponsor and
      Securities Administrator shall indemnify and hold harmless the Depositor, the
      Trustee and their respective officers, directors and Affiliates from and against
      any losses, damages, penalties, fines, forfeitures, reasonable and necessary
      legal fees and related costs, judgments and other costs and expenses arising
      out
      of or based upon a breach of such party’s obligations under this Section 5.14 or
      such party’s negligence, bad faith or willful misconduct in connection
      therewith. 

     

    (g)  Any
      notice required to be delivered by the Securities Administrator to the Depositor
      pursuant to this Section 5.14 or Sections 3.13, 3.14 or 3.18 shall be delivered
      by the Securities Administrator by facsimile and electronic mail to Juliet
      Buck,
      Esq. at (646) 587-9817 and ,
      with a
      copy to John Graham at (646) 587-9592 and and
      a
      copy to N. Dante LaRocca at (646) 587-9804 and .

     

    (h)  Notwithstanding
      the provisions of Section 11.01, this Section 5.14 may be amended without the
      consent of the Certificateholders.

     

    ARTICLE
      VI

    THE
      CERTIFICATES

     

    Section
      6.01  The
      Certificates.

     

    (a)  The
      Certificates shall be substantially in the forms attached hereto as Exhibits
      A-1
      through A-6. The Certificates shall be issuable in registered form, in the
      minimum dollar denominations, integral dollar multiples in excess thereof
      (except that one Certificate of each Class may be issued in a different amount
      which must be in excess of the applicable minimum dollar denomination) and
      aggregate dollar denominations as set forth in the following table:

     

    

    
      	
              Class

            	 	
              Minimum
                Denomination

            	 	
              Integral
                Multiple in Excess of Minimum

            	 	
              Original
                Certificate Principal Balance

            	 	
              Pass-Through
                Rate

            	 
	
              I-A-1

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              525,197,000

            	 	 	
              Class
                I-A-1 Pass-Through Rate

            	 
	
              II-A-1

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              280,775,000

            	 	 	
              Class
                II-A-1 Pass-Through Rate

            	 
	
              II-A-2

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              41,264,000

            	 	 	
              Class
                II-A-2 Pass-Through Rate

            	 
	
              II-A-3

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              93,007,000

            	 	 	
              Class
                II-A-3 Pass-Through Rate

            	 
	
              II-A-4

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              12,103,000

            	 	 	
              Class
                II-A-4 Pass-Through Rate

            	 
	
              M-1

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              46,051,000

            	 	 	
              Class
                M-1 Pass-Through Rate

            	 
	
              M-2

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              41,753,000

            	 	 	
              Class
                M-2 Pass-Through Rate

            	 
	
              M-3

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              25,788,000

            	 	 	
              Class
                M-3 Pass-Through Rate

            	 
	
              M-4

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              22,104,000

            	 	 	
              Class
                M-4 Pass-Through Rate

            	 
	
              M-5

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              20,876,000

            	 	 	
              Class
                M-5 Pass-Through Rate

            	 
	
              M-6

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              19,034,000

            	 	 	
              Class
                M-6 Pass-Through Rate

            	 
	
              M-7

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              18,420,000

            	 	 	
              Class
                M-7 Pass-Through Rate

            	 
	
              M-8

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              15,964,000

            	 	 	
              Class
                M-8 Pass-Through Rate

            	 
	
              M-9

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              12,894,000

            	 	 	
              Class
                M-9 Pass-Through Rate

            	 
	
              B-1

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              12,894,000

            	 	 	
              Class
                B-1 Pass-Through Rate

            	 
	
              B-2

            	 	
              $

            	
              25,000

            	 	
              $

            	
              1

            	 	
              $

            	
              12,280,000

            	 	 	
              Class
                B-2 Pass-Through Rate

            	 
	
              X

            	 	
              $

            	
              1

            	 	
              $

            	
              1

            	 	
              $

            	
              27,638,344.70

            	 	 	
              Class
                X Pass-Through Rate

            	 
	
              P

            	 	
              $

            	
              1

            	 	
              $

            	
              1

            	 	
              $

            	
              100.00

            	 	 	
              N/A

            	 
	
              R

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 
	
              R-X

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 	 	
              N/A

            	 

    

    

     

    Upon
      original issue, the Certificates shall be executed and authenticated by the
      Securities Administrator and delivered by the Trustee to and upon the written
      order of the Depositor. The Certificates shall be executed by manual or
      facsimile signature on behalf of the Trust by the Securities Administrator
      by an
      authorized signatory. Certificates bearing the manual or facsimile signatures
      of
      individuals who were at any time the proper officers of the Securities
      Administrator shall bind the Trust, notwithstanding that such individuals or
      any
      of them have ceased to hold such offices prior to the authentication and
      delivery of such Certificates or did not hold such offices at the date of such
      Certificates. No Certificate shall be entitled to any benefit under this
      Agreement or be valid for any purpose, unless there appears on such Certificate
      a certificate of authentication substantially in the form provided herein
      executed by the Securities Administrator by manual signature, and such
      certificate of authentication shall be conclusive evidence, and the only
      evidence, that such Certificate has been duly authenticated and delivered
      hereunder. All Certificates shall be dated the date of their
      authentication.

     

    The
      Depositor shall provide, or cause to be provided, to the Securities
      Administrator on a continuous basis, an adequate inventory of Certificates
      to
      facilitate transfers.

     

    (b)  The
      Class
      X Certificates and Class P Certificates offered and sold to Qualified
      Institutional Buyers in reliance on Rule 144A under the Securities Act (“Rule
      144A”) will be issued in the form of Definitive Certificates.

     

    Section
      6.02  Certificate
      Register; Registration of Transfer and Exchange of Certificates.

     

    (a)  The
      Securities Administrator shall maintain, or cause to be maintained in accordance
      with the provisions of Section 6.09, a Certificate Register for the
      Certificates in which, subject to the provisions of subsections (b) and (c)
      below and to such reasonable regulations as it may prescribe, the Securities
      Administrator 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 Securities Administrator shall
      authenticate and deliver, in the name of the designated transferee or
      transferees, one or more new Certificates of the same Class and of like
      aggregate Percentage Interest.

     

    At
      the
      option of a Certificateholder, Certificates may be exchanged for other
      Certificates of the same Class in authorized denominations and evidencing the
      same aggregate Percentage Interest upon surrender of the Certificates to be
      exchanged at the office or agency of the Securities Administrator. Whenever
      any
      Certificates are so surrendered for exchange, the Securities Administrator
      shall
      execute, authenticate, and deliver the Certificates that the Certificateholder
      making the exchange is entitled to receive. Every Certificate presented or
      surrendered for registration of Transfer or exchange shall be accompanied by
      a
      written instrument of Transfer in form satisfactory to the Securities
      Administrator 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 Securities Administrator in
      accordance with the Securities Administrator’s customary
      procedures.

     

    (b)  No
      Transfer of a Private Certificate shall be made unless such Transfer is made
      pursuant to an effective registration statement under the Securities Act and
      any
      applicable state securities laws or is exempt from the registration requirements
      under the Securities Act and such state securities laws. In the event that
      a
      Transfer is to be made in reliance upon an exemption from the Securities Act
      and
      such laws, in order to assure compliance with the Securities Act and such laws,
      the Certificateholder desiring to effect such Transfer and such
      Certificateholder’s prospective transferee shall each certify to the Securities
      Administrator in writing the facts surrounding the Transfer in substantially
      the
      forms set forth in Exhibit E (the “Transferor Certificate”) and (x) deliver a
      letter in substantially the form of either Exhibit F (the “Investment Letter”)
      or Exhibit G (the “Rule 144A Letter”) or (y) there shall be delivered to the
      Securities Administrator an Opinion of Counsel, at the expense of the
      transferor, that such Transfer may be made pursuant to an exemption from the
      Securities Act, which Opinion of Counsel shall not be an expense of the
      Depositor, the Sponsor, the Securities Administrator, the Trustee or the Trust
      Fund. The Depositor shall provide to any Holder of a Private Certificate and
      any
      prospective transferee designated by any such Holder, information regarding
      the
      related Certificates and the Mortgage Loans and such other information as shall
      be necessary to satisfy the condition to eligibility set forth in Rule
      144A(d)(4) for Transfer of any such Certificate without registration thereof
      under the Securities Act pursuant to the registration exemption provided by
      Rule
      144A. The Securities Administrator shall cooperate with the Depositor in
      providing the Rule 144A information referenced in the preceding sentence,
      including providing to the Depositor such information regarding the
      Certificates, the Mortgage Loans and other matters regarding the Trust Fund
      as
      the Depositor shall reasonably request to meet its obligation under the
      preceding sentence. Each Holder of a Private Certificate desiring to effect
      such
      Transfer shall, and does hereby agree to, indemnify the Securities
      Administrator, the Depositor and the Sponsor 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.

     

    If
      any
      such transfer of a Class B-1 Certificate or Class B-2 Certificate held by the
      related transferor and also to be held by the related transferee in the form
      of
      a Book-Entry Certificate is to be made without registration under the Securities
      Act, the transferor will be deemed to have made as of the transfer date each
      of
      the representations and warranties set forth on Exhibit E hereto in respect
      of
      such Class B-1 Certificate or Class B-2 Certificate and the transferee will
      be
      deemed to have made as of the transfer date each of the representations and
      warranties set forth on Exhibit F or Exhibit G hereto in respect of such Class
      B-1 Certificate or Class B-2 Certificate.

     

    No
      transfer of any Class B-1 Certificate or Class B-2 Certificate that is a
      Book-Entry Certificate or interest therein shall be made by any related
      Certificate Owner except (A) in the manner set forth in the preceding paragraph
      and in reliance on Rule 144A under the 1933 Act to a “qualified institutional
      buyer” that is acquiring such Book-Entry Certificate for its own account or for
      the account of another “qualified institutional buyer” or (B) in the manner set
      forth in the second preceding paragraph and in the form of a Definitive
      Certificate.

     

    If
      any
      Certificate Owner that is required under this Section 6.02(b) to transfer its
      Book-Entry Certificates in the form of Definitive Certificates, (i) notifies
      the
      Securities Administrator of such transfer or exchange and (ii) transfers such
      Book-Entry Certificates to the Securities Administrator, in its capacity as
      such, through the book-entry facilities of the Depository, then the Securities
      Administrator shall decrease the balance of such Book-Entry Certificates or,
      the
      Securities Administrator shall use reasonable efforts to cause the surrender
      to
      the Certificate Registrar of such Book-Entry Certificates by the Depository,
      and
      thereupon, the Securities Administrator shall execute, authenticate and deliver
      to such Certificate Owner or its designee one or more Definitive Certificates
      in
      authorized denominations and with a like aggregate principal
      amount.

     

    Subject
      to the provisions of this Section 6.02(b) governing registration of transfer
      and
      exchange, Class B-1 Certificates or Class B-2 Certificates (i) held as
      Definitive Certificates may be transferred in the form of Book-Entry
      Certificates in reliance on Rule 144A under the 1933 Act to one or more
“qualified institutional buyers” that are acquiring such Definitive Certificates
      for their own accounts or for the accounts of other “qualified institutional
      buyers” and (ii) held as Definitive Certificates by a “qualified institutional
      buyer” for its own account or for the account of another “qualified
      institutional buyer” may be exchanged for Book-Entry Certificates, in each case
      upon surrender of such Class B-1 Certificates or Class B-2 Certificates for
      registration of transfer or exchange at the offices of the Securities
      Administrator maintained for such purpose. Whenever any such Class B-1
      Certificates are so surrendered for transfer or exchange, either the Securities
      Administrator shall increase the balance of the related Book-Entry Certificates
      or the Securities Administrator shall execute, authenticate and deliver the
      Book-Entry Certificates for which such Class B-1 Certificates or Class B-2
      Certificates were transferred or exchanged, as necessary and appropriate. No
      Holder of Definitive Certificates other than a “qualified institutional buyer”
holding such Certificates for its own account or for the account of another
      “qualified institutional buyer” may exchange such Class B-1 Certificates or
      Class B-2 Certificates for Book-Entry Certificates. Further, any Certificate
      Owner of a Book-Entry Certificate other than any such “qualified institutional
      buyers” shall notify the Securities Administrator of its status as such and
      shall transfer such Book-Entry Certificate to the Securities Administrator,
      through the book-entry facilities of the Depository, whereupon, and also upon
      surrender to the Securities Administrator of such Book-Entry Certificate by
      the
      Depository, (which surrender the Securities Administrator shall use reasonable
      efforts to cause to occur), the Securities Administrator shall execute,
      authenticate and deliver to such Certificate Owner or such Certificate Owner’s
      nominee one or more Definitive Certificates in authorized denominations and
      with
      a like aggregate principal amount.

     

    No
      Transfer of an ERISA Restricted Certificate shall be made unless the Securities
      Administrator shall have received either (i) a representation from the
      transferee of such Certificate acceptable to and in form and substance
      satisfactory to the Securities Administrator to the effect that such transferee
      is not an employee benefit plan subject to Section 406 of ERISA and/or a
      plan subject to Section 4975 of the Code, or a Person acting on behalf of
      any such plan or using the assets of any such plan, or (ii) in the case of
      any
      such ERISA Restricted Certificate presented for registration in the name of
      an
      employee benefit plan subject to ERISA, or a plan subject to Section 4975
      of the Code (or comparable provisions of any subsequent enactments), or a
      trustee of any such plan or any other person acting on behalf of any such plan,
      an Opinion of Counsel satisfactory to the Securities Administrator for the
      benefit of the Securities Administrator, the Depositor and the Servicer and
      on
      which they may rely to the effect that the purchase and holding of such ERISA
      Restricted Certificate is permissible under applicable law, will not result
      in
      any prohibited transactions under ERISA or Section 4975 of the Code and
      will not subject the Securities Administrator, the Depositor, the Trustee or
      the
      Servicer to any obligation in addition to those expressly undertaken in this
      Agreement, which Opinion of Counsel shall not be an expense of the Securities
      Administrator, the Depositor, the Servicer or the Trustee. Notwithstanding
      anything else to the contrary herein, any purported transfer of an ERISA
      Restricted Certificate to or on behalf of an employee benefit plan subject
      to
      Section 406 of ERISA and/or a plan subject to Section 4975 of the Code
      other than in compliance with the foregoing shall be void and of no effect;
      provided that the restriction set forth in this sentence shall not be applicable
      if there has been delivered to the Securities Administrator an Opinion of
      Counsel meeting the requirements of clause (ii) of the first sentence of this
      paragraph. The Securities Administrator shall not be under any liability to
      any
      Person for any registration of transfer of any ERISA Restricted Certificate
      that
      is in fact not permitted by this Section 6.02(b) or for making any payments
      due on such Certificate to the Holder thereof or taking any other action with
      respect to such Holder under the provisions of this Agreement. The Securities
      Administrator shall be entitled, but not obligated, to recover from any Holder
      of any ERISA Restricted Certificate that was in fact an employee benefit plan
      subject to Section 406 of ERISA or a plan subject to Section 4975 of
      the Code or a Person acting on behalf of any such plan at the time it became
      a
      Holder or, at such subsequent time as it became such a plan or Person acting
      on
      behalf of such a plan, all payments made on such ERISA Restricted Certificate
      at
      and after either such time. Any such payments so recovered by the Securities
      Administrator shall be paid and delivered by the Securities Administrator to
      the
      last preceding Holder of such Certificate that is not such a plan or Person
      acting on behalf of a plan.

     

    For
      so
      long as the Supplemental Interest Trust is in existence, each beneficial owner
      of a Publicly Offered Certificate, Class B Certificate or any interest therein,
      shall be deemed to have represented, by virtue of its acquisition or holding
      of
      the Publicly Offered Certificate, Class B Certificate or interest therein,
      that
      either (i) it is not a Plan or (ii)(A) it is an accredited investor within
      the
      meaning of Prohibited Transaction Exemption 2002-41, as amended from time to
      time (the “Exemption”) and (B) the acquisition and holding of such Certificate
      and the separate right to receive payments from the Supplemental Interest Trust
      are eligible for the exemptive relief available under Prohibited Transaction
      Class Exemption (“PTCE”) 84-14 (for transactions by independent “qualified
      professional asset managers”), 91-38 (for transactions by bank collective
      investment funds), 90-1 (for transactions by insurance company pooled separate
      accounts), 95-60 (for transactions by insurance company general accounts) or
      96-23 (for transactions effected by “in-house asset managers”) in the case of a
      Publicly Offered Certificate or a Class B-1 Certificate, or PTCE 95-60 in the
      case of a Class B-2 Certificate.

     

    Each
      beneficial owner of a Subordinate Certificate or any interest therein that
      is
      acquired after the termination of the Supplemental Interest Trust shall be
      deemed to have represented, by virtue of its acquisition or holding of that
      certificate or interest therein, that either (i) it is not a Plan or investing
      with “Plan Assets”, (ii) in the case of a Subordinate Certificate other than a
      Class B-2 Certificate, it has acquired and is holding such certificate in
      reliance on the Exemption, and that it understands that there are certain
      conditions to the availability of the Exemption, including that the certificate
      must be rated, at the time of purchase, not lower than “BBB-“ (or its
      equivalent) by S&P, Fitch or Moody’s, and the certificate is so rated or
      (iii) (1) it is an insurance company, (2) the source of funds used to acquire
      or
      hold the certificate or interest therein is an “insurance company general
      account,” as such term is defined in Prohibited Transaction Class Exemption
      (“PTCE”) 95-60 and (3) the conditions in Sections I and III of PTCE 95-60 have
      been satisfied.

     

    If
      any
      Certificate, or any interest therein, is acquired or held in violation of this
      section 6.02(b), the next preceding permitted beneficial owner will be treated
      as the beneficial owner of that Certificate, retroactive to the date of transfer
      to the purported beneficial owner. Any purported beneficial owner whose
      acquisition or holding of a Certificate, or interest therein, was effected
      in
      violation of this Section shall indemnify to the extent permitted by law and
      hold harmless the Depositor, the Sponsor, the Master Servicer, the Securities
      Administrator, the Servicer, the Underwriter and the Trustee from and against
      any and all liabilities, claims, costs or expenses incurred by such parties
      as a
      result of such acquisition or holding.

     

    (c)  (i)
      Each
      Person who has or who acquires any Ownership Interest in a Residual Certificate
      shall be deemed by the acceptance or acquisition of such Ownership Interest
      to
      have agreed to be bound by the following provisions, and the rights of each
      Person acquiring any Ownership Interest in a Residual Certificate are expressly
      subject to the following provisions:

     

    (A)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall be a Permitted Transferee and shall promptly notify the Securities
      Administrator of any change or impending change in its status as a Permitted
      Transferee.

     

    (B)  In
      connection with any proposed Transfer of any Ownership Interest in a Residual
      Certificate, the Trustee shall require delivery to it, and shall not register
      the Transfer of any Residual Certificate until its receipt of, an affidavit
      and
      agreement (a “Transfer Affidavit and Agreement,” in the form attached hereto as
      Exhibit D) from the proposed Transferee, in form and substance satisfactory
      to
      the Securities Administrator, representing and warranting, among other things,
      that such Transferee is a Permitted Transferee, that it is not acquiring its
      Ownership Interest in the Residual Certificate that is the subject of the
      proposed Transfer as a nominee, trustee or agent for any Person that is not
      a
      Permitted Transferee, that for so long as it retains its Ownership Interest
      in a
      Residual Certificate, it will endeavor to remain a Permitted Transferee, and
      that it has reviewed the provisions of this Section 6.02(c) and agrees to
      be bound by them.

     

    (C)  Notwithstanding
      the delivery of a Transfer Affidavit and Agreement by a proposed Transferee
      under clause (B) above, if an authorized officer of the Securities Administrator
      who is assigned to this transaction has actual knowledge that the proposed
      Transferee is not a Permitted Transferee, no Transfer of an Ownership Interest
      in a Residual Certificate to such proposed Transferee shall be
      effected.

     

    (D)  Each
      Person holding or acquiring any Ownership Interest in a Residual Certificate
      shall agree (x) to require a Transfer Affidavit and Agreement from any other
      Person to whom such Person attempts to transfer its Ownership Interest in a
      Residual Certificate and (Y) not to transfer its Ownership Interest unless
      it
      provides a Transferor Affidavit (in the form attached hereto as Exhibit B-2)
      to
      the Securities Administrator stating that, among other things, it has no actual
      knowledge that such other Person is not a Permitted Transferee.

     

    (E)  Each
      Person holding or acquiring an Ownership Interest in a Residual Certificate,
      by
      purchasing an Ownership Interest in such Certificate, agrees to give the
      Securities Administrator written notice that it is a “pass-through interest
      holder” within the meaning of temporary Treasury regulation
      Section 1.67-3T(a)(2)(i)(A) immediately upon acquiring an Ownership
      Interest in a Residual Certificate, if it is, or is holding an Ownership
      Interest in a Residual Certificate on behalf of, a “pass-through interest
      holder.”

     

    (ii)  The
      Securities Administrator will register the Transfer of any Residual Certificate
      only if it shall have received the Transfer Affidavit and Agreement and all
      of
      such other documents as shall have been reasonably required by the Securities
      Administrator as a condition to such registration. In addition, no Transfer
      of a
      Residual Certificate shall be made unless the Securities Administrator shall
      have received a representation letter from the Transferee of such Certificate
      to
      the effect that such Transferee is a Permitted Transferee.

     

    (iii)  (A)
      If any
      purported Transferee shall become a Holder of a Residual Certificate in
      violation of the provisions of this Section 6.02(c), then the last
      preceding Permitted Transferee shall be restored, to the extent permitted by
      law, to all rights as holder thereof retroactive to the date of registration
      of
      such Transfer of such Residual Certificate. The Securities Administrator shall
      be under no liability to any Person for any registration of Transfer of a
      Residual Certificate that is in fact not permitted by this Section 6.02(c)
      or for making any payments due on such Certificate to the holder thereof or
      for
      taking any other action with respect to such holder under the provisions of
      this
      Agreement.

     

    (B)  If
      any
      purported Transferee shall become a holder of a Residual Certificate in
      violation of the restrictions in this Section 6.02(c) and to the extent
      that the retroactive restoration of the rights of the holder of such Residual
      Certificate as described in clause (iii)(A) above shall be invalid, illegal
      or
      unenforceable, then the Securities Administrator shall have the right, without
      notice to the holder or any prior holder of such Residual Certificate, to sell
      such Residual Certificate to a purchaser selected by the Securities
      Administrator on such terms as the Securities Administrator may choose. Such
      purported Transferee shall promptly endorse and deliver each Residual
      Certificate in accordance with the instructions of the Securities Administrator.
      Such purchaser may be the Securities Administrator itself or any Affiliate
      of
      the Securities Administrator. The proceeds of such sale, net of the commissions
      (which may include commissions payable to the Securities Administrator or its
      Affiliates), expenses and taxes due, if any, will be remitted by the Securities
      Administrator to such purported Transferee. The terms and conditions of any
      sale
      under this clause (iii)(B) shall be determined in the sole discretion of the
      Securities Administrator, and the Securities Administrator shall not be liable
      to any Person having an Ownership Interest in a Residual Certificate as a result
      of its exercise of such discretion.

     

    (iv)  The
      Securities Administrator shall make available to the Internal Revenue Service
      and those Persons specified by the REMIC Provisions all information necessary
      to
      compute any tax imposed (A) as a result of the Transfer of an Ownership Interest
      in a Residual Certificate to any Person who is a Disqualified Organization,
      including the information described in Treasury regulations sections
      1.860D-1(b)(5) and 1.860E-2(a)(5) with respect to the “excess inclusions” of
      such Residual Certificate and (B) as a result of any regulated investment
      company, real estate investment trust, common trust fund, partnership, trust,
      estate or organization described in Section 1381 of the Code that holds an
      Ownership Interest in a Residual Certificate having as among its record holders
      at any time any Person which is a Disqualified Organization. Reasonable
      compensation for providing such information may be charged or collected by
      the
      Securities Administrator.

     

    (v)  The
      provisions of this Section 6.02(c) set forth prior to this subsection (v)
      may be modified, added to or eliminated, provided that there shall have been
      delivered to the Securities Administrator at the expense of the party seeking
      to
      modify, add to or eliminate any such provision the following:

     

    (A)  written
      notification from each Rating Agency to the effect that the modification,
      addition to or elimination of such provisions will not cause such Rating Agency
      to downgrade its then-current ratings of any Class of Certificates;
      and

     

    (B)  an
      Opinion of Counsel, in form and substance satisfactory to the Securities
      Administrator, to the effect that such modification of, addition to or
      elimination of such provisions will not cause any Trust REMIC to cease to
      qualify as a REMIC and will not cause any Trust REMIC, as the case may be,
      to be
      subject to an entity-level tax caused by the Transfer of any Residual
      Certificate to a Person that is not a Permitted Transferee or a Person other
      than the prospective transferee to be subject to a REMIC-tax caused by the
      Transfer of a Residual Certificate to a Person that is not a Permitted
      Transferee.

     

    (d)  Subject
      to the preceding subsections, upon surrender for registration of transfer of
      any
      Certificate at any office or agency of the Securities Administrator maintained
      for such purpose pursuant to Section 9.11, the Securities Administrator
      shall execute, authenticate and deliver, in the name of the designated
      Transferee or Transferees, one or more new Certificates of the same Class of
      a
      like aggregate Percentage Interest.

     

    (e)  At
      the
      option of the Holder thereof, any Certificate may be exchanged for other
      Certificates of the same Class with authorized denominations and a like
      aggregate Percentage Interest, upon surrender of such Certificate to be
      exchanged at any office or agency of the Securities Administrator maintained
      for
      such purpose pursuant to Section 9.11. Whenever any Certificates are so
      surrendered for exchange, the Securities Administrator shall execute,
      authenticate and deliver, the Certificates which the Certificateholder making
      the exchange is entitled to receive. Every Certificate presented or surrendered
      for transfer or exchange shall (if so required by the Securities Administrator)
      be duly endorsed by, or be accompanied by a written instrument of transfer
      in
      the form satisfactory to the Securities Administrator duly executed by, the
      Holder thereof or his attorney duly authorized in writing. In
      addition, (i) with respect to each Class R Certificate, the holder thereof
      may
      exchange, in the manner described above, such Class R Certificate for three
      separate certificates, each representing such holder's respective Percentage
      Interest in the Class R-I Interest, the Class R-II Interest and the Class R-III
      Interest, respectively, in each case that was evidenced by the Class R
      Certificate being exchanged and (ii) with respect to each Class R-X Certificate,
      the holder thereof may exchange, in the manner described above, such Class
      R-X
      Certificate for three separate certificates, each representing such holder's
      respective Percentage Interest in the Class R-IV Interest, the Class R-V
      Interest and the Class R-VI Interest, respectively, in each case that was
      evidenced by the Class R-X Certificate being exchanged.

     

    (f)  No
      service charge to the Certificateholders shall be made for any transfer or
      exchange of Certificates, but the Securities Administrator may require payment
      of a sum sufficient to cover any tax or governmental charge that may be imposed
      in connection with any transfer or exchange of Certificates.

     

    (g)  The
      preparation and delivery of all certificates and opinions referred to above
      in
      this Section 6.02 shall not be an expense of the Trust Fund, the Securities
      Administrator, the Depositor or the Sponsor.

     

    (h)  All
      Certificates surrendered for transfer and exchange shall be canceled and
      destroyed by the Securities Administrator in accordance with its customary
      procedures.

     

    Section
      6.03  Mutilated,
      Destroyed, Lost or Stolen Certificates.

     

    If
      (a)
      any mutilated Certificate is surrendered to the Securities Administrator, or
      the
      Securities Administrator receives evidence to its satisfaction of the
      destruction, loss or theft of any Certificate and of the ownership thereof
      and
      (b) there is delivered to the Securities Administrator such security or
      indemnity as may be required by them to save each of them harmless, then, in
      the
      absence of notice to the Securities Administrator that such Certificate has
      been
      acquired by a bona fide purchaser, the Securities Administrator shall execute,
      authenticate and deliver, in exchange for or in lieu of any such mutilated,
      destroyed, lost or stolen Certificate, a new Certificate of like Class, tenor
      and Percentage Interest. In connection with the issuance of any new Certificate
      under this Section 6.03, the Securities Administrator 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 Securities Administrator) connected therewith. Any
      replacement Certificate issued pursuant to this Section 6.03 shall
      constitute complete and indefeasible evidence of ownership in the Trust Fund,
      as
      if originally issued, whether or not the lost, stolen or destroyed Certificate
      shall be found at any time. All Certificates surrendered to the Securities
      Administrator under the terms of this Section 6.03 shall be canceled and
      destroyed by the Securities Administrator in accordance with its standard
      procedures without liability on its part.

     

    Section
      6.04  Persons
      Deemed Owners.

     

    The
      Depositor, the Servicer, the Trustee, the Master Servicer, the Securities
      Administrator and any of their agents 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 none of the Depositor, the Servicer, the Trustee, the Master
      Servicer, the Securities Administrator nor any of their agents shall be affected
      by any notice to the contrary.

     

    Section
      6.05  Access
      to List of Certificateholders’ Names and Addresses.

     

    If
      three
      or more Certificateholders (a) request such information in writing from the
      Securities Administrator, (b) state that such Certificateholders desire to
      communicate with other Certificateholders with respect to their rights under
      this Agreement or under the Certificates, and (c) provide a copy of the
      communication that such Certificateholders propose to transmit or if the
      Depositor shall request such information in writing from the Securities
      Administrator, then the Securities Administrator shall, within ten Business
      Days
      after the receipt of such request, provide the Depositor or such
      Certificateholders at such recipients’ expense the most recent list of the
      Certificateholders of the Trust Fund held by the Securities Administrator,
      if
      any. The Depositor and every Certificateholder, by receiving and holding a
      Certificate, agree that the Securities Administrator shall not be held
      accountable by reason of the disclosure of any such information as to the list
      of the Certificateholders hereunder, regardless of the source from which such
      information was derived.

     

    Section
      6.06  Book-Entry
      Certificates.

     

    The
      Regular Certificates, upon original issuance, shall be issued in the form of
      one
      or more typewritten Certificates representing the Book- Entry Certificates,
      to
      be delivered to the Depository by or on behalf of the Depositor. Such
      Certificates shall initially be registered on the Certificate Register in the
      name of the Depository or its nominee, and no Certificate Owner of such
      Certificates will receive a definitive certificate representing such Certificate
      Owner’s interest in such Certificates, except as provided in Section 6.08.
      Unless and until definitive, fully registered Certificates (“Definitive
      Certificates”) have been issued to the Certificate Owners of such Certificates
      pursuant to Section 6.08:

     

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

     

    (b)  the
      Depositor and the Securities Administrator may deal with the Depository and
      the
      Depository Participants for all purposes (including the making of distributions)
      as the authorized representative of the respective Certificate Owners of such
      Certificates;

     

    (c)  registration
      of the Book-Entry Certificates may not be transferred by the Securities
      Administrator except to another Depository;

     

    (d)  the
      rights of the respective Certificate Owners of such Certificates shall be
      exercised only through the Depository and the Depository Participants and shall
      be limited to those established by law and agreements between the Owners of
      such
      Certificates and the Depository and/or the Depository Participants. Pursuant
      to
      the Depository Agreement, unless and until Definitive Certificates are issued
      pursuant to Section 6.08, the Depository will make book-entry transfers
      among the Depository Participants and receive and transmit distributions of
      principal and interest on the related Certificates to such Depository
      Participants;

     

    (e)  the
      Depository may collect its usual and customary fees, charges and expenses from
      its Depository Participants;

     

    (f)  the
      Depositor, the Servicer, the Trustee, the Master Servicer and the Securities
      Administrator may rely and shall be fully protected in relying upon information
      furnished by the Depository with respect to its Depository Participants;
      and

     

    (g)  to
      the
      extent that the provisions of this Section conflict with any other
      provisions of this Agreement, the provisions of this Section shall
      control.

     

    For
      purposes of any provision of this Agreement requiring or permitting actions
      with
      the consent of, or at the direction of, Certificateholders evidencing a
      specified percentage of the aggregate unpaid principal amount of any Class
      of
      Certificates, such direction or consent may be given by Certificate Owners
      (acting through the Depository and the Depository Participants) owning
      Book-Entry Certificates evidencing the requisite percentage of principal amount
      of such Class of Certificates.

     

    Section
      6.07  Notices
      to Depository.

     

    Whenever
      any notice or other communication is required to be given to Certificateholders
      of a Class with respect to which Book-Entry Certificates have been issued,
      unless and until Definitive Certificates shall have been issued to the related
      Certificate Owners, the Securities Administrator shall give all such notices
      and
      communications to the Depository.

     

    Section
      6.08  Definitive
      Certificates.

     

    If,
      after
      Book-Entry Certificates have been issued with respect to any Certificates,
      (a)
      the Depositor or the Depository advises the Securities Administrator that the
      Depository is no longer willing or able to discharge properly its
      responsibilities under the Depository Agreement with respect to such
      Certificates and the Securities Administrator or the Depositor is unable to
      locate a qualified successor, (b) the Depositor, at its sole option, advises
      the
      Securities Administrator that it elects to terminate the book-entry system
      with
      respect to such Certificates through the Depository or (c) after the occurrence
      and continuation of either of the events described in clauses (a) or (b) above,
      Certificate Owners of such Book-Entry Certificates having not less than fifty
      one percent (51%) of the Voting Rights evidenced by any Class of Book-Entry
      Certificates advise the Securities Administrator and the Depository in writing
      through the Depository Participants that the continuation of a book-entry system
      with respect to Certificates of such Class through the Depository (or its
      successor) is no longer in the best interests of the Certificate Owners of
      such
      Class, then the Securities Administrator shall notify all Certificate Owners
      of
      such Certificates, through the Depository, of the occurrence of any such event
      and of the availability of Definitive Certificates to applicable Certificate
      Owners requesting the same. The Depositor shall provide the Securities
      Administrator with an adequate inventory of certificates to facilitate the
      issuance and transfer of Definitive Certificates. Upon surrender to the
      Securities Administrator of any such Certificates by the Depository, accompanied
      by registration instructions from the Depository for registration, the
      Securities Administrator shall countersign and deliver such Definitive
      Certificates. Neither the Depositor nor the Securities Administrator shall
      be
      liable for any delay in delivery of such instructions and each may conclusively
      rely on, and shall be protected in relying on, such instructions. Upon the
      issuance of such Definitive Certificates, all references herein to obligations
      imposed upon or to be performed by the Depository shall be deemed to be imposed
      upon and performed by the Securities Administrator, to the extent applicable
      with respect to such Definitive Certificates and the Securities Administrator
      shall recognize the Holders of such Definitive Certificates as
      Certificateholders hereunder.

     

    Section
      6.09  Maintenance
      of Office or Agency.

     

    Certificates
      may be surrendered for registration of transfer or exchange at the applicable
      Corporate Trust Office of the Securities Administrator. The Securities
      Administrator will give prompt written notice to the Certificateholders of
      any
      change in such location of any such office or agency.

     

    ARTICLE
      VII

    THE
      DEPOSITOR, THE
      SERVICER AND THE MASTER SERVICER

     

    Section
      7.01  Liabilities
      of the Depositor, the Servicer and the Master Servicer.

     

    Each
      of
      the Depositor, the Servicer and the Master Servicer shall be liable in
      accordance herewith only to the extent of the obligations specifically imposed
      upon and undertaken by it herein.

     

    Section
      7.02  Merger
      or Consolidation of the Depositor, the Servicer or the Master
      Servicer.

     

    (a)  Each
      of
      the Depositor and the Servicer will keep in full force and effect its rights
      and
      franchises as a corporation, under the laws of the state of its formation,
      and
      will
      obtain and preserve its qualification to do business as a foreign corporation
      in
      each jurisdiction in which such qualification is or shall be necessary to
      protect the validity and enforceability of this Agreement, the Certificates
      or
      any of the Mortgage Loans and to perform its duties under this
      Agreement.
      The
      Master Servicer will keep in full force and effect its existence, rights and
      franchises as a national banking association, and will obtain and preserve
      its
      qualification to do business as a foreign corporation in each jurisdiction
      in
      which such qualification is or shall be necessary to protect the validity and
      enforceability of this Agreement, the Certificates or any of the Mortgage Loans
      and to perform its duties under this Agreement.

     

    (b)  The
      Depositor, the Servicer or the Master Servicer may be merged or consolidated,
      or
      any person resulting from any merger or consolidation to which the Depositor,
      the Servicer or the Master Servicer shall be a party, or any Person succeeding
      to the business of the Depositor, the Servicer or the Master Servicer shall
      be
      the successor of the Depositor, the Servicer or the Master Servicer hereunder,
      without the execution or filing of any paper or further act on the part of
      any
      of the parties hereto, anything herein to the contrary notwithstanding, provided
      that any Successor Servicer shall have represented that it meets the eligibility
      criteria set forth in Section 8.02.

     

    Section
      7.03  Indemnification
      by Depositor, the Servicer and Servicing Function Participants.

     

    (a)  The
      Depositor agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (including reasonable legal
      fees and disbursements of counsel) incurred on their part that may be sustained
      in connection with, arising out of, or relating to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to this
      Agreement or the Certificates (i) related to the Depositor’s failure to perform
      its duties in compliance with this Agreement (except as any such loss, liability
      or expense shall be otherwise reimbursable pursuant to this Agreement) or (ii)
      incurred by reason of the Depositor’s willful misfeasance, bad faith or gross
      negligence in the performance of duties hereunder or by reason of reckless
      disregard of obligations and duties hereunder. This indemnity shall survive
      the
      resignation and the termination of this Agreement.

     

    (b)  The
      Servicer agrees to indemnify the Indemnified Persons for, and to hold them
      harmless against, any loss, liability or expense (including reasonable legal
      fees and disbursements of counsel) incurred on their part that may be sustained
      in connection with, arising out of, or relating to, any claim or legal action
      (including any pending or threatened claim or legal action) relating to the
      Servicer’s gross negligence in the performance of its duties under this
      Agreement or failure to service the Mortgage Loans in material compliance with
      the terms of this Agreement or for a material breach of any representation
      or
      warranty of the Servicer contained herein. The Servicer shall immediately notify
      the Trustee if a claim relating to the preceding sentence is made by a third
      party with respect to this Agreement or the Mortgage Loans for which the
      Servicer is required to provide indemnification pursuant to this Section
      7.03(b), assume (with the consent of the Trustee and with counsel reasonably
      satisfactory to the Trustee) the defense of any such claim and, subject to
      Section 7.04(e), pay all expenses in connection therewith, including counsel
      fees, and promptly appeal or pay, discharge and satisfy any final,
      non-appealable judgment or decree which may be entered against it or any
      Indemnified Person in respect of such claim, but failure to so notify the
      Trustee shall not limit the Servicer’s obligations hereunder. The Servicer
      agrees that it will not enter into any settlement of any such claim without
      the
      consent of the Indemnified Persons unless such settlement includes an
      unconditional release of such Indemnified Persons from all liability that is
      the
      subject matter of such claim. The provisions of this Section 7.03(b) shall
      survive termination of this Agreement.

     

    (c)  Each
      of
      the Depositor, Master Servicer, Securities Administrator and any Servicing
      Function Participant engaged by such party, respectively, shall indemnify and
      hold harmless the Master Servicer, the Securities Administrator and the
      Depositor, respectively, and each of the other parties to this Agreement and
      its
      respective directors, officers, employees, agents, and Affiliates from and
      against any and all claims, losses, damages, penalties, fines, forfeitures,
      reasonable legal fees and related costs, judgments and other costs and expenses
      arising out of or based upon (a) any breach by such party of any if its
      obligations under hereunder, including particularly its obligations to provide
      any Assessment of Compliance, Attestation Report, Compliance Statement or any
      information, data or materials required to be included in any 1934 Act report,
      (b) any material misstatement or omission of a material fact required to be
      stated or necessary to make such statements, in light of circumstances in which
      they were made, not misleading, in any information, data or materials provided
      by such party (or, in the case of the Securities Administrator or Master
      Servicer, any material misstatement or material omission in (i) any Compliance
      Statement, Assessment of Compliance or Attestation Report delivered by it,
      or by
      any Servicing Function Participant engaged by it, pursuant to this Agreement,
      or
      (ii) any Additional Form 10-D Disclosure, Additional Form 10-K Disclosure or
      Form 8-K Disclosure concerning the Master Servicer or the Securities
      Administrator), or (c) the negligence, bad faith or willful misconduct of such
      indemnifying party in connection with its performance hereunder. If the
      indemnification provided for in this Section 7.03(c) is unavailable or
      insufficient to hold harmless the Master Servicer, the Securities Administrator
      or the Depositor, as the case may be, then each such party agrees that it shall
      contribute to the amount paid or payable by the Master Servicer, the Securities
      Administrator or the Depositor, as applicable, as a result of any claims,
      losses, damages or liabilities incurred by such party in such proportion as
      is
      appropriate to reflect the relative fault of the indemnified party on the one
      hand and the indemnifying party on the other. This indemnification shall survive
      the termination of this Agreement or the termination of any party to this
      Agreement.

     

    Section
      7.04  Limitations
      on Liability of the Depositor, the Securities Administrator, the Master
      Servicer, the Servicer and Others.

     

    Subject
      to the obligation of the Depositor and the Servicer to indemnify the Indemnified
      Persons pursuant to Section 7.03:

     

    (a)  Neither
      the Depositor, the Securities Administrator, the Master Servicer, the Servicer
      nor any of the directors, officers, employees or agents of the Depositor, the
      Securities Administrator, the Master Servicer and the Servicer shall be under
      any liability to the Indemnified Persons, the Trust Fund or the
      Certificateholders for taking any action or for refraining from taking any
      action in good faith pursuant to this Agreement, or for errors in judgment;
      provided, however, that this provision shall not protect the Depositor, the
      Securities Administrator, the Master Servicer, the Servicer or any such Person
      against any breach of warranties, representations or covenants made herein
      or
      against any specific liability imposed on any such Person pursuant hereto or
      against any liability which would otherwise be imposed by reason of such
      Person’s willful misfeasance, bad faith or gross negligence in the performance
      of duties or by reason of reckless disregard of obligations and duties
      hereunder.

     

    (b)  The
      Depositor, the Securities Administrator, the Master Servicer, the Servicer
      and
      any director, officer, employee or agent of the Depositor, the Securities
      Administrator and the Master Servicer may rely in good faith on any document
      of
      any kind prima facie properly executed and submitted by any Person respecting
      any matters arising hereunder.

     

    (c)  The
      Depositor, the Securities Administrator, the Master Servicer, the Servicer,
      the
      Trustee, the Custodian and any director, officer, employee or agent of the
      Depositor, the Securities Administrator, the Master Servicer, the Servicer,
      the
      Trustee or the Custodian shall be indemnified by the Trust Fund and held
      harmless thereby against any loss, liability or expense (including reasonable
      legal fees and disbursements of counsel) incurred on their part that may be
      sustained in connection with, arising out of, or relating to this Agreement,
      the
      Custodial Agreement or the Certificates (including any pending or threatened
      claim or legal action), other than (i) with respect to the Custodian, any loss,
      liability or expense arising from or otherwise related to the Custodian’s
      failure to perform its duties under the Custodial Agreement, (ii) with respect
      to the Servicer, any such loss, liability or expense arising from or related
      to
      Servicer’s gross negligence in the performance of its duties hereunder or
      failure to service the Mortgage Loans in material compliance with the terms
      of
      this Agreement or a material breach of any representation or warranty of the
      Servicer contained herein or (iii) with respect to the Custodian, any such
      loss,
      liability or expense incurred by reason of the Custodian’s willful misfeasance,
      bad faith or gross negligence in the performance of its duties
      hereunder.

     

    (d)  The
      Depositor, the Securities Administrator, the Servicer or the Master Servicer
      shall not be under any obligation to appear in, prosecute or defend any legal
      action that is not incidental to its duties under this Agreement and that in
      its
      opinion may involve it in any expense or liability; provided, however, that
      each
      of the Depositor, the Securities Administrator, the Servicer and the Master
      Servicer may in its discretion, undertake any such action which it may deem
      necessary or desirable with respect to this Agreement and the rights and duties
      of the parties hereto and the interests of the Certificateholders hereunder.
      In
      such event, the legal expenses and costs of such action and any liability
      resulting therefrom (except 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) shall be expenses, costs and liabilities of the Trust Fund, and
      the
      Depositor, the Securities Administrator, the Servicer and the Master Servicer
      shall be entitled to be reimbursed therefor out of the Custodial Account or
      the
      Distribution Account as provided by Section 3.27 or Section 3.32, as
      applicable. Nothing in this Subsection 7.04(d) shall affect the Master
      Servicer’s obligation to take such actions as are necessary to ensure the
      servicing and administration of the Mortgage Loans pursuant to this
      Agreement.

     

    (e)  In
      taking
      or recommending any course of action pursuant to this Agreement, unless
      specifically required to do so pursuant to this Agreement, the Trustee shall
      not
      be required to investigate or make recommendations concerning potential
      liabilities which the Trust might incur as a result of such course of action
      by
      reason of the condition of the Mortgaged Properties.

     

    (f)  The
      Trustee shall not be liable for any acts or omissions of the Servicer, the
      Depositor or the Custodian.

     

    Section
      7.05  The
      Servicer Not to Resign.

     

    (a)  The
      Servicer shall not resign from the obligations and duties hereby imposed on
      it
      except upon the determination that its duties hereunder are no longer
      permissible under applicable law or the performance of such duties are no longer
      possible in order to comply with applicable law and such incapacity or
      impossibility cannot be cured by the Servicer. Any determination permitting
      the
      resignation of the Servicer shall be evidenced by an Opinion of Counsel to
      such
      effect delivered to the Master Servicer which Opinion of Counsel shall be in
      form and substance reasonably acceptable to the Master Servicer. No appointment
      of a successor to the Servicer shall be effective hereunder unless (a) the
      Rating Agencies have confirmed in writing that such appointment will not result
      in a downgrade, qualification or withdrawal of the then current ratings assigned
      to the Certificates, (b) such successor shall have represented that it is meets
      the eligibility criteria set forth in Section 8.02 and (c) such successor
      has agreed in writing to assume the obligations of the Servicer hereunder.
      The
      Servicer shall provide a copy of the written confirmation of the Rating Agencies
      and the agreement executed by such successor to the Master Servicer. No such
      resignation shall become effective until a Successor Servicer or the Master
      Servicer shall have assumed the Servicer’s responsibilities and obligations
      hereunder. The Servicer shall notify the Master Servicer and the Rating Agencies
      of its resignation.

     

    (b)  Except
      as
      expressly provided herein, the Servicer shall not assign or transfer any of
      its
      rights, benefits or privileges hereunder to any other Person, or delegate to
      or
      subcontract with, or authorize or appoint any other Person to perform any of
      the
      duties, covenants or obligations to be performed by the Servicer hereunder.
      The
      foregoing prohibition on assignment shall not prohibit the Servicer from
      designating a Subservicer as payee of any indemnification or other amount
      payable to the Servicer hereunder; provided, however, that as provided in
      Section 3.03, no Subservicer shall be a third-party beneficiary hereunder
      and the parties hereto shall not be required to recognize any Subservicer as
      an
      indemnitee under this Agreement.

     

    Section
      7.06  Appointment
      of Special Servicer; Termination of the Servicer.

     

    (a)  The
      Sponsor may appoint a special servicer with respect to certain of the Mortgage
      Loans. The Sponsor and the Servicer shall negotiate in good faith with any
      proposed special servicer with respect to the duties and obligations of such
      special servicer with respect to any such Mortgage Loan. Any subservicing
      agreement shall contain terms and provisions not inconsistent with this
      Agreement and shall obligate the special servicer to service such Mortgage
      Loans
      in accordance with Accepted Servicing Practices. The fee payable to the special
      servicer for the performance of such duties and obligations will be paid from
      the Servicing Fee collected by the Servicer with respect to each such Mortgage
      Loan and will be remitted to such special servicer by the Servicer. The Sponsor
      shall reimburse the Servicer for Servicing Fee shortfalls, if any, incurred
      as a
      result of the fee payable to such special servicer.

     

    (b)  If
      at any
      time the Sponsor retains or comes into possession of any servicing rights with
      respect to any of the Mortgage Loans, the Sponsor may, at its option, terminate
      the servicing responsibilities of the Servicer hereunder with respect to such
      Mortgage Loans without cause. No such termination shall become effective unless
      and until a successor to the Servicer shall have been appointed to service
      and
      administer the related Mortgage Loans pursuant to the terms and conditions
      of
      this Agreement. No appointment shall be effective unless (i) such Successor
      Servicer meets the eligibility criteria contained in Section 8.02, (ii) the
      Master Servicer shall have consented to such appointment, (iii) the Rating
      Agencies have been notified in writing of such appointment and such Successor
      Servicer meets the Minimum Servicing Requirements, (iv) such successor has
      agreed to assume the obligations of the Servicer hereunder to the extent of
      the
      related Mortgage Loans and (v) all amounts reimbursable to the terminated
      Servicer pursuant to the terms of this Agreement shall have been paid to the
      Servicer by the Successor Servicer appointed pursuant to the terms of this
      Section 7.06 or by the Sponsor including without limitation, all unpaid
      Servicing Fees accrued and unreimbursed Advances and Servicing Advances made
      by
      the terminated Servicer and all out-of-pocket expenses of the Servicer incurred
      in connection with the transfer of servicing to such successor. The Sponsor
      shall provide a copy of the agreement executed by such successor to the Trustee
      and the Master Servicer.

     

    Section
      7.07  Limitation
      on Resignation of the Master Servicer.

     

    The
      Master Servicer shall not resign from the obligations and duties hereby imposed
      on it except upon determination that its duties hereunder are no longer
      permissible under applicable law. Any such determination pursuant to the
      preceding sentence permitting the resignation of the Master Servicer shall
      be
      evidenced by an Opinion of Counsel to such effect obtained at the expense of
      the
      Master Servicer and delivered to the Trustee and the Rating Agencies. No
      resignation of the Master Servicer shall become effective until the Trustee
      or a
      successor Master Servicer meeting the criteria specified in Section 7.08
      shall have assumed the Master Servicer’s responsibilities, duties, liabilities
      (other than those liabilities arising prior to the appointment of such
      successor) and obligations under this Agreement.

     

    Section
      7.08  Assignment
      of Master Servicing.

     

    The
      Master Servicer may sell and assign its rights and delegate its duties and
      obligations in its entirety as Master Servicer under this Agreement; provided,
      however, that: (i) the purchaser or transferee accepting such assignment and
      delegation and assuming the obligations of the Master Servicer hereunder (a)
      shall have a net worth of not less than $15,000,000 (unless otherwise approved
      by each Rating Agency pursuant to clause (ii) below); (b) shall be reasonably
      satisfactory to the Trustee (as evidenced in a writing signed by the Trustee);
      and (c) shall execute and deliver to the Trustee an agreement, in form and
      substance reasonably satisfactory to the Trustee, which contains an assumption
      by such Person of the due and punctual performance and observance of each
      covenant and condition to be performed or observed by it as Master Servicer
      under this Agreement, any custodial agreement from and after the effective
      date
      of such agreement; (ii) each Rating Agency shall be given prior written notice
      of the identity of the proposed successor to the Master Servicer and each Rating
      Agency’s rating of the Certificates in effect immediately prior to such
      assignment, sale and delegation will not be downgraded, qualified or withdrawn
      as a result of such assignment, sale and delegation, as evidenced by a letter
      to
      such effect delivered to the Master Servicer and the Trustee; and (iii) the
      Master Servicer assigning the master servicing shall deliver to the Trustee
      an
      officer’s certificate and an Opinion of Independent counsel, each stating that
      all conditions precedent to such action under this Agreement have been completed
      and such action is permitted by and complies with the terms of this Agreement.
      No such assignment or delegation shall affect any liability of the Master
      Servicer arising out of acts or omissions prior to the effective date
      thereof.

     

    Section
      7.09  Rights
      of the Depositor in Respect of the Servicer and the Master
      Servicer.

     

    Each
      of
      the Master Servicer and the Servicer shall afford (and any Subservicing
      Agreement shall provide that each Subservicer shall afford) the Depositor and
      the Trustee, upon reasonable notice, during normal business hours, access to
      all
      records maintained by the Master Servicer or the Servicer (and any such
      Subservicer) in respect of the Servicer’s rights and obligations hereunder and
      access to officers of the Master Servicer or the Servicer (and those of any
      such
      Subservicer) responsible for such obligations, and the Master Servicer shall
      have access to all such records maintained by the Servicer and any Subservicers.
      Upon request, each of the Master Servicer and the Servicer shall furnish to
      the
      Depositor and the Trustee its (and any such Subservicer’s) most recent financial
      statements and such other reasonably requested information relating to the
      Master Servicer’s or the Servicer’s capacity to perform its obligations under
      this Agreement as it possesses (and that any such Subservicer possesses). To
      the
      extent such information is not otherwise available to the public, the Depositor
      and the Trustee shall not disseminate any information obtained pursuant to
      the
      preceding two sentences without the Master Servicer’s or the Servicer’s (as
      applicable) written consent, except as required pursuant to this Agreement
      or to
      the extent that it is appropriate to do so (i) to its legal counsel, auditors,
      taxing authorities or other governmental agencies and the Certificateholders,
      (ii) pursuant to any law, rule, regulation, order, judgment, writ, injunction
      or
      decree of any court or governmental authority having jurisdiction over the
      Depositor and the Trustee or the Trust Fund, and in any case, the Depositor
      or
      the Trustee, (iii) disclosure of any and all information that is or becomes
      publicly known, or information obtained by the Trustee from sources other than
      the Depositor, the Servicer or the Master Servicer, (iv) disclosure as required
      pursuant to this Agreement or (v) disclosure of any and all information (A)
      in
      any preliminary or final offering circular, registration statement or contract
      or other document pertaining to the transactions contemplated by the Agreement
      approved in advance by the Depositor, the Servicer or the Master Servicer or
      (B)
      to any Affiliate, independent or internal auditor, agent, employee or attorney
      of the Trustee having a need to know the same, provided that the Trustee advises
      such recipient of the confidential nature of the information being disclosed,
      shall use its best efforts to assure the confidentiality of any such
      disseminated non-public information. Nothing in this Section 7.09 shall
      limit the obligation of the Servicer to comply with any applicable law
      prohibiting disclosure of information regarding the Mortgagors and the failure
      of the Servicer to provide access as provided in this Section 7.09 as a
      result of such obligation shall not constitute a breach of this Section. Nothing
      in this Section 7.09 shall require the Servicer to collect, create, collate
      or otherwise generate any information that it does not generate in its usual
      course of business. The Servicer shall not be required to make copies of or
      ship
      documents to any party unless provisions have been made for the reimbursement
      of
      the costs thereof. The Depositor may, but is not obligated to, enforce the
      obligations of the Master Servicer and the Servicer under this Agreement and
      may, but is not obligated to, perform, or cause a designee to perform, any
      defaulted obligation of the Master Servicer or the Servicer under this Agreement
      or exercise the rights of the Master Servicer or the Servicer under this
      Agreement; provided that neither the Master Servicer nor the Servicer shall
      be
      relieved of any of its obligations under this Agreement by virtue of such
      performance by the Depositor or its designee. The Depositor shall not have
      any
      responsibility or liability for any action or failure to act by the Master
      Servicer or the Servicer and is not obligated to supervise the performance
      of
      the Master Servicer or the Servicer under this Agreement or
      otherwise.

     

    ARTICLE
      VIII

     

    DEFAULT;
      TERMINATION OF SERVICER
      AND MASTER SERVICER

     

    Section
      8.01  Events
      of Default.

     

    (a)  In
      case
      one or more of the following events of default by the Servicer (each, a
“Servicer Default”) shall occur and be continuing, that is to say:

     

    (i)  any
      failure by the Servicer to remit to the Securities Administrator any payment
      required to be made under the terms of this Agreement which continues unremedied
      for a period of two Business Days;
      or

     

    (ii)  failure
      on the part of the
      Servicer to
      duly
      observe or perform in any material respect any other of the covenants or
      agreements on the part of the Servicer set forth in this Agreement (other than
      those described in (viii) and (ix) below), the breach of which has a material
      adverse effect and which continue unremedied for a period of thirty (30) days
      after the date on which written notice of such failure, requiring the same
      to be
      remedied, shall have been given to the Servicer by the Master Servicer or the
      Securities Administrator or to the Servicer and the Master Servicer or the
      Securities Administrator by the holders of Certificates evidencing not less
      than
      25% of the Voting Rights evidenced by the Certificates; or

     

    (iii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      for
      the appointment of a conservator or receiver or liquidator in any insolvency,
      bankruptcy, readjustment of debt, marshaling of assets and liabilities or
      similar proceedings, or for the winding-up or liquidation of its affairs, shall
      have been entered against the Servicer and such decree or order shall have
      remained in force undischarged or unstayed for a period of sixty days;
      or

     

    (iv)  the
      Servicer shall consent to the appointment of a conservator or receiver or
      liquidator in any insolvency, bankruptcy, readjustment of debt, marshaling
      of
      assets and liabilities or similar proceedings of or relating to the Servicer
      or
      of or relating to all or substantially all of its property; or

     

    (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 any applicable insolvency
      or
      reorganization statute, make an assignment for the benefit of its creditors,
      or
      voluntarily suspend payment of its obligations; or

     

    (vi)  the
      Servicer attempts to assign its right to servicing compensation hereunder (other
      than any payment by the Servicer to a Subservicer pursuant to Section 3.03)
      or
      the Servicer attempts to sell or otherwise dispose of all or substantially
      all
      of its property or assets or to assign this Agreement or the servicing
      responsibilities hereunder or to delegate its duties hereunder or any portion
      thereof except, in each case as otherwise permitted herein; or

     

    (vii)  the
      Servicer ceases to be qualified to transact business in any jurisdiction where
      it is currently so qualified, but only to the extent such non-qualification
      materially and adversely affects the Servicer’s ability to perform its
      obligations hereunder; or

     

    (viii)  so
      long
      as the Trust Fund is subject to Exchange Act reporting requirements, failure
      by
      the Servicer to duly perform, within the required time period, its obligations
      under Sections 3.13, 3.14, 3.18 or 5.14, which default shall not be subject
      to
      notice or a cure period; or

     

    (ix)  after
      the
      Trust Fund ceases to be subject to Exchange Act reporting requirements, any
      failure by the Servicer to duly perform, within the required time period, its
      obligation to provide the annual statements of compliance, assessments of
      compliance and attestation reports described in Sections 3.13 and 3.14 hereof,
      which failure continues unremedied for a period of ten (10) Business Days after
      the date on which written notice of such failure, requiring the same to be
      remedied, has been given to the Servicer by the Master Servicer; or

     

    (x)  any
      failure by the Servicer (and any successor thereto) to provide, within the
      required time period set forth in Section 3.28 hereof, any required reports
      or
      data pertaining to the Mortgage Loans, which failure continues unremedied for
      a
      period of thirty (30) days after the date on which written notice of such
      failure, requiring the same to be remedied, has been given to the Servicer
      (or
      any successor thereto) by the Master Servicer;

     

    then,
      and
      in each and every such case, so long as a Servicer Default shall not have been
      remedied, the Master Servicer, by notice in writing to the Servicer shall with
      respect to a payment default by the Servicer pursuant to Section 8.01(i) of
      this Agreement and, upon the occurrence and continuance of any other Servicer
      Default, may, and, at the written direction of Certificateholders evidencing
      not
      less than twenty-five percent (25%) of the Voting Rights shall, in addition
      to
      whatever rights the Trustee on behalf of the Certificateholders may have under
      Section 7.03 of this Agreement, as applicable and at law or equity to
      damages, including injunctive relief and specific performance, terminate all
      the
      rights and obligations of the defaulting Servicer under this Agreement and
      in
      and to the related Mortgage Loans and the proceeds thereof without compensating
      the defaulting Servicer for the same with respect to a default by the Servicer,
      except as specifically provided below. On or after the receipt by the Servicer
      of such written notice, all authority and power of the Servicer under this
      Agreement whether with respect to the related Mortgage Loans or otherwise,
      shall
      pass to and be vested in the Master Servicer. Upon written request from the
      Master Servicer, the defaulting Servicer shall prepare, execute and deliver,
      any
      and all documents and other instruments, place in the Trustee’s (or its
      Custodian’s) possession all Mortgage Files relating to the related Mortgage
      Loans, and 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 related Mortgage Loans and related
      documents, or otherwise, at such Servicer’s sole expense. The defaulting
      Servicer shall cooperate with the Master Servicer in effecting the termination
      of the Servicer’s responsibilities and rights hereunder, including, without
      limitation, the transfer to such successor for administration by it of all
      cash
      amounts which shall at the time be credited by the defaulting Servicer to the
      Custodial Account or Escrow Account or thereafter received with respect to
      the
      related Mortgage Loans or any related REO Property (provided, however, that
      the
      defaulting Servicer shall continue to be entitled to receive all amounts accrued
      or owing to it under this Agreement on or prior to the date of such termination,
      whether in respect of Advances, Servicing Advances, accrued and unpaid Servicing
      Fees or otherwise, and shall continue to be entitled to the benefits of Sections
      7.03, 7.04 and 7.09 of this Agreement, notwithstanding any such
      termination, with respect to events occurring prior to such termination). The
      Master Servicer shall not have knowledge of any Servicer Default unless a
      Responsible Officer of the Master Servicer has actual knowledge or unless
      written notice of such Servicer Default is received by the Master Servicer
      at
      its address for notice and such notice references the Certificates, the Trust
      Fund or this Agreement.

     

    (b)  In
      case
      one or more of the following events of default by the Master Servicer (each,
      a
“Master Servicer Default”) shall occur and be continuing, that is to
      say:

     

    (i)  any
      failure on the part of the Master Servicer duly to observe or perform in any
      material respect any other of the covenants or agreements on the part of the
      Master Servicer contained in this Agreement, or the breach by the Master
      Servicer of any representation and warranty contained in Section 2.03,
      which continues unremedied for a period of thirty (30) days after the date
      on
      which written notice of such failure, requiring the same to be remedied, shall
      have been given to the Master Servicer by the Depositor or the Trustee or to
      the
      Master Servicer, the Depositor and the Trustee by the Holders of Certificates
      entitled to at least twenty-five percent (25%) of the Voting Rights;
      or

     

    (ii)  a
      decree
      or order of a court or agency or supervisory authority having jurisdiction
      in
      the premises in an involuntary case under any present or future federal or
      state
      bankruptcy, insolvency or similar law or the appointment of a conservator or
      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 Master Servicer
      and such decree or order shall have remained in force undischarged or unstayed
      for a period of ninety (90) days; or

     

    (iii)  the
      Master Servicer shall consent to the appointment of a conservator or receiver
      or
      liquidator in any insolvency, readjustment of debt, marshalling of assets and
      liabilities or similar proceedings of or relating to it or of or relating to
      all
      or substantially all of its property; or

     

    (iv)  the
      Master Servicer shall admit in writing its inability to pay its debts generally
      as they become due, file a petition to take advantage of any applicable
      insolvency or reorganization statute, make an assignment for the benefit of
      its
      creditors, or voluntarily suspend payment of its obligations; or

     

    (v)  so
      long
      as the Trust Fund is subject to Exchange Act reporting requirements, failure
      by
      the Master Servicer to duly perform, within the required time period, its
      obligations under Sections 3.13, 3.14, 3.18 or 5.14, which default shall not
      be
      subject to notice or a cure period.

     

    If
      a
      Master Servicer Default shall occur, then, and in each and every such case,
      so
      long as such Master Servicer Default shall not have been remedied, the Depositor
      or the Trustee may, and at the written direction of the Holders of Certificates
      entitled to at least 51% of Voting Rights, the Trustee shall, by notice in
      writing to the Master Servicer (and to the Depositor if given by the Trustee
      or
      to the Trustee if given by the Depositor) with a copy to each Rating Agency,
      terminate all of the rights and obligations of the Master Servicer in its
      capacity as Master Servicer under this Agreement, to the extent permitted by
      law, and in and to the Mortgage Loans and the proceeds thereof. On or after
      the
      receipt by the Master Servicer of such written notice, all authority and power
      of the Master Servicer under this Agreement, whether with respect to the
      Certificates (other than as a Holder of any Certificate) or the Mortgage Loans
      or otherwise including, without limitation, the compensation payable to the
      Master Servicer under this Agreement, shall pass to and be vested in the Trustee
      pursuant to and under this Section, and, without limitation, the Trustee is
      hereby authorized and empowered, as attorney-in-fact or otherwise, to execute
      and deliver, on behalf of and at the expense of the Master Servicer, any and
      all
      documents and other instruments and to do or accomplish all other acts or things
      necessary or appropriate to effect the purposes of such notice of termination,
      whether to complete the transfer and endorsement or assignment of the Mortgage
      Loans and related documents, or otherwise. The Master Servicer agrees promptly
      (and in any event no later than ten Business Days subsequent to such notice)
      to
      provide the Trustee with all documents and records requested by it to enable
      it
      to assume the Master Servicer’s functions under this Agreement, and to cooperate
      with the Trustee in effecting the termination of the Master Servicer’s
      responsibilities and rights under this Agreement (provided, however, that the
      Master Servicer shall continue to be entitled to receive all amounts accrued
      or
      owing to it under this Agreement on or prior to the date of such termination
      and
      shall continue to be entitled to the benefits of Section 7.03,
      notwithstanding any such termination, with respect to events occurring prior
      to
      such termination). For purposes of this Section 8.01, the Trustee shall not
      be deemed to have knowledge of a Master Servicer Default unless a Responsible
      Officer of the Trustee assigned to and working in the Trustee’s Corporate Trust
      Office has actual knowledge thereof or unless written notice of any event which
      is in fact such a Master Servicer Default is received by the Trustee and such
      notice references the Certificates, the Trust or this Agreement. The Trustee
      shall promptly notify the Rating Agencies of the occurrence of a Master Servicer
      Default of which it has knowledge as provided above.

     

    To
      the
      extent that the costs and expenses of the Trustee related to the termination
      of
      the Master Servicer, appointment of a successor Master Servicer or the transfer
      and assumption of the master servicing by the Trustee (including, without
      limitation, (i) all legal costs and expenses and all due diligence costs and
      expenses associated with an evaluation of the potential termination of the
      Master Servicer as a result of a Master Servicer Default and (ii) all costs
      and
      expenses associated with the complete transfer of the master servicing,
      including all servicing files and all servicing data and the completion,
      correction or manipulation of such servicing data as may be required by the
      successor Master Servicer to correct any errors or insufficiencies in the
      servicing data or otherwise to enable the successor Master Servicer to master
      service the Mortgage Loans in accordance with this Agreement) are not fully
      and
      timely reimbursed by the terminated Master Servicer, the Trustee shall be
      entitled to reimbursement of such costs and expenses from the Distribution
      Account.

     

    Neither
      the Trustee nor any other successor master servicer shall be deemed to be in
      default hereunder by reason of any failure to make, or any delay in making,
      any
      distribution hereunder or any portion thereof or any failure to perform, or
      any
      delay in performing, any duties or responsibilities hereunder, in either case
      caused by the failure of the Master Servicer to deliver or provide, or any
      delay
      in delivering or providing, any cash, information, documents or records to
      it.

     

    Notwithstanding
      the above, the Trustee may, if it shall be unwilling to continue to so act,
      or
      shall, if it is unable to so act, petition a court of competent jurisdiction
      to
      appoint, or appoint on its own behalf, any established housing and home finance
      institution servicer, master servicer, servicing or mortgage servicing
      institution having a net worth of not less than $15,000,000 and meeting such
      other standards for a successor master servicer as are set forth in this
      Agreement, as the successor to such Master Servicer in the assumption of all
      of
      the responsibilities, duties or liabilities of a master servicer, like the
      Master Servicer.

     

    Section
      8.02  Master
      Servicer to Act; Appointment of Successor.

     

    On
      and
      after the time the Servicer receives a notice of termination pursuant to
      Section 8.01 of this Agreement, the Master Servicer shall become the
      successor to the Servicer with respect to the transactions set forth or provided
      for herein and after a transition period (not to exceed 90 days), shall be
      subject to all the responsibilities, duties and liabilities relating thereto
      placed on the Servicer by the terms and provisions hereof and applicable law
      including the obligation to make Advances pursuant to Article V hereof, except
      as otherwise provided herein; provided, however, that the Master Servicer’s
      obligation to make Advances in its capacity as Successor Servicer shall not
      be
      subject to such 90-day transition period and the Master Servicer will make
      any
      Advance required to be made by the terminated Servicer on the Distribution
      Date
      on which the terminated Servicer was required to make such Advance. Effective
      on
      the date of such notice of termination, as compensation therefor, the Master
      Servicer shall be entitled to all fees, costs and expenses relating to the
      related Mortgage Loans that the terminated Servicer would have been entitled
      to
      if it had continued to act hereunder, provided, however, that the Master
      Servicer nor shall not be (i) liable for any acts or omissions of the terminated
      Servicer, (ii) obligated to make Advances if it is prohibited from doing so
      under applicable law or determines that such Advance, if made, would constitute
      a Nonrecoverable Advance, (iii) responsible for expenses of the terminated
      Servicer pursuant to Section 2.03 or (iv) obligated to deposit losses on
      any Permitted Investment directed by the terminated Servicer. Notwithstanding
      the foregoing, the Master Servicer may, if it shall be unwilling to so act,
      or
      shall, if it is prohibited by applicable law from making Advances pursuant
      to
      Article VI of this Agreement 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
      Servicer shall (i) be an institution that is a Fannie Mae and Freddie Mac
      approved seller/servicer in good standing, that has a net worth of at least
      $15,000,000 and (ii) be willing to act as Successor Servicer of the Mortgage
      Loans under this Agreement, and shall have executed and delivered to the
      Depositor and the Trustee an agreement accepting such delegation and assignment,
      that contains an assumption by such Person of the rights, powers, duties,
      responsibilities, obligations and liabilities of the terminated Servicer (other
      than any liabilities of the terminated Servicer hereof incurred prior to
      termination of the Servicer under Section 8.01), with like effect as if
      originally named as a party to this Agreement, provided that each Rating Agency
      shall have acknowledged in writing that its rating of the Certificates in effect
      immediately prior to such assignment and delegation will not be qualified or
      reduced as a result of such assignment and delegation. If the Master Servicer
      assumes the duties and responsibilities of the terminated Servicer in accordance
      with this Section 8.02, the Master Servicer shall not resign as servicer
      until a Successor Servicer has been appointed and has accepted such appointment.
      Pending appointment of a successor to the terminated Servicer hereunder, the
      Master Servicer, unless the Master Servicer is prohibited by law from so acting,
      shall act in such capacity as hereinabove provided. In connection with such
      appointment and assumption, the Master Servicer may make such arrangements
      for
      the compensation of such successor out of payments on the Mortgage Loans or
      otherwise as it and such successor shall agree; provided that no such
      compensation shall be in excess of that permitted the terminated Servicer
      hereunder. The Master Servicer and such successor shall take such action,
      consistent with this Agreement, as shall be necessary to effectuate any such
      succession. Neither the Master Servicer 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.

     

    The
      costs
      and expenses of the Master Servicer in connection with the termination of the
      Servicer, appointment of a Successor Servicer and, if applicable, any transfer
      of servicing, including, without limitation, all costs and expenses associated
      with the complete transfer of all servicing data and the completion, correction
      or manipulation of such servicing data as may be required by the Master Servicer
      to correct any errors or insufficiencies in the servicing data or otherwise
      to
      enable the Master Servicer or the Successor Servicer to service the related
      Mortgage Loans properly and effectively, to the extent not paid by the
      terminated Servicer as may be required herein, shall be payable to the Master
      Servicer or the Trustee, as applicable, from the Distribution Account pursuant
      to Section 3.32. Any successor to the terminated Servicer as Successor
      Servicer under this Agreement shall give notice to the applicable Mortgagors
      of
      such change of the Servicer and shall, during the term of its service as
      Successor Servicer maintain in force the policy or policies that the terminated
      Servicer is required to maintain pursuant to Section 3.05. 

     

    Section
      8.03  Notification
      to Certificateholders.

     

    (a)  Upon
      any
      termination of or appointment of a successor to a Servicer or the Master
      Servicer, the Trustee shall give prompt written notice thereof to
      Certificateholders and to each Rating Agency.

     

    (b)  Within
      sixty (60) days after the occurrence of any Servicer Default or Master Servicer
      Default, the Trustee shall transmit by mail to all Certificateholders notice
      of
      each such Servicer Default or Master Servicer Default hereunder known to the
      Trustee, unless such default shall have been cured or waived.

     

    Section
      8.04  Waiver
      of Servicer Defaults and Master Servicer Defaults.

     

    The
      Trustee may waive only by written notice from Certificateholders evidencing
      66-2/3 of the Voting Rights (unless such default materially and adversely
      affects all Certificateholders, in which case the written direction shall be
      from all of the Certificateholders) any default by a Servicer or Master Servicer
      in the performance of its obligations hereunder and its consequences. Upon
      any
      such waiver of a past default, such default shall cease to exist, and any
      Servicer Default or Master Servicer Default arising therefrom shall be deemed
      to
      have been remedied for every purpose of this Agreement. No such waiver shall
      extend to any subsequent or other default or impair any right consequent thereon
      except to the extent expressly so waived in writing.

     

    ARTICLE
      IX

     

    CONCERNING
      THE TRUSTEE AND SECURITIES ADMINISTRATOR

     

    Section
      9.01  Duties
      of Trustee and Securities Administrator.

     

    (a)  The
      Trustee, prior to the occurrence of a Master Servicer Default, and after the
      curing or waiver of all Master Servicer Defaults, which may have occurred,
      and
      the Securities Administrator each undertake to perform such duties and only
      such
      duties as are specifically set forth in this Agreement as duties of the Trustee
      and the Securities Administrator, respectively. If a Master Servicer Default
      has
      occurred and has not been cured or waived, the Trustee shall exercise such
      of
      the rights and powers vested in it by this Agreement, and 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. Any
      permissive right of the Trustee enumerated in this Agreement shall not be
      construed as a duty.

     

    (b)  Each
      of
      the Trustee and the Securities Administrator, upon receipt of all resolutions,
      certificates, statements, opinions, reports, documents, orders or other
      instruments furnished to it, which are specifically required to be furnished
      pursuant to any provision of this Agreement, shall examine them to determine
      whether they conform to the requirements of this Agreement. If any such
      instrument is found not to conform to the requirements of this Agreement in
      a
      material manner, the Trustee or the Securities Administrator, as the case may
      be, shall take such action as it deems appropriate to have the instrument
      corrected, and if the instrument is not corrected to its satisfaction, the
      Securities Administrator will provide notice to the Trustee thereof and the
      Trustee will provide notice to the Certificateholders.

     

    (c)  The
      Trustee shall promptly remit to the Servicer any complaint, claim, demand,
      notice or other document (collectively, the “Notices”) delivered to the Trustee
      as a consequence of the assignment of any Mortgage Loan hereunder and relating
      to the servicing of the Mortgage Loans; provided than any such notice (i) is
      delivered to the Trustee at its Corporate Trust Office, (ii) contains
      information sufficient to permit the Trustee to make a determination that the
      real property to which such document relates is a Mortgaged Property. The
      Trustee shall have no duty hereunder with respect to any Notice it may receive
      or which may be alleged to have been delivered to or served upon it unless
      such
      Notice is delivered to it or served upon it at its Corporate Trust Office and
      such Notice contains the information required pursuant to clause (ii) of the
      preceding sentence.

     

    (d)  
      No
      provision of this Agreement shall be construed to relieve the Trustee or the
      Securities Administrator from liability for its own negligent action, its own
      negligent failure to act or its own misconduct; provided, however,
      that:

     

    (i)  Prior
      to
      the occurrence of a Master Servicer Default and after the curing or waiver
      of
      all such Master Servicer Defaults which may have occurred with respect to the
      Trustee and at all times with respect to the Securities Administrator, the
      duties and obligations of the Trustee and the Securities Administrator shall
      be
      determined solely by the express provisions of this Agreement, neither the
      Trustee nor the Securities Administrator shall be liable except for the
      performance of its 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 or the Securities Administrator and, in the absence of
      bad
      faith on the part of the Trustee or the Securities Administrator, respectively,
      the Trustee or the Securities Administrator, respectively, may conclusively
      rely
      and shall be fully protected in acting or refraining from acting, as to the
      truth of the statements and the correctness of the opinions expressed therein,
      upon any certificates or opinions furnished to the Trustee or the Securities
      Administrator, respectively, that conform to the requirements of this
      Agreement;

     

    (ii)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for an error of judgment made in good faith by a Responsible Officer
      or
      Responsible Officers of the Trustee or an officer or officers of the Securities
      Administrator, respectively, unless it shall be proved that the Trustee or
      Securities Administrator, respectively, was negligent in ascertaining the
      pertinent facts;

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be liable with respect to
      any
      action taken, suffered or omitted to be taken by it in good faith and believed
      by it to be authorized or within the rights or powers conferred upon it by
      this
      Agreement or in accordance with the directions of the Holders of Certificates
      evidencing not less than 25% of the aggregate Voting Rights of the Certificates,
      if such action or non-action relates to the time, method and place of conducting
      any proceeding for any remedy available to the Trustee or the Securities
      Administrator or exercising any trust or other power conferred upon the Trustee
      or the Securities Administrator under this Agreement;

     

    (iv)  The
      Trustee shall not be required to take notice or be deemed to have notice or
      knowledge of any default or Master Servicer Default unless a Responsible Officer
      of the Trustee shall have actual knowledge thereof. In the absence of such
      notice, the Trustee may conclusively assume there is no such default or Master
      Servicer Default;

     

    (v)  The
      Trustee shall not in any way be liable by reason of any insufficiency in any
      Account held by or in the name of Trustee unless it is determined by a court
      of
      competent jurisdiction that the Trustee’s gross negligence or willful misconduct
      was the primary cause of such insufficiency (except to the extent that the
      Trustee is obligor and has defaulted thereon);

     

    (vi)  Anything
      in this Agreement to the contrary notwithstanding, in no event shall the Trustee
      or the Securities Administrator be liable for special, indirect, punitive or
      consequential loss or damage of any kind whatsoever (including but not limited
      to lost profits), even if the Trustee or the Securities Administrator has been
      advised of the likelihood of such loss or damage and regardless of the form
      of
      action and whether or not any such damages were foreseeable or contemplated;
      and

     

    (vii)  None
      of
      the Sponsor, the Depositor or the Trustee shall be responsible for the acts
      or
      omissions of the other, it being understood that this Agreement shall not be
      construed to render them partners, joint venturers or agents of one
      another.

     

    Neither
      the Trustee nor the Securities Administrator shall be required to expend or
      risk
      its own funds or otherwise incur liability, financial or otherwise, in the
      performance of any of its duties hereunder, or in the exercise of any of its
      rights or powers, if there is reasonable ground for believing that the repayment
      of such funds or adequate indemnity against such risk or liability is not
      reasonably assured to it, and none of the provisions contained in this Agreement
      shall in any event require the Trustee or the Securities Administrator to
      perform, or be responsible for the manner of performance of, any of the
      obligations of the terminated Servicer hereunder.

     

    (e)  All
      funds
      received by the Securities Administrator and required to be deposited in the
      Distribution Account pursuant to this Agreement will be promptly so deposited
      by
      the Securities Administrator.

     

    Section
      9.02  Certain
      Matters Affecting the Trustee and Securities Administrator.

     

    (a)  Except
      as
      otherwise provided in Section 9.01:

     

    (i)  The
      Trustee and the Securities Administrator may conclusively rely and shall be
      fully protected in acting or refraining from acting in reliance on any
      resolution or certificate of the Sponsor, the Depositor or the Servicer, any
      certificates of auditors or any other certificate, statement, instrument,
      opinion, report, notice, request, consent, order, appraisal, bond or other
      paper
      or document believed by it to be genuine and to have been signed or presented
      by
      the proper party or parties;

     

    (ii)  The
      Trustee and the Securities Administrator may consult with counsel and any advice
      of such counsel or any Opinion of Counsel shall be full and complete
      authorization and protection with respect to any action taken or suffered or
      omitted by it hereunder in good faith and in accordance with such advice or
      Opinion of Counsel:

     

    (iii)  Neither
      the Trustee nor the Securities Administrator shall be under any obligation
      to
      exercise any of the trusts or powers vested in it by this Agreement, other
      than
      its obligation to give notices pursuant to this Agreement, or to institute,
      conduct or defend any litigation hereunder or in relation hereto at the request,
      order or direction of any of the Certificateholders pursuant to the provisions
      of this Agreement, unless such Certificateholders shall have offered to the
      Trustee or the Securities Administrator, as the case may be, reasonable security
      or indemnity satisfactory to it against the costs, expenses and liabilities
      which may be incurred therein or thereby. Nothing contained herein shall,
      however, relieve the Trustee of the obligation, upon the occurrence of a Master
      Servicer Default of which a Responsible Officer of the Trustee has actual
      knowledge (which has not been cured or waived), to exercise such of the rights
      and powers vested in it by this Agreement, and to use the same degree of care
      and skill in their exercise, as a prudent person would exercise or use under
      the
      circumstances in the conduct of his own affairs;

     

    (iv)  Neither
      the Trustee nor the Securities Administrator shall be liable in its individual
      capacity for any action taken, suffered or omitted by it in good faith and
      believed by it to be authorized or within the discretion or rights or powers
      conferred upon it by this Agreement;

     

    (v)  Prior
      to
      the occurrence of a Master Servicer Default hereunder and after the curing
      or
      waiver of all Master Servicer Defaults which may have occurred with respect
      to
      the Trustee and at all times with respect to the Securities Administrator,
      neither the Trustee nor the Securities Administrator shall be bound to make
      any
      investigation into the facts or matters stated in any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      approval, bond or other paper or document, unless requested in writing to do
      so
      by Holders of Certificates evidencing not less than twenty-five percent (25%)
      of
      the aggregate Voting Rights of the Certificates and provided that the payment
      within a reasonable time to the Trustee or the Securities Administrator 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 or the Securities Administrator,
      as applicable, not reasonably assured to the Trustee or the Securities
      Administrator, as applicable, by the security afforded to it by the terms of
      this Agreement, the Trustee or the Securities Administrator, as applicable,
      may
      require reasonable indemnity against such expense or liability as a condition
      to
      taking any such action. The reasonable expense of every such examination shall
      be paid by the Certificateholders requesting the investigation;

     

    (vi)  The
      Trustee may execute any of the trusts or powers hereunder or perform any duties
      hereunder either directly or through Affiliates, nominees, custodians, agents
      or
      attorneys. The Trustee shall not be liable or responsible for the misconduct
      or
      negligence of any of the Trustee’s agents or attorneys or paying agent appointed
      hereunder by the Trustee with due care;

     

    (vii)  Should
      the Trustee deem the nature of any action required on its part to be unclear,
      the Trustee may require prior to such action that it be provided by the
      Depositor with reasonable further instructions; the right of the Trustee to
      perform any discretionary act enumerated in this Agreement shall not be
      construed as a duty, and the Trustee shall not be accountable for other than
      its
      gross negligence or willful misconduct in the performance of any such
      act;

     

    (viii)  The
      Trustee shall not be required to give any bond or surety with respect to the
      execution of the trust created hereby or the powers granted
      hereunder;

     

    (ix)  The
      Trustee shall not have any duty to conduct any affirmative investigation as
      to
      the occurrence of any condition requiring the repurchase of any Mortgage Loan
      by
      any Person pursuant to this Agreement, or the eligibility of any Mortgage Loan
      for purposes of this Agreement;

     

    (x)  The
      Trustee shall have no duty hereunder with respect to any complaint, claim,
      demand, notice or other document it may receive or which may be alleged to
      have
      been delivered or served upon it by the parties as a consequence of the
      assignment of any Mortgage Loan hereunder; provided, however that the Trustee
      shall promptly remit to the Servicer upon receipt any such complaint, claim,
      demand, notice or other document (i) which is delivered to the Trustee at is
      Corporate Trust Office, (ii) of which a Responsible Officer has actual knowledge
      and (iii) which contains information sufficient to permit the Trustee to make
      a
      determination that the real property to which such document relates is a
      Mortgaged Property;

     

    (xi)  The
      Trustee is hereby directed by the Depositor to execute the Basis
      Risk Cap Agreement on behalf of the Trust Fund and the Swap Agreement
and
      the
      Interest Rate Cap Agreement on behalf of the Supplemental Interest Trust, in
      the
      forms presented to it by the Depositor and shall have no responsibility for
      the
      contents of the Basis Risk Cap Agreement, the Swap Agreement or the Interest
      Rate Cap Agreement, including, without limitation, the representations and
      warranties contained therein. Any funds payable by the Securities Administrator,
      on behalf of the Trustee, under the Basis Risk Cap Agreement, the Swap Agreement
      or the Interest Rate Cap Agreement at closing shall be paid by the Depositor;
      

     

    (xii)  None
      of
      the Securities Administrator, the Master Servicer, the Servicer, the Sponsor,
      the Depositor, the Custodian or the Trustee shall be responsible for the acts
      or
      omissions of the others or of the Basis Risk Cap Provider, the Swap Provider
      or
      the Interest Rate Swap Provider, it being understood that this Agreement shall
      not be construed to render them partners, joint venturers or agents of one
      another; and

     

    (xiii)  The
      permissive rights of the Trustee enumerated herein shall not be construed as
      duties.

     

    Section
      9.03  Trustee
      and Securities Administrator not Liable for Certificates or Mortgage
      Loans.

     

    The
      recitals contained herein and in the Certificates (other than the signature
      of
      the Securities Administrator, the authentication of the Securities Administrator
      on the Certificates, the acknowledgements of the Trustee contained in Article
      II
      and the representations and warranties of the Trustee in Section 9.12)
      shall be taken as the statements of the Depositor, and neither the Trustee
      nor
      the Securities Administrator assumes any responsibility for their correctness.
      Neither the Trustee nor the Securities Administrator makes any representations
      or warranties as to the validity or sufficiency of this Agreement (other than
      as
      specifically set forth in Section 9.12) of the Basis Risk Cap Agreement,
      the Swap Agreement, the Interest Rate Cap Agreement, the Certificates (other
      than the signature of the Securities Administrator and authentication of the
      Securities Administrator on the Certificates) or of any Mortgage Loan except
      as
      expressly provided in Section 2.02. The Securities Administrator’s signature and
      authentication (or authentication of its agent) on the Certificates shall be
      solely in its capacity as Securities Administrator and shall not constitute
      the
      Certificates an obligation of the Securities Administrator in any other
      capacity. The Trustee and the Securities Administrator shall not be accountable
      for the use or application by the Depositor of any of the Certificates or of
      the
      proceeds of such Certificates, or for the use or application of any funds paid
      to the Depositor with respect to the Mortgage Loans.

     

    Section
      9.04  Trustee
      and Securities Administrator May Own Certificates.

     

    Each
      of
      the Trustee and the Securities Administrator in its individual capacity or
      in
      any other capacity other than as Trustee or Securities Administrator hereunder
      may become the owner or pledgee of any Certificates and may transact business
      with other interested parties and their Affiliates with the same rights it
      would
      have if it were not the Trustee or the Securities Administrator.

     

    Section
      9.05  Fees
      and Expenses of Trustee and Securities Administrator.

     

    The
      fees
      of the Trustee, the Credit Risk Manager and the Securities Administrator
      hereunder shall be paid in accordance with a side letter agreement with the
      Master Servicer and at the sole expense of the Master Servicer. In addition,
      the
      Trustee, the Securities Administrator, the Custodian and any director, officer,
      employee or agent of the Trustee, the Securities Administrator and the Custodian
      shall be indemnified by the Trust and held harmless against any loss, liability
      or expense (including reasonable attorney’s fees and expenses) incurred by the
      Trustee, the Custodian or the Securities Administrator including any pending
      or
      threatened claim or legal action arising out of or in connection with the
      acceptance or administration of its respective obligations and duties under
      this
      Agreement, including the Basis Risk Cap Agreement, the Swap Agreement, the
      Interest Rate Cap Agreement and any and all other agreements related hereto,
      other than any loss, liability or expense (i) for which the Trustee is
      indemnified by the Master Servicer or the Servicer, (ii) that constitutes a
      specific liability of the Trustee or the Securities Administrator pursuant
      to
      this Agreement or (iii) any loss, liability or expense incurred by reason of
      willful misfeasance, bad faith or negligence in the performance of duties
      hereunder by the Trustee or the Securities Administrator or by reason of
      reckless disregard of obligations and duties hereunder. In no event shall the
      Trustee or the Securities Administrator be liable for special, indirect or
      consequential loss or damage of any kind whatsoever (including but not limited
      to lost profits), even if it has been advised of the likelihood of such loss
      or
      damage and regardless of the form of action. The Master Servicer agrees to
      indemnify the Trustee, from, and hold the Trustee harmless against, any loss,
      liability or expense (including reasonable attorney’s fees and expenses)
      incurred by the Trustee by reason of the Master Servicer’s willful misfeasance,
      bad faith or gross negligence in the performance of its duties under this
      Agreement or by reason of the Master Servicer’s reckless disregard of its
      obligations and duties under this Agreement. The indemnities in this
      Section 9.05 shall survive the termination or discharge of this Agreement
      and the resignation or removal of the Master Servicer, the Trustee, the
      Securities Administrator or the Custodian. Any payment hereunder made by the
      Master Servicer to the Trustee shall be from the Master Servicer’s own funds,
      without reimbursement from REMIC I therefor.

     

    Section
      9.06  Eligibility
      Requirements for Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator shall at all times be a corporation
      or
      an association (other than the Depositor, the Sponsor or any Affiliate of the
      foregoing) organized and doing business under the laws of any 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 (or a
      member of a bank holding company whose capital and surplus is at least
      $50,000,000) and subject to supervision or examination by federal or state
      authority. If such corporation or association publishes reports of conditions
      at
      least annually, pursuant to law or to the requirements of the aforesaid
      supervising or examining authority, then for the purposes of this
      Section 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 conditions so published. In case at any time the Trustee or
      the
      Securities Administrator, as applicable, shall cease to be eligible in
      accordance with the provisions of this Section, the Trustee or the Securities
      Administrator, as applicable, shall resign immediately in the manner and with
      the effect specified in Section 9.07.

     

    Additionally,
      the Securities Administrator (i) may not be an originator, Master Servicer,
      Servicer, Depositor or an affiliate of the Depositor unless the Securities
      Administrator is in an institutional trust department, (ii) must be authorized
      to exercise corporate trust powers under the laws of its jurisdiction of
      organization, and (iii) must be rated at least "A/F1" by Fitch, if Fitch is
      a
      Rating Agency, or rated at least "A-1" by S&P (or such rating acceptable to
      Fitch pursuant to a rating confirmation). Wells Fargo Bank, N.A. shall act
      as
      Securities Administrator for so long as it is Master Servicer under this
      Agreement.

     

    Section
      9.07  Resignation
      and Removal of Trustee and Securities Administrator.

     

    The
      Trustee and the Securities Administrator may at any time resign (including,
      without limitation, and in the case of the Securities Administrator, upon the
      resignation or removal of the Master Servicer) and be discharged from the trust
      hereby created by giving written notice thereof to the Depositor, to the Master
      Servicer, to the Securities Administrator (or the Trustee, if the Securities
      Administrator resigns) and to the Certificateholders. Upon receiving such notice
      of resignation, the Depositor shall promptly appoint a successor trustee or
      successor securities administrator by written instrument, in duplicate, which
      instrument shall be delivered to the resigning Trustee or Securities
      Administrator, as applicable, and to the successor trustee or successor
      securities administrator, as applicable. A copy of such instrument shall be
      delivered to the Certificateholders, the Trustee, the Securities Administrator
      and the Master Servicer by the Depositor. If no successor trustee or successor
      securities administrator shall have been so appointed and have accepted
      appointment within thirty (30) days after the giving of such notice of
      resignation, the resigning Trustee or Securities Administrator, as the case
      may
      be, may, at the expense of the Trust Fund, petition any court of competent
      jurisdiction for the appointment of a successor trustee or successor securities
      administrator, as applicable.

     

    If
      at any
      time the Trustee or the Securities Administrator shall cease to be eligible
      in
      accordance with the provisions of Section 9.06 and shall fail to resign
      after written request therefor by the Depositor, or if at any time the Trustee
      or the Securities Administrator shall become incapable of acting, or shall
      be
      adjudged bankrupt or insolvent, or a receiver of the Trustee or the Securities
      Administrator or of its property shall be appointed, or any public officer
      shall
      take charge or control of the Trustee or the Securities Administrator or of
      its
      property or affairs for the purpose of rehabilitation, conservation or
      liquidation, then the Depositor may remove the Trustee or the Securities
      Administrator, as applicable and appoint a successor trustee or successor
      securities administrator, as applicable, by written instrument, in duplicate,
      which instrument shall be delivered to the Trustee or the Securities
      Administrator so removed and to the successor trustee or successor securities
      administrator. A copy of such instrument shall be delivered to the
      Certificateholders, the Trustee, the Securities Administrator and the Master
      Servicer by the Depositor.

     

    The
      Holders of Certificates entitled to at least 51% of the Voting Rights may at
      any
      time remove the Trustee or the Securities Administrator and appoint a successor
      trustee or successor securities administrator 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 to
      the
      Depositor, one complete set to the Trustee or the Securities Administrator
      so
      removed and one complete set to the successor so appointed. A copy of such
      instrument shall be delivered to the Certificateholders, the Trustee (in the
      case of the removal of the Securities Administrator), the Securities
      Administrator (in the case of the removal of the Trustee) and the Master
      Servicer by the Depositor.

     

    Any
      resignation or removal of the Trustee or the Securities Administrator and
      appointment of a successor trustee or successor securities administrator
      pursuant to any of the provisions of this Section shall not become
      effective until acceptance of appointment by the successor trustee or successor
      securities administrator, as applicable, as provided in
      Section 9.08.

     

    Notwithstanding
      anything to the contrary contained herein, the Master Servicer and the
      Securities Administrator shall at all times be the same Person.

     

    Section
      9.08  Successor
      Trustee or Securities Administrator. 

     

    Any
      successor trustee or successor securities administrator appointed as provided
      in
      Section 9.07 hereof shall execute, acknowledge and deliver to the Depositor
      and to its predecessor trustee or predecessor securities administrator
      instrument accepting such appointment hereunder and thereupon the resignation
      or
      removal of the predecessor trustee or predecessor securities administrator
      shall
      become effective and such successor trustee or successor securities
      administrator, without any further act, deed or conveyance, shall become fully
      vested with all the rights, powers, duties and obligations of its predecessor
      hereunder, with the like effect as if originally named as trustee or Securities
      Administrator herein. The predecessor trustee or predecessor securities
      administrator shall deliver to the successor trustee or successor securities
      administrator all Mortgage Loan Documents and related documents and statements
      to the extent held by it hereunder, as well as all monies, held by it hereunder,
      and the Depositor and the predecessor trustee or predecessor securities
      administrator 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 or successor securities administrator all
      such rights, powers, duties and obligations.

     

    No
      successor trustee or successor securities administrator shall accept appointment
      as provided in this Section 9.08 unless at the time of such acceptance such
      successor trustee or successor securities administrator shall be eligible under
      the provisions of Section 9.07 hereof and its appointment shall not
      adversely affect the then current rating of the Certificates.

     

    Upon
      acceptance of appointment by a successor trustee or successor securities
      administrator as provided in this Section 9.08, the successor trustee or
      successor securities administrator shall mail notice of the succession of such
      trustee or securities administrator hereunder to all Holders of Certificates.
      If
      the successor trustee or successor securities administrator fails to mail such
      notice within ten days after acceptance of appointment, the Depositor shall
      cause such notice to be mailed at the expense of the Trust Fund.

     

    Section
      9.09  Merger
      or Consolidation of Trustee or Securities Administrator.

     

    Any
      corporation, state bank or national banking association into which the Trustee
      or Securities Administrator may be merged or converted or with which it may
      be
      consolidated or any corporation, state bank or national banking association
      resulting from any merger, conversion or consolidation to which the Trustee
      or
      the Securities Administrator shall be a party, or any corporation, state bank
      or
      national banking association succeeding to substantially all of the corporate
      trust business of the Trustee or Securities Administrator shall be the successor
      of the Trustee or Securities Administrator hereunder, provided that such
      corporation shall be eligible under the provisions of Section 9.06 without
      the execution or filing of any paper or further act on the part of any of the
      parties hereto, anything herein to the contrary notwithstanding.

     

    Section
      9.10  Appointment
      of Co-Trustee or Separate Trustee.

     

    Notwithstanding
      any other provisions hereof, at any time, for the purpose of meeting any legal
      requirements of any jurisdiction in which any part of the REMIC I or property
      securing the same may at the time be located, the Trustee 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 REMIC
      I, and to vest in such Person or Persons, in such capacity, and for the benefit
      of the Holders of the Certificates, such title to REMIC I, or any part thereof,
      and, subject to the other provisions of this Section 9.10, such powers,
      duties, obligations, rights and trusts as the Trustee may consider necessary
      or
      desirable. No co-trustee or separate trustee hereunder shall be required to
      meet
      the terms of eligibility as a successor trustee under Section 9.06
      hereunder and no notice to Holders of Certificates of the appointment of
      co-trustee(s) or separate trustee(s) shall be required under Section 9.08
      hereof.

     

    In
      the
      case of any appointment of a co-trustee or separate trustee pursuant to this
      Section 9.10 all rights, powers, duties and obligations conferred or
      imposed upon the Trustee shall be conferred or imposed upon and exercised or
      performed by the Trustee and such separate trustee or co-trustee jointly, except
      to the extent that under any law of any jurisdiction in which any particular
      act
      or acts are to be performed by the Trustee (whether as Trustee hereunder or
      as
      successor to a defaulting Master Servicer hereunder), the Trustee shall be
      incompetent or unqualified to perform such act or acts, in which event such
      rights, powers, duties and obligations (including the holding of title to REMIC
      I or any portion thereof in any such jurisdiction) shall be exercised and
      performed by such separate trustee or co-trustee at the direction of the
      Trustee.

     

    Any
      notice, request or other writing given to the Trustee shall be deemed to have
      been given to each of the then separate trustees and co-trustees, as effectively
      as if given to each of them. Every instrument appointing any separate trustee
      or
      co-trustee shall refer to this Agreement and the conditions of this Article
      IX.
      Each separate trustee and co-trustee, upon its acceptance of the trust
      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.

     

    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 or co-trustee.

     

    Section
      9.11  Appointment
      of Office or Agency.

     

    The
      Certificates may be surrendered for registration of transfer or exchange at
      the
      Securities Administrator’s office initially located at Sixth Street and
      Marquette Avenue, Minneapolis, Minnesota 55479, and presented for final
      distribution at the Corporate Trust Office of the Securities Administrator
      where
      notices and demands to or upon the Securities Administrator in respect of the
      Certificates and this Agreement may be served.

     

    Section
      9.12  Representations
      and Warranties.

     

    The
      Trustee hereby represents and warrants to the Master Servicer, the Securities
      Administrator, the Servicer and the Depositor as applicable, as of the Closing
      Date, that:

     

    (i)  It
      is a
      national banking association duly organized, validly existing and in good
      standing under the laws of the United States of America.

     

    (ii)  The
      execution and delivery of this Agreement by it, and the performance and
      compliance with the terms of this Agreement by it, will not violate its articles
      of association or bylaws or constitute a default (or an event which, with notice
      or lapse of time, or both, would constitute a default) under, or result in
      the
      breach of, any material agreement or other instrument to which it is a party
      or
      which is applicable to it or any of its assets.

     

    (iii)  It
      has
      the full power and authority to enter into and consummate all transactions
      contemplated by this Agreement, has duly authorized the execution, delivery
      and
      performance of this Agreement, and has duly executed and delivered this
      Agreement.

     

    (iv)  This
      Agreement, assuming due authorization, execution and delivery by the other
      parties hereto, constitutes a valid, legal and binding obligation of it,
      enforceable against it in accordance with the terms hereof, subject to (A)
      applicable bankruptcy, insolvency, receivership, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally, and (B)
      general principles of equity, regardless of whether such enforcement is
      considered in a proceeding in equity or at law.

     

    (v)  It
      is not
      in violation of, and its execution and delivery of this Agreement and its
      performance and compliance with the terms of this Agreement will not constitute
      a violation of, any law, any order or decree of any court or arbiter, or any
      order, regulation or demand of any federal, state or local governmental or
      regulatory authority, which violation, in its good faith and reasonable
      judgment, is likely to affect materially and adversely either the ability of
      it
      to perform its obligations under this Agreement or its financial
      condition.

     

    No
      litigation is pending or, to the best of its knowledge, threatened against
      it,
      which would prohibit it from entering into this Agreement or, in its good faith
      reasonable judgment, is likely to materially and adversely affect either the
      ability of it to perform its obligations under this Agreement or its financial
      condition.

     

    Section
      9.13  Tax
      Matters.

     

    It
      is
      intended that the Trust Fund shall constitute, and that the affairs of the
      Trust
      Fund shall be conducted so that each REMIC formed hereunder qualifies as, a
      “real estate mortgage investment conduit” as defined in and in accordance with
      the REMIC Provisions. In furtherance of such intention, the Securities
      Administrator covenants and agrees that it shall act as agent (and the
      Securities Administrator is hereby appointed to act as agent) on behalf of
      the
      Trust Fund. The Securities Administrator, as agent on behalf of the Trust Fund,
      shall do or refrain from doing, as applicable, the following: (a) the Securities
      Administrator shall prepare and file, or cause to be prepared and filed, in
      a
      timely manner, U.S. Real Estate Mortgage Investment Conduit Income Tax Returns
      (Form 1066 or any successor form adopted by the Internal Revenue Service) and
      prepare and file or cause to be prepared and filed with the Internal Revenue
      Service and applicable state or local tax authorities income tax or information
      returns for each taxable year with respect to each such REMIC containing such
      information and at the times and in the manner as may be required by the Code
      or
      state or local tax laws, regulations, or rules, and furnish or cause to be
      furnished to Certificateholders the schedules, statements or information at
      such
      times and in such manner as may be required thereby; (b) the Securities
      Administrator shall apply for an employer identification number with the
      Internal Revenue Service via a Form SS-4 or other comparable method for each
      REMIC that is or becomes a taxable entity, and within thirty days of the Closing
      Date, furnish or cause to be furnished to the Internal Revenue Service, on
      Forms
      8811 or as otherwise may be required by the Code, the name, title, address,
      and
      telephone number of the person that the holders of the Certificates may contact
      for tax information relating thereto, together with such additional information
      as may be required by such Form, and update such information at the time or
      times in the manner required by the Code for the Trust Fund; (c) the Securities
      Administrator shall make or cause to be made elections, on behalf of each REMIC
      formed hereunder to be treated as a REMIC on the federal tax return of such
      REMIC for its first taxable year (and, if necessary, under applicable state
      law); (d) the Securities Administrator shall prepare and forward, or cause
      to be
      prepared and forwarded, to the Certificateholders and to the Internal Revenue
      Service and, if necessary, state tax authorities, all information returns and
      reports as and when required to be provided to them in accordance with the
      REMIC
      Provisions, including without limitation, the calculation of any original issue
      discount using the Prepayment Assumption; (e) the Securities Administrator
      shall
      provide information necessary for the computation of tax imposed on the transfer
      of a Residual Certificate to a Person that is not a Permitted Transferee, or
      an
      agent (including a broker, nominee or other middleman) of a Person that is
      not a
      Permitted Transferee, or a pass-through entity in which a Person that is not
      a
      Permitted Transferee is the record holder of an interest (the reasonable cost
      of
      computing and furnishing such information may be charged to the Person liable
      for such tax); (f) the Securities Administrator shall, to the extent under
      its
      control, conduct the affairs of the Trust Fund at all times that any
      Certificates are outstanding so as to maintain the status of each REMIC formed
      hereunder as a REMIC under the REMIC Provisions; (g) the Securities
      Administrator shall not knowingly or intentionally take any action or omit
      to
      take any action that would cause the termination of the REMIC status of any
      REMIC formed hereunder; (h) the Securities Administrator shall pay, from the
      sources specified in the last paragraph of this Section 9.13, the amount of
      any federal, state and local taxes, including prohibited transaction taxes
      as
      described below, imposed on any REMIC formed hereunder prior to the termination
      of the Trust Fund when and as the same shall be due and payable (but such
      obligation shall not prevent the Securities Administrator or any other
      appropriate Person from contesting any such tax in appropriate proceedings
      and
      shall not prevent the Securities Administrator from withholding payment of
      such
      tax, if permitted by law, pending the outcome of such proceedings); (i) the
      Trustee shall sign or cause to be signed federal, state or local income tax
      or
      information returns or any other document prepared by the Securities
      Administrator pursuant to this Section 9.13 requiring a signature thereon
      by the Trustee; (j) the Securities Administrator shall maintain records relating
      to each REMIC formed hereunder including but not limited to the income,
      expenses, assets and liabilities of each such REMIC and adjusted basis of the
      Trust Fund property determined at such intervals as may be required by the
      Code,
      as may be necessary to prepare the foregoing returns, schedules, statements
      or
      information; (k) the Securities Administrator shall, for federal income tax
      purposes, maintain books and records with respect to the REMICs on a calendar
      year and on an accrual basis; (l) the Securities Administrator shall not enter
      into any arrangement not otherwise provided for in this Agreement by which
      the
      REMICs will receive a fee or other compensation for services nor permit the
      REMICs to receive any income from assets other than “qualified mortgages” as
      defined in Section 860G(a)(3) of the Code or “permitted investments” as
      defined in Section 860G(a)(5) of the Code; and (m) as and when necessary
      and appropriate, the Securities Administrator shall represent the Trust Fund
      in
      any administrative or judicial proceedings relating to an examination or audit
      by any governmental taxing authority, request an administrative adjustment
      as to
      any taxable year of any REMIC formed hereunder, enter into settlement agreements
      with any governmental taxing agency, extend any statute of limitations relating
      to any tax item of the Trust Fund, and otherwise act on behalf of each REMIC
      formed hereunder in relation to any tax matter involving any such
      REMIC.

     

    In
      order
      to enable the Securities Administrator to perform its duties as set forth
      herein, the Depositor shall provide, or cause to be provided, to the Securities
      Administrator within 10 days after the Closing Date all information or data
      that
      the Securities Administrator requests in writing and determines to be relevant
      for tax purposes to the valuations and offering prices of the Certificates,
      including, without limitation, the price, yield, prepayment assumption and
      projected cash flows of the Certificates and the Mortgage Loans. Thereafter,
      the
      Depositor shall provide to the Securities Administrator promptly upon written
      request therefor, any such additional information or data that the Securities
      Administrator may, from time to time, request in order to enable the Securities
      Administrator to perform its duties as set forth herein. The Depositor hereby
      indemnifies the Securities Administrator for any losses, liabilities, damages,
      claims or expenses of the Securities Administrator arising from any errors
      or
      miscalculations of the Securities Administrator that result from any failure
      of
      the Depositor to provide, or to cause to be provided, accurate information
      or
      data to the Securities Administrator on a timely basis.

     

    In
      the
      event that any tax is imposed on “prohibited transactions” of any of REMIC as
      defined in Section 860F(a)(2) of the Code, on the “net income from
      foreclosure property” of the Trust Fund as defined in Section 860G(c) of
      the Code, on any contribution to any of REMIC after the startup day pursuant
      to
      Section 860G(d) of the Code, or any other tax is imposed, including,
      without limitation, any federal, state or local tax or minimum tax imposed
      upon
      any REMIC, and is not paid as otherwise provided for herein, such tax shall
      be
      paid by (i) the Securities Administrator, if any such other tax arises out
      of or
      results from a breach by the Securities Administrator of any of its obligations
      under this Section, (ii) any party hereto (other than the Securities
      Administrator) to the extent any such other tax arises out of or results from
      a
      breach by such other party of any of its obligations under this Agreement or
      (iii) in all other cases, or in the event that any liable party hereto fails
      to
      honor its obligations under the preceding clauses (i) or (ii), any such tax
      will
      be paid first with amounts otherwise to be distributed to the Class R
      Certificateholders, and second with amounts otherwise to be distributed to
      all
      other Certificateholders in the following order of priority: first, to the
      Class
      B-2 Certificates; second, to the Class B-1 Certificates; third, to the Class
      M-9
      Certificates; fourth, to the Class M-8 Certificates; fifth, to the Class M-7
      Certificates; sixth, to the Class M-6 Certificates; seventh, to the Class M-5
      Certificates; eighth, to the Class M-4 Certificates; ninth, to the Class M-3
      Certificates; tenth, to the Class M-2 Certificates; eleventh, to the Class
      M-1
      Certificates; and twelfth, to the Senior Certificates (pro rata based on the
      amounts to be distributed). Notwithstanding anything to the contrary contained
      herein, to the extent that such tax is payable by the Holder of any
      Certificates, the Securities Administrator is hereby authorized to retain on
      any
      Distribution Date, from the Holders of the Class R Certificates (and, if
      necessary, second, from the Holders of the other Certificates in the priority
      specified in the preceding sentence), funds otherwise distributable to such
      Holders in an amount sufficient to pay such tax. The Securities Administrator
      shall include in its monthly report to Certificateholders distributions to
      such
      parties taking into account the priorities described in the second preceding
      sentence. The Securities Administrator agrees to promptly notify in writing
      the
      party liable for any such tax of the amount thereof and the due date for the
      payment thereof. Notwithstanding the foregoing, however, in no event shall
      the
      Securities Administrator have any liability (1) for any action or omission
      that
      is taken in accordance with and in compliance with the express terms of, or
      which is expressly permitted by the terms of this Agreement, (2) for any losses
      other than arising out of a grossly negligent performance by the Securities
      Administrator of its duties and obligations set forth herein, and (3) for any
      special or consequential damages to Certificateholders (in addition to payment
      of principal and interest on the Certificates).

     

    ARTICLE
      X

     

    TERMINATION

     

    Section
      10.01  Termination
      upon Liquidation or Repurchase of all Mortgage Loans.

     

    Subject
      to Section 10.03, the obligations and responsibilities of the Depositor,
      the Sponsor, the Securities Administrator, the Master Servicer, the Servicer
      and
      the Trustee created hereby with respect to the Trust Fund shall terminate (other
      than the obligations of the Master Servicer to the Trustee pursuant to
      Section 9.05 and of the Securities Administrator to make payments in
      respect of the REMIC I Regular Interests or the Classes of Certificates as
      hereinafter set forth) upon the earlier of (a) the Master Servicer’s exercise of
      its optional right to purchase the Mortgage Loans and related REO Properties
      (the “Cleanup Call”) and (b) the later of (i) the maturity or other liquidation
      (or any Advance with respect thereto) of the last Mortgage Loan remaining in
      the
      Trust Fund and the disposition of all REO Property and (ii) the distribution
      to
      Certificateholders of all amounts required to be distributed to them pursuant
      to
      this Agreement, as applicable. In no event shall the trusts created hereby
      continue beyond the earlier of (i) the expiration of twenty-one (21) years
      from
      the death of the last survivor of the descendants of Joseph P. Kennedy, the
      late
      Ambassador of the United States to the Court of St. James, living on the date
      hereof and (ii) the Latest Possible Maturity Date.

     

    The
      Cleanup Call shall be exercisable at a price (the “Termination Price”) equal to
      the sum of (i) 100% of the Stated Principal Balance of each Mortgage Loan,
      (ii)
      accrued interest thereon at the applicable Mortgage Rate to, but not including,
      the first day of the month of such purchase, (iii) the appraised value of any
      related REO Property (up to the Stated Principal Balance of the related Mortgage
      Loan), such appraisal to be conducted by an appraiser mutually agreed upon
      by
      the Master Servicer and the Trustee, (iv) unreimbursed out-of-pocket costs
      of
      the Securities Administrator, the Master Servicer, the Servicer or the Trustee,
      including unreimbursed servicing advances and the principal portion of any
      unreimbursed Advances, made on the related Mortgage Loans prior to the exercise
      of such repurchase right, (v) any Swap Termination Payment payable to the Swap
      Provider which remains unpaid or which is due to such Cleanup Call and (vi)
      any
      other amounts due and owing to the Trustee, the Securities Administrator, the
      Master Servicer and the Custodian payable pursuant to this Agreement or the
      Custodial Agreement.

     

    The
      right
      to exercise the Cleanup Call pursuant to the preceding paragraph shall be
      exercisable if the Stated Principal Balance of all of the Mortgage Loans at
      the
      time of any such repurchase, is less than or equal to ten percent (10%) of
      the
      aggregate Cut-off Date Principal Balance of the Mortgage Loans.

     

    Notwithstanding
      the foregoing, the Master Servicer shall not be entitled to exercise the Cleanup
      Call to the extent that the Depositor creates a net interest margin transaction
      which includes the Class X Certificates or Class P Certificates and the notes
      issued pursuant to such net interest margin transaction are outstanding on
      the
      date on which the Master Servicer intends to exercise the Cleanup
      Call.

     

    Section
      10.02  Final
      Distribution on the Certificates.

     

    If
      on any
      Determination Date, (i) the Securities Administrator determines based on the
      reports delivered by the Master Servicer under this Agreement that there are
      no
      Outstanding Mortgage Loans, and no other funds or assets in the Trust Fund
      other
      than the funds in the Distribution Account, the Securities Administrator shall
      notify the Trustee and send a final distribution notice promptly to each related
      Certificateholder or (ii) the Securities Administrator determines that a Class
      of Certificates shall be retired after a final distribution on such Class,
      the
      Securities Administrator shall notify the Trustee and the Certificateholders
      within five (5) Business Days after such Determination Date that the final
      distribution in retirement of such Class of Certificates is scheduled to be
      made
      on the immediately following Distribution Date. Any final distribution made
      pursuant to the immediately preceding sentence will be made only upon
      presentation and surrender of the related Certificates at the office of the
      Securities Administrator set forth herein. If the Master Servicer elects to
      terminate the Trust Fund pursuant to Section 10.01, at least twenty (20)
      days prior to the date notice is to be mailed to the Certificateholders, the
      Master Servicer shall notify the Securities Administrator and the Trustee of
      the
      date the Master Servicer intends to terminate the Trust Fund. The Master
      Servicer shall remit the related Termination Price to the Securities
      Administrator on behalf of the Trust Fund on the Business Day prior to the
      Distribution Date for such Optional Termination by the Master
      Servicer.

     

    Notice
      of
      the exercise of the Cleanup Call specifying the Distribution Date on which
      the
      Certificateholders may surrender their Certificates for payment of the final
      distribution and cancellation, shall be given promptly by the Securities
      Administrator by letter to the Certificateholders mailed no later than the
      fifteenth (15th) day of 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 the Certificates
      at
      the office therein designated, (b) the amount of such final distribution, (c)
      the location of the office or agency at which such presentation and surrender
      must be made and (d) that the Record Date otherwise applicable to such
      Distribution Date is not applicable, distributions being made only upon
      presentation and surrender of the Certificates at the office therein specified.
      The Securities Administrator will give such notice to each Rating Agency at
      the
      time such notice is given to the Certificateholders.

     

    In
      the
      event such notice is given, the Master Servicer shall deposit in the
      Distribution Account on the Business Day prior to the applicable Distribution
      Date an amount equal to the final distribution in respect of the Certificates.
      Upon certification to the Trustee by the Securities Administrator of the making
      of such final deposit, the Trustee shall promptly release or cause to be
      released to the Master Servicer the Mortgage Files for the remaining Mortgage
      Loans, and the Trustee shall execute all assignments, endorsements and other
      instruments delivered to it and necessary to effectuate such
      transfer.

     

    Upon
      presentation and surrender of the related Certificates, the Securities
      Administrator shall cause to be distributed to Certificateholders of each Class
      the amounts allocable to such Certificates held in the Distribution Account
      in
      the order and priority set forth in Section 5.04 hereof on the final
      Distribution Date and in proportion to their respective Percentage
      Interests.

     

    In
      the
      event that any affected Certificateholders shall not surrender Certificates
      for
      cancellation within six (6) months after the date specified in the above
      mentioned written notice, the Securities Administrator shall give a second
      written notice to the remaining affected Certificateholders to surrender their
      Certificates for cancellation and receive the final distribution with respect
      thereto. If within six (6) months after the second notice all the applicable
      Certificates shall not have been surrendered for cancellation, the Securities
      Administrator may take appropriate steps, or may appoint an agent to take
      appropriate steps, to contact the remaining affected Certificateholders
      concerning surrender of their Certificates, and the cost thereof shall be paid
      out of the funds and other assets that remain a part of the Trust Fund. If
      within two (2) years after the second notice all affected Certificates shall
      not
      have been surrendered for cancellation, the related Residual Certificateholders
      shall be entitled to all unclaimed funds and other assets of the Trust Fund
      that
      remain subject hereto and the Securities Administrator shall release such funds
      upon written direction.

     

    Section
      10.03  Additional
      Termination Requirements.

     

    In
      the
      event of (i) the exercise by the Master Servicer of the Cleanup Call pursuant
      to
      the terms of this Agreement or (ii) the final payment on or other liquidation
      of
      the last Mortgage Loan or REO Property in REMIC I pursuant to
      Section 10.01, the following additional requirements, unless the Trustee
      has been supplied with an Opinion of Counsel, at the expense of the Master
      Servicer (in the case of the exercise of the Cleanup Call) or the Depositor,
      to
      the effect that the failure of the Trust Fund to comply with the requirements
      of
      this Section 10.03 will not (i) result in the imposition of taxes on
“prohibited transactions” of a REMIC, or (ii) cause any REMIC to fail to qualify
      as a REMIC at any time that any Certificates are outstanding:

     

    
      	
              (1)

            	
              The
                Master Servicer (in the case of the exercise of the Cleanup Call)
                or the
                Depositor (in all other cases) shall establish a ninety-day liquidation
                period and notify the Trustee thereof, and the Securities Administrator
                shall in turn specify the first day of such period in a statement
                attached
                to the tax return for each REMIC pursuant to Treasury Regulation
                Section 1.860F-1. The Master Servicer or the Depositor, as
                applicable, shall satisfy all the requirements of a qualified liquidation
                under Section 860F of the Code and any regulations thereunder, as
                evidenced by an Opinion of Counsel obtained at the expense of the
                Master
                Servicer or the Depositor, as applicable;

            
	 	 
	
              (2)

            	
              During
                such ninety-day liquidation period, and at or prior to the time of
                making
                the final payment on the Certificates, the Master Servicer (in the
                case of
                the exercise of the Cleanup Call) or the Depositor (in all other
                cases)
                shall sell all of the assets of REMIC I for cash; and

            
	 	 
	
              (3)

            	
              At
                the time of the making of the final payment on the Certificates,
                the
                Securities Administrator shall distribute or credit, or cause to
                be
                distributed or credited, to the Holders of the related Residual
                Certificates all cash on hand in the Trust Fund (other than cash
                retained
                to meet claims), and the Trust Fund shall terminate at that
                time.

            

    

    

    By
      their
      acceptance of the Certificates, the Holders thereof hereby authorize the Master
      Servicer (in the case of the exercise of the Cleanup Call) or the Depositor
      (in
      all other cases) to specify the ninety-day liquidation period for REMIC I,
      REMIC
      II, REMIC III, REMIC IV, REMIC V and REMIC VI, which authorization shall be
      binding upon all successor Certificateholders.

     

    The
      Securities Administrator as agent for each REMIC hereby agrees to adopt and
      sign
      such a plan of complete liquidation upon the written request of the Master
      Servicer or the Depositor, as applicable, and the receipt of the Opinion of
      Counsel referred to in Section 10.03(1) and to take such other action in
      connection therewith as may be reasonably requested by the Master Servicer
      or
      the Depositor, as applicable.

     

    ARTICLE
      XI

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      11.01  Amendment.

     

    This
      Agreement may be amended from time to time by parties hereto, without the
      consent of any of the Certificateholders to cure any ambiguity, to correct
      or
      supplement any provisions herein, to change the manner in which the Distribution
      Account maintained by the Securities Administrator or any Custodial Account
      maintained by the Servicer is maintained or to make such other provisions with
      respect to matters or questions arising under this Agreement as shall not be
      inconsistent with any other provisions herein if such action shall not, as
      evidenced by an Opinion of Counsel, adversely affect in any material respect
      the
      interests of any Certificateholder (or the Swap Provider unless the Swap
      Provider shall have consented to the amendment); provided that any such
      amendment shall be deemed not to adversely affect in any material respect the
      interests of the Certificateholders and no such Opinion of Counsel shall be
      required if the Person requesting such amendment obtains a letter from each
      Rating Agency stating that such amendment would not result in the downgrading
      or
      withdrawal of the respective ratings then assigned to the Certificates; provided
      further that any such amendment shall be deemed not to adversely affect in
      any
      material respect the interests of the Certificateholders and no such Opinion
      of
      Counsel nor any letter from the Rating Agencies stating that such amendment
      would not result in the downgrading or withdrawal of the respective ratings
      then
      assigned to the Certificates shall be required if such amendment is to effect
      a
      transfer of servicing pursuant to Section 7.06(a) to an entity satisfying the
      Minimum Servicing Requirements.

     

    Notwithstanding
      the foregoing, without the consent of the Certificateholders, the parties hereto
      may at any time and from time to time amend this Agreement to effect any changes
      in the parties’ obligations as are necessary to accommodate evolving
      interpretations of the provisions of Regulation AB and to modify, eliminate
      or
      add to any of its provisions to such extent as shall be necessary or appropriate
      to maintain the qualification of each REMIC created hereunder as a REMIC under
      the Code or to avoid or minimize the risk of the imposition of any tax on any
      of
      REMIC pursuant to the Code that would be a claim against any of REMIC at any
      time prior to the final redemption of the Certificates, provided that the
      Trustee has been provided an Opinion of Counsel, which opinion shall be an
      expense of the party requesting such opinion but in any case shall not be an
      expense of the Trustee or the Trust Fund, to the effect that such action is
      necessary or appropriate to maintain such qualification or to avoid or minimize
      the risk of the imposition of such a tax.

     

    This
      Agreement may also be amended from time to time by the parties hereto and the
      Holders of each Class of Certificates affected thereby evidencing over 50%
      of
      the Voting Rights of such Class or Classes for the purpose of adding any
      provisions to or changing in any manner or eliminating any of the provisions
      of
      this Agreement or of modifying in any manner the rights of the Holders of
      Certificates (or if such amendment modifies the rights of the Swap Provider
      hereunder, with the consent of the Swap Provider); provided that no such
      amendment shall (i) reduce in any manner the amount of, or delay the timing
      of,
      payments required to be distributed on any Certificate without the consent
      of
      the Holder of such Certificate, (ii) cause any REMIC created hereunder to cease
      to qualify as a REMIC or (iii) reduce the aforesaid percentages of Certificates
      of each Class the Holders of which are required to consent to any such amendment
      without the consent of the Holders of all Certificates of such Class then
      outstanding.

     

    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 be an expense of the party requesting such
      amendment but in any case shall not be an expense of the Trustee, to the effect
      that such amendment will not (other than an amendment pursuant to clause (ii)
      of, and in accordance with, the preceding paragraph) cause the imposition of
      any
      tax on any REMIC or the Certificateholders or cause any REMIC to cease to
      qualify as a REMIC at any time that any Certificates are outstanding. Further,
      nothing in this Agreement shall require the Trustee to enter into an amendment
      without receiving an Opinion of Counsel, satisfactory to the Trustee that (i)
      such amendment is permitted and is not prohibited by this Agreement and (ii)
      that all requirements for amending this Agreement (including any consent of
      the
      applicable Certificateholders) have been complied with. None of the parties
      hereto shall consent to an amendment to this Agreement for which the consent
      of
      the Swap Provider is expressly required without the consent of the Swap
      Provider, which consent shall not be unreasonably withheld.

     

    Promptly
      after the execution of any amendment to this Agreement requiring the consent
      of
      Certificateholders, the Trustee shall furnish written notification of the
      substance of such amendment to each Certificateholder and each Rating
      Agency.

     

    It
      shall
      not be necessary for the consent of Certificateholders under this
      Section to approve the particular form of any proposed amendment, but it
      shall be sufficient if such consent shall approve the substance thereof. The
      manner of obtaining such consents and of evidencing the authorization of the
      execution thereof by Certificateholders shall be subject to such reasonable
      regulations as the Trustee may prescribe.

     

    The
      Trustee may, but shall not be obligated to enter into any amendment that affects
      its rights, duties or immunities under this Agreement or otherwise.

     

    Section
      11.02  Recordation
      of Agreement; Counterparts.

     

    To
      the
      extent permitted by applicable law, this Agreement is subject to recordation
      in
      all appropriate public offices for real property records in all of the counties
      or other comparable jurisdictions in which any or all of the Mortgaged
      Properties are situated, and in any other appropriate public recording office
      or
      elsewhere. The Sponsor or the Depositor shall effect such recordation at the
      Trust’s expense upon the request in writing of a Certificateholder, but only if
      such direction is accompanied by an Opinion of Counsel (provided at the expense
      of the Certificateholder requesting recordation) to the effect that such
      recordation would materially and beneficially affect the interests of the
      Certificateholders or is required by law.

     

    For
      the
      purpose of facilitating the recordation of this Agreement as herein provided
      and
      for other purposes, this Agreement may be executed simultaneously in any number
      of counterparts, each of which counterparts shall be deemed to be an original,
      and such counterparts shall constitute but one and the same
      instrument.

     

    Section
      11.03  Governing
      Law.

     

    THIS
      AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE SUBSTANTIVE
      LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
      IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
      HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
      LAWS WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF OTHER THAN
      THE
      PROVISIONS OF SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
      LAW
      WHICH SHALL GOVERN.

     

    Section
      11.04  Intention
      of Parties.

     

    It
      is the
      express intent of the parties hereto that the conveyance of the Mortgage Notes,
      Mortgages, assignments of Mortgages, title insurance policies and any
      modifications, extensions and/or assumption agreements and private mortgage
      insurance policies relating to the Mortgage Loans by the Sponsor to the
      Depositor, and by the Depositor to the Trust Fund be, and be construed as,
      an
      absolute sale thereof to the Depositor or the Trust Fund, as applicable. It
      is,
      further, not the intention of the parties that such conveyance be deemed a
      pledge thereof by the Sponsor to the Depositor, or by the Depositor to the
      Trust
      Fund. However, in the event that, notwithstanding the intent of the parties,
      such assets are held to be the property of the Sponsor or the Depositor, as
      applicable, or if for any other reason this Agreement is held or deemed to
      create a security interest in such assets, then (i) this Agreement shall be
      deemed to be a security agreement within the meaning of the Uniform Commercial
      Code of the State of New York and (ii) each conveyance provided for in this
      Agreement shall be deemed to be an assignment and a grant by the Sponsor or
      the
      Depositor, as applicable, for the benefit of the Certificateholders and the
      Swap
      Provider, of a security interest in all of the assets that constitute the Trust
      Fund, whether now owned or hereafter acquired.

     

    The
      Depositor for the benefit of the Certificateholders shall, to the extent
      consistent with this Agreement, take such actions as may be necessary to ensure
      that, if this Agreement were deemed to create a security interest in the assets
      of the Trust Fund, such security interest would be deemed to be a perfected
      security interest of first priority under applicable law and will be maintained
      as such throughout the term of the Agreement.

     

    Section
      11.05  Notices.

     

    (a)  The
      Securities Administrator shall use its best efforts to promptly provide notice
      to each Rating Agency with respect to each of the following of which it has
      actual knowledge:

     

    (i)  Any
      material change or amendment to this Agreement;

     

    (ii)  The
      occurrence of any Servicer Default or Master Servicer Default that has not
      been
      cured;

     

    (iii)  The
      resignation or termination of a Servicer, the Master Servicer or the Trustee
      and
      the appointment of any successor; and

     

    (iv)  The
      final
      payment to Certificateholders.

     

    In
      addition, the Securities Administrator shall promptly furnish to each Rating
      Agency copies of the following:

     

    (i)
       Each
      annual statement as to compliance described in Section 3.13;
      and

     

    (ii)
       Each
      annual independent public accountants’ servicing report described in
      Section 3.14.

     

    All
      directions, demands and notices hereunder shall be in writing and shall be
      deemed to have been duly given when delivered at or mailed by registered mail,
      return receipt requested, postage prepaid, or by recognized overnight courier,
      or by facsimile transmission to a number provided by the appropriate party
      if
      receipt of such transmission is confirmed to (i) in the case of the Depositor,
      Nomura Home Equity Loan, Inc., 2 World Financial Center, Building B, New York,
      New York 10281 Attention: Nomura Home Equity Loan, Inc., Home Equity Loan Trust,
      Series 2006-FM2; (ii) in the case of the Sponsor, Nomura Credit & Capital,
      Inc., 2 World Financial Center, Building B, New York, New York 10281, Attention:
      Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM2 or such
      other address as may be hereafter furnished to the other parties hereto by
      the
      Sponsor in writing; (iii) in the case of the Servicer, Equity One, Inc., 121
      Woodcrest Road, Cherry Hill, New Jersey 08003, Attention: Investor Reporting;
      (iv) in the case of the Trustee, at each Corporate Trust Office or such other
      address as the Trustee may hereafter furnish to the other parties hereto; (v)
      in
      the case of Wells Fargo Bank, National Association, as Custodian, 24 Executive
      Park, Suite 100, Irvine, California 92614, (vi) in the case of the Securities
      Administrator, its Corporate Trust Office; (vii) in the case of the Master
      Servicer, P.O. Box 98, Columbia, Maryland 21046 (or for overnight deliveries,
      9062 Old Annapolis Road, Columbia, Maryland 21045, Attention Client Manager
      -
      NHEL 2006-FM2) and (viii) in the case of the Rating Agencies, (a) Standard
&
Poor’s, 55 Water Street, 41st
      Floor,
      New York, New York 10041, Attention: Mortgage Surveillance Group; (b) Moody’s
      Investors Service, Inc., 99 Church Street, New York, New York 10007, Attention:
      Home Equity Monitoring; (c) Fitch Ratings, 1 State Street Plaza, New York,
      New
      York 10004; and (d) Dominion Bond Rating Service, Inc., 55 Broadway, Residential
      Mortgage Ratings, New York, New York 10006. Any notice delivered to the Sponsor
      or the Trustee under this Agreement shall be effective only upon receipt. Any
      notice required or permitted to be mailed to a Certificateholder, unless
      otherwise provided herein, shall be given by first-class mail, postage prepaid,
      at the address of such Certificateholder as shown in the Certificate Register;
      any notice so mailed within the time prescribed in this Agreement shall be
      conclusively presumed to have been duly given, whether or not the
      Certificateholder receives such notice.

     

    Section
      11.06  Severability
      of Provisions.

     

    If
      any
      one or more of the covenants, agreements, provisions or terms of this Agreement
      shall be for any reason whatsoever held invalid, then such covenants,
      agreements, provisions or terms shall be deemed severable from the remaining
      covenants, agreements, provisions or terms of this Agreement and shall in no
      way
      affect the validity or enforceability of the other provisions of this Agreement
      or of the Certificates or the rights of the Holders thereof.

     

    Section
      11.07  Assignment.

     

    Notwithstanding
      anything to the contrary contained herein, except as provided pursuant to
      Section 7.02, this Agreement may not be assigned by the Sponsor or the
      Depositor.

     

    Section
      11.08  Limitation
      on Rights of Certificateholders.

     

    The
      death
      or incapacity of any Certificateholder shall not operate to terminate this
      Agreement or the Trust Fund, nor entitle such Certificateholder’s legal
      representative or heirs to claim an accounting or to take any action or commence
      any proceeding in any court for a petition or winding up of the Trust Fund,
      or
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    No
      Certificateholder shall have any right to vote (except as provided herein)
      or in
      any manner otherwise control the operation and management of the Trust Fund,
      or
      the obligations of the parties hereto, nor shall anything herein set forth
      or
      contained in the terms of the Certificates be construed so as to constitute
      the
      Certificateholders from time to time as partners or members of an association;
      nor shall any Certificateholder be under any liability to any third party by
      reason of any action taken by the parties to this Agreement pursuant to any
      provision hereof.

     

    No
      Certificateholder shall have any right by virtue or by availing itself of any
      provisions of this Agreement to institute any suit, action or proceeding in
      equity or at law upon or under or with respect to this Agreement, unless such
      Holder previously shall have given to the Trustee, a written notice of such
      Servicer Default and of the continuance thereof, as hereinbefore provided,
      the
      Holders of Certificates evidencing not less than twenty five percent (25%)
      of
      the Voting Rights evidenced by the Certificates shall also have made written
      request to the Trustee to institute such action, suit or proceeding in its
      own
      name as Trustee, hereunder and shall have offered to the Trustee such indemnity
      satisfactory to it as it may require against the costs, expenses, and
      liabilities to be incurred therein or thereby, and the Trustee or for sixty
      (60)
      days after its receipt of such notice, request and offer of indemnity shall
      have
      neglected or refused to institute any such action, suit or proceeding; it being
      understood and intended, and being expressly covenanted by each
      Certificateholder with every other Certificateholder and the Trustee, that
      no
      one or more Holders of Certificates shall have any right in any manner whatever
      by virtue or by availing itself or themselves of any provisions of this
      Agreement to affect, disturb or prejudice the rights of the Holders of any
      other
      of the Certificates, or to obtain or seek to obtain priority over or preference
      to any other such Holder or to enforce any right under this Agreement, except
      in
      the manner herein provided and for the common benefit of all Certificateholders.
      For the protection and enforcement of the provisions of this Section 11.08,
      each and every Certificateholder or the Trustee shall be entitled to such relief
      as can be given either at law or in equity.

     

    Section
      11.09  Certificates
      Nonassessable and Fully Paid.

     

    It
      is the
      intention of the Depositor that Certificateholders shall not be personally
      liable for obligations of the Trust Fund, that the interests in the Trust Fund
      represented by the Certificates shall be nonassessable for any reason
      whatsoever, and that the Certificates, upon due authentication thereof by the
      Trustee pursuant to this Agreement, are and shall be deemed fully
      paid.

     

    Section
      11.10  Third
      Party Beneficiaries.

     

    The
      Swap
      Provider is an express third party beneficiary to this Agreement, and shall
      have
      to the right to enforce the provisions of this Agreement.

     

    Section
      11.11  Intention
      of the Parties and Interpretation.

     

    Each
      of
      the parties acknowledges and agrees that the purpose of Sections 3.13, 3.14,
      3.18 and 5.14 of this Agreement is to facilitate compliance by the Sponsor
      and
      the Depositor with the provisions of Regulation AB. Therefore, each of the
      parties agrees that (a) the obligations of the parties hereunder shall be
      interpreted in such a manner as to accomplish that purpose, (b) the parties’
obligations hereunder will be supplemented and modified as necessary to be
      consistent with any such amendments, interpretive advice or guidance, convention
      or consensus among active participants in the asset-backed securities markets,
      advice of counsel, or otherwise in respect of the requirements of Regulation
      AB
      and (c) the parties shall comply with requests made by the Sponsor or the
      Depositor for delivery of additional or different information as the Sponsor
      or
      the Depositor may determine in good faith is necessary to comply with the
      provisions of Regulation AB.

     

    Notwithstanding
      the foregoing, the Servicer shall be under no obligation to provide any
      information in addition to that required by Sections 3.13, 3.14, 3.18 and 5.14
      of this Agreement as of the Closing Date that the Depositor deems required
      under
      Regulation AB if (i) the Servicer does not believe that such additional
      information is required under Regulation AB and (ii) the Servicer is not
      providing such additional information for its own securitizations, unless the
      Depositor pays all reasonable costs incurred by the Servicer in connection
      with
      the preparation and delivery of such additional information and the Servicer
      is
      given reasonable time to establish the necessary systems and procedures to
      produce such additional information.

     

    Section
      11.12  Early
      Termination of Basis Risk Cap Agreement.

     

    In
      the event that the Basis Risk Cap Agreement is canceled or otherwise terminated
      for any reason (other than the exhaustion of the interest rate protection
      provided thereby), the Sponsor shall, to the extent a replacement contract
      is
      available, direct the Trustee to execute a replacement contract comparable
      to
      the Basis Risk Cap Agreement which was cancelled or otherwise terminated,
      providing interest rate protection which is equal to the then-existing
      protection provided by the Basis Risk Cap Agreement, which was cancelled or
      otherwise terminated provided, however, that the cost of any such replacement
      contract providing the same interest rate protection provided by such
      replacement contract may be reduced to a level such that the cost of such
      replacement contract shall not exceed the amount of any early termination
      payment. If the Trustee is unable to locate a qualified successor cap provider,
      any early termination payment will be remitted to the Basis Risk Shortfall
      Reserve Fund for the benefit of the Senior Certificates and the Subordinate
      Certificates for distribution by the Securities Administrator to the Senior
      Certificates and the Subordinate Certificates in accordance with Section
      5.04(a)(iii).

     

    Section
      11.13  Early
      Termination of Swap Agreement.

     

    In
      the
      event that the Swap Agreement is canceled or otherwise terminated for any reason
      (other than the exhaustion of the interest rate protection provided thereby),
      the Sponsor shall, to the extent a replacement contract is available, direct
      the
      Trustee to execute a replacement contract comparable to the Swap Agreement,
      providing interest rate protection which is equal to the then-existing
      protection provided by the Swap Agreement, provided, however, that the cost
      of
      any such replacement contract providing the same interest rate protection
      provided by such replacement contract may be reduced to a level such that the
      cost of such replacement contract shall not exceed the amount of any early
      termination payment.

     

    Section
      11.14  Early
      Termination of Interest Rate Cap Agreement.

     

    In
      the
      event that the Interest Rate Cap Agreement is canceled or otherwise terminated
      for any reason (other than the exhaustion of the interest rate protection
      provided thereby), the Sponsor shall, to the extent a replacement contract
      is
      available, direct the Trustee to execute a replacement contract comparable
      to
      the Interest Rate Cap Agreement, providing interest rate protection which is
      equal to the then-existing protection provided by the Interest Rate Cap
      Agreement, provided, however, that the cost of any such replacement contract
      providing the same interest rate protection provided by such replacement
      contract may be reduced to a level such that the cost of such replacement
      contract shall not exceed the amount of any early termination
      payment.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

     

     

     

    
      	
              NOMURA
                HOME EQUITY LOAN, INC.,

              as
                Depositor

            
	 	 
	
              By:

            	/s/
              John P. Graham
	
              Name:

            	John P.
              Graham
	
              Title:

            	Managing
              Director
	 
	 
	
              NOMURA
                CREDIT & CAPITAL, INC.,

              as
                Sponsor

            
	 	 
	
              By:

            	/s/
              Timothy P.F. Crowley
	
              Name:

            	Timothy
              P.F.
              Crowley
	
              Title:

            	Vice
              President
	 
	 
	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION,

              as
                Master Servicer and Securities Administrator

            
	 	 
	
              By:

            	/s/
              Carla S. Walker
	
              Name:

            	Carla S.
              Walker
	
              Title:

            	Vice
              President
	 
	 
	
              HSBC
                BANK USA, NATIONAL ASSOCIATION,

              as
                Trustee

            
	 	 
	
              By:

            	/s/
              Elena Zheng
	
              Name:

            	Elena
              Zheng
	
              Title:

            	Assistant
              Vice
              President
	 
	 
	
              EQUITY
                ONE, INC.,

              as
                Servicer

            
	 	 
	
              By:

            	/s/
              Dennis Lauria
	
              Name:

            	Dennis
              Lauria
	
              Title:

            	Sr. Vice
              President

    

    

     

    

      
        	
                With
                  respect to Sections 3.33, 3.34, 3.35 and 3.36

                 

                
                  WELLS
                    FARGO BANK, NATIONAL ASSOCIATION, as Credit Risk
                    Manager

                

              
	 	 
	
                By:

              	/s/
                Carla S. Walker
	
                Name:

              	Carla
                S.
                Walker
	
                Title:

              	Vice
                President

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      this
      ___ day of October 2006, before me, a notary public in and for said State,
      appeared _____________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Nomura Home Equity Loan, Inc.,
      one of the entities that executed the within instrument, and also known to
      me to
      be the person who executed it on behalf of such corporation and acknowledged
      to
      me that such corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW YORK

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF NEW YORK

            	
              )

            

    

    

    On
      this
      ____ day of October 2006 before me, a notary public in and for said State,
      appeared_______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Nomura Credit & Capital,
      Inc., one of the entities that executed the within instrument, and also known
      to
      me to be the person who executed it on behalf of such corporation, and
      acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF NEW JERSEY

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of October 2006, before me, a notary public in and for said State,
      appeared _________________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of Equity One, Inc., one of the
      entities that executed the within instrument, and also known to me to be the
      person who executed it on behalf of such corporation and acknowledged to me
      that
      such corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

     

    
      	 	 
	 	
              Notary
                Public

            

    

    

     

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of October 2006, before me, a notary public in and for said State,
      appeared _______________, personally known to me on the basis of satisfactory
      evidence to be an authorized representative of HSBC Bank USA, National
      Association, one of the entities that executed the within instrument, and also
      known to me to be the person who executed it on behalf of such corporation,
      and
      acknowledged to me that such corporation executed the within
      instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    

     

    
      	 	 
	 	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              STATE
                OF 

            	
              )

            
	 	
              )
                ss.:

            
	
              COUNTY
                OF 

            	
              )

            

    

    

    On
      this
      ____ day of October
      2006,
      before
      me, a notary public in and for said State, appeared _______________, personally
      known to me on the basis of satisfactory evidence to be an authorized
      representative of Wells Fargo Bank, National Association, one of the entities
      that executed the within instrument, and also known to me to be the person
      who
      executed it on behalf of such corporation, and acknowledged to me that such
      corporation executed the within instrument.

     

    IN
      WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
      day and year in this certificate first above written.

     

    
      	 	 
	 	
              Notary
                Public

            

    

    [Notarial
      Seal]

     

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      EXHIBIT
        A-1

       

      FORM
        OF CLASS [I][II]-A-[1][2][3][4] CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON. ACCORDINGLY, FOLLOWING THE INITIAL ISSUANCE OF
        THE
        CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL
        BE
        DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE ACQUIRING THIS CERTIFICATE
        MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE BY INQUIRY OF THE SECURITIES
        ADMINISTRATOR NAMED HEREIN.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

       

      PRIOR
        TO THE TERMINATION OF THE SUPPLEMENTAL INTEREST TRUST, ANY PERSON ACQUIRING
        A
        CERTIFICATE SHALL BE DEEMED TO HAVE MADE THE REPRESENTATIONS IN SECTION 6.02(b)
        OF THE POOLING AND SERVICING AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Pass-Through
                  Rate: Floating

              
	 	 
	
                Class
                  [I][II]-A-[1][2][3][4] Senior

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement

                and
                  Cut-off Date: October 1, 2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class [I][II]-A-[1][2][3][4]
                  Certificates as of the Cut-off Date:

                $

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	
                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:

                $

              
	 	 
	 	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [______________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        [I][II]-A-[1][2][3][4] Certificates with respect to a Trust Fund consisting
        primarily of a pool of conventional one- to four-family fixed-rate and
        adjustable-rate mortgage loans sold by NOMURA HOME EQUITY LOAN,
        INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional
        first and second lien, fixed-rate and adjustable-rate mortgage loans secured
        by
        one- to four- family residences, units in planned unit developments and
        individual condominium units (collectively, the “Mortgage Loans”) sold by NHEL.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NHEL. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
Equity
        One, Inc., as servicer (the “Servicer”), Wells
        Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”) and HSBC Bank USA, National
        Association, as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. To the extent not defined herein,
        capitalized terms used herein shall have the meaning ascribed to them in
        the
        Agreement. This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of its acceptance hereof assents and by which
        such
        Holder is bound.

       

      Interest
        on this Certificate will accrue during the period commencing on the immediately
        preceding Distribution Date (as hereinafter defined) (or with respect to
        the
        First Distribution Date, the Closing Date) and ending on the day immediately
        preceding the related Distribution Date on the Certificate Principal Balance
        hereof at a per annum Pass-Through Rate will equal the lesser of (i) the
        sum of
        One-Month LIBOR for that Distribution Date plus (A) on or prior to the first
        possible Optional Termination Date, [___]% or (B) after the first possible
        Optional Termination Date, [___]% and (ii) the Net Funds Cap. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal
        hereon.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        is not
        liable to the Certificateholders for any amount payable under this Certificate
        or the Agreement or, except as expressly provided in the Agreement, subject
        to
        any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, all as more specifically set forth
        in
        the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      Prior
        to
        the termination of the Supplemental Interest Trust, any transferee of this
        Certificate shall be deemed to make the representations in Section 6.02(b)
        of
        the Agreement.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

      

      
        	
                Dated: October
                  __, 2006

              	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class [I][II]-A-[1][2][3][4] Certificates referred to in the
        within-mentioned Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	
                 

              
	 	
                Signature
                  by or on behalf of assignor

              
	 	
                 

              
	 	
                Signature
                  Guaranteed

              

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

       

      EXHIBIT
        A-2

       

      FORM
        OF CLASS M-[1][2][3][4][5][6][7][8][9] CERTIFICATE

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [[AND
        ]THE CLASS M-1 CERTIFICATES] [[,/AND] THE CLASS M-2 CERTIFICATES] [[AND/,]
        THE
        CLASS M-3 CERTIFICATES] [[AND/,] THE CLASS M-4 CERTIFICATES] [[,/AND] THE
        CLASS
        M-5 CERTIFICATES] [[,/AND] THE CLASS M-6 CERTIFICATES] [[,/AND] THE CLASS
        M-7
        CERTIFICATES] [AND] THE CLASS M-8 CERTIFICATES] AS DESCRIBED IN THE AGREEMENT
        (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY PRINCIPAL
        PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY, FOLLOWING
        THE
        INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL BALANCE OF
        THIS
        CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
        ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL BALANCE
        BY
        INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED HEREIN.

       

      ANY
        TRANSFEREE OF THIS CERTIFICATE SHALL BE DEEMED TO MAKE THE REPRESENTATIONS
        SET
        FORTH IN SECTION 6.02(b) OF THE AGREEMENT.

       

      UNLESS
        THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
        TRUST COMPANY TO THE DEPOSITOR OR ITS AGENT FOR REGISTRATION OF TRANSFER,
        EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
        OF
        CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
        OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY
        TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
        PERSON
        IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
        HEREIN.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Pass-Through
                  Rate: Floating

              
	 	 
	
                Class
                  M-[1][2][3][4][5][6][7][8][9] Subordinate

              	 
	 	
                 

              
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date: October 1,
                  2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class
                  M-[1][2][3][4][5][6][7][8][9] Certificates as of the Cut-off
                  Date:

                $
                  

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	
                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:

                $
                  

              
	 	 
	 	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [__________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        M-[1][2][3][4][5][6][7][8][9] Certificates with respect to a Trust Fund
        consisting primarily of a pool of conventional one- to four-family fixed-rate
        and adjustable-rate mortgage loans sold by NOMURA HOME EQUITY LOAN,
        INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional first and second lien, fixed-rate and adjustable-rate
        mortgage loans secured by one- to four- family residences, units in planned
        unit
        developments and individual condominium units (collectively, the “Mortgage
        Loans”) sold by NHEL. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
        Equity One, Inc., as servicer (the “Servicer”), Wells Fargo Bank, N.A. as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and HSBC Bank USA, National Association, as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
        forth hereafter. To the extent not defined herein, capitalized terms used
        herein
        shall have the meaning ascribed to them in the Agreement. This Certificate
        is
        issued under and is subject to the terms, provisions and conditions of the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        its
        acceptance hereof assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue during the period commencing on the immediately
        preceding Distribution Date (as hereinafter defined) (or with respect to
        the
        First Distribution Date, the Closing Date) and ending on the day immediately
        preceding the related Distribution Date on the Certificate Principal Balance
        hereof at a per annum Pass-Through Rate will equal the lesser of (i) the
        sum of
        One-Month LIBOR for that Distribution Date plus (A) on or prior to the first
        possible Optional Termination Date, [___]% or (B) after the first possible
        Optional Termination Date, [___]% and (ii) the Net Funds Cap. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the Business Day immediately preceding such Distribution Date,
        an
        amount equal to the product of the Percentage Interest evidenced by this
        Certificate and the amount (of interest and principal, if any) required to
        be
        distributed to the Holders of Certificates of the same Class as this
        Certificate. The Assumed Final Distribution Date is the Distribution Date
        in the
        month following the latest scheduled maturity date of any Mortgage Loan and
        is
        not likely to be the date on which the Certificate Principal Balance of this
        Class of Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        is not
        liable to the Certificateholders for any amount payable under this Certificate
        or the Agreement or, except as expressly provided in the Agreement, subject
        to
        any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, all as more specifically set forth
        in
        the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      Any
        transferee of this Certificate shall be deemed to make the representations
        set
        forth in Section 6.02(b) of the Agreement.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

      

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose. 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

      

      
        	
                Dated: October
                  __, 2006

              	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class M-[1][2][3][4][5][6][7][8][9] Certificates referred to in
        the
        within-mentioned Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	
                 

              
	 	
                Signature
                  by or on behalf of assignor

              
	 	
                 

              
	 	
                Signature
                  Guaranteed

              

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      EXHIBIT
        A-3

       

      FORM
        OF CLASS B-[1][2] CERTIFICATE

       

      THIS
        CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE SENIOR CERTIFICATES
        [AND][,] THE MEZZANINE CERTIFICATES [AND THE CLASS B-1 CERTIFICATES] AS
        DESCRIBED IN THE AGREEMENT (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      THE
        CERTIFICATE PRINCIPAL BALANCE OF THIS CERTIFICATE WILL BE DECREASED BY THE
        PRINCIPAL PAYMENTS HEREON AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
        FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CERTIFICATE PRINCIPAL
        BALANCE OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN
        BELOW.
        ANYONE ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CERTIFICATE PRINCIPAL
        BALANCE BY INQUIRY OF THE SECURITIES ADMINISTRATOR NAMED
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT
        OR ANY
        ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
        NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES ADMINISTRATOR
        OF
        SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES ADMINISTRATOR THAT SUCH
        REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES
        ACT AND
        OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
        SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
        JURISDICTION.

       

      ANY
        TRANSFEREE OF THIS CERTIFICATE SHALL MAKE OR BE DEEMED TO MAKE THE
        REPRESENTATIONS SET FORTH IN SECTION 6.02(b) OF THE
        AGREEMENT.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Pass-Through
                  Rate: Floating

              
	 	 
	
                Class
                  B-[1][2] Subordinate

              	 
	 	
                 

              
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                October
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class B-[1][2] Certificates
                  as of the Cut-off Date:

                $
                  

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	 
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	
                Initial
                  Certificate Principal Balance of this Certificate as of the Cut-off
                  Date:

                $
                  

              
	 	 
	 	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [__________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        B-[1][2] Certificates with respect to a Trust Fund consisting primarily of
        a
        pool of conventional one- to four-family fixed-rate and adjustable-rate mortgage
        loans sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Cede & Co. is the registered owner of the Percentage Interest
        evidenced hereby in the beneficial ownership interest of Certificates of
        the
        same Class as this Certificate in a trust (the “Trust Fund”) generally
        consisting of conventional first and second lien, fixed-rate and adjustable-rate
        mortgage loans secured by one- to four- family residences, units in planned
        unit
        developments and individual condominium units (collectively, the “Mortgage
        Loans”) sold by NHEL. The Mortgage Loans were sold by Nomura Credit &
Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was created pursuant to
        the Pooling and Servicing Agreement dated as of the Cut-off Date specified
        above
        (the “Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor,
        Equity One, Inc., as servicer (the “Servicer”), Wells Fargo Bank, N.A. as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and HSBC Bank USA, National Association, as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
        forth hereafter. To the extent not defined herein, capitalized terms used
        herein
        shall have the meaning ascribed to them in the Agreement. This Certificate
        is
        issued under and is subject to the terms, provisions and conditions of the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        its
        acceptance hereof assents and by which such Holder is bound.

       

      Interest
        on this Certificate will accrue during the period commencing on the immediately
        preceding Distribution Date (as hereinafter defined) (or with respect to
        the
        First Distribution Date, the Closing Date) and ending on the day immediately
        preceding the related Distribution Date on the Certificate Principal Balance
        hereof at a per annum Pass-Through Rate will equal the lesser of (i) the
        sum of
        One-Month LIBOR for that Distribution Date plus (A) on or prior to the first
        possible Optional Termination Date, [___]% or (B) after the first possible
        Optional Termination Date, [___]% and (ii) the Net Funds Cap. The Securities
        Administrator will distribute on the 25th day of each month, or, if such
        25th
        day is not a Business Day, the immediately following Business Day (each,
        a
“Distribution Date”), commencing on the First Distribution Date specified above,
        to the Person in whose name this Certificate is registered at the close of
        business on the last Business Day of the calendar month preceding such
        Distribution Date, an amount equal to the product of the Percentage Interest
        evidenced by this Certificate and the amount (of interest and principal,
        if any)
        required to be distributed to the Holders of Certificates of the same Class
        as
        this Certificate. The Assumed Final Distribution Date is the Distribution
        Date
        in the month following the latest scheduled maturity date of any Mortgage
        Loan
        and is not likely to be the date on which the Certificate Principal Balance
        of
        this Class of Certificates will be reduced to zero.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice. The initial Certificate Principal Balance of this
        Certificate is set forth above. The Certificate Principal Balance hereof
        will be
        reduced to the extent of distributions allocable to principal hereon and
        any
        Realized Losses allocable hereto.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        is not
        liable to the Certificateholders for any amount payable under this Certificate
        or the Agreement or, except as expressly provided in the Agreement, subject
        to
        any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, all as more specifically set forth
        in
        the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit E and either F or G, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor
        or the
        Securities Administrator in their respective capacities as such), together
        with
        copies of the written certification(s) of the Holder of the Certificate desiring
        to effect the transfer and/or such Holder’s prospective transferee upon which
        such Opinion of Counsel is based. Neither the Depositor nor the Securities
        Administrator is obligated to register or qualify the Class of Certificates
        specified on the face hereof under the 1933 Act or any other securities law
        or
        to take any action not otherwise required under the Agreement to permit the
        transfer of such Certificates without registration or qualification. Any
        Holder
        desiring to effect a transfer of this Certificate shall be required to indemnify
        the Trustee, the Securities Administrator, the Depositor and the Sponsor
        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.

       

      Any
        Transferee of this Certificate shall make or be deemed to make the
        representations set forth in Section 6.02(b) of the Agreement.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose. 

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

      

      Dated:
        October __, 2006

      
        	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 
	
                By:

              	 
	 	
                Authorized
                  Signatory

              

      

      

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class B-[1][2] Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

      

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

       

      
        	 	 	 
	 	 	
                .

              

      

      

      

      
        	
                Dated:

              	
                 

              
	 	
                Signature
                  by or on behalf of assignor

              
	 	
                 

              
	 	
                Signature
                  Guaranteed

              

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      EXHIBIT
        A-4

       

      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
        (THE “CODE”).

       

      THIS
        CERTIFICATE IS SUBORDINATE TO THE SENIOR CERTIFICATES AND SUBORDINATE
        CERTIFICATES TO THE EXTENT DESCRIBED IN THE AGREEMENT REFERRED TO
        HEREIN.

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT
        OR ANY
        ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
        NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES ADMINISTRATOR
        OF
        SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES ADMINISTRATOR THAT SUCH
        REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES
        ACT AND
        OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
        SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
        JURISDICTION.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATE PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Percentage
                  Interest: [___]%

              
	 	 
	
                Class
                  X

              	
                Variable
                  Pass-Through Rate

              
	 	 
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                October
                  1, 2006

              	
                Initial
                  Certificate Notional Balance of this Certificate as of the Cut-off
                  Date:

                $
                  

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	
                 

              
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [_____________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        X
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional one- to four-family fixed-rate and adjustable-rate mortgage
        loans
        sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust
        Fund”), generally consisting of conventional first and second lien, fixed-rate
        and adjustable-rate mortgage loans secured by one- to four- family residences,
        units in planned unit developments and individual condominium units
        (collectively, the “Mortgage Loans”) sold by NHEL. The Mortgage Loans were sold
        by Nomura Credit & Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was
        created pursuant to the Pooling and Servicing Agreement dated as of the Cut-off
        Date specified above (the “Agreement”), among NHEL, as depositor (the
“Depositor”), the Sponsor, Equity One, Inc., as servicer (the “Servicer”), Wells
        Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”) and HSBC Bank USA, National
        Association, as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. To the extent not defined herein,
        capitalized terms used herein shall have the meaning ascribed to them in
        the
        Agreement. This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of its acceptance hereof assents and by which
        such
        Holder is bound.

       

      Interest
        on this Certificate will accrue during the month prior to the month in which
        a
        Distribution Date (as hereinafter defined) occurs on the Certificate Notional
        Balance hereof at a per annum rate equal to the Class X Pass-Through Rate
        as set
        forth in the Agreement. The Securities Administrator will distribute on the
        25th
        day of each month, or, if such 25th day is not a Business Day, the immediately
        following Business Day (each, a “Distribution Date”), commencing on the First
        Distribution Date specified above, to the Person in whose name this Certificate
        is registered at the close of business on the last day (or if such last day
        is
        not a Business Day, the Business Day immediately preceding such last day)
        of the
        calendar month immediately preceding the month in which the Distribution
        Date
        occurs, an amount equal to the product of the Percentage Interest evidenced
        by
        this Certificate and the amount required to be distributed to the Holders
        of
        Certificates of the same Class as this Certificate. The Assumed Final
        Distribution Date is the Distribution Date in the month following the latest
        scheduled maturity date of any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit E and either F or G, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Securities Administrator or the Trustee in their respective capacities as
        such),
        together with copies of the written certification(s) of the Holder of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. Neither the Depositor
        nor the Trustee is obligated to register or qualify the Class of Certificates
        specified on the face hereof under the 1933 Act or any other securities law
        or
        to take any action not otherwise required under the Agreement to permit the
        transfer of such Certificates without registration or qualification. Any
        Holder
        desiring to effect a transfer of this Certificate shall be required to indemnify
        the Trustee, the Securities Administrator, the Depositor and the Sponsor
        against
        any liability that may result if the transfer is not so exempt or is not
        made in
        accordance with such federal and state laws.

       

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Securities
        Administrator is not liable to the Certificateholders for any amount payable
        under this Certificate or the Agreement or, except as expressly provided
        in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        October __, 2006

       

      
        	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 
	
                By:

              	 
	 	
                Authorized
                  Signatory

              

      

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class X Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	
                 

              
	 	
                Signature
                  by or on behalf of assignor

              
	 	
                 

              
	 	
                Signature
                  Guaranteed

              

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        A-5

       

      FORM
        OF CLASS P CERTIFICATE

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “REGULAR INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT,” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      THIS
        CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
        ACT OF
        1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THE
        HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE, AGREES THAT THIS CERTIFICATE
        MAY
        BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE
        WITH
        THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE
        144A
        UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY
        BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A
        (A
“QIB”), PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF
        A
        QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE,
        PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (2) PURSUANT
        TO
        AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
        ACT (IF
        AVAILABLE) OR (3) TO AN “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING
        THEREOF IN RULE 501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT
        OR ANY
        ENTITY IN WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
        NOT FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO (A) THE
        RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY IN THE
        FORM
        PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES ADMINISTRATOR
        OF
        SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES ADMINISTRATOR THAT SUCH
        REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES
        ACT AND
        OTHER APPLICABLE LAWS OR IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE
        SECURITIES LAWS OF THE UNITED STATES AND ANY OTHER APPLICABLE
        JURISDICTION.

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATE PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	
                Percentage
                  Interest: 100%

              
	 	 
	
                Class
                  P

              	 
	 	 
	
                Date
                  of Pooling and Servicing Agreement and Cut-off Date:

                October
                  1, 2006

              	
                Aggregate
                  Initial Certificate Principal Balance of the Class P Certificates
                  as of
                  the Cut-off Date: $100

              
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association

              	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	 
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [________________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        P
        Certificates with respect to a Trust Fund consisting primarily of a pool
        of
        conventional one- to four-family fixed-rate and adjustable-rate mortgage
        loans
        sold by NOMURA HOME EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust
        Fund”), generally consisting of conventional first and second lien, fixed-rate
        and adjustable-rate mortgage loans secured by one- to four- family residences,
        units in planned unit developments and individual condominium units
        (collectively, the “Mortgage Loans”) sold by NHEL. The Mortgage Loans were sold
        by Nomura Credit & Capital, Inc. (the “Sponsor”) to NHEL. The Trust Fund was
        created pursuant to the Pooling and Servicing Agreement dated as of the Cut-off
        Date specified above (the “Agreement”), among NHEL, as depositor (the
“Depositor”), the Sponsor, Equity One, Inc. (the “Servicer”), as servicer, Wells
        Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”) and HSBC Bank USA, National
        Association, as trustee (the “Trustee”), a summary of certain of the pertinent
        provisions of which is set forth hereafter. To the extent not defined herein,
        capitalized terms used herein shall have the meaning ascribed to them in
        the
        Agreement. This Certificate is issued under and is subject to the terms,
        provisions and conditions of the Agreement, to which Agreement the Holder
        of
        this Certificate by virtue of its acceptance hereof assents and by which
        such
        Holder is bound.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amount required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made unless the transfer is made pursuant
        to an effective registration statement under the Securities Act of 1933,
        as
        amended (the “1933 Act”), and an effective registration or qualification under
        applicable state securities laws, or is made in a transaction that does not
        require such registration or qualification. In the event that such a transfer
        of
        this Certificate is to be made without registration or qualification, the
        Securities Administrator shall require receipt of (i) if such transfer is
        purportedly being made in reliance upon Rule 144A under the 1933 Act, written
        certifications from the Holder of the Certificate desiring to effect the
        transfer, and from such Holder’s prospective transferee, substantially in the
        forms attached to the Agreement as Exhibit E and either F or G, as applicable,
        and (ii) in all other cases, an Opinion of Counsel satisfactory to it that
        such
        transfer may be made without such registration or qualification (which Opinion
        of Counsel shall not be an expense of the Trust Fund or of the Depositor,
        the
        Securities Administrator or the Trustee in their respective capacities as
        such),
        together with copies of the written certification(s) of the Holder of the
        Certificate desiring to effect the transfer and/or such Holder’s prospective
        transferee upon which such Opinion of Counsel is based. Neither the Depositor,
        the Securities Administrator nor the Trustee is obligated to register or
        qualify
        the Class of Certificates specified on the face hereof under the 1933 Act
        or any
        other securities law or to take any action not otherwise required under the
        Agreement to permit the transfer of such Certificates without registration
        or
        qualification. Any Holder desiring to effect a transfer of this Certificate
        shall be required to indemnify the Trustee, the Securities Administrator,
        the
        Depositor and the Sponsor against any liability that may result if the transfer
        is not so exempt or is not made in accordance with such federal and state
        laws.

       

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Securities
        Administrator is not liable to the Certificateholders for any amount payable
        under this Certificate or the Agreement or, except as expressly provided
        in the
        Agreement, subject to any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

       

      Dated:
        October __, 2006

       

      
        	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator

              
	 	 
	
                By:

              	 
	 	
                Authorized
                  Signatory

              

      

      

       

      

       

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class P Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

      

      
        	 	 	 
	 	 	
                .

              

      

      

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      EXHIBIT
        A-6

       

      FORM
        OF CLASS R[-X] CERTIFICATE

       

      THIS
        CERTIFICATE MAY NOT BE HELD BY OR TRANSFERRED TO A NON-UNITED STATES PERSON
        OR A
        DISQUALIFIED ORGANIZATION (AS DEFINED BELOW).

       

      SOLELY
        FOR U.S. FEDERAL INCOME TAX PURPOSES, THIS CERTIFICATE IS A “RESIDUAL INTEREST”
IN A “REAL ESTATE MORTGAGE INVESTMENT CONDUIT” AS THOSE TERMS ARE DEFINED,
        RESPECTIVELY, IN SECTIONS 860G AND 860D OF THE INTERNAL REVENUE CODE OF 1986
        (THE “CODE”).

       

      NO
        TRANSFER OF THIS CERTIFICATE SHALL BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
        PROVIDES A CERTIFICATE PURSUANT TO SECTION 6.02(b) OF THE
        AGREEMENT.

       

      ANY
        RESALE, TRANSFER OR OTHER DISPOSITION OF THIS CERTIFICATE MAY BE MADE ONLY
        IF
        THE PROPOSED TRANSFEREE PROVIDES A TRANSFER AFFIDAVIT TO THE SECURITIES
        ADMINISTRATOR THAT (1) SUCH TRANSFEREE IS NOT (A) THE UNITED STATES, ANY
        STATE
        OR POLITICAL SUBDIVISION THEREOF, ANY POSSESSION OF THE UNITED STATES, OR
        ANY
        AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING (OTHER THAN AN INSTRUMENTALITY
        WHICH IS A CORPORATION IF ALL OF ITS ACTIVITIES ARE SUBJECT TO TAX AND EXCEPT
        FOR FREDDIE MAC, A MAJORITY OF ITS BOARD OF DIRECTORS IS NOT SELECTED BY
        SUCH
        GOVERNMENTAL UNIT), (B) A FOREIGN GOVERNMENT, ANY INTERNATIONAL ORGANIZATION,
        OR
        ANY AGENCY OR INSTRUMENTALITY OF EITHER OF THE FOREGOING, (C) ANY ORGANIZATION
        (OTHER THAN CERTAIN FARMERS’ COOPERATIVES DESCRIBED IN SECTION 521 OF THE CODE)
        WHICH IS EXEMPT FROM THE TAX IMPOSED BY CHAPTER 1 OF THE CODE UNLESS SUCH
        ORGANIZATION IS SUBJECT TO THE TAX IMPOSED BY SECTION 511 OF THE CODE (INCLUDING
        THE TAX IMPOSED BY SECTION 511 OF THE CODE ON UNRELATED BUSINESS TAXABLE
        INCOME), (D) RURAL ELECTRIC AND TELEPHONE COOPERATIVES DESCRIBED IN SECTION
        1381(a)(2)(C) OF THE CODE, (E) AN ELECTING LARGE PARTNERSHIP UNDER SECTION
        775(a) OF THE CODE (ANY SUCH PERSON DESCRIBED IN THE FOREGOING CLAUSES (A),
        (B),
        (C), (D) OR (E) BEING HEREIN REFERRED TO AS A “DISQUALIFIED ORGANIZATION”), OR
        (F) AN AGENT OF A DISQUALIFIED ORGANIZATION, (2) NO PURPOSE OF SUCH TRANSFER
        IS
        TO IMPEDE THE ASSESSMENT OR COLLECTION OF TAX AND (3) SUCH TRANSFEREE SATISFIES
        CERTAIN ADDITIONAL CONDITIONS RELATING TO THE FINANCIAL CONDITION OF THE
        PROPOSED TRANSFEREE. NOTWITHSTANDING THE REGISTRATION IN THE CERTIFICATE
        REGISTER OR ANY TRANSFER, SALE OR OTHER DISPOSITION OF THIS CERTIFICATE TO
        A
        DISQUALIFIED ORGANIZATION OR AN AGENT OF A DISQUALIFIED ORGANIZATION, SUCH
        REGISTRATION SHALL BE DEEMED TO BE OF NO LEGAL FORCE OR EFFECT WHATSOEVER
        AND
        SUCH PERSON SHALL NOT BE DEEMED TO BE A CERTIFICATEHOLDER FOR ANY PURPOSE
        HEREUNDER, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF DISTRIBUTIONS ON
        THIS
        CERTIFICATE. EACH HOLDER OF THIS CERTIFICATE BY ACCEPTANCE OF THIS CERTIFICATE
        SHALL BE DEEMED TO HAVE CONSENTED TO THE PROVISIONS OF THIS
        PARAGRAPH.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Certificate
                  No. [__]

              	 
	 	 
	
                Class
                  R[-X]

              	
                Percentage
                  Interest: [__]

              
	 	 
	
                Date
                  of Pooling and Servicing Agreement 

                and
                  Cut-off Date: October 1, 2006

              	 
	 	 
	
                Trustee:
                  HSBC Bank USA, National Association 

              	
                Master
                  Servicer and Securities Administrator: Wells Fargo Bank,
                  N.A.

              
	 	 
	
                First
                  Distribution Date: November 25, 2006

              	 
	 	 
	
                Assumed
                  Final Distribution Date:

                July
                  25, 2036

              	
                CUSIP:
                  [_______________]

              
	 	 

      

      

      ASSET-BACKED
        CERTIFICATE

      SERIES
        2006-FM2

       

      evidencing
        a fractional undivided interest in the distributions allocable to the Class
        R[-X] Certificates
        with respect to a Trust Fund consisting primarily of a pool of conventional
        one-
        to four-family fixed-rate and adjustable-rate mortgage loans sold by NOMURA
        HOME
        EQUITY LOAN, INC.

       

      This
        Certificate is payable solely from the assets of the Trust Fund, and does
        not
        represent an obligation of or interest in Nomura Home Equity Loan, Inc.
        (“NHEL”), the Securities Administrator or the Trustee or any of their affiliates
        or any other person. Neither this Certificate nor the underlying Mortgage
        Loans
        are guaranteed or insured by any governmental entity or by NHEL, the Securities
        Administrator or the Trustee or any of their affiliates or any other person.
        None of NHEL, the Trustee, the Securities Administrator or any of their
        affiliates will have any obligation with respect to any certificate or other
        obligation secured by or payable from payments on the Certificates.

       

      This
        certifies that Nomura Securities International, Inc. is the registered owner
        of
        the Percentage Interest evidenced hereby in the beneficial ownership interest
        of
        Certificates of the same Class as this Certificate in a trust (the “Trust
        Fund”), generally consisting
        of conventional
        first and second lien, fixed-rate and adjustable-rate mortgage loans secured
        by
        one- to four- family residences, units in planned unit developments and
        individual condominium units (collectively, the “Mortgage Loans”) sold by NHEL.
        The Mortgage Loans were sold by Nomura Credit & Capital, Inc. (the
“Sponsor”) to NHEL. The Trust Fund was created pursuant to the Pooling and
        Servicing Agreement dated as of the Cut-off Date specified above (the
“Agreement”), among NHEL, as depositor (the “Depositor”), the Sponsor, Equity
        One, Inc. (the “Servicer”), as servicer, Wells Fargo Bank, N.A., as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and HSBC Bank USA, National Association, as trustee (the
“Trustee”), a summary of certain of the pertinent provisions of which is set
        forth hereafter. To the extent not defined herein, capitalized terms used
        herein
        shall have the meaning ascribed to them in the Agreement. This Certificate
        is
        issued under and is subject to the terms, provisions and conditions of the
        Agreement, to which Agreement the Holder of this Certificate by virtue of
        its
        acceptance hereof assents and by which such Holder is bound.

       

      Each
        Holder of this Certificate will be deemed to have agreed to be bound by the
        restrictions set forth in the Agreement to the effect that (i) each person
        holding or acquiring any Ownership Interest in this Certificate must be a
        United
        States Person and a Permitted Transferee, (ii) the transfer of any Ownership
        Interest in this Certificate will be conditioned upon the delivery to the
        Securities Administrator of, among other things, an affidavit to the effect
        that
        it is a United States Person and Permitted Transferee, (iii) any attempted
        or
        purported transfer of any Ownership Interest in this Certificate in violation
        of
        such restrictions will be absolutely null and void and will vest no rights
        in
        the purported transferee, and (iv) if any person other than a United States
        Person and a Permitted Transferee acquires any Ownership Interest in this
        Certificate in violation of such restrictions, then the Depositor will have
        the
        right, in its sole discretion and without notice to the Holder of this
        Certificate, to sell this Certificate to a purchaser selected by the Depositor,
        which purchaser may be the Depositor, or any affiliate of the Depositor,
        on such
        terms and conditions as the Depositor may choose.

       

      The
        Securities Administrator will distribute on the 25th day of each month, or,
        if
        such 25th day is not a Business Day, the immediately following Business Day
        (each, a “Distribution Date”), commencing on the First Distribution Date
        specified above, to the Person in whose name this Certificate is registered
        at
        the close of business on the last day (or if such last day is not a Business
        Day, the Business Day immediately preceding such last day) of the calendar
        month
        immediately preceding the month in which the Distribution Date occurs, an
        amount
        equal to the product of the Percentage Interest evidenced by this Certificate
        and the amounts required to be distributed to the Holders of Certificates
        of the
        same Class as this Certificate. The Assumed Final Distribution Date is the
        Distribution Date in the month following the latest scheduled maturity date
        of
        any Mortgage Loan.

       

      Distributions
        on this Certificate will be made by the Securities Administrator by check
        mailed
        to the address of the Person entitled thereto as such name and address shall
        appear on the Certificate Register or, if such Person so requests by notifying
        the Securities Administrator in writing as specified in the Agreement.
        Notwithstanding the above, the final distribution on this Certificate will
        be
        made after due notice by the Securities Administrator of the pendency of
        such
        distribution and only upon presentation and surrender of this Certificate
        at the
        office or agency appointed by the Securities Administrator for that purpose
        and
        designated in such notice.

       

      No
        transfer of this Certificate shall be made to any person unless the transferee
        provides a certification pursuant to Section 6.02(b) of the
        Agreement.

       

      This
        Certificate is one of a duly authorized issue of Certificates designated
        as set
        forth on the face hereof (the “Certificates”). The Certificates, in the
        aggregate, evidence the entire beneficial ownership interest in the Trust
        Fund
        formed pursuant to the Agreement.

       

      The
        Certificateholder, by its acceptance of this Certificate, agrees that it
        will
        look solely to the Trust Fund for payment hereunder and that the Trustee
        is not
        liable to the Certificateholders for any amount payable under this Certificate
        or the Agreement or, except as expressly provided in the Agreement, subject
        to
        any liability under the Agreement.

       

      This
        Certificate does not purport to summarize the Agreement and reference is
        made to
        the Agreement for the interests, rights and limitations of rights, benefits,
        obligations and duties evidenced hereby, and the rights, duties and immunities
        of the Securities Administrator. The Certificates are limited in right of
        payment to certain collections and recoveries respecting the Mortgage Loans
        and
        other assets included in the Trust Fund, all as more specifically set forth
        in
        the Agreement.

       

      The
        Agreement permits, with certain exceptions therein provided, the amendment
        thereof and the modification of the rights and obligations of the Depositor
        and
        the rights of the Certificateholders under the Agreement from time to time
        by
        the parties thereto with the consent of the Holders of the Class or Classes
        of
        Certificates affected thereby evidencing over 50% of the Voting Rights of
        such
        Class or Classes. Any such consent by the Holder of this Certificate shall
        be
        conclusive and binding on such Holder and upon all future Holders of this
        Certificate and of any Certificate issued upon the transfer hereof or in
        lieu
        hereof whether or not notation of such consent is made upon this Certificate.
        The Agreement also permits the amendment thereof, in certain limited
        circumstances, without the consent of the Holders of any of the
        Certificates.

       

      As
        provided in the Agreement and subject to certain limitations therein set
        forth,
        the transfer of this Certificate is registrable with the Securities
        Administrator upon surrender of this Certificate for registration of transfer
        at
        the offices or agencies maintained by the Securities Administrator for such
        purposes, duly endorsed by, or accompanied by a written instrument of transfer
        in form satisfactory to the Securities Administrator duly executed by the
        Holder
        hereof or such Holder’s attorney duly authorized in writing, and thereupon one
        or more new Certificates in authorized denominations representing a like
        aggregate Percentage Interest will be issued to the designated
        transferee.

       

      The
        Certificates are issuable only as registered Certificates without coupons
        in the
        Classes and denominations specified in the Agreement. As provided in the
        Agreement and subject to certain limitations therein set forth, this Certificate
        is exchangeable for one or more new Certificates evidencing the same Class
        and
        in the same aggregate Percentage Interest, as requested by the Holder
        surrendering the same.

       

      No
        service charge will be made to the Certificateholders for any such registration
        of transfer, but the Securities Administrator may require payment of a sum
        sufficient to cover any tax or other governmental charge payable in connection
        therewith. The Depositor, the Master Servicer, the Trustee, the Securities
        Administrator and any agent of any of them may treat the Person in whose
        name
        this Certificate is registered as the owner hereof for all purposes, and
        none of
        Depositor, the Master Servicer, the Trustee, the Securities Administrator
        or any
        such agent shall be affected by notice to the contrary.

       

      The
        obligations created by the Agreement and the Trust Fund created thereby (other
        than the obligations to make payments to Certificateholders with respect
        to the
        termination of the Agreement) shall terminate upon the earlier of (i) the
        later
        of (A) the maturity or other liquidation (or Advance with respect thereto)
        of
        the last Mortgage Loan remaining in the Trust Fund and disposition of all
        property acquired upon foreclosure or deed in lieu of foreclosure of any
        Mortgage Loan and (B) the remittance of all funds due under the Agreement,
        or
        (ii) the optional repurchase by the party named in the Agreement of all the
        Mortgage Loans and other assets of the Trust Fund subject to additional terms
        set forth in the Agreement. Such optional repurchase may be made by the Master
        Servicer only if on such Distribution Date the aggregate Stated Principal
        Balance of the Mortgage Loans is less than or equal to 10% of the Cut-off
        Date
        Principal Balance of the Mortgage Loans. The exercise of such right will
        effect
        the early retirement of the Certificates. In no event, however, will the
        Trust
        Fund created by the Agreement continue beyond the earlier to occur of (i)
        expiration of 21 years after the death of certain persons identified in the
        Agreement and (ii) the Assumed Final Distribution Date.

       

      Unless
        this Certificate has been countersigned by an authorized signatory of the
        Securities Administrator by manual signature, this Certificate shall not
        be
        entitled to any benefit under the Agreement, or be valid for any
        purpose.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Securities Administrator has caused this Certificate
        to be
        duly executed.

      

      Dated:
        October __, 2006

      
        	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 
	
                By:

              	 
	 	
                Authorized
                  Signatory

              

      

      

      

      

       

      

       

      CERTIFICATE
        OF AUTHENTICATION

       

      This
        is
        one of the Class R[-X] Certificates referred to in the within-mentioned
        Agreement.

       

      
        	 	 	 	
                WELLS
                  FARGO BANK, N.A.

                as
                  Securities Administrator 

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Authorized
                  Signatory

              
	 	 	 	 	 	 	 	 	 

      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      ASSIGNMENT

       

      FOR
        VALUE
        RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
        __________________________________ (Please print or typewrite name and address
        including postal zip code of assignee) a Percentage Interest evidenced by
        the
        within Asset-Backed Certificate and hereby authorizes the transfer of
        registration of such interest to assignee on the Certificate Register of
        the
        Trust Fund.

       

      I
        (We)
        further direct the Certificate Registrar to issue a new Certificate of a
        like
        denomination and Class, to the above named assignee and deliver such Certificate
        to the following address:

       

      
        	 	 	 
	 	 	
                .

              

      

      

       

      
        	
                Dated:

              	 
	 	
                Signature
                  by or on behalf of assignor

              
	 	 
	 	 
	 	
                Signature
                  Guaranteed

              

      

      

      

       

      

       

      DISTRIBUTION
        INSTRUCTIONS

       

      The
        assignee should include the following for purposes of distribution:

       

      
        	
                Distributions
                  shall be made, by wire transfer or otherwise, in immediately available
                  

              
	
                funds
                  to

              	 
	 
	
                for
                  the account of

              	 
	
                account
                  number

              	 	
                or,
                  if mailed by check, to

              
	 
	
                Applicable
                  statements should be mailed to

              	 
	 
	 
	
                This
                  information is provided by

              	 
	
                assignee
                  named above, or

              	 
	
                its
                  agent.

              	 

      

      

       

      

      EXHIBIT
        B

       

      MORTGAGE
        LOAN SCHEDULE

       

      The
        Preliminary and Final Mortgage Loan Schedules shall set forth the following
        information with respect to each Mortgage Loan:

       

      
        	a)  	
                the
                  Mortgage Loan identifying number;

              

      

       

      
        	b)  	
                a
                  code indicating to which Loan Group a Mortgage Loan has been assigned,
                  if
                  applicable;

              

      

       

      
        	c)  	
                a
                  code indicating whether the Mortgaged Property is
                  owner-occupied;

              

      

       

      
        	d)  	
                the
                  type of Residential Dwelling constituting the Mortgaged
                  Property;

              

      

       

      
        	e)  	
                the
                  original months to maturity;

              

      

       

      
        	f)  	
                the
                  original date of the Mortgage Loan and the remaining months to
                  maturity
                  from the Cut-off Date, based on the original amortization
                  schedule;

              

      

       

      
        	g)  	
                the
                  Loan-to-Value Ratio or Combined Loan-to-Value Ratio, as applicable,
                  at
                  origination;

              

      

       

      
        	h)  	
                the
                  Mortgage Rate in effect immediately following the Cut-off
                  Date;

              

      

       

      
        	i)  	
                the
                  date on which the first Monthly Payment was due on the Mortgage
                  Loan;

              

      

       

      
        	j)  	
                the
                  stated maturity date;

              

      

       

      
        	k)  	
                the
                  amount of the Monthly Payment at
                  origination;

              

      

       

      
        	l)  	
                the
                  amount of the Monthly Payment as of the Cut-off
                  Date;

              

      

       

      
        	m)  	
                the
                  last Due Date on which a Monthly Payment was actually applied to
                  the
                  unpaid Stated Principal Balance;

              

      

       

      
        	n)  	
                the
                  original principal amount of the Mortgage
                  Loan;

              

      

       

      
        	o)  	
                the
                  Stated Principal Balance of the Mortgage Loan as of the close of
                  business
                  on the Cut-off Date;

              

      

       

      
        	p)  	
                with
                  respect to each adjustable rate Mortgage Loan, the first Adjustment
                  Date;

              

      

       

      
        	q)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Gross
                  Margin;

              

      

       

      
        	r)  	
                a
                  code indicating the purpose of the loan (i.e., purchase financing,
                  rate/term refinancing, cash-out
                  refinancing);

              

      

       

      
        	s)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Maximum Mortgage
                  Rate
                  under the terms of the Mortgage
                  Note;

              

      

       

      
        	t)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Minimum Mortgage
                  Rate
                  under the terms of the Mortgage
                  Note;

              

      

       

      
        	u)  	
                the
                  Mortgage Rate at origination;

              

      

       

      
        	v)  	
                with
                  respect to each adjustable rate Mortgage Loan, the Periodic Rate
                  Cap;

              

      

       

      
        	w)  	
                with
                  respect to each adjustable rate Mortgage Loan, the first Adjustment
                  Date
                  immediately following the Cut-off
                  Date;

              

      

       

      
        	x)  	
                with
                  respect to each adjustable rate Mortgage Loan, the
                  Index;

              

      

       

      
        	y)  	
                the
                  date on which the first Monthly Payment was due on the Mortgage
                  Loan and,
                  if such date is not consistent with the Due Date currently in effect,
                  such
                  Due Date;

              

      

       

      
        	z)  	
                a
                  code indicating whether the Mortgage Loan is an Adjustable Rate
                  Mortgage
                  Loan or a fixed rate Mortgage Loan;

              

      

       

      
        	aa)  	
                a
                  code indicating the documentation style (i.e., full, stated or
                  limited);

              

      

       

      
        	bb)  	
                a
                  code indicating if the Mortgage Loan is subject to a primary insurance
                  policy or lender paid mortgage insurance policy and the name of
                  the
                  insurer;

              

      

       

      
        	cc)  	
                the
                  Appraised Value of the Mortgaged
                  Property;

              

      

       

      
        	dd)  	
                the
                  sale price of the Mortgaged Property, if
                  applicable;

              

      

       

      
        	ee)  	
                a
                  code indicating whether the Mortgage Loan is subject to a Prepayment
                  Charge, the term of such Prepayment Charge and the amount of such
                  Prepayment Charge;

              

      

       

      
        	ff)  	
                the
                  product type (e.g., 2/28, 15 year fixed, 30 year fixed, 15/30 balloon,
                  etc.);

              

      

       

      
        	gg)  	
                the
                  Mortgagor’s debt to income ratio at
                  origination;

              

      

       

      
        	hh)  	
                the
                  FICO score at origination; and

              

      

       

      
        	ii)  	
                the
                  Servicer.

              

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

       

      EXHIBIT C

       

      MORTGAGE
        LOAN PURCHASE AGREEMENT

       

      This
        is a
        Mortgage Loan Purchase Agreement (this “Agreement”), dated October 31, 2006,
        between Nomura Credit & Capital, Inc., a Delaware corporation (the “Seller”)
        and Nomura Home Equity Loan, Inc., a Delaware corporation (the
“Purchaser”).

      

      Preliminary
        Statement

      

      The
        Seller intends to sell the Mortgage Loans (as hereinafter identified), the
        Basis
        Risk Cap Agreement, the Swap Agreement and the Interest Rate Cap Agreement
        to
        the Purchaser on the terms and subject to the conditions set forth in this
        Agreement. The Purchaser intends to deposit the Mortgage Loans into a mortgage
        pool comprising the Trust Fund. The Trust Fund will be evidenced by a single
        series of asset-backed certificates designated as Nomura Home Equity Loan,
        Inc.,
        Home Equity Loan Trust, Series 2006-FM2, Asset-Backed Certificates (the
“Certificates”). The Certificates will consist of twenty (20) classes of
        certificates. The Certificates will be issued pursuant to a Pooling and
        Servicing Agreement for Series 2006-FM2, dated as of October 1, 2006 (the
        “Pooling and Servicing Agreement”), among the Purchaser as depositor, Wells
        Fargo Bank, N.A. as master servicer and securities administrator (“Wells
        Fargo”), Equity One, Inc. as servicer (the “Servicer”), the Seller as sponsor,
        and HSBC Bank USA, National Association as trustee (the “Trustee”). The
        Purchaser will sell the Class I-A-1, Class II-A-1, Class II-A-2, Class II-A-3,
        Class II-A-4, Class M-1, Class M-2, Class M-3, Class M-4, Class M-5, Class
        M-6,
        Class M-7, Class M-8, Class M-9, Class B-1 and Class B-2 Certificates to
        Greenwich
        Capital Markets, Inc. (“Greenwich”), Citigroup Global Markets Inc.
        (“Citigroup”) and Goldman, Sachs & Co. (“Goldman”;
        together with Greenwich and Citigroup, the “Underwriters”), pursuant to the
        Underwriting Agreement, dated October 1, 2006, among the Purchaser and the
        Underwriters, and the Terms Agreement, dated October 30, 2006 (collectively,
        the
“Underwriting Agreement”), among the Purchaser and the Underwriters. Capitalized
        terms used but not defined herein shall have the meanings set forth in the
        Pooling and Servicing Agreement. Pursuant to the custodial agreement, dated
        as
        of October 1, 2006 (the “Custodial Agreement”), among the Trustee, the Servicer
        and Wells Fargo as custodian (the “Custodian”), the Trustee intends to have the
        Custodian take possession of the Mortgages and Mortgage Notes, along with
        certain other documents specified in the Custodial Agreement, as the custodian
        of the Trustee, in accordance with the terms and conditions
        thereof.

      

      The
        parties hereto agree as follows:

      

      SECTION
        1.   Agreement
        to Purchase.
        The
        Seller hereby sells, and the Purchaser hereby purchases, on October 31, 2006
        (the “Closing Date”), certain conventional, one-to four family, fixed-rate and
        adjustable-rate mortgage loans secured by first and second liens on residential
        real properties (the “Mortgage Loans”), having an aggregate principal balance as
        of the close of business on October 1, 2006 (the “Cut-off Date”) of
        approximately $1,228,042,345 (the “Closing Balance”), after giving effect to all
        payments due on the Mortgage Loans on or before the Cut-off Date, whether
        or not
        received, including the right to any Prepayment Charges payable by the related
        Mortgagors in connection with any Principal Prepayments on the Mortgage
        Loans.

      

      SECTION
        2.   Mortgage
        Loan Schedule.
        The
        Purchaser and the Seller have agreed upon which of the mortgage loans owned
        by
        the Seller are to be purchased by the Purchaser pursuant to this Agreement
        and
        the Seller will prepare or cause to be prepared on or prior to the Closing
        Date
        a final schedule (the “Closing Schedule”) that describes such Mortgage Loans and
        sets forth all of the Mortgage Loans to be purchased under this Agreement,
        including the Prepayment Charges. The Closing Schedule will conform to the
        requirements set forth in this Agreement and to the definition of “Mortgage Loan
        Schedule” under the Pooling and Servicing Agreement.

      

      SECTION
        3.   Consideration.

      

      (a)  In
        consideration for the Mortgage Loans to be purchased hereunder, the Purchaser
        shall, as described in Section 10, (i) pay to or upon the order of the Seller
        in
        immediately available funds an amount (the “Purchase Price”) equal to (i)
        [_______]*
        and (ii)
        a 100% interest in the Class B-1, Class B-2, Class X, Class P, Class R and
        Class
        R-X certificates (collectively the “Private Certificates”) of which the Class
        B-1 and Class B-2 Certificates shall be registered in the name of Greenwich
        and
        the Class X, Class P, Class R, and Class R-X certificates shall be registered
        solely in the name of Nomura Securities International, Inc.

      

      (b)  The
        Purchaser or any assignee, transferee or designee of the Purchaser shall
        be
        entitled to all scheduled payments of principal due after the Cut-off Date,
        all
        other payments of principal due and collected after the Cut-off Date, and
        all
        payments of interest on the Mortgage Loans allocable to the period after
        the
        Cut-off Date. All scheduled payments of principal and interest due on or
        before
        the Cut-off Date and collected after the Cut-off Date shall belong to the
        Seller.

      

      (c)  Pursuant
        to the Pooling and Servicing Agreement, the Purchaser will assign all of
        its
        right, title and interest in and to the Mortgage Loans, together with its
        rights
        under this Agreement, to the Trustee for the benefit of the
        Certificateholders.

      

      SECTION
        4.   Transfer
        of the Mortgage Loans.

      

      (a)  Possession
        of Mortgage Files.
        The
        Seller does hereby sell to the Purchaser, without recourse but subject to
        the
        terms of this Agreement, all of its right, title and interest in, to and
        under
        the Mortgage Loans, including the related Prepayment Charges. The contents
        of
        each Mortgage File not delivered to the Purchaser or to any assignee, transferee
        or designee of the Purchaser on or prior to the Closing Date are and shall
        be
        held in trust by the Seller for the benefit of the Purchaser or any assignee,
        transferee or designee of the Purchaser. Upon the sale of the Mortgage Loans,
        the ownership of each Mortgage Note, the related Mortgage and the other contents
        of the related Mortgage File is vested in the Purchaser and the ownership
        of all
        records and documents with respect to the related Mortgage Loan prepared
        by or
        that come into the possession of the Seller on or after the Closing Date
        shall
        immediately vest in the Purchaser and shall be delivered immediately to the
        Purchaser or as otherwise directed by the Purchaser.

      
        

        
          *
            Please
            contact Nomura Credit & Capital, Inc. for pricing
            information.

        

        
          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      (b)  Delivery
        of Mortgage Loan Documents.
        Pursuant
        to various conveyance documents to be executed on the Closing Date and pursuant
        to the Pooling and Servicing Agreement, the Purchaser will assign on the
        Closing
        Date all of its right, title and interest in and to the Mortgage Loans to
        the
        Trustee for the benefit of the Certificateholders. In connection with the
        transfer and assignment of the Mortgage Loans, the Seller has delivered or
        will
        deliver or cause to be delivered to the Trustee by the Closing Date or such
        later date as is agreed to by the Purchaser and the Seller (each of the Closing
        Date and such later date is referred to as a “Mortgage
        File Delivery Date”),
        the
        documents set forth on Exhibit 1 hereto, provided,
        however,
        that in
        lieu of the foregoing, the Seller may deliver the following documents, under
        the
        circumstances set forth below: (x) in lieu of the original Mortgage, assignments
        to the Trustee or intervening assignments thereof which have been delivered,
        are
        being delivered or will upon receipt of recording information relating to
        the
        Mortgage required to be included thereon, be delivered to recording offices
        for
        recording and have not been returned in time to permit their delivery as
        specified above, the Seller may deliver a true copy thereof with a certification
        by the Seller on the face of such copy, substantially as follows: “Certified to
        be a true and correct copy of the original, which has been transmitted for
        recording;” (y) in lieu of the Mortgage, assignments to the Trustee or
        intervening assignments thereof, if the applicable jurisdiction retains the
        originals of such documents or if the originals are lost (in each case, as
        evidenced by a certification from the Seller to such effect), the Seller
        may
        deliver photocopies of such documents containing an original certification
        by
        the judicial or other governmental authority of the jurisdiction where such
        documents were recorded; and (z) in lieu of the Mortgage Notes relating to
        the
        Mortgage Loans, each identified in the list delivered by the Purchaser to
        the
        Trustee on the Closing Date and attached hereto as Exhibit
        2
        the
        Seller may deliver lost note affidavits and indemnities of the Seller; and
        provided further, however, that in the case of Mortgage Loans which have
        been
        prepaid in full after the Cut-off Date and prior to the Closing Date, the
        Seller, in lieu of delivering the above documents, may deliver to the Trustee
        a
        certification by the Seller to such effect. The Seller shall deliver such
        original documents (including any original documents as to which certified
        copies had previously been delivered) or such certified copies to the Trustee
        promptly after they are received. The Seller shall cause the Mortgage and
        intervening assignments, if any, and the assignment of the Mortgage to be
        recorded not later than 180 days after the Closing Date, or, in lieu of such
        assignments, shall provide an Opinion of Counsel pursuant to Section 6 hereof
        to
        the effect that the recordation of such assignment is not necessary to protect
        the Trustee’s interest in the related Mortgage Loan. Upon the request of the
        Purchaser, the Seller will assist the Purchaser in effecting the assignment
        referred to above.

       

      (c)  In
        connection with the assignment of any Mortgage Loan registered on the MERS®
System, the Seller further agrees that it will cause, at the Seller’s own
        expense, within thirty (30) days after the Closing Date, the MERS® System to
        indicate that such Mortgage Loans have been assigned by the Seller to the
        Purchaser and by the Purchaser to the Trustee in accordance with this Agreement
        for the benefit of the Certificateholders by including (or deleting, in the
        case
        of Mortgage Loans which are repurchased in accordance with this Agreement)
        in
        such computer files (a) the code in the field which identifies the specific
        Trustee and (b) the code in the field “Pool Field” which identifies the series
        of the Certificates issued in connection with such Mortgage Loans. The Seller
        further agrees that it will not, and will not permit the Servicers to alter
        the
        codes referenced in this paragraph with respect to any Mortgage Loan during
        the
        term of the Pooling and Servicing Agreement unless and until such Mortgage
        Loan
        is repurchased in accordance with the terms of the Pooling and Servicing
        Agreement.

      

      (d)  Acceptance
        of Mortgage Loans.
        The
        documents delivered pursuant to Section 4(b) hereof shall be reviewed by
        the
        Purchaser or any assignee, transferee or designee of the Purchaser at any
        time
        before or after the Closing Date (and with respect to each document permitted
        to
        be delivered after the Closing Date, within seven (7) days of its delivery)
        to
        ascertain that all required documents have been executed and received and
        that
        such documents relate to the Mortgage Loans identified on the Mortgage Loan
        Schedule.

      

      (e)  Transfer
        of Interest in Agreements.
        The
        Purchaser has the right to assign its interest under this Agreement, in whole
        or
        in part, to the Trustee, as may be required to effect the purposes of the
        Pooling and Servicing Agreement, without the consent of the Seller, and the
        assignee shall succeed to the rights and obligations hereunder of the Purchaser.
        Any expense reasonably incurred by or on behalf of the Purchaser or the Trustee
        in connection with enforcing any obligations of the Seller under this Agreement
        will be promptly reimbursed by the Seller.

      

      SECTION
        5.   Examination
        of Mortgage Files.
        

      

      (a)  On
        or
        before the Mortgage File Delivery Date, the Seller will have made the Mortgage
        Files available to the Purchaser or its agent for examination which may be
        at
        the offices of the Trustee or the Seller and/or the Seller’s custodians. The
        fact that the Purchaser or its agent has conducted or has failed to conduct
        any
        partial or complete examination of the Mortgage Files shall not affect the
        Purchaser’s rights to demand cure, repurchase, substitution or other relief as
        provided in this Agreement. In furtherance of the foregoing, the Seller shall
        make the Mortgage Files available to the Purchaser or its agent from time
        to
        time so as to permit the Purchaser to confirm the Seller’s compliance with the
        delivery and recordation requirements of this Agreement and the Pooling and
        Servicing Agreement. In addition, upon request of the Purchaser, the Seller
        agrees to provide to the Purchaser, the Underwriters and to any investors
        or
        prospective investors in the Certificates information regarding the Mortgage
        Loans and to make available personnel knowledgeable about the Mortgage Loans
        for
        discussions with the Purchaser, the Underwriters and such investors or
        prospective investors, upon reasonable request during regular business hours,
        sufficient to permit the Purchaser, the Underwriters and such investors or
        potential investors to conduct such due diligence as any such party reasonably
        believes is appropriate.

      

      (b)  Pursuant
        to the Pooling and Servicing Agreement, on the Closing Date the Custodian
        on
        behalf of the Trustee, for the benefit of the Certificateholders, will review
        items of the Mortgage Files as set forth on Exhibit
        1
        and will
        deliver to the Seller a certification in the form attached as Exhibit 1 to
        the
        Custodial Agreement.

      

      (c)  Pursuant
        to the Pooling and Servicing Agreement, the Trustee or the Custodian, on
        behalf
        of the Trustee, will review the Mortgage Files within 180 days of the Closing
        Date and will deliver to the Seller a final certification substantially in
        the
        form of Exhibit 2 to the Custodial Agreement. If the Custodian is unable
        to
        deliver a final certification with respect to the items listed in Exhibit
        2
        due to
        any document that is missing, has not been executed or is unrelated, determined
        on the basis of the Mortgagor name, original principal balance and loan number,
        to the Mortgage Loans identified in the Final Mortgage Loan Schedule (a
“Material
        Defect”),
        pursuant to Section 6 of the Custodial Agreement, the Custodian will notify
        the
        Trustee of such Material Defect and the Trustee shall notify the Seller of
        such
        Material Defect. The Seller shall correct or cure any such Material Defect
        within ninety (90) days from the date of notice from the Trustee of the Material
        Defect and if the Seller does not correct or cure such Material Defect within
        such period and such defect materially and adversely affects the interests
        of
        the Certificateholders in the related Mortgage Loan, the Seller will, in
        accordance with the terms of the Pooling and Servicing Agreement, within
        ninety
        (90) days of the date of notice, provide the Trustee with a Substitute Mortgage
        Loan (if within two (2) years of the Closing Date) or purchase the related
        Mortgage Loan at the applicable Purchase Price; provided, however, that if
        such
        defect relates solely to the inability of the Seller to deliver the original
        security instrument or intervening assignments thereof, or a certified copy
        because the originals of such documents, or a certified copy, have not been
        returned by the applicable jurisdiction, the Seller shall not be required
        to
        purchase such Mortgage Loan if the Seller delivers such original documents
        or
        certified copy promptly upon receipt, but in no event later than 360 days
        after
        the Closing Date. The foregoing repurchase obligation shall not apply in
        the
        event that the Seller cannot deliver such original or copy of any document
        submitted for recording to the appropriate recording office in the applicable
        jurisdiction because such document has not been returned by such office;
        provided that the Seller shall instead deliver a recording receipt of such
        recording office or, if such receipt is not available, a certificate of the
        Seller or a Servicing Officer confirming that such documents have been accepted
        for recording, and delivery to the Trustee shall be effected by the Seller
        within thirty (30) days of its receipt of the original recorded
        document.

      

      (d)  At
        the
        time of any substitution, the Seller shall deliver or cause to be delivered
        the
        Replacement Mortgage Loan, the related Mortgage File and any other documents
        and
        payments required to be delivered in connection with a substitution pursuant
        to
        the Pooling and Servicing Agreement. At the time of any purchase or
        substitution, the Trustee shall (i) assign to the Seller and cause the
        Custodian, on behalf of the Trustee, to release the documents (including,
        but
        not limited to, the Mortgage, Mortgage Note and other contents of the Mortgage
        File) in the possession of the Custodian, on behalf of the Trustee, relating
        to
        the Deleted Mortgage Loan and (ii) execute and deliver such instruments of
        transfer or assignment, in each case without recourse, as shall be necessary
        to
        vest in the Seller title to such Deleted Mortgage Loan.

      

      SECTION
        6.  Recordation
        of Assignments of Mortgage.

      

      (a)  The
        Seller will, promptly after the Closing Date, cause each Mortgage and each
        assignment of Mortgage from the Seller to the Trustee, and all unrecorded
        intervening assignments, if any, delivered on or prior to the Closing Date,
        to
        be recorded in all recording offices in the jurisdictions where the related
        Mortgaged Properties are located; provided,
        however,
        the
        Seller need not cause to be recorded any assignment for which (a) the related
        Mortgaged Property is located in (a) any jurisdiction under the laws of which,
        as evidenced by an Opinion of Counsel delivered by the Seller to the Trustee
        and
        the Rating Agencies, the recordation of such assignment is not necessary
        to
        protect the Trustee’s interest in the related Mortgage Loan or (b) MERS is
        identified on the Mortgage or on a properly recorded assignment of the Mortgage
        as mortgagee of record solely as nominee for Seller and its successors and
        assigns; provided,
        however,
        notwithstanding the delivery of any Opinion of Counsel, each assignment of
        Mortgage shall be submitted for recording by the Seller in the manner described
        above, at no expense to the Trust Fund or Trustee, upon the earliest to occur
        of
        (i) reasonable direction by the Holders of Certificates evidencing Percentage
        Interests aggregating not less than twenty-five percent (25%) of the Trust,
        (ii)
        the occurrence of an Event of Default, (iii) the occurrence of a bankruptcy,
        insolvency or foreclosure relating to the Seller, (iv) the occurrence of
        a
        servicing transfer as described in Section 8.02 of the Pooling and Servicing
        Agreement or (v) with respect to any assignment of Mortgage, the occurrence
        of a
        bankruptcy, insolvency or foreclosure relating to the Mortgagor under the
        related Mortgage.

      

      (b)  While
        each such Mortgage or assignment is being recorded, if necessary, the Seller
        shall leave or cause to be left with the Custodian, on behalf of the Trustee,
        a
        certified copy of such Mortgage or assignment. In the event that, within
        180
        days of the Closing Date, the Trustee has not been provided with an Opinion
        of
        Counsel as described above or received evidence of recording with respect
        to
        each Mortgage Loan delivered to the Purchaser pursuant to the terms hereof
        or as
        set forth above and the related Mortgage Loan is not a MOM Loan, the failure
        to
        provide evidence of recording or such Opinion of Counsel shall be considered
        a
        Material Defect, and the provisions of Section 5(c) and (d) shall apply.
        All
        customary recording fees and reasonable expenses relating to the recordation
        of
        the assignments of mortgage to the Trustee or the Opinion of Counsel, as
        the
        case may be, shall be borne by the Seller.

      

      SECTION
        7.  Representations,
        Warranties and Covenants of the Seller.

      

      The
        Seller hereby represents and warrants to the Purchaser, as of the date hereof
        and as of the Closing Date, and covenants, that:

      

      1.  The
        Seller is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware and is qualified and in good standing
        to
        do business in each jurisdiction where such qualification is necessary, except
        where the failure so to qualify would not reasonably be expected to have
        a
        material adverse effect on the Seller’s business as presently conducted or on
        the Seller’s ability to enter into this Agreement and to consummate the
        transactions contemplated hereby.

       

      2.  The
        Seller has duly authorized the execution, delivery and performance of this
        Agreement, has duly executed and delivered this Agreement, and this Agreement,
        assuming due authorization, execution and delivery by the Purchaser, constitutes
        a legal, valid and binding obligation of the Seller, enforceable against
        it in
        accordance with its terms except as the enforceability thereof may be limited
        by
        bankruptcy, insolvency or reorganization or by general principles of
        equity.

       

      3.  The
        execution, delivery and performance of this Agreement by the Seller (x) does
        not
        conflict and will not conflict with, does not breach and will not result
        in a
        breach of and does not constitute and will not constitute a default (or an
        event, which with notice or lapse of time or both, would constitute a default)
        under (A) any terms or provisions of the organizational documents of the
        Seller,
        (B) any term or provision of any material agreement, contract, instrument
        or
        indenture, to which the Seller is a party or by which the Seller or any of
        its
        property is bound, or (C) any law, rule, regulation, order, judgment, writ,
        injunction or decree of any court or governmental authority having jurisdiction
        over the Seller or any of its property and (y) does not create or impose
        and
        will not result in the creation or imposition of any lien, charge or encumbrance
        which would have a material adverse effect upon the Mortgage Loans or any
        documents or instruments evidencing or securing the Mortgage Loans.

       

      

      4.  No
        consent, approval, authorization or order of, registration or filing with,
        or
        notice on behalf of the Seller to any governmental authority or court is
        required, under federal laws or the laws of the State of New York, for the
        execution, delivery and performance by the Seller of, or compliance by the
        Seller with, this Agreement or the consummation by the Seller of any other
        transaction contemplated hereby and by the Pooling and Servicing Agreement;
        provided, however, that the Seller makes no representation or warranty regarding
        federal or state securities laws in connection with the sale or distribution
        of
        the Certificates.

       

      5.  This
        Agreement does not contain any untrue statement of material fact or omit
        to
        state a material fact necessary to make the statements contained herein not
        misleading. The written statements, reports and other documents prepared
        and
        furnished or to be prepared and furnished by the Seller pursuant to this
        Agreement or in connection with the transactions contemplated hereby taken
        in
        the aggregate do not contain any untrue statement of material fact or omit
        to
        state a material fact necessary to make the statements contained therein
        not
        misleading.

       

      6.  The
        Seller is not in violation of, and the execution and delivery of this Agreement
        by the Seller and its performance and compliance with the terms of this
        Agreement will not constitute a violation with respect to, any order or decree
        of any court or any order or regulation of any federal, state, municipal
        or
        governmental agency having jurisdiction over the Seller or its assets, which
        violation might have consequences that would materially and adversely affect
        the
        condition (financial or otherwise) or the operation of the Seller or its
        assets
        or might have consequences that would materially and adversely affect the
        performance of its obligations and duties hereunder.

       

      7.  The
        Seller does not believe, nor does it have any reason or cause to believe,
        that
        it cannot perform each and every covenant contained in this
        Agreement.

       

      8.  Immediately
        prior to the sale of the Mortgage Loans to the Purchaser as herein contemplated,
        the Seller was the owner of the related Mortgage and the indebtedness evidenced
        by the related Mortgage Note, and, upon the payment to the Seller of the
        Purchase Price, in the event that the Seller retains or has retained record
        title, the Seller shall retain such record title to each Mortgage, each related
        Mortgage Note and the related Mortgage Files with respect thereto in trust
        for
        the Purchaser as the owner thereof from and after the date hereof.

       

      9.  There
        are
        no actions or proceedings against, or investigations known to it of, the
        Seller
        before any court, administrative or other tribunal (A) that might prohibit
        its
        entering into this Agreement, (B) seeking to prevent the sale of the Mortgage
        Loans by the Seller or the consummation of the transactions contemplated
        by this
        Agreement or (C) that might prohibit or materially and adversely affect the
        performance by the Seller of its obligations under, or validity or
        enforceability of, this Agreement.

       

      10.  The
        consummation of the transactions contemplated by this Agreement are in the
        ordinary course of business of the Seller, and the transfer, assignment and
        conveyance of the Mortgage Notes and the Mortgages by the Seller pursuant
        to
        this Agreement are not subject to the bulk transfer or any similar statutory
        provisions in effect in any relevant jurisdiction, except any as may have
        been
        complied with.

       

      

      11.  The
        Seller has not dealt with any broker, investment banker, agent or other person,
        except for the Purchaser or any of its affiliates, that may be entitled to
        any
        commission or compensation in connection with the sale of the Mortgage Loans
        (except that an entity that previously financed the Seller’s ownership of the
        Mortgage Loans may be entitled to a fee to release its security interest
        in the
        Mortgage Loans, which fee shall have been paid and which security interest
        shall
        have been released on or prior to the Closing Date).

       

      12.  There
        is
        no litigation currently pending or, to the best of the Seller’s knowledge
        without independent investigation, threatened against the Seller that would
        reasonably be expected to adversely affect the transfer of the Mortgage Loans,
        the issuance of the Certificates or the execution, delivery, performance
        or
        enforceability of this Agreement, or that would result in a material adverse
        change in the financial condition of the Seller.

       

      13.  The Seller
        is a HUD approved mortgagee pursuant to Section 203 of the National Housing
        Act.

       

      SECTION
        8.  Representations
        and Warranties of the Seller Relating to the Mortgage Loans.

      

      The
        Seller hereby represents and warrants to the Purchaser that as to each Mortgage
        Loan as of the Closing Date:

      

      1.  Information
        provided to the Rating Agencies, including the loan level detail, is true
        and
        correct according to the Rating Agency requirements;

       

      2.  No
        fraud
        has taken place on the part of the Mortgagor or any other party involved
        in the
        origination or servicing of the Mortgage Loan;

       

      3.  No
        Monthly Payment required to be made under any Mortgage Loan has been, or
        will
        be, contractually delinquent by one month or more on, or at any time preceding,
        the date such Mortgage Loan was purchased by the Seller;

       

      4.  Neither
        the Seller nor the related originator of the Mortgage Loan has advanced any
        Monthly Payment required under the terms of the Mortgage Note;

       

      5.  There
        are
        no delinquent taxes, assessment liens or insurance premiums affecting the
        related Mortgaged Property;

       

      6.  The
        terms
        of the Mortgage Note and the Mortgage have not been materially impaired,
        waived,
        altered or modified in any respect, except by written instruments, recorded
        in
        the applicable public recording office if necessary to maintain the lien
        priority of the Mortgage. The substance of any such waiver, alteration or
        modification has been approved by the title insurer, to the extent required
        by
        the related policy. No Mortgagor has been released, in whole or in part,
        except
        in connection with an assumption agreement (approved by the title insurer
        to the
        extent required by the policy) and which assumption agreement has been delivered
        to the Trustee;

       

      7.  The
        Mortgaged Property is insured against loss by fire and hazards of extended
        coverage (excluding earthquake insurance) in an amount which is at least
        equal
        to the lesser of (i) the amount necessary to compensate for any damage or
        loss
        to the improvements which are a part of such property on a replacement cost
        basis or (ii) the outstanding principal balance of the Mortgage Loan. If
        the
        Mortgaged Property is in an area identified on a flood hazard map or flood
        insurance rate map issued by the Federal Emergency Management Agency as having
        special flood hazards (and such flood insurance has been made available),
        a
        flood insurance policy meeting the requirements of the current guidelines
        of the
        Federal Insurance Administration is in effect. All such insurance policies
        contain a standard mortgagee clause naming the originator of the Mortgage
        Loan,
        its successors and assigns as mortgagee and the Seller has not engaged in
        any
        act or omission which would impair the coverage of any such insurance policies.
        Except as may be limited by applicable law, the Mortgage obligates the Mortgagor
        thereunder to maintain all such insurance at the Mortgagor’s cost and expense,
        and on the Mortgagor’s failure to do so, authorizes the holder of the Mortgage
        to maintain such insurance at Mortgagor’s cost and expense and to seek
        reimbursement therefor from the Mortgagor;

       

      8.  Any
        and
        all requirements of any federal, state or local law including, without
        limitation, usury, truth in lending, real estate settlement procedures, consumer
        credit protection, equal credit opportunity, fair housing, predatory, fair
        lending or disclosure laws applicable to the origination and servicing of
        the
        Mortgage Loans have been complied with in all material respects, and the
        consummation of the transactions contemplated hereby will not involve the
        violation of any such laws;

       

      9.  The
        Mortgage has not been satisfied, cancelled, subordinated (other than with
        respect to second lien Mortgage Loans, the subordination to the first lien)
        or
        rescinded, in whole or in part, and the Mortgaged Property has not been released
        from the lien of the Mortgage, in whole or in part, nor has any instrument
        been
        executed that would effect any such satisfaction, cancellation, subordination,
        rescission or release;

       

      10.  The
        Mortgage was recorded or was submitted for recording in accordance with all
        applicable laws and is a valid, existing and enforceable perfected first
        or
        second lien on the Mortgaged Property including all improvements on the
        Mortgaged Property, subject only to (a) the lien of the current real property
        taxes and (b) covenants, conditions and restrictions, rights of way and
        easements;

       

      11.  The
        Mortgage Note and the related Mortgage are genuine and each is the legal,
        valid
        and binding obligation of the maker thereof, insured under the related title
        policy, and enforceable in accordance with its terms, except to the extent
        that
        the enforceability thereof may be limited by a bankruptcy, insolvency or
        reorganization;

       

      12.  The
        Seller is the sole legal, beneficial and equitable owner of the Mortgage
        Note
        and the Mortgage and has the full right to convey, transfer and sell the
        Mortgage Loan to the Purchaser free and clear of any encumbrance, equity,
        lien
        (other than with respect to second lien Mortgage Loans, the subordination
        to the
        first lien), pledge, charge, claim or security interest and immediately upon
        the
        sale, assignment and endorsement of the Mortgage Loans from the Seller to
        the
        Purchaser, the Purchaser shall have good and indefeasible title to and be
        the
        sole legal owner of the Mortgage Loans subject only to any encumbrance, equity,
        lien, pledge, charge, claim or security interest arising out of the Purchaser’s
        actions;

       

      13.  Each
        Mortgage Loan is covered by a valid and binding American Land Title Association
        lender’s title insurance policy issued by a title insurer qualified to do
        business in the jurisdiction where the Mortgaged Property is located, which
        title insurance policy is generally acceptable to Fannie Mae and Freddie
        Mac. No
        claims have been filed under such lender’s title insurance policy, and the
        Seller has not done, by act or omission, anything that would impair the coverage
        of the lender’s title insurance policy;

       

      14.  There
        is
        no material default, breach, violation event or event of acceleration existing
        under the Mortgage or the Mortgage Note and no event which, with the passage
        of
        time or with notice and the expiration of any grace or cure period, would
        constitute a material default, breach, violation or event of acceleration,
        and
        the Seller has not, nor has its predecessors, waived any material default,
        breach, violation or event of acceleration;

       

      15.  There
        are
        no mechanics’ or similar liens or claims which have been filed for work, labor
        or material provided to the related Mortgaged Property prior to the origination
        of the Mortgage Loan which are or may be liens prior to, or equal or coordinate
        with, the lien of the related Mortgage, except as may be disclosed in the
        related title policy;

       

      16.  Except
        with respect to approximately 14.74% of the Mortgage Loans by aggregate
        principal balance as of the Cut-off Date, which are balloon loans and
        approximately 12.48% of the Mortgage Loans by aggregate principal balance
        as of
        the Cut-off Date, which are interest only loans, each Mortgage Note is payable
        on the first day of each month in equal monthly installments of principal
        and
        interest (subject to adjustment in the case of the adjustable rate Mortgage
        Loans), with interest calculated on a 30/360 basis and payable in arrears,
        sufficient to amortize the Mortgage Loan fully by the stated maturity date
        over
        an original term from commencement of amortization to not more than thirty
        (30)
        years and no Mortgage Loan permits negative amortization;

       

      17.  The
        servicing practices used in connection with the servicing of the Mortgage
        Loans
        have been in all respects reasonable and customary in the mortgage servicing
        industry of like mortgage loan servicers, servicing mortgage loans similar
        to
        the Mortgage Loans in the same jurisdiction as the Mortgaged
        Property;

       

      18.  At
        the
        time of origination of the Mortgage Loan there was no proceeding pending
        for the
        total or partial condemnation of the Mortgaged Property and, as of the date
        such
        Mortgage Loan was purchased by the Purchaser, to the best of the Purchaser’s
        knowledge there is no proceeding pending for the total or partial condemnation
        of the Mortgaged Property;

       

      19.  The
        Mortgage and related Mortgage Note contain customary and enforceable provisions
        such as to render the rights and remedies of the holder thereof adequate
        for the
        realization against the Mortgaged Property of the benefits of the security
        provided thereby, including, (a) in the case of a Mortgage designated as
        a deed
        of trust, by trustee’s sale, and (b) otherwise by judicial
        foreclosure;

       

      20.  The
        Mortgage Note is not and has not been secured by any collateral except the
        lien
        of the related Mortgage referred to in subsection (x) above;

       

      21.  In
        the
        event the Mortgage constitutes a deed of trust, a trustee, duly qualified
        under
        applicable law to serve as such, has been properly designated and currently
        so
        serves and is named in the Mortgage, and no fees or expenses are or will
        become
        payable by the Seller to the trustee under the deed of trust, except in
        connection with a trustee’s sale after default by the Mortgagor;

       

      22.  The
        Mortgage Loan is not subject to any valid right of rescission, set-off,
        counterclaim or defense, including without limitation the defense of usury,
        nor
        will the operation of any of the terms of the Mortgage Note or the Mortgage,
        or
        the exercise of any right thereunder, render either the Mortgage Note or
        the
        Mortgage unenforceable, in whole or in part, or subject to any such right
        of
        rescission, set-off, counterclaim or defense, including without limitation
        the
        defense of usury, and no such right of rescission, set-off, counterclaim
        or
        defense has been asserted with respect thereto;

       

      23.  The
        Mortgaged Property is free of material damage and in good repair, excepting
        therefrom any Mortgage Loan subject to an escrow withhold as shown on the
        Mortgage Loan Schedule;

       

      24.  All
        of
        the improvements which were included in determining the appraised value of
        the
        Mortgaged Property lie wholly within the Mortgaged Property’s boundary lines and
        no improvements on adjoining properties encroach upon the Mortgaged Property,
        excepting therefrom: (i) any encroachment insured against in the lender’s title
        insurance policy identified in clause (xiii) above, (ii) any encroachment
        generally acceptable to mortgage loan originators doing business in the same
        jurisdiction as the Mortgaged Property, and (iii) any encroachment which
        does
        not materially interfere with the benefits of the security intended to be
        provided by such Mortgage;

       

      25.  All
        parties to the Mortgage Note had the legal capacity to execute the Mortgage
        Note
        and the Mortgage, and the Mortgage Note and the Mortgage have been duly executed
        by such parties;

       

      26.  To
        the
        best of the Seller’s knowledge, at the time of origination of the Mortgage Loan,
        no appraised improvement located on or being part of the Mortgaged Property
        was
        in violation of any applicable zoning law or regulation and all inspections,
        licenses and certificates required in connection with the origination of
        any
        Mortgage Loan with respect to the occupancy of the Mortgaged Property, have
        been
        made or obtained from the appropriate authorities;

       

      27.  No
        Mortgagor has notified the Seller of any relief requested or allowed under
        the
        Servicemembers Civil Relief Act;

       

      28.  All
        parties which have held an interest in the Mortgage Loan are (or during the
        period in which they held and disposed of such interest, were) (1) in compliance
        with any and all applicable licensing requirements of the state wherein the
        Mortgaged Property is located, (2) organized under the laws of such state,
        (3)
        qualified to do business in such state, (4) a federal savings and loan
        association or national bank, (5) not doing business in such state, or (6)
        exempt from the applicable licensing requirements of such state;

       

      29.  The
        Mortgage File contains an appraisal of the related Mortgaged Property which
        was
        made prior to the approval of the Mortgage Loan by a qualified appraiser,
        duly
        appointed by the related originator and was made in accordance with the
        Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and
        the
        Uniform Standards of Professional Appraisal Practice;

       

      30.  Except
        as
        may otherwise be limited by applicable law, the Mortgage contains an enforceable
        provision for the acceleration of the payment of the unpaid principal balance
        of
        the Mortgage Loan in the event that the Mortgaged Property is sold or
        transferred without the prior written consent of the Mortgagee
        thereunder;

       

      31.  The
        Mortgage Loan does not contain any provision which would constitute a “buydown”
provision and pursuant to which Monthly Payments are paid or partially paid
        with
        funds deposited in a separate account established by the related originator,
        the
        Mortgagor or anyone on behalf of the Mortgagor, or paid by any source other
        than
        the Mortgagor. The Mortgage Loan is not a “graduated payment mortgage loan” and
        the Mortgage loan does not have a shared appreciation or other contingent
        interest feature;

       

      32.  To
        the
        best of the Seller’s knowledge there is no action or proceeding directly
        involving the Mortgaged Property presently pending in which compliance with
        any
        environmental law, rule or regulation is at issue and the Seller has received
        no
        notice of any condition at the Mortgaged Property which is reasonably likely
        to
        give rise to an action or proceeding in which compliance with any environmental
        law, rule or regulation is at issue;

       

      33.  Each
        Mortgage Loan is an obligation which is principally secured by an interest
        in
        real property within the meaning of Treasury Regulation section
        1.860G-2(a);

       

      34.  Each
        Mortgage Loan is directly secured by a first or second lien on, and consists
        of
        a single parcel of, real property with a detached one-to-four family residence
        erected thereon, a townhouse or an individual condominium unit in a condominium
        project, or an individual unit in a planned unit development (“PUD”). No
        residence or dwelling is a leasehold, mobile home or a manufactured dwelling
        unless it is an Acceptable Manufactured Dwelling. An “Acceptable Manufactured
        Dwelling” is a manufactured dwelling, which is permanently affixed to a
        foundation and treated as “real estate” under applicable law. No Mortgaged
        Property is used for commercial purposes. Mortgaged Properties which contain
        a
        home office shall not be considered as being used for commercial purposes
        as
        long as the Mortgaged Property has not been altered for commercial purposes
        and
        is not storing any chemicals or raw materials other than those commonly used
        for
        homeowner repair, maintenance and/or household purposes;

       

      35.  The
        Mortgage Interest Rate payable by the Mortgagor with respect to the Adjustable
        Rate Mortgage Loans is subject to adjustment at the time and in the amounts
        as
        are set forth in the related Mortgage Note; 

       

      36.  The
        first
        scheduled Monthly Payment under the terms of each Mortgage Note was received
        by
        the servicer servicing such Mortgage Loan by the 30th day following the related
        due date;

       

      37.  With
        respect to each Group I Mortgage Loan, no Mortgagor obtained a prepaid
        single-premium credit-life, credit-disability, credit unemployment or credit
        property insurance policy in connection with the origination of such Group
        I
        Mortgage Loan;

       

      

       

      38.  To
        the
        best of the Seller’s knowledge, the servicer for each Mortgage Loan has
        accurately and fully reported its borrower credit files to each of the credit
        repositories in a timely manner;

       

      39.  No
        Mortgage Loan is subject to the Home Ownership and Equity Protection Act
        of 1994
        (“HOEPA”) or any comparable law and no Mortgage Loan is classified and/or
        defined as a “high cost”, “covered” (excluding home loans defined as covered
        home loans” in the New Jersey Home Ownership Security Act of 2002 that were
        originated between November 26, 2003 and July 7, 2004), “high risk home” or
“predatory” loan under any other federal, state or local law or regulation or
        ordinance (or a similarly classified loan using different terminology under
        a
        law imposing heightened regulatory scrutiny or additional legal liability
        for
        residential mortgage loans having high interest rates, points and/or
        fees);

       

      40.  No
        Mortgage Loan was selected from the mortgage loans in the Seller’s portfolio in
        a manner so as to affect adversely the interests of the Purchaser;

       

      41.  Each
        Mortgage File contains a full appraisal on form 1004 or 2055 with an interior
        inspection (or the equivalent form for two-to four-family and investor
        properties), or on a similar alternate form which includes substantially
        similar
        information to that required such forms, as applicable;

       

      42.  Each
        Mortgage Loan is and will be a mortgage loan arising out of the originator’s
        practice in accordance with the originator’s underwriting guidelines;

       

      43.  As
        of the
        Closing Date, the Seller has no knowledge of any fact that should lead it
        to
        expect that the Mortgage Loan will not be paid in full when due;

       

      44.  No
        Mortgage Loan is a high cost loan or a covered loan, as applicable (as such
        terms are defined in the then current Standard & Poor’s LEVELS Version 5.7
        Glossary Revised, Appendix E;

       

      45.  With
        respect to any Group I Mortgage Loan originated on or after August 1, 2004,
        neither the related Mortgage nor the related Mortgage Note requires the
        Mortgagor to submit to arbitration to resolve any dispute arising out of
        or
        relating in any way to the Mortgage Loan transaction;

       

      46.  With
        respect to the Group I Mortgage Loans, the related Mortgage Loan’s Mortgagor was
        not encouraged or required to select a mortgage loan product offered by such
        Mortgage Loan’s originator which is a higher cost product designed for less
        creditworthy borrowers, taking into account such facts as, without limitation,
        the Mortgage Loan’s requirements and the Mortgagor’s credit history, income,
        assets and liabilities and any such Mortgagor who sought financing through
        such
        originator’s higher-priced lending channel, the Mortgagor was directed towards
        or offered the such originator’s standard mortgage line if such Mortgagor
        qualified for one of the standard products;

       

      47.  With
        respect to the Group I Mortgage Loans, the methodology used in underwriting
        the
        extension of credit for each Mortgage Loan did not rely solely on the extent
        of
        the Mortgagor’s equity in the collateral as the principal determining factor in
        approving such extension of credit. The methodology employed objective criteria
        such as the Mortgagor’s income, assets or liabilities, to the proposed mortgage
        payment and, based on such methodology, the Group I Mortgage Loan’s originator
        made a reasonable determination that at the time of origination the Mortgagor
        had the ability to make timely payments on the Mortgage Loan;

       

      48.  With
        respect to Group I Mortgage Loans, no Mortgagor was charged “points and fees” in
        an amount greater than (a) $1,000 or (b) 5% of the principal amount of such
        Group I Mortgage Loan, whichever is greater. For purposes of this
        representation, “points and fees” (x) include origination, underwriting, broker
        and finder’s fees and charges that the lender imposed as a condition of making
        the Mortgage Loan, whether they are paid to the lender or a third party;
        and (y)
        exclude bona fide discount points, fees paid for actual services rendered
        in
        connection with the origination of the mortgage (such as attorneys’ fees,
        notaries fees and fees paid for property appraisals, credit reports, surveys,
        title examinations and extracts, flood and tax certifications, and home
        inspections); the cost of mortgage insurance or credit-risk price adjustments;
        the costs of title, hazard, and flood insurance policies; state and local
        transfer taxes or fees; escrow deposits for the future payment of taxes and
        insurance premiums; and other miscellaneous fees and charges, which
        miscellaneous fees and charges, in total, do not exceed 0.25 percent of the
        loan
        amount;

       

      49.  All
        fees
        and charges (including finance charges) and whether or not financed, assessed,
        collected or to be collected in connection with the origination and servicing
        of
        each Mortgage Loan has been disclosed in writing to the Mortgagor in accordance
        with applicable state and federal law and regulation; 

       

      50.  No
        Mortgage Loan originated on or after October 1, 2002 through March 6, 2003
        is
        governed by the Georgia Fair Lending Act;

       

      51.  The
        information set forth in the applicable part of the Prepayment Penalty Schedule
        relating to the existence of a Prepayment Loan Charge is complete, true and
        correct in all material respects at the date or dates on which such information
        is furnished respecting with such information is furnished, and each prepayment
        penalty is permissible and enforceable in accordance with its terms upon
        the
        mortgagor’s full and voluntary principal prepayment under applicable law, except
        to the extent that: (1) the enforceability thereof may be limited by bankruptcy,
        insolvency, moratorium, receivership and other similar laws relating to
        creditors’ rights; (2) the collectability thereof may be limited due to
        acceleration in connection with a foreclosure or other involuntary prepayment;
        or (3) subsequent changes in applicable law may limit or prohibit enforceability
        thereof;

       

      52.  No
        Mortgage Loan contains a provision whereby the Mortgagor can convert an
        Adjustable Rate Mortgage Loan into a Fixed Rate Mortgage Loan;

       

      53.  With
        respect to any Mortgage Loan that is secured by a second lien on the related
        Mortgaged Property, either (i) no consent for the Mortgage Loan is required
        by
        the holder of any related senior lien or (ii) such consent has been obtained
        and
        is contained in the Mortgage File; 

       

      54.  With
        respect to a Mortgage Loan which is a second lien, as of the date hereof,
        the
        Seller has not received a notice of default of a senior lien on the related
        Mortgaged Property which has not been cured;

       

      55.  With
        respect to any Group I Mortgage Loan that contains a provision permitting
        imposition of a penalty upon a prepayment prior to maturity: (i) the Mortgage
        Loan provides some benefit to the Mortgagor (e.g. a rate or fee reduction)
        in
        exchange for accepting such prepayment penalty, (ii) such Mortgage Loan’s
        originator had a written policy of offering the Mortgagor, or requiring
        third-party brokers to offer the Mortgagor the option of obtaining a mortgage
        loan that did not require payment of such a prepayment penalty, (iii) the
        prepayment penalty was adequately disclosed to the Mortgagor pursuant to
        applicable state and federal law, (iv) no Group I Mortgage Loan originated
        on or
        after October 1, 2002 will provide for a prepayment penalty for a term in
        excess
        of three years and any Group I Mortgage Loan originated prior to such date will
        not provide for prepayment penalties for a term in excess of five years;
        in each
        case unless such Mortgage Loan was modified to reduce the prepayment period
        to
        no more than three years from the date of the Mortgage Note and the Mortgagor
        was notified in writing of such reduction in prepayment period, and (v) such
        prepayment penalty shall not be imposed in any instance where the mortgage
        debt
        is accelerated or paid off in connection with the workout of a delinquent
        Group
        I Mortgage Loan due to the Mortgagor’s default notwithstanding that the terms of
        the Group I Mortgage Loan or state or federal law might permit the imposition
        of
        such penalty;

       

      56.  The
        Servicer for each Group I Mortgage Loan has fully furnished, in accordance
        with
        the Fair Credit Reporting Act and its implementing regulations, accurate
        and
        complete information (i.e., favorable and unfavorable) on its borrower credit
        files to Equifax, Experian, and Trans Union Credit Information Company (three
        of
        the credit repositories), on a monthly basis;

       

      57.  With
        respect to any Group I Mortgage Loan, the related residential dwelling is
        not a
        manufactured housing unit;

       

      58.  The
        original principal balance of each Group I Mortgage Loan which is secured
        by a
        first lien on the related Mortgaged Property is within Freddie Mac’s dollar
        amount limits for conforming one-to-four family mortgage loans;

       

      59.  With
        respect to Group I Mortgage Loans, no Mortgage Loan originated on or after
        January 1, 2005, which is a “high cost home loan” as defined under the Indiana
        Home Loan Practices Act (I.C. 24-9);

       

      60.  With
        respect to a Group I Mortgage Loan which is secured by a second lien, (a)
        such
        Mortgage Loan is secured by a one- to four-family residence that is the
        principal residence of the Mortgagor, (b) the origination amount Mortgage
        Loan
        did not exceed one-half of the one-unit limitation set forth by Freddie Mac
        for
        first lien mortgage loans, and (c) the original principal balance for the
        first
        lien plus the original principal balance of the second lien Mortgage Loan
        do not
        exceed Freddie Mac’s applicable loan limits for first lien mortgage loans for
        properties of the same type as the related Mortgaged Property;

       

      61.  No
        Group
        I Mortgage Loan was originated more than one year prior to the Closing Date;
        and

       

      62.  No
        Group
        I Mortgage Loan has an “annual percentage rate” or “total points and fees”
payable by the borrower (as each such term is defined under HOEPA) that equal
        or
        exceed the applicable thresholds defined under HOEPA (Section 32 of Regulation
        Z, 12 C.F.R. Section 226.32(a)(1)(i) and (ii)).

       

      SECTION
        9.  Repurchase
        Obligation for Defective Documentation and for Breach of Representation and
        Warranty.

      

      (a)  The
        representations and warranties contained in Section 8 shall not be impaired
        by
        any review and examination of loan files or other documents evidencing or
        relating to the Mortgage Loans or any failure on the part of the Seller or
        the
        Purchaser to review or examine such documents and shall inure to the benefit
        of
        any assignee, transferee or designee of the Purchaser, including the Trustee
        for
        the benefit of the Certificateholders. With respect to the representations
        and
        warranties contained herein as to which the Seller has no knowledge, if it
        is
        discovered that the substance of any such representation and warranty was
        inaccurate as of the date such representation and warranty was made or deemed
        to
        be made, and such inaccuracy materially and adversely affects the value of
        the
        related Mortgage Loan or the interest therein of the Purchaser or the
        Purchaser’s assignee, transferee or designee, then notwithstanding the lack of
        knowledge by the Seller with respect to the substance of such representation
        and
        warranty being inaccurate at the time the representation and warranty was
        made,
        the Seller shall take such action described in the following paragraph in
        respect of such Mortgage Loan. Notwithstanding anything to the contrary
        contained herein, any breach of a representation or warranty contained in
        clauses (viii), (xxxvii), (xxxix), (xliv), (xlv), (xlvi), (xlvii), (xlviii),
        (l), (lv), (lvi), (lvii), (lviii), (lix), (lx), (lxi) and/or (lxii) of Section
        8
        above, shall be automatically deemed to affect materially and adversely the
        interests of the Purchaser or the Purchaser’s assignee, transferee or designee.

      

      Upon
        discovery by the Seller, the Purchaser or any assignee, transferee or designee
        of the Purchaser of any materially defective document in, or that any material
        document was not transferred by the Seller (as listed on an exception report
        attached to the initial certification prepared by the Custodian, on behalf
        of
        the Trustee), or of a breach of any of the representations and warranties
        contained in Section 8 that materially and adversely affects the value of
        any
        Mortgage Loan or the interest therein of the Purchaser or the Purchaser’s
        assignee, transferee or designee, the party discovering such breach shall
        give
        prompt written notice to the Seller. Within 365 days of its discovery or
        its
        receipt of notice of any such missing documentation that was not transferred
        by
        the Seller as described above, or of materially defective documentation,
        or
        within 120 days of any such breach of a representation and warranty, the
        Seller
        promptly shall deliver such missing document or cure such defect or breach
        in
        all material respects or, in the event the Seller cannot deliver such missing
        document or cannot cure such defect or breach, the Seller shall, within 365
        days
        of its discovery or receipt of notice of any such missing or materially
        defective documentation or within 120 days of any such breach of a
        representation and warranty, either (i) repurchase the affected Mortgage
        Loan at
        the Purchase Price (as such term is defined in the Pooling and Servicing
        Agreement) or (ii) pursuant to the provisions of the Pooling and Servicing
        Agreement, cause the removal of such Mortgage Loan from the Trust Fund and
        substitute one or more Replacement Mortgage Loans. The Seller shall amend
        the
        Closing Schedule to reflect the withdrawal of such Mortgage Loan from the
        terms
        of this Agreement and the Pooling and Servicing Agreement. The Seller shall
        deliver to the Purchaser such amended Closing Schedule and shall deliver
        such
        other documents as are required by this Agreement or the Pooling and Servicing
        Agreement within five (5) days of any such amendment. Any repurchase pursuant
        to
        this Section 9(a) shall be accomplished by transfer to an account designated
        by
        the Purchaser of the amount of the Purchase Price in accordance with Section
        2.03 of the Pooling and Servicing Agreement. Any repurchase required by this
        Section shall be made in a manner consistent with Section 2.03 of the Pooling
        and Servicing Agreement. 

      

      (b)  If
        the
        representation made by the Seller in Section 8(lii) is breached, the Seller
        shall not have the right or obligation to cure, substitute or repurchase
        the
        affected Mortgage Loan but shall remit to the Servicer servicing such Mortgage
        Loan for deposit in the Collection Account, prior to the next succeeding
        Servicer Remittance Date, the amount of the Prepayment Charge indicated on
        the
        applicable part of the Mortgage Loan Schedule to be due from the Mortgagor
        in
        the circumstances less any amount collected and remitted to such Servicer
        for
        deposit into the Collection Account.

      

      (c)  It
        is
        understood and agreed that the obligations of the Seller set forth in this
        Section 9 to cure or repurchase a defective Mortgage Loan (and to make payments
        pursuant to Section 9(b)) constitute the sole remedies of the Purchaser against
        the Seller respecting a missing document or a breach of the representations
        and
        warranties contained in Section 8. 

      

      SECTION
        10.  Closing;
        Payment for the Mortgage Loans.The
        closing of the purchase and sale of the Mortgage Loans shall be held at the
        New
        York City office of Thacher Proffitt & Wood llp
        at 10:00
        a.m. New York City time on the Closing Date.

      

      The
        closing shall be subject to each of the following conditions:

      

      (a)  All
        of
        the representations and warranties of the Seller under this Agreement shall
        be
        true and correct in all material respects as of the date as of which they
        are
        made and no event shall have occurred which, with notice or the passage of
        time,
        would constitute a default under this Agreement;

       

      (b)  The
        Purchaser shall have received, or the attorneys of the Purchaser shall have
        received in escrow (to be released from escrow at the time of closing), all
        Closing Documents as specified in Section 11 of this Agreement, in such forms
        as
        are agreed upon and acceptable to the Purchaser, duly executed by all
        signatories other than the Purchaser as required pursuant to the respective
        terms thereof;

       

      (c)  The
        Seller shall have delivered or caused to be delivered and released to the
        Purchaser or to its designee, all documents (including without limitation,
        the
        Mortgage Loans) required to be so delivered by the Purchaser pursuant to
        Section
        2.01 of the Pooling and Servicing Agreement; and

       

      (d)  All
        other
        terms and conditions of this Agreement and the Pooling and Servicing Agreement
        shall have been complied with.

       

      Subject
        to the foregoing conditions, the Purchaser shall deliver or cause to be
        delivered to the Seller on the Closing Date, against delivery and release
        by the
        Seller to the Trustee of all documents required pursuant to the Pooling and
        Servicing Agreement, the consideration for the Mortgage Loans as specified
        in
        Section 3 of this Agreement.

      

      SECTION
        11.  Closing
        Documents.
        Without
        limiting the generality of Section 8 hereof, the closing shall be subject
        to
        delivery of each of the following documents:

      

      (a)  An
        Officers’ Certificate of the Seller, dated the Closing Date, upon which the
        Purchaser and the Underwriters may rely with respect to certain facts regarding
        the sale of the Mortgage Loans by the Seller to the Purchaser;

       

      (b)  An
        Opinion of Counsel of the Seller, dated the Closing Date and addressed to
        the
        Purchaser and the Underwriters;

       

      (c)  Such
        opinions of counsel as the Rating Agencies or the Trustee may request in
        connection with the sale of the Mortgage Loans by the Seller to the Purchaser
        or
        the Seller’s execution and delivery of, or performance under, this Agreement;
        and

       

      (d)  Such
        further information, certificates, opinions and documents as the Purchaser
        or
        the Underwriters may reasonably request.

       

      SECTION
        12.  Costs.
        The
        Seller shall pay (or shall reimburse the Purchaser or any other Person to
        the
        extent that the Purchaser or such other Person shall pay) all costs and expenses
        incurred in connection with the transfer and delivery of the Mortgage Loans,
        including without limitation, fees for title policy endorsements and
        continuations, the fees and expenses of the Seller’s accountants and attorneys,
        the costs and expenses incurred in connection with producing a Servicer’s loan
        loss, foreclosure and delinquency experience, and the costs and expenses
        incurred in connection with obtaining the documents referred to in Sections
        11(b) and 11(c), the costs and expenses of printing (or otherwise reproducing)
        and delivering this Agreement, the Pooling and Servicing Agreement, the
        Certificates, the prospectus and prospectus supplement, and any private
        placement memorandum relating to the Certificates and other related documents,
        the initial fees, costs and expenses of the Trustee and its counsel, the
        fees
        and expenses of the Purchaser’s counsel in connection with the preparation of
        all documents relating to the securitization of the Mortgage Loans, the filing
        fee charged by the Securities and Exchange Commission for registration of
        the
        Certificates and the fees charged by any rating agency to rate the Certificates.
        The Seller shall pay all costs and expenses related to recording the Assignments
        of Mortgage. All other costs and expenses in connection with the transactions
        contemplated hereunder shall be borne by the party incurring such
        expense.

      SECTION
        13.  Mandatory
        Delivery; Grant of Security Interest.
        The
        sale and delivery on the Closing Date of the Mortgage Loans described on
        the
        Mortgage Loan Schedule in accordance with the terms and conditions of this
        Agreement is mandatory. It is specifically understood and agreed that each
        Mortgage Loan is unique and identifiable on the date hereof and that an award
        of
        money damages would be insufficient to compensate the Purchaser for the losses
        and damages incurred by the Purchaser in the event of the Seller’s failure to
        deliver the Mortgage Loans on or before the Closing Date. The Seller hereby
        grants to the Purchaser a lien on and a continuing security interest in the
        Seller’s interest in each Mortgage Loan and each document and instrument
        evidencing each such Mortgage Loan to secure the performance by the Seller
        of
        its obligation hereunder, and the Seller agrees that it holds such Mortgage
        Loans in custody for the Purchaser, subject to the Purchaser’s (i) right, prior
        to the Closing Date, to reject any Mortgage Loan to the extent permitted
        by this
        Agreement and (ii) obligation to deliver or cause to be delivered the
        consideration for the Mortgage Loans pursuant to Section 3 hereof. Any Mortgage
        Loans rejected by the Purchaser shall concurrently therewith be released
        from
        the security interest created hereby. All rights and remedies of the Purchaser
        under this Agreement are distinct from, and cumulative with, any other rights
        or
        remedies under this Agreement or afforded by law or equity and all such rights
        and remedies may be exercised concurrently, independently or
        successively.

      

      Notwithstanding
        the foregoing, if on the Closing Date, each of the conditions set forth in
        Section 10 hereof shall have been satisfied and the Purchaser shall not have
        paid or caused to be paid the Purchase Price, or any such condition shall
        not
        have been waived or satisfied and the Purchaser determines not to pay or
        cause
        to be paid the Purchase Price, the Purchaser shall immediately effect the
        redelivery of the Mortgage Loans, if delivery to the Purchaser has occurred,
        and
        the security interest created by this Section 13 shall be deemed to have
        been
        released.

      

      SECTION
        14.  Notices.
        All
        demands, notices and communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if personally delivered to or mailed by
        registered mail, postage prepaid, or transmitted by fax and, receipt of which
        is
        confirmed by telephone, if to the Purchaser, addressed to the Purchaser at
        Two
        World Financial Center, Building B, 21st
        Floor,
        New York, New York 10281, fax: (212) 667-1024, Attention: Legal Department
        (NHEL
        2006-FM2), or such other address as may hereafter be furnished to the Seller
        in
        writing by the Purchaser; and if to the Seller, addressed to the Seller at
        Two
        World Financial Center, Building B, 21st
        Floor,
        New York, New York 10281, fax: (212) 667-9680, Attention: Brett Marvin, or
        to
        such other address as the Seller may designate in writing to the
        Purchaser.

      

      SECTION
        15.  Severability
        of Provisions.
        Any
        part, provision, representation or warranty of this Agreement that is prohibited
        or that is held to be void or unenforceable shall be ineffective to the extent
        of such prohibition or unenforceability without invalidating the remaining
        provisions hereof. Any part, provision, representation or warranty of this
        Agreement that is prohibited or unenforceable or is held to be void or
        unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
        to the extent of such prohibition or unenforceability without invalidating
        the
        remaining provisions hereof, and any such prohibition or unenforceability
        in any
        jurisdiction as to any Mortgage Loan shall not invalidate or render
        unenforceable such provision in any other jurisdiction. To the extent permitted
        by applicable law, the parties hereto waive any provision of law which prohibits
        or renders void or unenforceable any provision hereof.

      

      SECTION
        16.  Agreement
        of Parties.
        The
        Seller and the Purchaser each agree to execute and deliver such instruments
        and
        take such actions as either of the others may, from time to time, reasonably
        request in order to effectuate the purpose and to carry out the terms of
        this
        Agreement and the Pooling and Servicing Agreement.

      

      SECTION
        17.  Survival.
        The
        Seller agrees that the representations, warranties and agreements made by
        it
        herein and in any certificate or other instrument delivered pursuant hereto
        shall be deemed to be relied upon by the Purchaser, notwithstanding any
        investigation heretofore or hereafter made by the Purchaser or on its behalf,
        and that the representations, warranties and agreements made by the Seller
        herein or in any such certificate or other instrument shall survive the delivery
        of and payment for the Mortgage Loans and shall continue in full force and
        effect, notwithstanding any restrictive or qualified endorsement on the Mortgage
        Notes and notwithstanding subsequent termination of this Agreement, the Pooling
        and Servicing Agreement or the Trust Fund.

      

      SECTION
        18. GOVERNING
        LAW.
        THIS AGREEMENT AND THE RIGHTS, DUTIES, OBLIGATIONS AND RESPONSIBILITIES OF
        THE
        PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
        LAWS
        (EXCLUDING THE CHOICE OF LAW PROVISIONS) AND DECISIONS OF THE STATE OF NEW
        YORK.
        THE PARTIES HERETO INTEND THAT THE PROVISIONS OF SECTION 5-1401 OF THE NEW
        YORK
        GENERAL OBLIGATIONS LAW SHALL GOVERN.

      

      SECTION
        19.  Miscellaneous.
        This
        Agreement may be executed in two or more counterparts, each of which when
        so
        executed and delivered shall be an original, but all of which together shall
        constitute one and the same instrument. This Agreement shall inure to the
        benefit of and be binding upon the parties hereto and their respective
        successors and assigns. This Agreement supersedes all prior agreements and
        understandings relating to the subject matter hereof. Neither this Agreement
        nor
        any term hereof may be changed, waived, discharged or terminated orally,
        but
        only by an instrument in writing signed by the party against whom enforcement
        of
        the change, waiver, discharge or termination is sought. The headings in this
        Agreement are for purposes of reference only and shall not limit or otherwise
        affect the meaning hereof.

      

      It
        is the
        express intent of the parties hereto that the conveyance of the Mortgage
        Loans
        by the Seller to the Purchaser as provided in Section 4 hereof be, and be
        construed as, a sale of the Mortgage Loans by the Seller to the Purchaser
        and
        not as a pledge of the Mortgage Loans by the Seller to the Purchaser to secure
        a
        debt or other obligation of the Seller. However, in the event that,
        notwithstanding the aforementioned intent of the parties, the Mortgage Loans
        are
        held to be property of the Seller, then (a) it is the express intent of the
        parties that such conveyance be deemed a pledge of the Mortgage Loans by
        the
        Seller to the Purchaser to secure a debt or other obligation of the Seller
        and
        (b) (1) this Agreement shall also be deemed to be a security agreement within
        the meaning of Articles 8 and 9 of the New York Uniform Commercial Code;
        (2) the
        conveyance provided for in Section 4 hereof shall be deemed to be a grant
        by the
        Seller to the Purchaser of a security interest in all of the Seller’s right,
        title and interest in and to the Mortgage Loans and all amounts payable to
        the
        holders of the Mortgage Loans in accordance with the terms thereof and all
        proceeds of the conversion, voluntary or involuntary, of the foregoing into
        cash, instruments, securities or other property, including without limitation
        all amounts, other than investment earnings, from time to time held or invested
        in the Collection Account whether in the form of cash, instruments, securities
        or other property; (3) the possession by the Purchaser or its agent of Mortgage
        Notes, the related Mortgages and such other items of property that constitute
        instruments, money, negotiable documents or chattel paper shall be deemed
        to be
“possession by the secured party” for purposes of perfecting the security
        interest pursuant to Section 9-305 of the New York Uniform Commercial Code;
        and
        (4) notifications to persons holding such property and acknowledgments, receipts
        or confirmations from persons holding such property shall be deemed
        notifications to, or acknowledgments, receipts or confirmations from, financial
        intermediaries, bailees or agents (as applicable) of the Purchaser for the
        purpose of perfecting such security interest under applicable law. Any
        assignment of the interest of the Purchaser pursuant to Section 4(d) hereof
        shall also be deemed to be an assignment of any security interest created
        hereby. The Seller and the Purchaser shall, to the extent consistent with
        this
        Agreement, take such actions as may be necessary to ensure that, if this
        Agreement were deemed to create a security interest in the Mortgage Loans,
        such
        security interest would be deemed to be a perfected security interest of
        first
        priority under applicable law and will be maintained as such throughout the
        term
        of this Agreement and the Pooling and Servicing Agreement.

      

      [Signature
        page to follow]

      

      

        
           

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      IN
        WITNESS WHEREOF, the Purchaser and the Seller have caused their names to
        be
        signed by their respective officers thereunto duly authorized as of the date
        first above written.

      

      
        	
                NOMURA
                  CREDIT & CAPITAL, INC.

              
	 	 
	
                By:

              	
                /s/
                  Timothy P.F. Crowley

              
	
                Name:

              	
                Timothy
                  P.F. Crowley

              
	
                Title:

              	
                Vice
                  President

              
	 
	 
	
                NOMURA
                  HOME EQUITY LOAN, INC.

                 

              
	 	 
	
                By:

              	
                /s/
                  John P. Graham

              
	
                Name:

              	
                John
                  P. Graham

              
	Title:	Managing
                Director

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        1

      

      CONTENTS
        OF MORTGAGE FILE

      

      With
        respect to each Mortgage Loan, the Mortgage File shall include each of the
        following items, which shall be available for inspection by the Purchaser
        or its
        designee, and which shall be delivered to the Purchaser or its designee pursuant
        to the terms of the Agreement.

       

      (a)  the
        original Mortgage Note (including all riders thereto) bearing all intervening
        endorsements necessary to show a complete chain of endorsements from the
        original payee, endorsed in blank, via
        original signature,
        and, if
        previously endorsed, signed in the name of the last endorsee by a duly qualified
        officer of the last endorsee. If
        the
        Mortgage Loan was acquired by the last endorsee in a merger, the endorsement
        must be by “[name of last endorsee], successor by merger to [name of
        predecessor]”. If the Mortgage Loan was acquired or originated by the last
        endorsee while doing business under another name, the endorsement must be
        by
“[name of last endorsee], formerly known as [previous name]”;

       

      (b)  the
        original Assignment of Mortgage executed in blank;

       

      (c)  the
        original of any guarantee executed in connection with the Mortgage Note,
        if
        any;

       

      (d)  the
        original Mortgage (including all riders thereto) with evidence of recording
        thereon and the original recorded power of attorney, if the Mortgage was
        executed pursuant to a power of attorney, with evidence of recording thereon,
        and in the case of each MOM Loan, the original Mortgage, noting the presence
        of
        the MIN of the Mortgage Loan and either language indicating that the Mortgage
        Loan is a MOM Loan or if the Mortgage Loan was not a MOM Loan at origination,
        the original Mortgage and the assignment thereof to MERS®, with evidence of
        recording indicated thereon; or, if the original Mortgage with evidence of
        recording thereon has not been returned by the public recording office where
        such Mortgage has been delivered for recordation or such Mortgage has been
        lost
        or such public recording office retains the original recorded Mortgage, a
        photocopy of such Mortgage, together with (i) in the case of a delay caused
        by
        the public recording office, an Officer’s Certificate of the title insurer
        insuring the Mortgage, the escrow agent, the seller or the Servicer servicing
        such Mortgage Loan stating that such Mortgage has been delivered to the
        appropriate public recording office for recordation and that the original
        recorded Mortgage or a copy of such Mortgage certified by such public recording
        office to be a true and complete copy of the original recorded Mortgage will
        be
        promptly delivered to the Custodian upon receipt thereof by the party delivering
        the Officer’s Certificate or by such Servicer; or (ii) in the case of a Mortgage
        where a public recording office retains the original recorded Mortgage or
        in the
        case where a Mortgage is lost after recordation in a public recording office,
        a
        copy of such Mortgage with the recording information thereon certified by
        such
        public recording office to be a true and complete copy of the original recorded
        Mortgage;

       

      (e)  the
        originals of all assumption, modification, consolidation or extension
        agreements, with evidence of recording thereon, if any;

       

      (f)  the
        originals of any intervening assignments of mortgage with evidence of recording
        thereon evidencing a complete chain of ownership from the originator of the
        Mortgage Loan to the last assignee, or if any such intervening assignment
        of
        mortgage has not been returned from the applicable public recording office
        or
        has been lost or if such public recording office retains the original recorded
        intervening assignments of mortgage, a photocopy of such intervening assignment
        of mortgage, together with (i) in the case of a delay caused by the public
        recording office, an Officer’s Certificate of the title insurer insuring the
        Mortgage, the escrow agent, the seller or the Servicer servicing such Mortgage
        Loan stating that such intervening assignment of mortgage has been delivered
        to
        the appropriate public recording office for recordation and that such original
        recorded intervening assignment of mortgage or a copy of such intervening
        assignment of mortgage certified by the appropriate public recording office
        to
        be a true and complete copy of the original recorded intervening assignment
        of
        mortgage will be promptly delivered to the Custodian upon receipt thereof
        by the
        party delivering the Officer’s Certificate or by such Servicer; or (ii) in the
        case of an intervening assignment of mortgage where a public recording office
        retains the original recorded intervening assignment of mortgage or in the
        case
        where an intervening assignment of mortgage is lost after recordation in
        a
        public recording office, a copy of such intervening assignment of mortgage
        with
        recording information thereon certified by such public recording office to
        be a
        true and complete copy of the original recorded intervening assignment of
        mortgage;

       

      (g)  if
        the
        Mortgage Note, the Mortgage, any Assignment of Mortgage, or any other related
        document has been signed by a Person on behalf of the Mortgagor, the original
        power of attorney or other instrument that authorized and empowered such
        Person
        to sign;

       

      (h)  the
        original lender’s title insurance policy in the form of an ALTA mortgage title
        insurance policy
        or,
        if the
        original lender’s title insurance policy has not been issued, the irrevocable
        commitment to issue the same; and

       

      (i)  the
        original of any security agreement, chattel mortgage or equivalent document
        executed in connection with the Mortgage, if any.

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        2

      FORM
        OF LOST NOTE AFFIDAVIT

      

      Loan
        #:
        ________

      Borrower:
        ________

      

      LOST
        NOTE
        AFFIDAVIT

      

      

      I,
        as
        _____________________ of ____________________, a _______________ am authorized
        to make this Affidavit on behalf of Nomura Credit & Capital, Inc. (the
“Seller”). In connection with the administration of the Mortgage Loans held by
        ______________________, a _______________ [corporation] as Seller on behalf
        of
        ____________________ (the “Purchaser”), _______________________ (the
“Deponent”), being duly sworn, deposes and says that:

      

      1. The
        Seller’s address is:

      
        	 	 
	
                 

              	 
	
                 

              	
                 

              

      

      

      2. The
        Seller previously delivered to the Purchaser a signed Initial Certification
        with
        respect to such Mortgage and/or Assignment of Mortgage;

      

      3. Such
        Mortgage Note and/or Assignment of Mortgage was assigned or sold to the
        Purchaser by __________________, a _________________ pursuant to the terms
        and
        provisions of a Mortgage Loan Purchase Agreement dated as of October 31,
        2006;

      

      4. Such
        Mortgage Note and/or Assignment of Mortgage is not outstanding pursuant to
        a
        request for release of Documents;

      

      5. Aforesaid
        Mortgage Note and/or Assignment of Mortgage (the “Original”) has been
        lost;

      

      6. Deponent
        has made or caused to be made a diligent search for the Original and has
        been
        unable to find or recover same;

      

      7. The
        Seller was the Seller of the Original at the time of the loss; and

      

      8. Deponent
        agrees that, if said Original should ever come into Seller’s possession, custody
        or power, Seller will immediately and without consideration surrender the
        Original to the Purchaser.

      

      9. Attached
        hereto is a true and correct copy of (i) the Note, endorsed in blank by the
        Mortgagee and (ii) the Mortgage or Deed of Trust (strike one) which secures
        the
        Note, which Mortgage or Deed of Trust is recorded in the county where the
        property is located.

      10. Deponent
        hereby agrees that the Seller (a) shall indemnify and hold harmless the
        Purchaser, its successors and assigns, against any loss, liability or damage,
        including reasonable attorney’s fees, resulting from the unavailability of any
        Notes, including but not limited to any loss, liability or damage arising
        from
        (i) any false statement contained in this Affidavit, (ii) any claim of any
        party
        that purchased a mortgage loan evidenced by the Lost Note or any interest
        in
        such mortgage loan, (iii) any claim of any borrower with respect to the
        existence of terms of a mortgage loan evidenced by the Lost Note on the related
        property to the fact that the mortgage loan is not evidenced by an original
        note
        and (iv) the issuance of a new instrument in lieu thereof (items (i) through
        (iv) above hereinafter referred to as the “Losses”) and (b) if required by any
        Rating Agency in connection with placing such Lost Note into a Pass-Through
        Transfer, shall obtain a surety from an insurer acceptable to the applicable
        Rating Agency to cover any Losses with respect to such Lost Note.

      

      11. This
        Affidavit is intended to be relied upon by the Purchaser, its successors
        and
        assigns. Nomura Credit & Capital, Inc., represents and warrants that is has
        the authority to perform its obligations under this Affidavit of Lost
        Note.

      

      Executed
        this _ day of _______, 200_.

      

      

      

      
        	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

      

      On
        this
        __ day of ______, 200_, before me appeared ______________________ to me
        personally known, who being duly sworn did say that he is the
        _______________________ of ____________________, a ______________________
        and
        that said Affidavit of Lost Note was signed and sealed on behalf of such
        corporation and said acknowledged this instrument to be the free act and
        deed of
        said entity.

      

      Signature:

      

      [Seal]

      

      

      

      

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

       

      EXHIBIT
        D

       

      TRANSFER
        AFFIDAVIT AND AGREEMENT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

      ___________________________
        being duly sworn, deposes, represents and warrants as follows:

       

      
        	 	
                1.

              	
                I
                  am a _____________________ of _______________________________ (the
                  “Investor”) a corporation duly organized and existing under the laws of
                  _________________________, the record owner of Nomura Home Equity
                  Loan,
                  Inc., Home Equity Loan Trust, Series 2006-FM2 Asset-Backed Certificates,
                  Class R[-X] Certificates (the “Class R[-X] Certificates”), on behalf of
                  whom I make this affidavit and agreement. Capitalized terms used
                  but not
                  defined herein have the respective meanings assigned thereto in
                  the
                  Pooling and Servicing Agreement pursuant to which the Class R[-X]
                  Certificates were issued.

              

      

       

      
        	 	
                2.

              	
                The
                  Investor (i) is and will be a “Permitted Transferee” as of
                  ____________________. ____ and (ii) is acquiring the Class R[-X]
                  Certificates for its own account or for the account of another
                  Investor
                  from which it has received an affidavit in substantially the same
                  form as
                  this affidavit. A “Permitted Transferee” is any person other than a
                  “disqualified organization” or a possession of the United States. For this
                  purpose, a “disqualified organization” means the United States, any state
                  or political subdivision thereof, any agency or instrumentality
                  of any of
                  the foregoing (other than an instrumentality all of the activities
                  of
                  which are subject to tax and, except for the Federal Home Loan
                  Mortgage
                  Corporation, a majority of whose board of directors is not selected
                  by any
                  such governmental entity) or any foreign government, international
                  organization or any agency or instrumentality of such foreign government
                  or organization, any real electric or telephone cooperative, or
                  any
                  organization (other than certain farmers’ cooperatives) that is generally
                  exempt from federal income tax unless such organization is subject
                  to the
                  tax on unrelated business taxable
                  income.

              

      

       

      
        	 	
                3.

              	
                The
                  Investor is aware (i) of the tax that would be imposed on transfers
                  of the
                  Class R[-X] Certificates to disqualified organizations under the
                  Internal
                  Revenue Code of 1986 that applies to all transfers of the Class
                  R[-X]
                  Certificates after July 31, 1988; (ii) that such tax would be on
                  the
                  transferor or, if such transfer is through an agent (which person
                  includes
                  a broker, nominee or middleman) for a non-Permitted Transferee,
                  on the
                  agent; (iii) that the person otherwise liable for the tax shall
                  be
                  relieved of liability for the tax if the transferee furnishes to
                  such
                  person an affidavit that the transferee is a Permitted Transferee
                  and, at
                  the time of transfer, such person does not have actual knowledge
                  that the
                  affidavit is false; and (iv) that each of the Class R[-X] Certificates
                  may
                  be a “noneconomic residual interest” within the meaning of proposed
                  Treasury regulations promulgated under 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 is to impede the assessment
                  or
                  collection of tax.

              

      

       

      
        	 	
                4.

              	
                The
                  Investor is aware of the tax imposed on a “pass-through entity” holding
                  the Class R[-X] Certificates if, at any time during the taxable
                  year of
                  the pass-through entity, a non-Permitted Transferee is the record
                  holder
                  of an interest in such entity. (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.)

              

      

       

      
        	 	
                5.

              	
                The
                  Investor is aware that the Securities Administrator will not register
                  the
                  transfer of any Class R[-X] Certificate unless the transferee,
                  or the
                  transferee’s agent, delivers to the Securities Administrator, among other
                  things, an affidavit in substantially the same form as this affidavit.
                  The
                  Investor expressly agrees that it will not consummate any such
                  transfer if
                  it knows or believes that any of the representations contained
                  in such
                  affidavit and agreement are false.

              

      

       

      
        	 	
                6.

              	
                The
                  Investor consents to any additional restrictions or arrangements
                  that
                  shall be deemed necessary upon advice of counsel to constitute
                  a
                  reasonable arrangement to ensure that the Class R[-X] Certificates
                  will
                  only be owned, directly or indirectly, by an Investor that is a
                  Permitted
                  Transferee.

              

      

       

      
        	 	
                7.

              	
                The
                  Investor’s taxpayer identification number is
                  ________________.

              

      

       

      
        	 	
                8.

              	
                The
                  Investor has reviewed the restrictions set forth on the face of
                  the Class
                  R[-X] Certificates and the provisions of Section 6.02(d) of the
                  Pooling
                  and Servicing Agreement under which the Class R[-X] Certificates
                  were
                  issued (in particular, clauses (iii)(A) and (iii)(B) of Section
                  6.02(d)
                  which authorize the Securities Administrator to deliver payments to a
                  person other than the Investor and negotiate a mandatory sale by
                  the
                  Securities Administrator in the event that the Investor holds such
                  Certificate in violation of Section 6.02(d)); and that the Investor
                  expressly agrees to be bound by and to comply with such restrictions
                  and
                  provisions.

              

      

       

      
        	 	
                9.

              	
                The
                  Investor is not acquiring and will not transfer the Class R[-X]
                  Certificates in order to impede the assessment or collection of
                  any
                  tax.

              

      

       

      
        	 	
                10.

              	
                The
                  Investor anticipates that it will, so long as it holds the Class
                  R[-X]
                  Certificates, have sufficient assets to pay any taxes owed by the
                  holder
                  of such Class R[-X] Certificates, and hereby represents to and
                  for the
                  benefit of the person from whom it acquired the Class R[-X] Certificates
                  that the Investor intends to pay taxes associated with holding
                  such Class
                  R[-X] Certificates as they become due, fully understanding that
                  it may
                  incur tax liabilities in excess of any cash flows generated by
                  the Class
                  R[-X] Certificates.

              

      

       

      
        	 	
                11.

              	
                The
                  Investor has no present knowledge that it may become insolvent
                  or subject
                  to a bankruptcy proceeding for so long as it holds the Class R[-X]
                  Certificates.

              

      

       

      
        	 	
                12.

              	
                The
                  Investor has no present knowledge or expectation that it will be
                  unable to
                  pay any United States taxes owed by it so long as any of the Certificates
                  remain outstanding.

              

      

       

      
        	 	
                13.

              	
                The
                  Investor is not acquiring the Class R[-X] Certificates with the
                  intent to
                  transfer the Class R[-X] Certificates to any person or entity that
                  will
                  not have sufficient assets to pay any taxes owed by the holder
                  of such
                  Class R[-X] Certificates, or that may become insolvent or subject
                  to a
                  bankruptcy proceeding, for so long as the Class R[-X] Certificates
                  remain
                  outstanding.

              

      

       

      
        	 	
                14.

              	
                The
                  Investor will, in connection with any transfer that it makes of
                  the Class
                  R[-X] Certificates, obtain from its transferee the representations
                  required by Section 6.02(d) of the Pooling and Servicing Agreement
                  under
                  which the Class R[-X] Certificate were issued and will not consummate
                  any
                  such transfer if it knows, or knows facts that should lead it to
                  believe,
                  that any such representations are
                  false.

              

      

       

      
        	 	
                15.

              	
                The
                  Investor will, in connection with any transfer that it makes of
                  the Class
                  R[-X] Certificates, deliver to the Securities Administrator an
                  affidavit,
                  which represents and warrants that it is not transferring the Class
                  R[-X]
                  Certificates to impede the assessment or collection of any tax
                  and that it
                  has no actual knowledge that the proposed transferee: (i) has insufficient
                  assets to pay any taxes owed by such transferee as holder of the
                  Class
                  R[-X] Certificates; (ii) may become insolvent or subject to a bankruptcy
                  proceeding for so long as the Class R[-X] Certificates remains
                  outstanding; and (iii) is not a “Permitted
                  Transferee”.

              

      

       

      
        	 	
                16.

              	
                The
                  Investor is a citizen or resident of the United States, a corporation,
                  partnership or other entity created or organized in, or under the
                  laws of,
                  the United States or any political subdivision thereof, or an estate
                  or
                  trust whose income from sources without the United States may be
                  included
                  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.

              

      

       

      
        	 	
                17.

              	
                The
                  Investor of the Class R[-X] Certificate, hereby agrees that in
                  the event
                  that the Trust Fund created by the Pooling and Servicing Agreement
                  is
                  terminated pursuant to Section 10.01 thereof, the undersigned shall
                  assign
                  and transfer to the Holders of the Class X and the Class P Certificates
                  any amounts in excess of par received in connection with such termination.
                  Accordingly, in the event of such termination, the Securities
                  Administrator is hereby authorized to withhold any such amounts
                  in excess
                  of par and to pay such amounts directly to the Holders of the Class
                  X and
                  the Class P Certificates. This agreement shall bind and be enforceable
                  against any successor, transferee or assigned of the undersigned
                  in the
                  Class R[-X] Certificate. In connection with any transfer of the
                  Class
                  R[-X] Certificate, the Investor shall obtain an agreement substantially
                  similar to this clause from any subsequent
                  owner.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the Investor has caused this instrument to be executed on
        its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        _________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [INVESTOR]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Name:

              
	 	 	 	 	 	 	 	 	
                Title:
                  [Vice] President

              

      

      

       

      ATTEST:

       

      
        	
                By:

              	 
	 	
                Name:

              
	 	
                Title:
                  [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 a [Vice]
        President of the Investor, and acknowledged to me that [he/she] executed
        the
        same as [his/her] free act and deed and the free act and deed of the
        Investor.

       

      Subscribed
        and sworn before me this ______________ day of __________, ____.

       

      

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

              
	 	
                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FORM
        OF
        TRANSFEROR AFFIDAVIT

       

      
        	
                STATE
                  OF NEW YORK

              	
                )

              	 
	 	
                )

              	
                ss.:

              
	
                COUNTY
                  OF NEW YORK

              	
                )

              	 

      

       

      _________________________,
        being duly sworn, deposes, represents and warrants as follows:

       

      1. I
        am
        a ____________________
        of _________________________ (the “Investor”), a corporation duly organized and
        existing under the laws of _____________, on behalf of whom I make this
        affidavit.

       

      2. The
        Investor is not transferring the Class R[-X] Certificates (the “Residual
        Certificates”) to impede the assessment or collection of any tax.

       

      3. The
        Investor has no actual knowledge that the Person that is the proposed transferee
        (the “Purchaser”) of the Residual Certificates: (i) has insufficient assets to
        pay any taxes owed by such proposed transferee as holder of the Residual
        Certificates; (ii) may become insolvent or subject to a bankruptcy proceeding
        for so long as the Residual Certificates remain outstanding and (iii) is
        not a
        Permitted Transferee.

       

      4. The
        Investor understands that the Purchaser has delivered to the Securities
        Administrator a transfer affidavit and agreement in the form attached to
        the
        Pooling and Servicing Agreement as Exhibit B-2. The Investor does not know
        or
        believe that any representation contained therein is false.

       

      5. At
        the
        time of transfer, the Investor has conducted a reasonable investigation of
        the
        financial condition of the Purchaser as contemplated by Treasury Regulations
        Section 1.860E-1(c)(4)(i) and, as a result of that investigation, the Investor
        has determined that the Purchaser has historically paid its debts as they
        became
        due and has found no significant evidence to indicate that the Purchaser
        will
        not continue to pay its debts as they become due in the future. The Investor
        understands that the transfer of a Residual Certificate may not be respected
        for
        United States income tax purposes (and the Investor may continue to be liable
        for United States income taxes associated therewith) unless the Investor
        has
        conducted such an investigation.

       

      6. Capitalized
        terms not otherwise defined herein shall have the meanings ascribed to them
        in
        the Pooling and Servicing Agreement dated as of October 1, 2006, among Nomura
        Home Equity Loan, Inc., Nomura Credit & Capital, Inc., Equity One, Inc.,
        Wells Fargo Bank, N.A. and HSBC Bank USA, National Association.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      IN
        WITNESS WHEREOF, the Investor has caused this instrument to be executed on
        its
        behalf, pursuant to the authority of its Board of Directors, by its [Vice]
        President, attested by its [Assistant] Secretary, this ____ day of
        ________________, ____.

       

      
        	 	 	 	 	 	 	 	
                [INVESTOR]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                Name:

              
	 	 	 	 	 	 	 	 	
                Title:
                  [Vice] President

              

      

      

       

      ATTEST:

      

      

      
        	
                By:

              	 
	 	
                Name:

              
	 	
                Title:
                  [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 a [Vice]
        President of the Investor, and acknowledged to me that [he/she] executed
        the
        same as [his/her] free act and deed and the free act and deed of the
        Investor.

       

      Subscribed
        and sworn before me this ______ day of _____________, ____.

       

      

      
        	 	 
	 	
                Notary
                  Public

              
	 	 
	 	
                County
                  of _____________________________

              
	 	
                State
                  of _______________________________

              
	 	 
	 	
                My
                  Commission expires:

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        E

       

      FORM
        OF
        TRANSFEROR CERTIFICATE

       

      ______________,
        2006

       

      Nomura
        Home Equity Loan, Inc.

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series
        2006-FM2

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc. 

                Asset-Backed
                  Certificates, Series 2006-FM2, Class
                  [B-1][B-2][X][P][R][R-X]

              

      

       

      Ladies
        and Gentlemen:

       

      In
        connection with the sale by ___________ (the “Sponsor”) to ________ (the
“Purchaser”) of $_________ Initial Certificate Principal Balance of Asset-Backed
        Certificates, Series 2006-FM2, Class _____ (the “Certificates”), issued pursuant
        to the Pooling and Servicing Agreement (the “Pooling and Servicing Agreement”),
        dated as of October 1, 2006, among Nomura Home Equity Loan, Inc., as depositor
        (the “Depositor”), Nomura Credit & Capital, Inc., as sponsor, Equity
        One, Inc., as servicer (the “Servicer”), Wells
        Fargo Bank, N.A., as master servicer (the “Master Servicer”) and securities
        administrator (the “Securities Administrator”) and HSBC Bank USA, National
        Association, as trustee (the “Trustee”). The Sponsor hereby certifies,
        represents and warrants to, a covenants with, the Depositor, the Securities
        Administrator and the Trustee that:

       

      Neither
        the Sponsor nor anyone acting on its behalf has (a) offered, pledged, sold,
        disposed of or otherwise transferred any Certificate, any interest in any
        Certificate or any other similar security to any person in any manner, (b)
        has
        solicited any offer to buy or to accept a pledge, disposition or other transfer
        of any Certificate, any interest in any Certificate or any other similar
        security from any person in any manner, (c) has otherwise approached or
        negotiated with respect to any Certificate, any interest in any Certificate
        or
        any other similar security with any person in any manner, (d) has made any
        general solicitation by means of general advertising or in any other manner,
        or
        (e) has taken any other action, that (as to any of (a) through (e) above)
        would
        constitute a distribution of the Certificates under the Securities Act of
        1933
        (the “Act”), that would render the disposition of any Certificate a violation of
        Section 5 of the Act or any state securities law, or that would require
        registration or qualification pursuant thereto. The Sponsor will not act
        in any
        manner set forth in the foregoing sentence with respect to any Certificate.
        The
        Sponsor has not and will not sell or otherwise transfer any of the Certificates,
        except in compliance with the provisions of the Pooling and Servicing
        Agreement.

      

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                 

              
	 	 	 	 	 	 	 	
                (Sponsor)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      EXHIBIT
        F

       

      FORM
        OF
        INVESTOR REPRESENTATION LETTER (NON-RULE 144A)

       

      ___________,
        2006

       

      Nomura
        Home Equity Loan, Inc.

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

      Attention:
        Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series
        2006-FM2

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc., Home Equity Loan Trust, Asset-Backed Certificates,
                  Series 2006-FM2

              

      

       

      Ladies
        and Gentlemen:

       

      _______________
        (the “Purchaser”) intends to purchase from ____________ (the “Sponsor”)
        $_________ Initial Certificate Principal Balance of Asset-Backed Certificates,
        Series 2006-FM2, Class [B-1][B-2][X][P][R][R-X] (the “Certificates”), issued
        pursuant to the Pooling and Servicing Agreement (the “Pooling and Servicing
        Agreement”), dated as of October 1, 2006, among Nomura Home Equity Loan, Inc.,
        as depositor (the “Depositor”), Nomura Credit & Capital, Inc., as sponsor,
        Equity One, Inc., as servicer (the “Servicer”), Wells Fargo Bank, N.A., as
        master servicer (the “Master Servicer”) and securities administrator (the
“Securities Administrator”) and HSBC Bank USA, National Association, as trustee
        (the “Trustee”). All terms used herein and not otherwise defined shall have the
        meanings set forth in the Pooling and Servicing Agreement. The Purchaser
        hereby
        certifies, represents and warrants to, and covenants with, the Depositor,
        the
        Securities Administrator and the Trustee that:

       

      
        	
                1.

              	
                The
                  Purchaser understands that (a) the Certificates have not been and
                  will not
                  be registered or qualified under the Securities Act of 1933, as
                  amended
                  (the “Act”) or any state securities law, (b) the Depositor is not required
                  to so register or qualify the Certificates, (c) the Certificates
                  may be
                  resold only if registered and qualified pursuant to the provisions
                  of the
                  Act or any state securities law, or if an exemption from such registration
                  and qualification is available, (d) the Pooling and Servicing Agreement
                  contains restrictions regarding the transfer of the Certificates
                  and (e)
                  the Certificates will bear a legend to the foregoing
                  effect.

              
	 	 
	
                2.

              	
                The
                  Purchaser is acquiring the Certificates for its own account for
                  investment
                  only and not with a view to or for sale in connection with any
                  distribution thereof in any manner that would violate the Act or
                  any
                  applicable state securities laws.

              
	 	 
	
                3.

              	
                The
                  Purchaser is (a) a substantial, sophisticated institutional investor
                  having such knowledge and experience in financial and business
                  matters,
                  and, in particular, in such matters related to securities similar
                  to the
                  Certificates, such that it is capable of evaluating the merits
                  and risks
                  of investment in the Certificates, (b) able to bear the economic
                  risks of
                  such an investment and (c) an “accredited investor” within the meaning of
                  Rule 501 (a) promulgated pursuant to the Act.

              
	 	 
	
                4.

              	
                The
                  Purchaser has been furnished with, and has had an opportunity to
                  review
                  (a) a copy of the Pooling and Servicing Agreement and (b) such
                  other
                  information concerning the Certificates, the Mortgage Loans and
                  the
                  Depositor as has been requested by the Purchaser from the Depositor
                  or the
                  Sponsor and is relevant to the Purchaser’s decision to purchase the
                  Certificates. The Purchaser has had any questions arising from
                  such review
                  answered by the Depositor or the Sponsor to the satisfaction of
                  the
                  Purchaser.

              
	 	 
	
                5.

              	
                The
                  Purchaser has not and will not nor has it authorized or will it
                  authorize
                  any person to (a) offer, pledge, sell, dispose of or otherwise
                  transfer
                  any Certificate, any interest in any Certificate or any other similar
                  security to any person in any manner, (b) solicit any offer to
                  buy or to
                  accept a pledge, disposition of other transfer of any Certificate,
                  any
                  interest in any Certificate or any other similar security from
                  any person
                  in any manner, (c) otherwise approach or negotiate with respect
                  to any
                  Certificate, any interest in any Certificate or any other similar
                  security
                  with any person in any manner, (d) make any general solicitation
                  by means
                  of general advertising or in any other manner or (e) take any other
                  action, that (as to any of (a) through (e) above) would constitute
                  a
                  distribution of any Certificate under the Act, that would render
                  the
                  disposition of any Certificate a violation of Section 5 of the
                  Act or any
                  state securities law, or that would require registration or qualification
                  pursuant thereto. The Purchaser will not sell or otherwise transfer
                  any of
                  the Certificates, except in compliance with the provisions of the
                  Pooling
                  and Servicing Agreement.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                 

              
	 	 	 	 	 	 	 	
                (Purchaser)

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	
                Name:

              	 
	 	 	 	 	 	 	 	
                Title:

              	 

      

      

      

      

      EXHIBIT
        G

       

      FORM
        OF
        RULE 144A INVESTMENT LETTER

       

      [Date]

      Nomura
        Credit & Capital, Inc.

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      Nomura
        Home Equity Loan, Inc.

      2
        World
        Financial Center

      New
        York,
        New York 10281

       

      Wells
        Fargo Bank, N.A.

      Sixth
        Street and Marquette Avenue

      Minneapolis,
        Minnesota 55479

       

      
        	
                Re:

              	
                Nomura
                  Home Equity Loan, Inc., Home Equity Loan Trust, Asset-Backed Certificates,
                  Series 2006-FM2 (the “Certificates”), including the Class
                  [B-1][B-2][X][P][R][R-X] Certificates (the “Private
                  Certificates”)

              

      

       

      Dear
        Ladies and Gentlemen:

       

      In
        connection with our purchase of Private Certificates, we confirm
        that:

       

      
        	
                (i)

              	
                we
                  understand that the Private Certificates are not being registered
                  under
                  the Securities Act of 1933, as amended (the “Act”) or any applicable state
                  securities or “Blue Sky” laws, and are being sold to us in a transaction
                  that is exempt from the registration requirements of such
                  laws;

              
	 	 
	
                (ii)

              	
                any
                  information we desired concerning the Certificates, including the
                  Private
                  Certificates, the trust in which the Certificates represent the
                  entire
                  beneficial ownership interest (the “Trust”) or any other matter we deemed
                  relevant to our decision to purchase Private Certificates has been
                  made
                  available to us;

              
	 	 
	
                (iii)

              	
                we
                  are able to bear the economic risk of investment in Private Certificates;
                  we are an institutional “accredited investor” as defined in Section 501(a)
                  of Regulation D promulgated under the Act and a sophisticated
                  institutional investor and we agree to obtain a representation
                  from any
                  transferee that such transferee is an institutional “accredited investor”
                  so long as we are required to obtain a representation letter regarding
                  compliance with the Act;

              
	 	 
	
                (iv)

              	
                we
                  are acquiring Private Certificates for our own account, not as
                  nominee for
                  any other person, and not with a present view to any distribution
                  or other
                  disposition of the Private Certificates;

              
	 	 
	
                (v)

              	
                we
                  agree the Private Certificates must be held indefinitely by us
                  (and may
                  not be sold, pledged, hypothecated or in any way disposed of) unless
                  subsequently registered under the Act and any applicable state
                  securities
                  or “Blue Sky” laws or an exemption from the registration requirements of
                  the Act and any applicable state securities or “Blue Sky” laws is
                  available;

              
	 	 
	
                (vi)

              	
                we
                  agree that in the event that at some future time we wish to dispose
                  of or
                  exchange any of the Private Certificates (such disposition or exchange
                  not
                  being currently foreseen or contemplated), we will not transfer
                  or
                  exchange any of the Private Certificates unless:

              
	 	 
	 	
                (A)
                  (1) the sale is to an Eligible Purchaser (as defined below), (2)
                  if
                  required by the Pooling and Servicing Agreement (as defined below)
                  a
                  letter to substantially the same effect as either this letter or,
                  if the
                  Eligible Purchaser is a Qualified Institutional Buyer as defined
                  under
                  Rule 144A of the Act, the Rule 144A and Related Matters Certificate
                  in the
                  form attached to the Pooling and Servicing Agreement (as defined
                  below)
                  (or such other documentation as may be acceptable to the Securities
                  Administrator) is executed promptly by the purchaser and delivered
                  to the
                  addressees hereof and (3) all offers or solicitations in connection
                  with
                  the sale, whether directly or through any agent acting on our behalf,
                  are
                  limited only to Eligible Purchasers and are not made by means of
                  any form
                  of general solicitation or general advertising whatsoever;
                  and

              
	 	 
	 	
                (B) if
                  the Private Certificate is not registered under the Act (as to
                  which we
                  acknowledge you have no obligation), the Private Certificate is
                  sold in a
                  transaction that does not require registration under the Act and
                  any
                  applicable state securities or “blue sky” laws and, if the Securities
                  Administrator or HSBC Bank USA, National Association, as trustee
                  (the
                  “Trustee”) so requests, a satisfactory Opinion of Counsel is furnished to
                  such effect, which Opinion of Counsel shall be an expense of the
                  transferor or the transferee;

              
	 	 
	
                (vii)

              	
                we
                  agree to be bound by all of the terms (including those relating
                  to
                  restrictions on transfer) of the Pooling and Servicing, pursuant
                  to which
                  the Trust was formed; we have reviewed carefully and understand
                  the terms
                  of the Pooling and Servicing Agreement;

              
	 	 
	
                (viii)

              	
                we
                  either: (i) are not acquiring the Privately Offered Certificate
                  directly
                  or indirectly by, or on behalf of, an employee benefit plan or
                  other
                  retirement arrangement which is subject to Title I of the Employee
                  Retirement Income Security Act of 1974, as amended, and/or section
                  4975 of
                  the Internal Revenue Code of 1986, as amended, or (ii) in the case
                  of a
                  Class B Certificate, are making or are deemed to make the representations
                  set forth in Section 6.02(b) of the Agreement, or (iii) in the
                  case of a
                  Class X, Class P, Class R or Class R-X Certificate, are providing
                  the
                  opinion of counsel specified in Section 6.02(b) of the
                  Agreement.

              
	 	 
	
                (ix)

              	
                we
                  understand that each of the Class [X][P][R][R-X] Certificates bears,
                  and
                  will continue to bear, legends substantially to the following effect:
                  “THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER
                  THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
                  STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THIS CERTIFICATE,
                  AGREES THAT THIS CERTIFICATE MAY BE REOFFERED, RESOLD, PLEDGED
                  OR
                  OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT
                  AND OTHER
                  APPLICABLE LAWS AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES
                  ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A
                  QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A (A
“QIB”),
                  PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT
                  OF A
                  QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
                  RESALE,
                  PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
                  (2)
                  PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
                  UNDER THE
                  SECURITIES ACT (IF AVAILABLE) OR (3) IN CERTIFICATED FORM TO AN
                  “INSTITUTIONAL ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN RULE
                  501(a)(1), (2), (3) or (7) OF REGULATION D UNDER THE ACT OR ANY
                  ENTITY IN
                  WHICH ALL OF THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS PURCHASING
                  NOT
                  FOR DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, SUBJECT TO
                  (A) THE
                  RECEIPT BY THE SECURITIES ADMINISTRATOR OF A LETTER SUBSTANTIALLY
                  IN THE
                  FORM PROVIDED IN THE AGREEMENT AND (B) THE RECEIPT BY THE SECURITIES
                  ADMINISTRATOR OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE SECURITIES
                  ADMINISTRATOR THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS
                  IN
                  COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OR
                  IN EACH
                  CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
                  STATES AND ANY OTHER APPLICABLE JURISDICTION.

              
	 	 
	 	
                [FOR
                  CLASS B-1 CERTIFICATES] ANY TRANSFEREE OF THIS CERTIFICATE SHALL
                  MAKE OR
                  BE DEEMED TO MAKE THE REPRESENTATIONS SET FORTH IN SECTION 6.02(b)
                  OF THE
                  AGREEMENT.

              
	 	 
	 	
                [FOR
                  CLASS B-2, CLASS X, CLASS P, Class R AND CLASS R-X CERTIFICATES]
                  NO TRANSFER
                  OF THIS CERTIFICATE MAY BE MADE TO ANY PERSON, UNLESS THE TRANSFEREE
                  PROVIDES A CERTIFICATION PURSUANT TO SECTION 6.02(b) OF THE AGREEMENT
                  

              

      

      

      “Eligible
        Purchaser”
means
        a
        corporation, partnership or other entity which we have reasonable grounds
        to
        believe and do believe (i) can make representations with respect to itself
        to
        substantially the same effect as the representations set forth herein, and
        (ii)
        is either a Qualified Institutional Buyer as defined under Rule 144A of the
        Act
        or an institutional “Accredited Investor” as defined under Rule 501 of the
        Act.

       

      Terms
        not
        otherwise defined herein shall have the meanings assigned to them in the
        Pooling
        and Servicing Agreement, dated as of October 1, 2006, between Nomura Home
        Equity
        Loan, Inc., as depositor, Nomura Credit & Capital, Inc., as sponsor, Equity
        One, Inc., LLC, as servicer (the “Servicer”), Wells Fargo Bank, N.A., as master
        servicer (the “Master Servicer”) and securities administrator (the “Securities
        Administrator”) and HSBC Bank USA, National Association, as trustee (the
“Trustee”) (the “Pooling and Servicing Agreement’).

       

      If
        the
        Purchaser proposes that its Certificates be registered in the name of a nominee
        on its behalf, the Purchaser has identified such nominee below, and has caused
        such nominee to complete the Nominee Acknowledgment at the end of this
        letter.

       

      Name
        of
        Nominee (if any): _______________________________

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, this document has been executed by the undersigned who is
        duly
        authorized to do so on behalf of the undersigned Eligible Purchaser on the
        ___
        day of ________, 20___.

       

      
        	 	 	 	 	 	 	 	
                Very
                  truly yours,

              
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                [PURCHASER]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	
                [By:__________________________________

              
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Nominee
        Acknowledgment

       

      The
        undersigned hereby acknowledges and agrees that as to the Certificates being
        registered in its name, the sole beneficial owner thereof is and shall be
        the
        Purchaser identified above, for whom the undersigned is acting as
        nominee.

       

      
        	 	 	 	 	 	 	 	
                [NAME
                  OF NOMINEE]

              
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	
                (Authorized
                  Officer)

              
	 	 	 	 	 	 	 	 	
                [By:__________________________________

              
	 	 	 	 	 	 	 	 	
                Attorney-in-fact]

              

      

      

       

      

      EXHIBIT
        H

       

      FORM
        OF
        ADDITIONAL DISCLOSURE NOTIFICATION

      

      Wells
        Fargo Bank, N.A. as Trustee 

      Old
        Annapolis Road

      Columbia,
        Maryland 21045

      Fax:
        (410) 715-2380

      E-mail:
        cts.sec.notifications@wellsfargo.com

       

      Nomura
        Home Equity Loan, Inc.

      2
        World
        Financial Center, Building B

      New
        York,
        New York 10281

       

      Attn: Corporate
        Trust Services - Nomura Home Equity Loan, Inc., Home Equity Loan Trust,
 Asset-Backed
        Certificates, Series 2006-FM2 - SEC REPORT PROCESSING

       

      RE:
        **Additional Form [10-K][10-D][8-K] Disclosure**Required

       

       

      Ladies
        and Gentlemen:

       

      In
        accordance with Section [ ] of the Pooling and Servicing Agreement, dated
        as of
        October 1, 2006, among the Purchaser as depositor, Nomura
        Credit & Capital, Inc. as sponsor, Equity
        One, Inc., as servicer (“Equity One”), Wells Fargo Bank, National Association,
        as Master Servicer and Securities Administrator, the Undersigned, as [ ],
        hereby
        notifies you that certain events have come to our attention that [will][may]
        need to be disclosed on Form [10-K][10-D][8-K].

       

      Description
        of Additional Form [10-K][10-D][8-K]Disclosure:

       

       

      

       

      List
        of
        Any Attachments hereto to be included in the Additional Form [10-K][10-D][8-K]
        Disclosure:

       

      Any
        inquiries related to this notification should be directed to [ ], phone number:
        [ ]; email address: [ ].

       

      
        	
                [NAME
                  OF PARTY]

                as
                  [role]

              
	 	 
	
                By:

              	 
	
                Name:

              	 
	
                Title:

              	 

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      EXHIBIT
        I

       

      DTC
        Letter of Representations

      [provided
        upon request]

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        J

       

      Schedule
        of Mortgage Loans with Lost Notes

      

      NONE

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        K

       

      Prepayment
        Charge Schedule

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      EXHIBIT
        L

       

      RELEVANT
        SERVICING CRITERIA

      

      

      SERVICING
        CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

      

      Assessments
        of Compliance and Attestation Reports Servicing Criteria1 

       

      

      

      
        	
                Reg.
                  AB Item 1122(d) Servicing Criteria

              	
                Depositor

              	
                Seller

              	
                Servicer2 

              	
                Trustee

              	
                Custodian

              	
                Wells
                  Fargo3 

              
	
                (1) General
                  Servicing Considerations

              	 	 	 	 	 	 
	
                (i) monitoring
                  performance or other triggers and events of default

              	 	 	
                X

              	 	 	
                X

              
	
                (ii) monitoring
                  performance of vendors of activities outsourced

              	 	 	
                X

              	 	 	
                X

              
	
                (iii) maintenance
                  of back-up servicer for pool assets

              	 	 	 	 	 	 
	
                (iv) fidelity
                  bond and E&O policies in effect

              	 	 	
                X

              	 	 	
                X

              
	
                (2) Cash
                  Collection and Administration

              	 	 	 	 	 	 
	
                (i) timing
                  of deposits to custodial account

              	 	 	
                X

              	 	 	
                X

              
	
                (ii) wire
                  transfers to investors by authorized personnel

              	 	 	
                X

              	 	 	
                X

              
	
                (iii) advances
                  or guarantees made, reviewed and approved as required

              	 	 	
                X

              	 	 	
                X

              
	
                (iv) accounts
                  maintained as required

              	 	 	
                X

              	 	 	
                X

              
	
                (v) accounts
                  at federally insured depository institutions

              	 	 	
                X

              	 	 	
                X

              
	
                (vi) unissued
                  checks safeguarded

              	 	 	
                X

              	 	 	 
	
                (vii) monthly
                  reconciliations of accounts

              	 	 	
                X

              	 	 	
                X

              
	
                (3) Investor
                  Remittances and Reporting

              	 	 	 	 	 	 
	
                (i) investor
                  reports

              	 	 	
                X

              	 	 	
                X

              
	
                (ii) remittances

              	 	 	
                X

              	 	 	
                X

              
	
                (iii) proper
                  posting of distributions

              	 	 	
                X

              	 	 	
                X

              
	
                (iv) reconciliation
                  of remittances and payment statements

              	 	 	
                X

              	 	 	
                X

              
	
                (4) Pool
                  Asset Administration

              	 	 	 	 	 	 
	
                (i) maintenance
                  of pool collateral

              	 	 	
                X

              	 	
                X

              	 
	
                (ii) safeguarding
                  of pool assets/documents

              	 	 	
                X

              	 	
                X

              	 
	
                (iii) additions,
                  removals and substitutions of pool assets

              	 	 	
                X

              	 	 	
                 

              
	
                (iv) posting
                  and allocation of pool asset payments to pool assets

              	 	 	
                X

              	 	 	 
	
                (v) reconciliation
                  of servicer records

              	 	 	
                X

              	 	 	 
	
                (vi) modifications
                  or other changes to terms of pool assets

              	 	 	
                X

              	 	 	 
	
                (vii) loss
                  mitigation and recovery actions

              	 	 	
                X

              	 	 	 
	
                (viii)records
                  regarding collection efforts

              	 	 	
                X

              	 	 	 
	
                (ix) adjustments
                  to variable interest rates on pool assets

              	 	 	
                X

              	 	 	 
	
                (x) matters
                  relating to funds held in trust for obligors

              	 	 	
                X

              	 	 	 
	
                (xi) payments
                  made on behalf of obligors (such as for taxes or
                  insurance)

              	 	 	
                X

              	 	 	 
	
                (xii) late
                  payment penalties with respect to payments made on behalf of obligors
                  

              	 	 	
                X

              	 	 	 
	
                (xiii)records
                  with respect to payments made on behalf of obligors

              	 	 	
                X

              	 	 	 
	
                (xiv) recognition
                  and recording of delinquencies, charge-offs and uncollectible
                  accounts

              	 	 	
                X

              	 	 	
                X

              
	
                (xv) maintenance
                  of external credit enhancement or other support

              	
                X

              	
                X

              	 	 	 	
                X

              

      

       

      

      

        

        
          1
            The
            descriptions of the Item 1122(d) servicing criteria use key words and
            phrases
            and are not verbatim recitations of the servicing criteria. Refer to
            Regulation
            AB, Item 1122 for a full description of servicing
            criteria.

        

        
          2
            For the avoidance of doubt, any Relevant Servicing Criteria to be addressed
            by
            Servicer may be addressed by Servicer or any subservicer or subcontractor,
            as
            the case may be.

          3
            Wells Fargo in its capacity as Paying Agent,
            Master Servicer and Securities Administrator.

        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        M

       

      FORM
        OF
        BACK-UP CERTIFICATION

       

      Re: __________
        (the “Trust”)

       

       

      Asset-Backed
        Certificates, Series 2006-FM2

       

      I,
        [identify the certifying individual], certify to Nomura Home Equity Loan,
        Inc.
        (the “Depositor”), HSBC Bank USA, National Association (the “Trustee”) and Wells
        Fargo Bank, N.A. (the “Master Servicer”), and their respective officers,
        directors and affiliates, and with the knowledge and intent that they will
        rely
        upon this certification, that:

       

      (1) I
        have
        reviewed the servicer compliance statement of the Servicer provided in
        accordance with Item 1123 of Regulation AB (the “Compliance Statement”), the
        report on assessment of the Servicer’s compliance with the servicing criteria
        set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided
        in accordance with Rules 13a-18 and 15d-18 under Securities Exchange Act
        of
        1934, as amended (the “Exchange Act”) and Item 1122 of Regulation AB (the
“Servicing Assessment”), the registered public accounting firm’s attestation
        report provided in accordance with Rules 13a-18 and 15d-18 under the Exchange
        Act and Section 1122(b) of Regulation AB (the “Attestation Report”), and all
        servicing reports, officer’s certificates and other information relating to the
        servicing of the Mortgage Loans by the Servicer during 200[ ] that were
        delivered by the Servicer to the Master Servicer pursuant to the Agreement
        (collectively, the “Servicer Servicing Information”);

       

      (2) Based
        on
        my knowledge, the Servicer Servicing Information, taken as a whole, does
        not
        contain any untrue statement of a material fact or omit to state a material
        fact
        necessary to make the statements made, in the light of the circumstances
        under
        which such statements were made, not misleading with respect to the period
        of
        time covered by the Servicer Servicing Information;

       

      (3) Based
        on
        my knowledge, all of the Servicer Servicing Information required to be provided
        by the Servicer under the Agreement has been provided to the Master
        Servicer;

       

      (4) I
        am
        responsible for reviewing the activities performed by the Servicer as servicer
        under the Agreement, and based on my knowledge and the compliance review
        conducted in preparing the Compliance Statement and except as disclosed in
        the
        Compliance Statement, the Servicing Assessment or the Attestation Report,
        the
        Servicer has fulfilled its obligations under the Agreement in all material
        respects; and

       

      (5) The
        Compliance Statement required to be delivered by the Servicer pursuant to
        the
        Agreement, and the Servicing Assessment and Attestation Report required to
        be
        provided by the Servicer and by any Subservicer or Subcontractor pursuant
        to the
        Agreement, have been provided to the Master Servicer. Any material instances
        of
        noncompliance described in such reports have been disclosed to the Master
        Servicer. Any material instance of noncompliance with the Servicing Criteria
        has
        been disclosed in such reports.

       

      Capitalized
        terms used and not otherwise defined herein have the meanings assigned thereto
        in the Pooling and Servicing Agreement (the “Agreement”), dated as of October 1,
        2006, among Nomura Home Equity Loan, Inc., Nomura Credit & Capital, Inc.,
        Equity One, Inc., Wells Fargo Bank, N.A. and HSBC Bank USA, National
        Association

      

       

      

       

      
        	
                Date:

              	 
	 
	 
	
                [Signature]

              
	 
	
                [Title]

              

      

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      

      EXHIBIT
        N

       

      FORM
        10-D, FORM 8-K AND FORM 10-K

      REPORTING
        RESPONSIBILITY

      

      As
        to
        each item described below, the entity indicated as the Responsible Party
        shall
        be primarily responsible for reporting the information to the party identified
        as responsible for preparing the Securities Exchange Act Reports pursuant
        to
        Section 5.14. An asterisk indicates that the Responsible Party is responsible
        for aggregating the information it receives from other Responsible
        Parties.

      

      Under
        Item 1 of Form 10-D: a) items marked “5.06 statement” are required to be
        included in the periodic Distribution Date statement under Section 5.06,
        provided by the Securities Administrator based on information received from
        the
        Master Servicer; and b) items marked “Form 10-D report” are required to be in
        the Form 10-D report but not the 5.06 statement, provided by the party
        indicated. Information under all other Items of Form 10-D is to be included
        in
        the Form 10-D report.

      

      Additional
        Form 10-D Disclosure

      

      

      
        	
                ADDITIONAL
                  FORM 10-D DISCLOSURE

              
	
                Item
                  on Form 10-D

              	
                Party
                  Responsible 

              
	
                Item
                  1: Distribution and Pool Performance Information

                 

              	 
	
                Information
                  included in the [Monthly Statement]

              	
                Servicer

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Any
                  information required by 1121 which is NOT included on the [Monthly
                  Statement]

              	
                Depositor

              
	
                Item
                  2: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceedings known to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a)(2) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Item
                  3: Sale of Securities and Use of Proceeds

                Information
                  from Item 2(a) of Part II of Form 10-Q:

                 

                With
                  respect to any sale of securities by the sponsor, depositor or
                  issuing
                  entity, that are backed by the same asset pool or are otherwise
                  issued by
                  the issuing entity, whether or not registered, provide the sales
                  and use
                  of proceeds information in Item 701 of Regulation S-K. Pricing
                  information
                  can be omitted if securities were not registered.

              	
                Depositor

              
	
                Item
                  4: Defaults Upon Senior Securities

                 

                Information
                  from Item 3 of Part II of Form 10-Q:

                 

                Report
                  the occurrence of any Event of Default (after expiration of any
                  grace
                  period and provision of any required notice)

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  5: Submission of Matters to a Vote of Security
                  Holders

                 

                Information
                  from Item 4 of Part II of Form 10-Q

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  6: Significant Obligors of Pool Assets

                 

                Item
                  1112(b) - Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Item
                  7: Significant Enhancement Provider Information

                 

                Item
                  1114(b)(2) - Credit Enhancement Provider Financial
                  Information*

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                Item
                  1115(b) - Derivative Counterparty Financial
                  Information*

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Item
                  8: Other Information

                 

                Disclose
                  any information required to be reported on Form 8-K during the
                  period
                  covered by the Form 10-D but not reported

              	
                Any
                  party responsible for the applicable Form 8-K Disclosure
                  item

              
	
                Item
                  9: Exhibits

              	 
	
                Monthly
                  Statement to Certificateholders

              	
                Securities
                  Administrator

              
	
                Exhibits
                  required by Item 601 of Regulation S-K, such as material
                  agreements

              	
                Depositor

              

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Additional
        Form 10-K Disclosure

      

      

      
        	
                ADDITIONAL
                  FORM 10-K DISCLOSURE

              
	
                Item
                  on Form 10-K

              	
                Party
                  Responsible 

              
	
                Item
                  1B: Unresolved Staff Comments

                 

              	
                Depositor

              
	
                Item
                  9B: Other Information

                Disclose
                  any information required to be reported on Form 8-K during the
                  fourth
                  quarter covered by the Form 10-K but not reported

              	
                Any
                  party responsible for disclosure items on Form 8-K

              
	
                Item
                  15: Exhibits, Financial Statement Schedules

              	
                Securities
                  Administrator

                Depositor

              
	
                Reg
                  AB Item 1112(b): Significant Obligors of Pool
                  Assets

              	 
	
                Significant
                  Obligor Financial Information*

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Item.

              	 
	
                Reg
                  AB Item 1114(b)(2): Credit Enhancement Provider Financial
                  Information

              	 
	
                ▪
                  Determining applicable disclosure threshold

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Reg
                  AB Item 1115(b): Derivative Counterparty Financial
                  Information

              	 
	
                ▪
                  Determining current maximum probable exposure

              	
                Depositor

              
	
                ▪
                  Determining current significance percentage

              	
                Depositor

              
	
                ▪
                  Requesting required financial information (including any required
                  accountants’ consent to the use thereof) or effecting incorporation by
                  reference

              	
                Depositor

              
	
                *This
                  information need only be reported on the Form 10-D for the distribution
                  period in which updated information is required pursuant to the
                  Items.

              	 
	
                Reg
                  AB Item 1117: Legal Proceedings

                 

                Any
                  legal proceeding pending against the following entities or their
                  respective property, that is material to Certificateholders, including
                  any
                  proceeding sknown to be contemplated by governmental
                  authorities:

              	 
	
                ▪
                  Issuing Entity (Trust Fund)

              	
                Trustee,
                  Master Servicer, Securities Administrator and Depositor

              
	
                ▪
                  Sponsor (Seller)

              	
                Seller
                  (if a party to the Pooling and Servicing Agreement) or
                  Depositor

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                ▪
                  1110(b) Originator

              	
                Depositor

              
	
                ▪
                  Any 1108(a) Servicer (other than the Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any other party contemplated by 1100(d)(1)

              	
                Depositor

              
	
                Reg
                  AB Item 1119: Affiliations and Relationships

              	 
	
                Whether
                  (a) the Sponsor (Seller), Depositor or Issuing Entity is an affiliate
                  of
                  the following parties, and (b) to the extent known and material,
                  any of
                  the following parties are affiliated with one another:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Any 1108(a)(2) servicer (other than Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any “outside the ordinary course business arrangements” other
                  than would be obtained in an arm’s length transaction between (a) the
                  Sponsor (Seller), Depositor or Issuing Entity on the one hand,
                  and (b) any
                  of the following parties (or their affiliates) on the other hand,
                  that
                  exist currently or within the past two years and that are material
                  to a
                  Certificateholder’s understanding of the Certificates:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1108(a)(2) servicer (other than Master Servicer or Securities
                  Administrator)

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              
	
                Whether
                  there are any specific relationships involving the transaction
                  or the pool
                  assets between (a) the Sponsor (Seller), Depositor or Issuing Entity
                  on
                  the one hand, and (b) any of the following parties (or their affiliates)
                  on the other hand, that exist currently or within the past two
                  years and
                  that are material:

              	
                Depositor
                  as to (a) 

                Sponsor/Seller
                  as to (a)

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer 

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Trustee

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1108(a)(2) servicer (other than Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Any 1110 Originator

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1112(b) Significant Obligor

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1114 Credit Enhancement Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any 1115 Derivative Counterparty Provider

              	
                Depositor/Sponsor

              
	
                ▪
                  Any other 1101(d)(1) material party

              	
                Depositor/Sponsor

              

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Form
        8-K
        Disclosure Information

      

      

      
        	
                FORM
                  8-K DISCLOSURE INFORMATION

              
	
                Item
                  on Form 8-K

              	
                Party
                  Responsible 

              
	
                Item
                  1.01- Entry into a Material Definitive Agreement

                 

                Disclosure
                  is required regarding entry into or amendment of any definitive
                  agreement
                  that is material to the securitization, even if depositor is not
                  a party.
                  

                 

                Examples:
                  servicing agreement, custodial agreement.

                 

                Note:
                  disclosure not required as to definitive agreements that are fully
                  disclosed in the prospectus

              	
                All
                  parties

              
	
                Item
                  1.02- Termination of a Material Definitive Agreement

                 

                Disclosure
                  is required regarding termination of any definitive agreement that
                  is
                  material to the securitization (other than expiration in accordance
                  with
                  its terms), even if depositor is not a party. 

                 

                Examples:
                  servicing agreement, custodial agreement.

              	
                All
                  parties

              
	
                Item
                  1.03- Bankruptcy or Receivership

                 

                Disclosure
                  is required regarding a bankruptcy or receivership with respect
                  to any of
                  the following: 

              	 
	
                ▪
                  Sponsor (Seller)

              	
                Depositor/Sponsor
                  (Seller)

              
	
                ▪
                  Depositor

              	
                Depositor

              
	
                ▪
                  Master Servicer

              	
                Master
                  Servicer

              
	
                ▪
                  Any 1108(a)(2) servicer (other than Master Servicer or Securities
                  Administrator)

              	
                Servicer

              
	
                ▪
                  Other Servicer servicing 20% or more of the pool assets at the
                  time of the
                  report

              	
                Servicer

              
	
                ▪
                  Other material servicers

              	
                Servicer

              
	
                ▪
                  Trustee

              	
                Trustee

              
	
                ▪
                  Securities Administrator

              	
                Securities
                  Administrator

              
	
                ▪
                  Significant Obligor

              	
                Depositor

              
	
                ▪
                  Credit Enhancer (10% or more)

              	
                Depositor

              
	
                ▪
                  Derivative Counterparty

              	
                Depositor

              
	
                ▪
                  Custodian

              	
                Custodian

              
	
                Item
                  2.04- Triggering Events that Accelerate or Increase a Direct Financial
                  Obligation or an Obligation under an Off-Balance Sheet
                  Arrangement

                 

                Includes
                  an early amortization, performance trigger or other event, including
                  event
                  of default, that would materially alter the payment priority/distribution
                  of cash flows/amortization schedule.

                 

                Disclosure
                  will be made of events other than waterfall triggers which are
                  disclosed
                  in the monthly statements to the certificateholders.

              	
                Depositor

                Master
                  Servicer

                Securities
                  Administrator

              
	
                Item
                  3.03- Material Modification to Rights of Security
                  Holders

                 

                Disclosure
                  is required of any material modification to documents defining
                  the rights
                  of Certificateholders, including the Pooling and Servicing
                  Agreement.

              	
                Securities
                  Administrator

                Trustee

                Depositor

              
	
                Item
                  5.03- Amendments of Articles of Incorporation or Bylaws; Change
                  of Fiscal
                  Year

                Disclosure
                  is required of any amendment “to the governing documents of the issuing
                  entity”.

              	
                Depositor

              
	
                Item
                  6.01- ABS Informational and Computational
                  Material

              	
                Depositor

              
	
                Item
                  6.02- Change of 1108(a)(2) Servicer or Trustee

                 

                Requires
                  disclosure of the resignation, removal, replacement, substitution
                  or
                  addition of any 1108(a)(2) servicer, affiliated servicer or trustee,
                  together with any disclosure required under Item 1108(d) of Regulation
                  AB.

              	
                Master
                  Servicer/Securities Administrator/Depositor/

                Servicer/Trustee

              
	
                Item
                  6.03- Change in Credit Enhancement or External
                  Support

                Covers
                  termination of any enhancement in manner other than by its terms,
                  the
                  addition of an enhancement, or a material change in the enhancement
                  provided. Applies to external credit enhancements as well as derivatives.
                  

              	
                Depositor/Securities
                  Administrator/Trustee

              
	
                Reg
                  AB disclosure about any new enhancement provider is also
                  required.

              	
                Depositor

              
	
                Item
                  6.04- Failure to Make a Required Distribution

              	
                Securities
                  Administrator

                Trustee

              
	
                Item
                  6.05- Securities Act Updating Disclosure

                 

                If
                  any material pool characteristic differs by 5% or more at the time
                  of
                  issuance of the securities from the description in the final prospectus,
                  provide updated Reg AB disclosure about the actual asset
                  pool.

              	
                Depositor

              
	
                If
                  there are any new servicers or originators required to be disclosed
                  under
                  Regulation AB as a result of the foregoing, provide the information
                  called
                  for in Items 1108 and 1110 respectively.

              	
                Depositor

              
	
                Item
                  7.01- Reg FD Disclosure

              	
                All
                  parties

              
	
                Item
                  8.01- Other Events

                 

                Any
                  event, with respect to which information is not otherwise called
                  for in
                  Form 8-K, that the registrant deems of importance to
                  certificateholders.

              	
                Depositor

              
	
                Item
                  9.01- Financial Statements and Exhibits

              	
                Responsible
                  party for reporting/disclosing the financial statement or
                  exhibit

              

      

      

       

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

      

      EXHIBIT
        O

       

       

      APPENDIX
        E - Standard & Poor’s Anti-Predatory Lending
        Categorization

       

      Standard
        & Poor’s has categorized loans governed by anti-predatory lending laws in
        the Jurisdictions listed below into three categories based upon a combination
        of
        factors that include (a) the risk exposure associated with the assignee
        liability and (b) the tests and thresholds set forth in those laws. Note
        that
        certain loans classified by the relevant statute as Covered are included
        in
        Standard & Poor’s High Cost Loan Category because they included thresholds
        and tests that are typical of what is generally considered High Cost by the
        industry.

      

      

      Standard
        & Poor’s High Cost Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending Law/Effective Date

              	
                Category
                  under Applicable Anti-Predatory Lending Law

              
	
                Arkansas
                  

              	
                Arkansas
                  Home Loan Protection Act, Ark. Code Ann. §§ 23-53-101 et
                  seq.
                  

                Effective
                  July 16, 2003 

              	
                High
                  Cost Home Loan 

              
	
                Cleveland
                  Heights, OH 

              	
                Ordinance
                  No. 72-2003 (PSH), Mun. Code §§ 757.01 et
                  seq.
                  

                Effective
                  June 2, 2003 

              	
                Covered
                  Loan 

              
	
                Colorado
                  

              	
                Consumer
                  Equity Protection, Colo. Stat. Ann. §§ 5-3.5-101 et
                  seq.
                  

                Effective
                  for covered loans offered or entered into on or after January 1,
                  2003.
                  Other provisions of the Act took effect on June 7, 2002 

              	
                Covered
                  Loan 

              
	
                Connecticut
                  

              	
                Connecticut
                  Abusive Home Loan Lending Practices Act, Conn. Gen. Stat. §§ 36a-746
                  et
                  seq.
                  

                Effective
                  October 1, 2001 

              	
                High
                  Cost Home Loan 

              
	
                District
                  of Columbia 

              	
                Home
                  Loan Protection Act, D.C. Code §§ 26-1151.01 et
                  seq.
                  

                Effective
                  for loans closed on or after January 28, 2003 

              	
                Covered
                  Loan 

              
	
                Florida
                  

              	
                Fair
                  Lending Act, Fla. Stat. Ann. §§ 494.0078 et
                  seq.
                  

                Effective
                  October 2, 2002 

              	
                High
                  Cost Home Loan 

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003) 

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                  seq.
                  

                Effective
                  October 1, 2002 - March 6, 2003

              	
                High
                  Cost Home Loan 

              

      

      

       

      Standard
        & Poor’s High Cost Loan Categorization

       

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending Law/Effective Date

              	
                Category
                  under Applicable Anti-Predatory Lending Law

              
	
                Georgia
                  as amended (Mar. 7, 2003 - current) 

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                  seq.
                  

                Effective
                  for loans closed on or after March 7, 2003 

              	
                High
                  Cost Home Loan 

              
	
                HOEPA
                  Section 32 

              	
                Home
                  Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, 12 C.F.R.
                  §§ 226.32 and 226.34 

                Effective
                  October 1, 1995, amendments October 1, 2002 

              	
                High
                  Cost Loan 

              
	
                Illinois
                  

              	
                High
                  Risk Home Loan Act, Ill. Comp. Stat. tit. 815, §§ 137/5 et
                  seq.
                  

                Effective
                  January 1, 2004 (prior to this date, regulations under Residential
                  Mortgage License Act effective from May 14, 2001) 

              	
                High
                  Risk Home Loan 

              
	
                Kansas
                  

              	
                Consumer
                  Credit Code, Kan. Stat. Ann. §§ 16a-1-101 et
                  seq.
                  

                Sections
                  16a-1-301 and 16a-3-207 became effective April 14, 1999; Section
                  16a-3-308a became effective July 1, 1999 

              	
                High
                  Loan to Value Consumer Loan (id.
                  §
                  16a-3-207) and; 

              
	
                High
                  APR Consumer Loan (id.
                  §
                  16a-3-308a) 

              
	
                Kentucky
                  

              	
                2003
                  KY H.B. 287 - High Cost Home Loan Act, Ky. Rev. Stat. §§ 360.100
                  et
                  seq.
                  

                Effective
                  June 24, 2003 

              	
                High
                  Cost Home Loan 

              
	
                Maine
                  

              	
                Truth
                  in Lending, Me. Rev. Stat. tit. 9-A, §§ 8-101 et
                  seq.
                  

                Effective
                  September 29, 1995 and as amended from time to time 

              	
                High
                  Rate High Fee Mortgage 

              
	
                Massachusetts
                  

              	
                Part
                  40 and Part 32, 209 C.M.R. §§ 32.00 et
                  seq.
                  and 209 C.M.R. §§ 40.01 et
                  seq.
                  

                Effective
                  March 22, 2001 and amended from time to time

              	
                High
                  Cost Home Loan 

              

      

      

      Standard
        & Poor’s High Cost Loan Categorization

       

      

        
          	
                  State/Jurisdiction

                	
                  Name
                    of Anti-Predatory Lending Law/Effective Date

                	
                  Category
                    under Applicable Anti-Predatory Lending Law

                
	
                  Nevada
                    

                	
                  Assembly
                    Bill No. 284, Nev. Rev. Stat. §§ 598D.010 et
                    seq.
                    

                  Effective
                    October 1, 2003 

                	
                  Home
                    Loan 

                
	
                  New
                    Jersey 

                	
                  New
                    Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                    et
                    seq.
                    

                  Effective
                    for loans closed on or after November 27, 2003 

                	
                  High
                    Cost Home Loan 

                
	
                  New
                    Mexico 

                	
                  Home
                    Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                    seq.
                    

                  Effective
                    as of January 1, 2004; Revised as of February 26, 2004 

                	
                  High
                    Cost Home Loan 

                
	
                  New
                    York 

                	
                  N.Y.
                    Banking Law Article 6-l 

                  Effective
                    for applications made on or after April 1, 2003 

                	
                  High
                    Cost Home Loan 

                
	
                  North
                    Carolina 

                	
                  Restrictions
                    and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                    et
                    seq.
                    

                  Effective
                    July 1, 2000; amended October 1, 2003 (adding open-end lines
                    of credit)
                    

                	
                  High
                    Cost Home Loan 

                
	
                  Ohio
                    

                	
                  H.B.
                    386 (codified in various sections of the Ohio Code), Ohio Rev.
                    Code Ann.
                    §§ 1349.25 et
                    seq.
                    

                  Effective
                    May 24, 2002 

                	
                  Covered
                    Loan 

                
	
                  Oklahoma
                    

                	
                  Consumer
                    Credit Code (codified in various sections of Title 14A) 

                  Effective
                    July 1, 2000; amended effective January 1, 2004 

                	
                  Subsection
                    10 Mortgage 

                
	
                  South
                    Carolina 

                	
                  South
                    Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                    et
                    seq.
                    

                  Effective
                    for loans taken on or after January 1, 2004

                	
                  High
                    Cost Home Loan 

                
	
                  West
                    Virginia 

                	
                  West
                    Virginia Residential Mortgage Lender, Broker and Servicer Act,
                    W. Va. Code
                    Ann. §§ 31-17-1 et
                    seq.
                    

                  Effective
                    June 5, 2002 

                	
                  West
                    Virginia Mortgage Loan Act Loan

                

        

      

      

       

      Standard
        & Poor’s Covered Loan Categorization 

       

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending Law/Effective Date

              	
                Category
                  under Applicable Anti-Predatory Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003) 

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                  seq.
                  

                Effective
                  October 1, 2002 - March 6, 2003 

              	
                Covered
                  Loan 

              
	
                New
                  Jersey 

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  et
                  seq.
                  

                Effective
                  November 27, 2003 - July 5, 2004 

              	
                Covered
                  Home Loan 

              

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      Standard
        & Poor’s Home Loan Categorization

      

      
        	
                State/Jurisdiction

              	
                Name
                  of Anti-Predatory Lending Law/Effective Date

              	
                Category
                  under Applicable Anti-Predatory Lending Law

              
	
                Georgia
                  (Oct. 1, 2002 - Mar. 6, 2003) 

              	
                Georgia
                  Fair Lending Act, Ga. Code Ann. §§ 7-6A-1 et
                  seq.
                  

                Effective
                  October 1, 2002 - March 6, 2003 

              	
                Home
                  Loan 

              
	
                New
                  Jersey 

              	
                New
                  Jersey Home Ownership Security Act of 2002, N.J. Rev. Stat. §§ 46:10B-22
                  et
                  seq.
                  

                Effective
                  for loans closed on or after November 27, 2003

              	
                Home
                  Loan 

              
	
                New
                  Mexico 

              	
                Home
                  Loan Protection Act, N.M. Rev. Stat. §§ 58-21A-1 et
                  seq.
                  

                Effective
                  as of January 1, 2004; Revised as of February 26, 2004 

              	
                Home
                  Loan 

              
	
                North
                  Carolina 

              	
                Restrictions
                  and Limitations on High Cost Home Loans, N.C. Gen. Stat. §§ 24-1.1E
                  et
                  seq.
                  

                Effective
                  July 1, 2000; amended October 1, 2003 (adding open-end lines of
                  credit)
                  

              	
                Consumer
                  Home Loan 

              
	
                South
                  Carolina 

              	
                South
                  Carolina High Cost and Consumer Home Loans Act, S.C. Code Ann.
§§ 37-23-10
                  et
                  seq.
                  

                Effective
                  for loans taken on or after January 1, 2004 

              	
                Consumer
                  Home Loan 

              

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        P

       

      

      BASIS
        RISK CAP AGREEMENT

      

       

      
         

        
          	
                  

                
	
                  HSBC
                    Bank USA, National Association   

                  452
                    Fifth Avenue     

                  New
                    York, NY 10018    

                  Fax:
                    (212) 525-5517

                

        

        October
          31, 2006

        

        HSBC
          Bank
          USA, National Association,

        Not
          in
          its individual capacity, but solely as

        Trustee
          with respect to the Nomura Home Equity

        Loan,
          Inc., Home Equity Loan Trust,

        Series
          2006-FM2

        

        Tel:
          410-884-2000

        Fax:
          410-715-2380

        

        Subject: Interest
          Rate Cap

        

        Transaction
          Reference Number: 409884HN/409885HN

         

        
          
            

          

        

        

        The
          purpose of this letter agreement (this “Confirmation”) is to confirm the terms
          and conditions of the Transaction entered into between us on the Trade
          Date
          specified below, and subsequently amended as set out below (the
          “Transaction”) between HSBC Bank USA, N.A. (“HSBC”) and HSBC Bank USA, National
          Association, not in its individual capacity, but solely as trustee with
          respect
          to the Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM2
          (in such capacity, the “Counterparty”). This Confirmation constitutes a
“Confirmation” as referred to in the ISDA Form Master Agreement (as defined
          below), as well as a “Schedule” as referred to in the ISDA Form Master
          Agreement. In this Confirmation “Party A” means HSBC and “Party B” means the
          Counterparty. 

        

        
          	
                  1.

                	
                  This
                    Agreement is subject to and incorporates the 2000 ISDA Definitions
                    (the
                    “Definitions”), as published by the International Swaps and Derivatives
                    Association, Inc. (“ISDA”). Any reference to a “Swap Transaction” in the
                    Definitions is deemed to be a reference to a “Transaction” for purposes of
                    this Agreement, and any reference to a “Transaction” in this Agreement is
                    deemed to be a reference to a “Swap Transaction” for purposes of the
                    Definitions. You and we have agreed to enter into this Agreement
                    in lieu
                    of negotiating a Schedule to the 1992 ISDA Master Agreement
                    (Multicurrency—Cross Border) form (the
                    “ISDA Form Master Agreement”) but, rather, an ISDA Form Master Agreement
                    shall be deemed to have been executed by you and us on the date
                    we entered
                    into the Transaction. In the event of any inconsistency between
                    the
                    provisions of this Agreement and the Definitions or the ISDA
                    Form Master
                    Agreement, this Agreement shall prevail for purposes of the Transaction.
                    Terms used and not otherwise defined herein, in the ISDA Form
                    Master Agreement
                    or the Definitions shall have the meanings assigned to them in
                    the Pooling
                    and Servicing Agreement, dated as of October 1, 2006, among,
                    Nomura Credit
                    and Capital, Inc., as Sponsor, Equity One, Inc., as Servicer,
                    Nomura Home
                    Equity Loan, Inc., as Depositor, Wells Fargo Bank, N.A., as Master
                    Servicer and Securities Administrator and HSBC Bank USA, National
                    Association, as Trustee (the “Pooling and Servicing Agreement”). Each
                    reference to a “Section” or to a “Section” “of this Agreement” will be
                    construed as a reference to a Section of the 1992 ISDA Form Master
                    Agreement.

                

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Each
          of
          Party A and Party B represents to the other that it has entered into this
          Transaction in reliance upon such tax, accounting, regulatory, legal, and
          financial advice as it deems necessary and not upon any view expressed
          by the
          other and, in the case of Party B, it has entered into this transaction
          pursuant
          to the direction received by it pursuant to the Pooling and Servicing
          Agreement.

        

        
          	
                  2.

                	
                  The
                    terms of the particular Transaction to which this Confirmation
                    relates are
                    as follows:

                

        

         

        
          
            	 	
                    Notional
                      Amount:

                  	 	
                    With
                      respect to any Calculation Period the amount as set forth in
                      Exhibit I,
                      which is attached hereto and incorporated by reference into
                      this
                      Confirmation and

                  
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                    Trade
                      Date:

                  	 	
                    October
                      12, 2006

                  
	 	 	 	 	 
	 	
                    Effective
                      Date:

                  	 	
                    October
                      31, 2006

                  
	 	 	 	 	 
	 	
                    Termination
                      Date:

                  	 	
                    April
                      25, 2007, subject to adjustment in accordance with the Following
                      Business
                      Day Convention.

                  
	 	 	 	 	 
	 	
                    Fixed
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Fixed
                      Amount Payer:

                  	
                    Party
                      B

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Amount:

                  	
                    USD
                      20,000.00

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate Payer 

                  	 
	 	 	
                    Payment
                      Date:

                  	
                    October
                      31, 2006, subject to adjustment in accordance with the Following
                      Business
                      Day Convention

                  
	 	 	 	 	 
	 	
                    Floating
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Floating
                      Rate payer:

                  	
                    Party
                      A

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer

                  	 
	 	 	
                    Period
                      End Dates:

                  	
                    The
                      25th calendar day of each month, commencing on November 25,
                      2006 and
                      ending on the Termination Date, inclusive, subject to adjustment
                      in
                      accordance with the Following Business Day Convention

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer

                  	 
	 	 	
                    Payment
                      Dates:

                  	
                    Early
                      Payment - Two (2) Business Days preceding each Floating Rate
                      Payer Period
                      End Date

                  
	 	 	 	 	 
	 	 	
                    Cap
                      Rate:

                  	 	
                    As
                      set forth in Exhibit I, which is attached hereto and incorporated
                      by
                      reference into this Confirmation

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Option:

                  	
                    USD-LIBOR-BBA,
                      provided, however, if the Floating Rate Option for a Calculation
                      Period is
                      greater than 11.00% then the Floating Rate Option for such
                      Calculation
                      Period shall be deemed equal to 11.00%.

                  
	 	 	 	 	 
	 	 	
                    Designated
                      Maturity:

                  	
                    One
                      month

                  
	 	 	 	 	 
	 	 	
                    Spread:

                  	
                    None

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate

                  	 
	 	 	
                    Day
                      Count Fraction:

                  	
                    Actual/360

                  
	 	 	 	 	 
	 	 	
                    Reset
                      Dates:

                  	
                    The
                      first day of each Calculation Period

                  
	 	 	 	 	 
	 	
                    Business
                      Days:

                  	 	
                    New
                      York

                  
	 	 	 	 	 
	 	
                    Calculation
                      Agent:

                  	 	
                    Party
                      A

                  

          

          
3.          
             Provisions
            Deemed Incorporated in a Schedule to the ISDA Form Master Agreement:
            

        

         

        1)  The
          parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form Master
          Agreement will apply to any Transaction.

         

        2)  Termination
          Provisions.
          For
          purposes of the ISDA Form Master Agreement:

         

        (a)  “Specified
          Entity”
          is not
          applicable to Party A or Party B for any purpose.

         

        (b)  “Specified
          Transaction”
          is not
          applicable to Party A or Party B for any purpose, and, accordingly, Section
          5(a)(v) shall not apply to Party A or Party B.

         

        (c)  The
          “Cross
          Default”
          provisions of Section 5(a)(vi) shall not apply to Party A or Party
          B.

         

        (d)  The
          “Credit
          Event Upon Merger”
          provisions of Section 5(b)(iv) will not apply to Party A or Party
          B.

         

        (e)  With
          respect to Party B, the “Bankruptcy”
          provision of Section 5(a)(vii)(2) of the ISDA Form Master Agreement shall
          not
          apply.

         

        (f)  The
          “Automatic
          Early Termination”
          provision of Section 6(a) will not apply to Party A or to Party B.

         

        (g)  Payments
          on Early Termination.
          For the
          purpose of Section 6(e) of the ISDA Form Master Agreement:

         

        (i)  Market
          Quotation will apply.

         

        (ii)  The
          Second Method will apply.

         

        (h)  “Termination
          Currency” means United States Dollars.

         

        (i)  Events
          of Default.
          The
          provisions of Sections 5(a)(ii), 5(a)(iii) and 5(a)(iv) shall not apply
          to Party
          B. The provisions of Sections 5(a)(ii) and 5(a)(iv) shall not apply to
          Party
          A.

         

        (j)  Tax
          Event.
          The
          provisions of Section 2(d)(i)(4) and 2(d)(ii) of the printed ISDA Form
          Master
          Agreement shall not apply to Party B such that Party B shall not be required
          to
          pay any additional amounts referred to therein.

         

        3)  Tax
          Representations.

         

        (a)  Payer
          Representations.
          For the
          purpose of Section 3(e) of the ISDA Form Master Agreement, Party A and
          Party B
          will make the following representations:

         

        It
          is not
          required by any applicable law, as modified by the practice of any relevant
          governmental revenue authority, of any Relevant Jurisdiction to make any
          deduction or withholding for or on account of any Tax from any payment
          (other
          than interest under Section 2(e), 6(d)(ii) or 6(e) of the ISDA Form Master
          Agreement) to be made by it to the other party under this Agreement. In
          making
          this representation, it may rely on:

        

        (i)  the
          accuracy of any representations made by the other party pursuant to Section
          3(f)
          of the ISDA Form Master Agreement;

         

        (ii)  the
          satisfaction of the agreement contained in Section 4(a)(iii) of the ISDA
          Form
          Master Agreement and the accuracy and effectiveness of any document provided
          by
          the other party pursuant to Section 4(a)(iii) of the ISDA Form Master Agreement;
          and

         

        (iii)  the
          satisfaction of the agreement of the other party contained in Section 4(d)
          of
          the ISDA Form Master Agreement, provided that it shall not be a breach
          of this
          representation where reliance is placed on clause (ii) and the other party
          does
          not deliver a form or document under Section 4(a)(iii) by reason of material
          prejudice to its legal or commercial position.

         

        (b)  Payee
          Representations.
          For the
          purpose of Section 3(f) of the ISDA Form Master Agreement, each of Party
          A and
          Party B make the following representations.

         

        The
          following representation will apply to Party A:

         

        Party
          A
          is a national banking association organized under the federal laws of the
          United
          States and its U.S. taxpayer identification number is 20-1177241.

         

        The
          following representation will apply to Party B:

         

        The
          beneficial owner of the payments made to it under the Agreement is either
          (i) a
“U.S. person” (as that term is used in Section 1.1441-4(a)(3)(ii) of the United
          States Treasury Regulations) for U.S. federal income tax purposes.

         

        4)  Limitation
          on Events of Default.
          Notwithstanding the terms of Sections 5 and 6 of the ISDA Form Master Agreement,
          if at any time and so long as Party B has satisfied in full all its payment
          obligations under Section 2(a)(i) of the ISDA Form Master Agreement and
          has at
          the time no future payment obligations, whether absolute or contingent,
          under
          such Section, then unless Party A is required pursuant to appropriate
          proceedings to return to Party B or otherwise returns to Party B upon demand
          of
          Party B any portion of any such payment, (a) the occurrence of an event
          described in Section 5(a) of the ISDA Form Master Agreement with respect
          to
          Party B shall not constitute an Event of Default or Potential Event of
          Default
          with respect to Party B as Defaulting Party and (b) Party A shall be entitled
          to
          designate an Early Termination Date pursuant to Section 6 of the ISDA Form
          Master Agreement only as a result of the occurrence of a Termination Event
          set
          forth in either Section 5(b)(i) with respect to either Party A or Party
          B as the
          Affected Party.

         

        5)  Documents
          to be Delivered.
          For the
          purpose of Section 4(a)(i) and 4(a)(iii): 

         

        (1)  
          Tax
          forms, documents, or certificates to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                
	
                  Party
                    A and 

                  Party
                    B

                	
                  Any
                    document required or reasonably requested to allow the other
                    party to make
                    payments under this Agreement without any deduction or withholding
                    for or
                    on the account of any Tax or with such deduction or withholding
                    at a
                    reduced rate.

                	
                  Promptly
                    after the earlier of (i) reasonable demand by either party or
                    (ii)
                    learning that such form or document is
                    required.

                

        

        

        (2)  
          Other
          documents to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                	
                  Covered
                    by Section 3(d) Representation

                
	
                  Party
                    A and Party B

                	
                  Any
                    documents to evidence the authority of the delivering party for
                    it to
                    execute and deliver this Confirmation.

                	
                  Upon
                    the execution and delivery of this Agreement and such
                    Confirmation.

                	
                  Yes

                
	
                  Party
                    A and Party B

                	
                  A
                    certificate of an authorized officer of the party, as to the
                    incumbency
                    and authority of the respective officers of the party signing
                    this
                    Confirmation.

                	
                  Upon
                    the execution and delivery of this Confirmation.

                	
                  Yes

                
	
                  Party
                    A

                	
                  Legal
                    opinion(s) with respect to such party and its Credit Support
                    Provider, if
                    any, for it, reasonably satisfactory in form and substance to
                    the other
                    party relating to the enforceability of the party’s obligations under this
                    Agreement.

                	
                  Upon
                    the execution and delivery of this Agreement.

                	
                  No

                
	
                  Party
                    A and Party B

                	
                  Indemnification
                    agreement executed by Party A and Nomura Home Equity Loan, Inc.
                    and Nomura
                    Credit and Capital, Inc. with respect to information included
                    in any free
                    writing prospectus and the prospectus supplement related to the
                    Class A
                    Certificates and Class M Certificates.

                	
                  Concurrently
                    with the printing of any preliminary prospectus supplement and
                    the
                    prospectus supplement related to the Class A and Class M
                    Certificates.

                	
                  No

                
	
                  Party
                    A

                	
                  A
                    copy of the most recent annual report of such party (only if
                    available)
                    and its Credit Support Provider, if any, containing in all cases
                    audited
                    consolidated financial statements for each fiscal year certified
                    by
                    independent certified public accountants and prepared in accordance
                    with
                    generally accepted accounting principles in the United States
                    or in the
                    country in which such party is organized.

                	
                  Promptly
                    after request by the other party.

                	
                  Yes

                
	
                  Party
                    B

                	
                  Each
                    other report or other document required to be delivered by or
                    to Party B
                    under the terms of the Pooling and Servicing Agreement, other
                    than those
                    required to be delivered directly by the Trustee to Party A
                    thereunder.

                	
                  Promptly
                    upon request by Party A, or with respect to any particular type
                    of report
                    or other document as to which Party A has previously made request
                    to
                    receive all reports or documents of that type, promptly upon
                    delivery or
                    receipt of such report or document by Party B.

                	
                  Yes

                

        

        

        6)  Other
          Provisions.

         

        (a)  Address
          for Notices:
          For the
          purposes of Section 12(a) of this Agreement: 

         

        Address
          for notices or communications to Party A:

         

        Address:       
           452
          Fifth
          Avenue, New York, NY 10018

        Attention:     
           Christian
          McGreevy

        Facsimile:      
           212-525-8710

        Telephone:   
           212-525-5517

         

        Please
          direct all settlement inquiries to:

        

        HSBC
          Bank
          USA, National Association

        Derivative
          Settlements

        Attention: 
            Jeffrey
          Lombino

        Telephone: (212)
          525-5393

        Fax:  (212)
          525-6903

        

        Address
          for notices or communications to Party B:

        

        Address:             
           Wells
          Fargo Bank, N.A.,

        9062
          Old
          Annapolis Road

        Columbia,
          MD 21045

                       
          Attn: Client Manager, NHEL 2006-FM2

                       
          Fax: 410-715-2380

        

        With
          a
          copy to:

        

        Address:             HSBC
          Bank USA, National Association

                    
          452 5th
          Ave,
          8th
          Floor

                    
          New York, NY 10018

                     Fax:
          212-525-8710

        

        (b)  Process
          Agent.
          For the
          purpose of Section 13(c):

         

        Party
          A
          appoints as its Process Agent: Not Applicable

        Party
          B
          appoints as it Process Agent: Not Applicable

        

        (c)  Offices.
          The
          provisions of Section 10(a) will not apply to this Agreement; for purposes
          of
          this Transaction, it will be deemed that neither Party A nor Party B have
          any
          Offices other than as set forth in the Notices Section and Party A agrees
          that,
          for purposes of Section 6(b) of the ISDA Form Master Agreement, it shall
          be
          deemed not to have any Office other than one in the United States.

         

        (d)  Multibranch
          Party.
          For the
          purpose of Section 10(c) of the ISDA Form Master Agreement:

         

        Party
          A
          is not a Multibranch Party.

         

        Party
          B
          is not a Multibranch Party.

         

        (e)  Calculation
          Agent.
          The
          Calculation Agent is Party A; provided
          however,
          if an
          Event of Default has occurred with respect to Party A, then Party B or
          a
          Reference Market-maker designated by Party B shall be Calculation
          Agent.

         

        (f)  Credit
          Support Document.
          Initially with respect to Party A, not applicable; however,
          if
          required pursuant to Paragraph 3(6)(q)(iv) hereof, a guaranty satisfactory
          to
          Party B and the Rating Agencies. With respect to Party B, not applicable.
          

         

        (g)  Credit
          Support Provider.

         

        Party
          A:
          Not Applicable

         

        Party
          B:
          Not Applicable

         

        (h)  Governing
          Law.
          The
          parties to this ISDA Agreement hereby agree that the law of the State of
          New
          York shall govern their rights and duties in whole, without regard to the
          conflict of law provisions thereof other than New York General Obligations
          Law
          Sections 5-1401 and 5-1402.

         

        (i)  Non-Petition.
          Party A
          hereby irrevocably and unconditionally agrees that it will not institute
          against, or join any other person in instituting against or cause any other
          person to institute against the trust created pursuant to the Pooling and
          Servicing Agreement, any bankruptcy, reorganization, arrangement, insolvency,
          or
          similar proceeding under the laws of the United States, or any other
          jurisdiction for the non-payment of any amount due hereunder or any other
          reason
          until the payment in full of the Ceritificates and the expiration of a
          period of
          one year plus ten days (or, if longer, the applicable preference period)
          following such payment.

         

        (j)  [Reserved] 

          

        (k)  Severability.
          If any
          term, provision, covenant, or condition of this Agreement, or the application
          thereof to any party or circumstance, shall be held to be invalid or
          unenforceable (in whole or in part) for any reason, the remaining terms,
          provisions, covenants, and conditions hereof shall continue in full force
          and
          effect and shall remain applicable to all other parties and circumstances
          as if
          this Agreement had been executed with the invalid or unenforceable portion
          eliminated, so long as this Agreement as so modified continues to express,
          without material change, the original intentions of the parties as to the
          subject matter of this Agreement and the deletion of such portion of this
          Agreement will not substantially impair the respective benefits or expectations
          of the parties.

         

        The
          parties shall endeavor to engage in good faith negotiations to replace
          any
          invalid or unenforceable term, provision, covenant or condition with a
          valid or
          enforceable term, provision, covenant or condition, the economic effect
          of which
          comes as close as possible to that of the invalid or unenforceable term,
          provision, covenant or condition.

         

        (l)  Consent
          to Recording.
          Each
          party hereto consents to the monitoring or recording, at any time and from
          time
          to time, by the other party of any and all communications between officers
          or
          employees of the parties, waives any further notice of such monitoring
          or
          recording, and agrees to notify its officers and employees of such monitoring
          or
          recording.

         

        (m)  Waiver
          of Jury Trial.
          Each
          party to this Agreement respectively waives any right it may have to a
          trial by
          jury in respect of any Proceedings relating to this Agreement, any Credit
          Support Document or any of the transactions contemplated hereby.

         

        (n)  Set-Off.
          Notwithstanding
          any provision of this Agreement or any other existing or future agreement,
          each
          party irrevocably waives any and all rights it may have to set off, net,
          recoup
          or otherwise withhold or suspend or condition payment or performance of
          any
          obligation between it and the other party hereunder against any obligation
          between it and the other party under any other agreements. The provisions
          for
          Set-off set forth in Section 6(e) of the ISDA Form Master Agreement shall
          not apply for purposes of this Transaction.

         

        (o)  “Affiliate”
          will
          have the meaning specified in Section 14 of the ISDA Form Master Agreement,
          provided that Party A and Party B shall be deemed to not have any Affiliates
          for
          purposes of this Agreement, including for purposes of Section
          6(b)(ii).

         

        (p) Section
          3
          of the ISDA Form Master Agreement is hereby amended by adding at the end
          thereof
          the following subsection (g):

         

        “(g)
          Relationship
          Between Parties.

        Each
          party represents to the other party on each date when it enters into a
          Transaction that:--

         

        (1)   Nonreliance.
          (i) It
          is not relying on any statement or representation of the other party regarding
          the Transaction (whether written or oral), other than the representations
          expressly made in this Agreement or the Confirmation in respect of that
          Transaction and (ii) it has consulted with its own legal, regulatory, tax,
          business, investment, financial and accounting advisors to the extent it
          has
          deemed necessary, and it has made its own investment, hedging and trading
          decisions based upon its own judgment and upon any advice from such advisors
          as
          it has deemed necessary and not upon any view expressed by the other
          party.

         

        (2)   Evaluation
          and Understanding.

         

        (i)   It
          has
          the capacity to evaluate (internally or through independent professional
          advice)
          the Transaction and has made its own decision to enter into the Transaction
          and
          in the case of Party B, it has been directed by the Pooling and Servicing
          Agreement to enter into this Transaction; and

         

        (ii)   It
          understands the terms, conditions and risks of the Transaction and is willing
          and able to accept those terms and conditions and to assume those risks,
          financially and otherwise.

         

        (3)   Purpose.
          It is
          entering into the Transaction for the purposes of managing its borrowings
          or
          investments, hedging its underlying assets or liabilities or in connection
          with
          a line of business.

         

        (4) Status
          of Parties.
          The
          other party is not acting as agent, fiduciary or advisor for it in respect
          of
          the Transaction,

        

        (5) Eligible
          Contract Participant.
          It is
          an “eligible swap participant” as such term is defined in Section 35.1(b)(2) of
          the regulations (17 C.F.R 35) promulgated under, and it constitutes an
“eligible
          contract participant” as such term is defined in Section 1(a)12 of the Commodity
          Exchange Act, as amended.”

        

        (q)
          The
          ISDA Form Master Agreement is hereby amended as follows

        

        (i) The
          word
“third” shall be replaced by the word “second” in the third line of
          Section 5(a)(i) of the ISDA Form Master Agreement.

        

        

        (ii)  Transfer,
          Amendment and Assignment. No
          transfer, amendment, waiver, supplement, assignment or other modification
          of
          this Transaction shall be permitted by either party (other than a change
          of
          Counterparty in connection with a change of Trustee in accordance with
          the
          Pooling and Servicing Agreement) unless Standard and Poor’s, a Division of the
          McGraw Hill Companies (“S&P”) Moody’s Investor Service, Inc. (“Moody’s”),
          Fitch Ratings (“Fitch”) and Dominion Bond Rating Service (“DBRS”), has been
          provided notice of the same and confirms in writing (including by facsimile
          transmission) that it will not downgrade, qualify, withdraw or otherwise
          modify
          its then-current rating of the Certificates.

         

        

        (iii) Additional
          Termination Events. Additional
          Termination Events will apply: 

        (a)
          If a
          Rating Agency Downgrade has occurred and Party A has not complied with
          Paragraph
          3(6)(q)(iv) below, then an Additional Termination Event shall have occurred
          with
          respect to Party A and Party A shall be the sole Affected Party with respect
          to
          such an Additional Termination Event.

        

        

        (b)
          If,
          upon the occurrence of a Swap Disclosure Event (as defined in Paragraph
          3(6)(r)
          below) Party A has not, within five (5) Business Days after such Swap Disclosure
          Event complied with any of the provisions set forth in Paragraph 3(6)(r)(iii)
          below, then an Additional Termination Event shall have occurred with respect
          to
          Party A and Party A shall be the sole Affected Party with respect to such
          Additional Termination Event.

        

        (c)
          If,
          at any time, the Master Servicer or the Servicer gives unrescindable notice
          that
          it will purchase the Mortgage Loans pursuant to Section 10.01 of the Pooling
          and
          Servicing Agreement, then an Additional Termination Event shall have occurred
          with respect to Party B and Party B shall be the sole Affected Party with
          respect to such an Additional Termination Event; provided, however, that
          notwithstanding Section 6(b)(iv) of the ISDA Form Master Agreement, only
          Party B
          shall have the right to designate an Early Termination Date with respect
          to this
          Additional Termination Event.

        

        (iv) Rating
          Agency Downgrade.
          In the
          event that (1) Party A’s short-term unsecured and unsubordinated debt rating is
          reduced below "A-1" by S&P (or if its short-term rating is not available by
          S&P, in the event that its long-term unsecured and unsubordinated debt
          rating is withdrawn or reduced below “A+” by S&P) or (2) its short-term
          unsecured and unsubordinated debt rating is reduced below “F-1” by Fitch (or, if
          its short-term rating is not available by Fitch, its long-term unsecured
          and
          unsubordinated debt rating is withdrawn or reduced below “A” by Fitch) or (3)
          its short-term unsecured and unsubordinated debt rating is reduced below
“P1” by
          Moody’s (or, if its short-term rating is not available by Moody's, its long-term
          unsecured and unsubordinated debt rating is withdrawn or reduced below
“A1” by
          Moody's) (and together with S&P and Fitch, the “Cap Rating Agencies”, and
          such rating thresholds, “Approved Rating Thresholds”), then within 30 days after
          such rating withdrawal or downgrade (unless, within 30 days after such
          withdrawal or downgrade each Cap Rating Agency has reconfirmed its rating
          for
          Party A which was in effect immediately prior to such withdrawal or downgrade),
          Party A shall, subject to the Rating Agency Condition, at its own expense:
          

        

        (a) assign
          this Transaction to another counterparty, which counterparty shall have
          the
          Approved Rating Thresholds and shall have been approved by Party B on terms
          substantially similar to the terms of this Confirmation; or

        

        (b) obtain
          guaranty of, or a contingent agreement of another person with the Approved
          Rating Thresholds, to honor Party A’s obligations under this Confirmation;
          provided that such other person has been approved by Party B.

        

        r)
          Compliance with Regulation AB. 

        

        (i) Party
          A
          agrees and acknowledges that Nomura Home Equity Loan, Inc. (“the Depositor”) is
          required under Regulation AB as defined under the Pooling and Servicing
          Agreement, to disclose certain financial information regarding Party A
          or its
          group of affiliated entities, if applicable, depending on the aggregate
          “significance percentage” of this Agreement and any other derivative contracts
          between Party A or its group of affiliated entities, if applicable, and
          Counterparty, as calculated from time to time by Nomura Home Equity Loan,
          Inc.,
          in accordance with Item 1115 of Regulation AB. 

        

        (ii) It
          shall
          be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
          after the date hereof, the Depositor requests from Party A the applicable
          financial information described in Item 1115 of Regulation AB (such request
          to
          be based on a reasonable determination by the Depositor, in good faith,
          that
          such information is required under Regulation AB) (the “Swap
          Financial Disclosure”).

        

        (iii) Upon
          the
          occurrence of a Swap Disclosure Event, Party A, at its own expense, shall
          (1)(a)
          either (i) provide to the Depositor the current Swap Financial Disclosure
          in an
          EDGAR-compatible format (for example, such information may be provided
          in
          Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
          provide written consent to the Depositor to incorporation by reference
          of such
          current Swap Financial Disclosure that are filed with the Securities and
          Exchange Commission in the reports of the Trust filed pursuant to the Exchange
          Act, (b) if applicable, cause its outside accounting firm to provide its
          consent
          to filing or incorporation by reference of such accounting firm’s report
          relating to their audits of such current Swap Financial Disclosure in the
          Exchange Act Reports of the Depositor, and (c) provide to the Depositor
          any
          updated Swap Financial Disclosure with respect to Party A or any entity
          that
          consolidates Party A within five days of the release of any such updated
          Swap
          Financial Disclosure; (2) secure another entity to replace Party A as party
          to
          this Agreement on terms substantially similar to this Agreement and subject
          to
          prior notification to the Swap Rating Agencies, which entity (or a guarantor
          therefor) meets or exceeds the Approved Rating Thresholds and which satisfies
          the Rating Agency Condition and which entity is able to comply with the
          requirements of Item 1115 of Regulation AB or (3) obtain a guaranty of
          the Party
          A’s obligations under this Agreement, subject to Rating Agency Condition,
          from
          an affiliate of the Party A that is able to comply with the financial
          information disclosure requirements of Item 1115 of Regulation AB, such
          that
          disclosure provided in respect of the affiliate will satisfy any disclosure
          requirements applicable to the Swap Provider, and cause such affiliate
          to
          provide Swap Financial Disclosure. If permitted by Regulation AB, any required
          Swap Financial Disclosure may be provided by incorporation by reference
          from
          reports filed pursuant to the Exchange Act.

        

        (iv) Party
          A
          agrees that, in the event that Party A provides Swap Financial Disclosure
          to the
          Depositor in accordance with clause (iii)(a) of Paragraph 3(6)(r) or causes
          its
          affiliate to provide Swap Financial Disclosure to the Depositor in accordance
          with clause (iii)(c) of Paragraph 3(6)(r), it will indemnify and hold harmless
          the Depositor, its respective directors or officers and any person controlling
          the Depositor, from and against any and all losses, claims, damages and
          liabilities caused by any untrue statement or alleged untrue statement
          of a
          material fact contained in such Swap Financial Disclosure or caused by
          any
          omission or alleged omission to state in such Swap Financial Disclosure
          a
          material fact required to be stated therein or necessary to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading.

        

        (v) If
          the
          Depositor reasonably requests, Party A shall provide such other information
          as
          may be necessary for the Depositor to comply with Item 1115 of Regulation
          AB.

        

        (vi) The
          Depositor shall be an express third party beneficiary of this Agreement
          as if a
          party hereto to the extent of the Depositor’ rights explicitly specified in this
          Paragraph 3(6)(r).

         

        4.          
           Account
          Details:

        

        Payments
          to Party
          A:                            
 HSBC
          Bank
          USA, National Association

        ABA
          #
          021-001-088

        For
          credit to Department 299

        A/C:
          000-04929-8

        HSBC
          Derivative Products Group

        

        Payments
          to Party
          B:                             
 Wells
          Fargo Bank, N.A.

                                                           
          ABA# 121-000-248

                                                           
          For Credit to SAS Clearing

                                                           
          A/C# 3970771416

                                                           
          For Further Credit to A/C# 50957101

                                                           
          NHEL 2006-FM2

        

        5.             Office:

        

        
          	 	
                  Party
                    A is acting through its New York Office for the purposes of this
                    Transaction.

                

        

        

        

        6.           
          Please
          confirm that the forgoing correctly sets forth the terms of our agreement
          by
          having an authorized officer sign this Confirmation and return it via facsimile
          to:

        

        HSBC
          Bank
          USA, National Association

        Swap
          Documentation

        Attention: Christian
          McGreevy

        Telephone: (212)
          525-8710

        Fax:  (212)
          525-5517

        

        Please
          direct all settlement inquiries to:

        

        HSBC
          Bank
          USA, National Association

        Derivative
          Settlements

        Attention: Jeffrey
          Lombino

        Telephone: (212)
          525-5393

        Fax:  (212)
          525-6903

        

        This
          message will be the only form of Confirmation dispatched by us. Please
          execute
          and return it to us by facsimile immediately. If you wish to exchange hard
          copy
          forms of this Confirmation, please contact us.

        

        

        Yours
          sincerely,

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        

        

        By:
          /s/
          Antonia Landgraf________ 

        Assistant
          Vice President

        Authorized
          Signature 

        

        

        By:
          /s/
          Charleen Collins_________ 

        Vice
          President

        Authorized
          Signature

        

        Confirmed
          as of the date first written above:

        

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        NOT
          IN
          ITS INDIVIDUAL CAPACITY, BUT SOLELY AS TRUSTEE

        WITH
          RESPECT TO THE NOMURA HOME EQUITY LOAN, INC.,

        HOME
          EQUITY LOAN TRUST, SERIES 2006-FM2

        

        

        

        By:
          /s/
          Elena Zheng_____________

        Name:
           Elena
          Zheng

        Title:  
           Assistant
          Vice President

        

        Attachment

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Exhibit
          I

        

        
          	
                  For
                    the Calculation Periods

                	
                  Notional
                    Amount

                	
                  Party
                    A 

                
	
                  From
                    and including:*

                	
                  To
                    but excluding:*

                	
                  in
                    USD:

                	
                  Cap
                    Rate

                
	
                  The
                    Effective Date

                	
                  November
                    25, 2006

                	
                  1,200,404,000.00

                	
                  9.55170%

                
	
                  November
                    25, 2006

                	
                  December
                    25, 2006

                	
                  1,179,969,000.00

                	
                  7.96026%

                
	
                  December
                    25, 2006

                	
                  January
                    25, 2007

                	
                  1,157,656,000.00

                	
                  7.70398%

                
	
                  January
                    25, 2007

                	
                  February
                    25, 2007

                	
                  1,133,542,000.00

                	
                  7.70451%

                
	
                  February
                    25, 2007

                	
                  March
                    25, 2007

                	
                  1,107,702,000.00

                	
                  8.53059%

                
	
                  March
                    25, 2007

                	
                  The
                    Termination Date

                	
                  1,080,224,000.00

                	
                  7.70561%

                

        

        

        

        *
          All
          dates listed above (with the exception of the Effective Date), are subject
          to
          adjustment in accordance with the Following Business Day
          Convention

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
        Q

       

      

      INTEREST
        RATE SWAP AGREEMENT

      

       

      
         

        
          	
                  

                
	
                  HSBC
                    Bank USA, National Association   

                  452
                    Fifth Avenue     

                  New
                    York, NY 10018    

                  Fax:
                    (212) 525-5517

                

        

        October
          31, 2006

        

        HSBC
          Bank
          USA, National Association,

        not
          in
          its individual capacity, but solely as trustee for the

        supplemental
          interest trust created pursuant to the Pooling

        and
          Servicing Agreement, with respect to the Nomura

        Home
          Equity Loan, Inc., Home Equity Loan Trust,

        Series
          2006-FM2

        

        

        Tel:
          410-884-2000

        Fax:
          410-715-2380

        

        Subject: Interest
          Rate Swap

        

        Transaction
          Reference Number: 409873HN

         

        
          
            

          

        

         

        The
          purpose of this letter agreement (this “Confirmation”) is to confirm the terms
          and conditions of the transaction entered into between us on the Trade
          Date
          specified below, and subsequently amended as set out below (the
          “Transaction”) between HSBC Bank USA, N.A. (“HSBC”) and HSBC Bank USA, National
          Association, not in its individual capacity, but solely as trustee (the
          “Supplemental Interest Trust Trustee”) for the supplemental interest trust (the
“Supplemental Interest Trust”) created pursuant to the Pooling and Servicing
          Agreement, with respect to the Nomura Home Equity Loan, Inc., Home Equity
          Loan
          Trust, Series 2006-FM2. This Confirmation constitutes a “Confirmation” as
          referred to in the ISDA Form Master Agreement (as defined below), as well
          as a
“Schedule” as referred to in the ISDA Form Master Agreement. In this
          Confirmation “Party A” means HSBC and “Party B” means HSBC Bank USA, National
          Association, not in its individual capacity, but solely in its capacity
          as
          Supplemental Interest Trust Trustee for the benefit of the Nomura Home
          Equity
          Loan, Inc., Home Equity Loan Trust Series 2006 FM2.

         

        1. This
          Agreement is subject to and incorporates the 2000 ISDA Definitions (the
          “Definitions”), as published by the International Swaps and Derivatives
          Association, Inc. (“ISDA”). Any reference to a “Swap Transaction” in the
          Definitions is deemed to be a reference to a “Transaction” for purposes of this
          Agreement, and any reference to a “Transaction” in this Agreement is deemed to
          be a reference to a “Swap Transaction” for purposes of the Definitions. You and
          we have agreed to enter into this Agreement in lieu of negotiating a Schedule
          to
          the 1992 ISDA Master Agreement (Multicurrency—Cross Border) form (the
          “ISDA Form Master Agreement”) but, rather, an ISDA Form Master Agreement shall
          be deemed to have been executed by you and us on the date we entered into
          the
          Transaction. For avoidance of doubt, the Transaction described herein shall
          be
          the sole Transaction governed by such ISDA Form Master Agreement. In the
          event
          of any inconsistency between the provisions of this Agreement and the
          Definitions or the ISDA Form Master Agreement, this Agreement shall prevail
          for
          purposes of the Transaction. Terms used and not otherwise defined herein,
          in the
          ISDA Form Master Agreement
          or the Definitions shall have the meanings assigned to them in the Pooling
          and
          Servicing Agreement, dated as of October 1, 2006, among, Nomura Credit
&
Capital, Inc., as Sponsor, Equity One, Inc., as Servicer, Nomura Home Equity
          Loan, Inc., as Depositor, Wells Fargo Bank, N.A., as Master Servicer and
          Securities Administrator and HSBC Bank USA, National Association, as Trustee
          (the “Pooling and Servicing Agreement”). Each reference to a “Section” or to a
“Section” “of this Agreement” will be construed as a reference to a Section of
          the 1992 ISDA Form Master Agreement.

         

        Each
          of
          Party A and Party B represents to the other that it has entered into this
          Transaction in reliance upon such tax, accounting, regulatory, legal, and
          financial advice as it deems necessary and not upon any view expressed
          by the
          other and, in the case of Party B, it has entered into this transaction
          pursuant
          to the direction received by it pursuant to the Pooling and Servicing
          Agreement.

         

        2. The
          terms
          of the particular Transaction to which this Confirmation relates are as
          follows:

        

          
            	 	
                    Notional
                      Amount:

                  	 	
                    With
                      respect to any Calculation Period:

                  
	 	 	 	 	 
	 	
                  	 	 	
                    The
                      Notional Amount as set in Exhibit I, which
                      is attached hereto and incorporated by reference
                      into this Confirmation

                  
	 	 	 	 	 
	 	
                    Trade
                      Date:

                  	 	
                    October
                      12, 2006

                  
	 	 	 	 	 
	 	
                    Effective
                      Date:

                  	 	
                    April
                      25, 2007

                  
	 	 	 	 	 
	 	
                    Termination
                      Date:

                  	 	
                    October
                      25, 2011

                  
	 	 	 	 	 
	 	 	 	 	 
	 	
                    Fixed
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Fixed
                      Amount Payer:

                  	
                    Party
                      B

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate Payer

                  	 
	 	 	
                    Period
                      End Dates:

                  	
                    The
                      25th calendar day of each month, commencing on May 25, 2007
                      and ending on
                      the Termination Date

                  
	 	 	 	 	 
	 	 	
                    No
                      Adjustment to

                  	 
	 	 	
                    Period
                      End Dates:

                  	
                    Applicable

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate Payer

                  	 
	 	 	
                    Payment
                      Dates:

                  	
                    Early
                      Payment - One (1) Business Day preceding each Fixed Rate Payer
                      Period End
                      Date

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate:

                  	
                    5.250000
                      %

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate

                  	 
	 	 	
                    Day
                      Count Fraction:

                  	
                    30/360

                  
	 	 	 	 	 
	 	
                    Floating
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer:

                  	
                    Party
                      A

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer

                  	 
	 	 	
                    Period
                      End Dates:

                  	
                    The
                      25th calendar day of each month, commencing on May 25, 2007
                      and ending on
                      the Termination Date, subject to adjustment in accordance with
                      the
                      Following Business Day Convention

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer

                  	 
	 	 	
                    Payment
                      Dates:

                  	
                    Early
                      Payment - One (1) Business Day preceding each Floating Rate
                      Payer Period
                      End Date

                  
	 	 	 	 	 
	 	 	
                    Final
                      Calculation Period:

                  	
                    For
                      the purpose of Section 4.13 of the Definitions, the Termination
                      Date shall
                      be subject to adjustment in accordance with the Following Business
                      Day
                      Convention

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Option:

                  	
                    USD-LIBOR-BBA

                  
	 	 	 	 	 
	 	 	
                    Designated
                      Maturity:

                  	
                    One
                      month

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Initial

                  	 
	 	 	
                    Calculation
                      Period:

                  	
                    To
                      be determined

                  
	 	 	 	 	 
	 	 	
                    Spread:

                  	
                    None

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate

                  	 
	 	 	
                    Day
                      Count Fraction:

                  	
                    Actual/360

                  
	 	 	 	 	 
	 	 	
                    Reset
                      Dates:

                  	
                    The
                      first day of each Calculation Period or Compounding Period
                      if Compounding
                      is applicable

                  
	 	
                     

                  	 	 	
                     

                  
	 	 	 	 	 
	 	
                     

                  	 	 	 
	 	 	
                    Compounding:

                  	
                    Inapplicable

                  
	 	 	 	 	 
	 	
                    Business
                      Days

                  	 	
                    New
                      York

                  
	 	 	 	 	 
	 	
                    Calculation
                      Agent:

                  	 	
                    As
                      specified in the Agreement

                  
	 	 	 	 	 
	 	
                    Additional
                      Payments:

                  	 	
                    Party
                      A agrees to pay USD 902,000.00 to Party B for value October
                      31, 2006,
                      subject to adjustment in accordance with the Following Business
                      Day
                      Convention

                  

          

           

        

        3. Provisions
          Deemed Incorporated in a Schedule to the ISDA Form Master Agreement:
          

         

        1)  The
          parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form Master
          Agreement will apply to any Transaction.

         

        2)  Termination
          Provisions.
          For
          purposes of the ISDA Form Master Agreement:

         

        (a)  “Specified
          Entity”
          is not
          applicable to Party A or Party B for any purpose.

         

        (b)  “Specified
          Transaction”
          is not
          applicable to Party A or Party B for any purpose, and, accordingly, Section
          5(a)(v) shall not apply to Party A or Party B.

         

        (c)  The
          “Cross
          Default”
          provisions of Section 5(a)(vi) shall not apply to Party A or Party
          B.

         

        (d)  The
          “Credit
          Event Upon Merger”
          provisions of Section 5(b)(iv) will not apply to Party A or Party
          B.

         

        (e)  With
          respect to Party B, the “Bankruptcy”
          provision of Section 5(a)(vii)(2) of the ISDA Form Master Agreement shall
          not
          apply.

         

        (f)  The
          “Automatic
          Early Termination”
          provision of Section 6(a) will not apply to Party A or to Party B.

         

        (g)  Payments
          on Early Termination.
          For the
          purpose of Section 6(e) of the ISDA Form Master Agreement:

         

        (i)  Market
          Quotation will apply.

         

        (ii)  The
          Second Method will apply.

         

        (h)  “Termination
          Currency” means United States Dollars.

         

        (i)  Events
          of Default.
          The
          provisions of Sections 5(a)(ii), 5(a)(iii) and 5(a)(iv) shall not apply
          to Party
          B. The provisions of Sections 5(a)(ii) and 5(a)(iv) shall not apply to
          Party
          A.

         

        (j)  Tax
          Event.
          The
          provisions of Section 2(d)(i)(4) and 2(d)(ii) of the printed ISDA Form
          Master
          Agreement shall not apply to Party B such that Party B shall not be required
          to
          pay any additional amounts referred to therein.

         

        3)  Tax
          Representations.

         

        (a)  Payer
          Representations.
          For the
          purpose of Section 3(e) of the ISDA Form Master Agreement, Party A and
          Party B
          will make the following representations:

         

        It
          is not
          required by any applicable law, as modified by the practice of any relevant
          governmental revenue authority, of any Relevant Jurisdiction to make any
          deduction or withholding for or on account of any Tax from any payment
          (other
          than interest under Section 2(e), 6(d)(ii) or 6(e) of the ISDA Form Master
          Agreement) to be made by it to the other party under this Agreement. In
          making
          this representation, it may rely on:

        

        (i)  the
          accuracy of any representations made by the other party pursuant to Section
          3(f)
          of the ISDA Form Master Agreement;

         

        (ii)  the
          satisfaction of the agreement contained in Section 4(a)(iii) of the ISDA
          Form
          Master Agreement and the accuracy and effectiveness of any document provided
          by
          the other party pursuant to Section 4(a)(iii) of the ISDA Form Master Agreement;
          and

         

        (iii)  the
          satisfaction of the agreement of the other party contained in Section 4(d)
          of
          the ISDA Form Master Agreement, provided that it shall not be a breach
          of this
          representation where reliance is placed on clause (ii) and the other party
          does
          not deliver a form or document under Section 4(a)(iii) by reason of material
          prejudice to its legal or commercial position.

         

        (b)  Payee
          Representations.
          For the
          purpose of Section 3(f) of the ISDA Form Master Agreement, each of Party
          A and
          Party B make the following representations.

         

        The
          following representation will apply to Party A:

         

        Party
          A
          is a national banking association organized under the federal laws of the
          United
          States and its U.S. taxpayer identification number is 20-1177241.

         

        The
          following representation will apply to Party B:

         

        The
          beneficial owner of the payments made to it under the Agreement is a “U.S.
          person” (as that term is used in Section 1.1441-4(a)(ii) of the United States
          Treasury Regulations) for U.S. federal income tax purposes.

         

        4)  Documents
          to be Delivered.
          For the
          purpose of Section 4(a)(i) and 4(a)(iii): 

         

        (1)  
          Tax
          forms, documents, or certificates to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                
	
                  Party
                    A and 

                  Party
                    B

                	
                  Any
                    document required or reasonably requested to allow the other
                    party to make
                    payments under this Agreement without any deduction or withholding
                    for or
                    on the account of any Tax or with such deduction or withholding
                    at a
                    reduced rate.

                	
                  Promptly
                    after the earlier of (i) reasonable demand by either party or
                    (ii)
                    learning that such form or document is
                    required.

                

        

        

        (2)  
          Other
          documents to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                	
                  Covered
                    by Section 3(d) Representation

                
	
                  Party
                    A and Party B

                	
                  Any
                    documents to evidence the authority of the delivering party for
                    it to
                    execute and deliver this Confirmation.

                	
                  Upon
                    the execution and delivery of this Agreement and such
                    Confirmation.

                	
                  Yes

                
	
                  Party
                    A and Party B

                	
                  A
                    certificate of an authorized officer of the party, as to the
                    incumbency
                    and authority of the respective officers of the party signing
                    this
                    Confirmation.

                	
                  Upon
                    the execution and delivery of this Confirmation.

                	
                  Yes

                
	
                  Party
                    A

                	
                  Legal
                    opinion(s) with respect to such party and its Credit Support
                    Provider, if
                    any, for it, reasonably satisfactory in form and substance to
                    the other
                    party relating to the enforceability of the party’s obligations under this
                    Agreement.

                	
                  Upon
                    the execution and delivery of this Agreement.

                	
                  No

                
	
                  Party
                    A and Party B

                	
                  Indemnification
                    agreement executed by each of Party A, Nomura Home Equity Loan,
                    Inc. and
                    Nomura Credit and Capital Inc. with respect to information included
                    in any
                    preliminary prospectus supplement and the prospectus supplement
                    related to
                    the Class A Certificates and Class M Certificates.

                	
                  Concurrently
                    with the printing of any preliminary prospectus supplement and
                    the
                    prospectus supplement related to the Class A and Class M
                    Certificates.

                	
                  No

                
	
                  Party
                    A

                	
                  A
                    copy of the most recent annual report of such party (only if
                    available)
                    and its Credit Support Provider, if any, containing in all cases
                    audited
                    consolidated financial statements for each fiscal year certified
                    by
                    independent certified public accountants and prepared in accordance
                    with
                    generally accepted accounting principles in the United States
                    or in the
                    country in which such party is organized.

                	
                  Promptly
                    after request by the other party.

                	
                  Yes

                
	
                  Party
                    B

                	
                  Each
                    other report or other document required to be delivered by or
                    to Party B
                    under the terms of the Pooling and Servicing Agreement, other
                    than those
                    required to be delivered directly by the Supplemental Interest
                    Trust
                    Trustee to Party A thereunder.

                	
                  Promptly
                    upon request by Party A, or with respect to any particular type
                    of report
                    or other document as to which Party A has previously made request
                    to
                    receive all reports or documents of that type, promptly upon
                    delivery or
                    receipt of such report or document by Party B.

                	
                  Yes

                

        

        

        5)  Other
          Provisions.

         

        (a)  Address
          for Notices:
          For the
          purposes of Section 12(a) of this Agreement: 

         

        Address
          for notices or communications to Party A:

         

        Address: 452
          Fifth
          Avenue, New York, NY 10018

        Attention: Christian
          McGreevy

        Facsimile: 212-525-8710

        Telephone:
          212-525-5517

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Please
          direct all settlement inquiries to:

         

        

        HSBC
          Bank
          USA, National Association

        Derivative
          Settlements

        Attention: Jeffrey
          Lombino

        Telephone: (212)
          525-5393

        Fax:  (212)
          525-6903

        

        Address
          for notices or communications to Party B:

         

        Address:             
           Wells
          Fargo Bank, N.A.

        9062
          Old
          Annapolis Road

        Columbia,
          MD 21045

        Attn:
          Client Manager, NHEL 2006-FM2

        Fax:
          410-715-2380

        

        With
          a
          copy to:

        

        Address:             
           HSBC
          Bank
          USA, National Association

        452
          5th
          Avenue,
          8th
          Floor

        New
          York,
          NY 10018

        Fax:
          212-525-8710 

        

        (For
          all
          purposes)

         

        (b)  Process
          Agent.
          For the
          purpose of Section 13(c):

         

        Party
          A
          appoints as its Process Agent: Not Applicable

        Party
          B
          appoints as it Process Agent: Not Applicable

        

        (c)  Offices.
          The
          provisions of Section 10(a) will not apply to this Agreement; for purposes
          of
          this Transaction, it will be deemed that neither Party A nor Party B have
          any
          Offices other than as set forth in the Notices Section and Party A agrees
          that,
          for purposes of Section 6(b) of the ISDA Form Master Agreement, it shall
          be
          deemed not to have any Office other than one in the United States.

         

        (d)  Multibranch
          Party.
          For the
          purpose of Section 10(c) of the ISDA Form Master Agreement:

         

        Party
          A
          is not a Multibranch Party.

         

        Party
          B
          is not a Multibranch Party.

         

        (e)  Calculation
          Agent.
          The
          Calculation Agent is Party A; provided
          however,
          if an
          Event of Default has occurred with respect to Party A, then Party B or
          a
          Reference Market-maker designated by Party B shall be Calculation
          Agent.

         

        (f)  Credit
          Support Document.
          Initially with respect to Party A, not applicable; however,
          if
          required pursuant to Paragraph 3(6)(r)(iv) hereof, a guaranty satisfactory
          to
          Party B and the Rating Agencies. With respect to Party B, not applicable.
          

        

        (g)  Credit
          Support Provider.

         

        Party
          A:
          Not Applicable

         

        Party
          B:
          Not Applicable

         

        (h)  Governing
          Law.
          The
          parties to this ISDA Agreement hereby agree that the law of the State of
          New
          York shall govern their rights and duties in whole, without regard to the
          conflict of law provisions thereof other than New York General Obligations
          Law
          Sections 5-1401 and 5-1402.

         

        (i)  Non-Petition.
          Party A
          hereby irrevocably and unconditionally agrees that it will not institute
          against, or join any other person in instituting against or cause any other
          person to institute against the trust created pursuant to the Pooling and
          Servicing Agreement Supplemental Interest Trust or Party B in its capacity
          as
          Supplemental Interest Trust Trustee, any bankruptcy, reorganization,
          arrangement, insolvency, or similar proceeding under the laws of the United
          States, or any other jurisdiction for the non-payment of any amount due
          hereunder or any other reason until the payment in full of the Certificates
          and
          the expiration of a period of one year plus ten days (or, if longer, the
          applicable preference period) following such payment. The provisions of
          this
          section shall survive the termination of this Agreement.

         

        

        (j)  Non-Recourse
          Provisions.
          Notwithstanding anything to the contrary contained herein, none of Party
          B or
          any of its officers, directors, or shareholders (the “Non-recourse Parties”)
          shall be personally liable for the payment by or on behalf of the Issuer
          hereunder, and Party A shall be limited to a proceeding against the Collateral
          or against any other third party other than the Non-recourse Parties, and
          Party
          A shall not have the right to proceed directly against the Issuer for the
          satisfaction of any monetary claim against the Non-recourse Parties or
          for any
          deficiency judgment remaining after foreclosure of any property included
          in such
          Collateral and following the realization of the Collateral, any claims
          of Party
          A shall be extinguished. The
          provisions of this Section shall survive the termination of this
          Agreement.

         

        (k)  Severability.
          If any
          term, provision, covenant, or condition of this Agreement, or the application
          thereof to any party or circumstance, shall be held to be invalid or
          unenforceable (in whole or in part) for any reason, the remaining terms,
          provisions, covenants, and conditions hereof shall continue in full force
          and
          effect and shall remain applicable to all other parties and circumstances
          as if
          this Agreement had been executed with the invalid or unenforceable portion
          eliminated, so long as this Agreement as so modified continues to express,
          without material change, the original intentions of the parties as to the
          subject matter of this Agreement and the deletion of such portion of this
          Agreement will not substantially impair the respective benefits or expectations
          of the parties.

         

        The
          parties shall endeavor to engage in good faith negotiations to replace
          any
          invalid or unenforceable term, provision, covenant or condition with a
          valid or
          enforceable term, provision, covenant or condition, the economic effect
          of which
          comes as close as possible to that of the invalid or unenforceable term,
          provision, covenant or condition.

         

        (l)  Consent
          to Recording.
          Each
          party hereto consents to the monitoring or recording, at any time and from
          time
          to time, by the other party of any and all communications between officers
          or
          employees of the parties, waives any further notice of such monitoring
          or
          recording, and agrees to notify its officers and employees of such monitoring
          or
          recording.

         

        (m)  Waiver
          of Jury Trial.
          Each
          party to this Agreement respectively waives any right it may have to a
          trial by
          jury in respect of any Proceedings relating to this Agreement, any Credit
          Support Document or any of the transactions contemplated hereby.

         

        (n)  Set-Off.
          Notwithstanding
          any provision of this Agreement or any other existing or future agreement,
          each
          party irrevocably waives any and all rights it may have to set off, net,
          recoup
          or otherwise withhold or suspend or condition payment or performance of
          any
          obligation between it and the other party hereunder against any obligation
          between it and the other party under any other agreements. The provisions
          for
          Set-off set forth in Section 6(e) of the ISDA Form Master Agreement shall
          not apply for purposes of this Transaction.

         

        (o)  Supplemental
          Interest Trust Trustee Liability Limitations.
          Notwithstanding anything herein to the contrary, it is expressly understood
          and
          agreed by the parties hereto that (a) this Agreement is executed and delivered
          by HSBC Bank USA, National Association (the “Trustee”), not individually or
          personally but solely as Supplemental Interest Trust Trustee of Party B,
          in the
          exercise of the powers and authority conferred and vested in it and that
          the
          Trustee shall perform its duties and obligations hereunder in accordance
          with
          the standard of care set forth in Article VIII of the Pooling and Servicing
          Agreement, (b) each of the representations, undertakings and agreements
          herein
          made on the part of Party B is made and intended not as personal
          representations, undertakings and agreements by the Trustee but is made
          and
          intended for the purpose of binding only Party B, (c) nothing herein contained
          shall be construed as creating any liability on the Trustee, individually
          or
          personally, to perform any covenant either expressed or implied contained
          herein, all such liability, if any, being expressly waived by the parties
          hereto
          and by any Person claiming by, through or under the parties hereto; provided
          that nothing in this paragraph shall relieve the Trustee from performing
          its
          duties and obligations under the Pooling and Servicing Agreement in accordance
          with the standard of care set forth therein, and (d) under no circumstances
          shall the Trustee be personally liable for the payment of any indebtedness
          or
          expenses of Party B or be liable for the breach or failure of any obligation,
          representation, warranty or covenant made or undertaken by Party B under
          this
          Agreement or any other related documents.

         

        (p) “Affiliate”
          will
          have the meaning specified in Section 14 of the ISDA Form Master Agreement,
          provided that Party A and Party B shall not be deemed to not have any Affiliates
          for purposes of this Agreement, including for purposes of Section
          6(b)(ii).

         

        (q) Section
          3
          of the ISDA Form Master Agreement is hereby amended by adding at the end
          thereof
          the following subsection (g):

         

        “(g)
          Relationship
          Between Parties.

        Each
          party represents to the other party on each date when it enters into a
          Transaction that:--

         

        (1)   Nonreliance.
          (i) It
          is not relying on any statement or representation of the other party regarding
          the Transaction (whether written or oral), other than the representations
          expressly made in this Agreement or the Confirmation in respect of that
          Transaction and (ii) it has consulted with its own legal, regulatory, tax,
          business, investment, financial and accounting advisors to the extent it
          has
          deemed necessary, and it has made its own investment, hedging and trading
          decisions based upon its own judgment and upon any advice from such advisors
          as
          it has deemed necessary and not upon any view expressed by the other
          party.

         

        (2)   Evaluation
          and Understanding.

         

        (i)   It
          has
          the capacity to evaluate (internally or through independent professional
          advice)
          the Transaction and has made its own decision to enter into the Transaction
          and
          in the case of Party B, it has been directed by the Pooling and Servicing
          Agreement to enter into this Transaction; and

         

        (ii)   It
          understands the terms, conditions and risks of the Transaction and is willing
          and able to accept those terms and conditions and to assume those risks,
          financially and otherwise.

         

        (3)   Purpose.
          It is
          entering into the Transaction for the purposes of managing its borrowings
          or
          investments, hedging its underlying assets or liabilities or in connection
          with
          a line of business.

         

        

        (4) Status
          of Parties.
          The
          other party is not acting as agent, fiduciary or advisor for it in respect
          of
          the Transaction,

        

        (5) Eligible
          Contract Participant.
          It is
          an “eligible swap participant” as such term is defined in Section 35.1(b)(2) of
          the regulations (17 C.F.R 35) promulgated under, and it constitutes an
“eligible
          contract participant” as such term is defined in Section 1(a)12 of the Commodity
          Exchange Act, as amended.”

        

        (r)
          The
          ISDA Form Master Agreement is hereby amended as follows

        

        (i) The
          word
“third” shall be replaced by the word “second” in the third line of
          Section 5(a)(i) of the ISDA Form Master Agreement.

        

        (ii)  Transfer,
          Amendment and Assignment.
          No
          transfer, amendment, waiver, supplement, assignment or other modification
          of
          this Transaction shall be permitted by either party (other than a change
          of
          Counterparty in connection with a change of Trustee in accordance with
          the
          Pooling and Servicing Agreement) unless Standard and Poor’s, a Division of the
          McGraw Hill Companies (“S&P”) Moody’s Investor Service, Inc. (“Moody’s”),
          Fitch Ratings (“Fitch”) and Dominion Bond Rating Service (“DBRS”), has been
          provided notice of the same and confirms in writing (including by facsimile
          transmission) that it will not downgrade, qualify, withdraw or otherwise
          modify
          its then-current rating of the Certificates

         

        (iii)  Additional
          Termination Events. Additional
          Termination Events will apply: 

         

        (a)
          if a
          Rating Agency Downgrade has occurred and Party A has not, within 30 days,
          complied with Paragraph 3(6)(r)(iv) below, then an Additional Termination
          Event
          shall have occurred with respect to Party A and Party A shall be the sole
          Affected Party with respect to such an Additional Termination Event. 

        

        (b)
          If,
          at any time, the Master Servicer or the Servicer gives unrescindable notice
          that
          it will purchase the Mortgage Loans pursuant to Section 10.01 of the Pooling
          and
          Servicing Agreement, then an additional Termination Event shall have occurred
          with respect to Party B and Party B shall be the sole Affected Party with
          respect to such an Additional Termination Event; provided, however, that
          notwithstanding Section 6(b)(iv) of the ISDA Form Master Agreement, both
          Party A
          and Party B shall have the right to designate an Early Termination Date
          with
          respect to this Additional Termination Event.

        

        (c)
          If,
          upon the occurrence of a Swap Disclosure Event (as defined in Paragraph
          3(6)(r)below) Party A has not, within five (5) Business Days after such
          Swap
          Disclosure Event complied with any of the provisions set forth in Paragraph
          3(6)(r)(v) below, then an Additional Termination Event shall have occurred
          with
          respect to Party A and Party A shall be the sole Affected Party with respect
          to
          such Additional Termination Event.

        

        (iv) Rating
          Agency Downgrade.
          In
          the
          event that (1) Party A’s short-term unsecured and unsubordinated debt rating is
          reduced below "A-1" by S&P (or if its short-term rating is not available by
          S&P, in the event that its long-term unsecured and unsubordinated debt
          rating is withdrawn or reduced below “A+” by S&P) or (2) its short-term
          unsecured and unsubordinated debt rating is reduced below “F-1” by Fitch (or, if
          its short-term rating is not available by Fitch, its long-term unsecured
          and
          unsubordinated debt rating is withdrawn or reduced below “A” by Fitch) or (3)
          its short-term unsecured and unsubordinated debt rating is reduced below
“P1” by
          Moody’s (or, if its short-term rating is not available by Moody's, its long-term
          unsecured and unsubordinated debt rating is withdrawn or reduced below
“A1” by
          Moody's) (and together with S&P and Fitch, the “Swap Rating Agencies”, and
          such rating thresholds, “Approved Rating Thresholds”), then within 30 days after
          such rating withdrawal or downgrade (unless, within 30 days after such
          withdrawal or downgrade each Swap Rating Agency has reconfirmed its rating
          for
          Party A which was in effect immediately prior to such withdrawal or downgrade),
          Party A shall, subject to the Rating Agency Condition, at its own expense:
          

        

        (a) assign
          this Transaction to another counterparty, which counterparty shall have
          the
          Approved Rating Thresholds and shall have been approved by Party B on terms
          substantially similar to the terms of this Confirmation;

        

        (b) obtain
          guaranty of, or a contingent agreement of another person with the Approved
          Rating Thresholds, to honor Party A’s obligations under this Confirmation;
          provided that such other person has been approved by Party B; 

        

        (c) post
          collateral which will be sufficient to the applicable Swap Rating Agency
          to
          maintain or restore the ratings of the Certificates existing immediately
          prior
          to such withdrawal or downgrade of Party A’s ratings; or

        

        (d) establish
          any other arrangement satisfactory to Party B and each Swap Rating Agency,
          in
          each case, sufficient to maintain or restore the ratings of the Certificates
          existing immediately prior to such withdrawal or downgrade of Party A’s
          ratings.

        

        Notwithstanding
          the previous paragraph, in the event that Party A’s short-term unsecured and
          unsubordinated debt rating is withdrawn or reduced below “A-3” by S&P or, if
          there is no short-term rating, its long-term unsecured and unsubordinated
          debt
          rating is withdrawn or reduced below “BBB-” by S&P, then within 10 days of
          such rating withdrawal or downgrade (unless, within 10 days after such
          withdrawal or downgrade S&P has reconfirmed the rating of the Certificates
          which was  in effect immediately prior to such withdrawal or downgrade),
          Party A shall, subject to the Rating Agency Condition, at its own expense,
          assign this Transaction to another counterparty with the Approved Rating
          Thresholds and approved by Party B on terms substantially similar to this
          Confirmation and obtain a confirmation from S&P that such action is
          sufficient to maintain or restore the immediately prior ratings of the
          Certificates.

        

        

        For
          purposes of these provisions, “Rating Agency Condition” means, with respect to
          any particular proposed act or omission to act hereunder in connection
          with a
          withdrawal or downgrade of any of Party A’s ratings as described above that
          Party A must consult with each of the Cap Rating Agencies then providing
          a
          rating of the Certificates that has reduced Party A’s ratings as described above
          (or with respect to any action pursuant to clause (d), each Cap Rating
          Agency)
          and receive from each such Cap Rating Agency a written confirmation, prior
          to
          taking any such action, that such withdrawal or downgrade of any of Party
          A’s
          ratings, after giving effect to any such proposed action or omission, would
          not
          cause a downgrade or withdrawal of the ratings of the Certificates existing
          immediately prior to such withdrawal or downgrade of Party A’s
          ratings.

        

        s) Compliance
          with Regulation AB. 

        

        (i) Party
          A
          agrees and acknowledges that Financial Asset Securities Corp. (“the Depositor”)
          is required under Regulation AB as defined under the Pooling and Servicing
          Agreement, to disclose certain financial information regarding Party A
          or its
          group of affiliated entities, if applicable, depending on the aggregate
          “significance percentage” of this Agreement and any other derivative contracts
          between Party A or its group of affiliated entities, if applicable, and
          Counterparty, as calculated from time to time by Nomura Home Equity Loan,
          Inc.
          in accordance with Item 1115 of Regulation AB. 

        

        (ii) It
          shall
          be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
          after the date hereof, the Depositor requests from Party A the applicable
          financial information described in Item 1115 of Regulation AB (such request
          to
          be based on a reasonable determination by the Depositor, in good faith,
          that
          such information is required under Regulation AB) (the “Swap
          Financial Disclosure”).

        

        (iii) Upon
          the
          occurrence of a Swap Disclosure Event, Party A, at its own expense, shall
          (1)(a)
          either (i) provide to the Depositor the current Swap Financial Disclosure
          in an
          EDGAR-compatible format (for example, such information may be provided
          in
          Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
          provide written consent to the Depositor to incorporation by reference
          of such
          current Swap Financial Disclosure that are filed with the Securities and
          Exchange Commission in the reports of the Trust filed pursuant to the Exchange
          Act, (b) if applicable, cause its outside accounting firm to provide its
          consent
          to filing or incorporation by reference of such accounting firm’s report
          relating to their audits of such current Swap Financial Disclosure in the
          Exchange Act Reports of the Depositor, and (c) provide to the Depositor
          any
          updated Swap Financial Disclosure with respect to Party A or any entity
          that
          consolidates Party A within five days of the release of any such updated
          Swap
          Financial Disclosure; (2) secure another entity to replace Party A as party
          to
          this Agreement on terms substantially similar to this Agreement and subject
          to
          prior notification to the Swap Rating Agencies, which entity (or a guarantor
          therefor) meets or exceeds the Approved Rating Thresholds and which satisfies
          the Rating Agency Condition and which entity is able to comply with the
          requirements of Item 1115 of Regulation AB or (3) obtain a guaranty of
          the Party
          A’s obligations under this Agreement, subject to Rating Agency Condition,
          from
          an affiliate of the Party A that is able to comply with the financial
          information disclosure requirements of Item 1115 of Regulation AB, such
          that
          disclosure provided in respect of the affiliate will satisfy any disclosure
          requirements applicable to the Swap Provider, and cause such affiliate
          to
          provide Swap Financial Disclosure. If permitted by Regulation AB, any required
          Swap Financial Disclosure may be provided by incorporation by reference
          from
          reports filed pursuant to the Exchange Act.

        

        (iv) Party
          A
          agrees that, in the event that Party A provides Swap Financial Disclosure
          to the
          Depositor in accordance with clause (iii)(a) of Paragraph 3(6)(r) or causes
          its
          affiliate to provide Swap Financial Disclosure to the Depositor in accordance
          with clause (iii)(c) of Paragraph 3(6)(r), it will indemnify and hold harmless
          the Depositor, its respective directors or officers and any person controlling
          the Depositor, from and against any and all losses, claims, damages and
          liabilities caused by any untrue statement or alleged untrue statement
          of a
          material fact contained in such Swap Financial Disclosure or caused by
          any
          omission or alleged omission to state in such Swap Financial Disclosure
          a
          material fact required to be stated therein or necessary to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading.

        

        (v) If
          the
          Depositor reasonably requests, Party A shall provide such other information
          as
          may be necessary for the Depositor to comply with Item 1115 of Regulation
          AB.

        

        
          (vi)  The
            Depositor shall be an express third party beneficiary of this Agreement
            as if a
            party hereto to the extent of the Depositor’ rights explicitly specified in this
            Paragraph 3(6)(r).

        

        

        4.           
           Account
          Details:

        

        Payments
          to Party
          A:                            
 HSBC
          Bank
          USA, National Association

        ABA
          #
          021-001-088

        For
          credit to Department 299

        A/C:
          000-04929-8

        HSBC
          Derivative Products Group

        

        Payments
          to Party
          B:               
 
          Wells
          Fargo Bank, N.A.

                                                           
          ABA# 121-000-248

                                                           
          For Credit to SAS Clearing

                                                           
          A/C# 3970771416

                                                           
          For Further Credit to A/C # 50957101

                                                           
          NHEL 2006-FM2

         

        5.           
           Office:

        

        
          	 	
                  Party
                    A is acting through its New York Office for the purposes of this
                    Transaction.

                

        

        

        
          	
                  6.

                	
                  Please
                    confirm that the forgoing correctly sets forth the terms of our
                    agreement
                    by having an authorized officer sign this Confirmation and return
                    it via
                    facsimile to:

                

        

        

        HSBC
          Bank
          USA, National Association

        Attention: Christian
          McGreevy

        Telephone: (212)
          525-8710

        Fax:  (212)
          525-5517

        

        [REMAINDER
          OF PAGE INTENTIONALLY LEFT BLANK]

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

         

        
          	
                  

                
	
                  HSBC
                    Bank USA, National Association   

                  452
                    Fifth Avenue     

                  New
                    York, NY 10018    

                  Fax:
                    (212) 525-5517

                

        

        

        This
          message will be the only form of Confirmation dispatched by us. Please
          execute
          and return it to us by facsimile immediately. If you wish to exchange hard
          copy
          forms of this Confirmation, please contact us.

        

         

        Yours
          sincerely,

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

         

        

        By:
          /s/
          Antonia Landgraf________ 

        Assistant
          Vice President

        Authorized
          Signature 

        

        

        By:
          /s/
          Charleen Collins_________ 

        Vice
          President

        Authorized
          Signature

        

        

        Confirmed
          as of the date first written above:

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        NOT
          IN
          ITS INDIVIDUAL CAPACITY, BUT SOLELY AS CAP

        TRUSTEE
          WITH RESPECT TO THE NOMURA HOME EQUITY LOAN, INC., 

        HOME
          EQUITY LOAN TRUST, SERIES 2006-FM2

         

        

        By:
          /s/
          Elena Zheng_____________

        Name:
           Elena
          Zheng

        Title:  
           Assistant
          Vice President

        

         

        Attachment

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

        Exhibit
          I

        

        
          	
                  For
                    the Calculation Periods

                	
                  Notional
                    Amount

                
	
                  From
                    and including:*

                	
                  To
                    but excluding:*

                	
                  in
                    USD:

                
	
                  The
                    Effective Date

                	
                  May
                    25, 2007

                	
                  1,002,021,000.00

                
	
                  May
                    25, 2007

                	
                  June
                    25, 2007

                	
                  954,255,000.00

                
	
                  June
                    25, 2007

                	
                  July
                    25, 2007

                	
                  908,034,000.00

                
	
                  July
                    25, 2007

                	
                  August
                    25, 2007

                	
                  864,000,000.00

                
	
                  August
                    25, 2007

                	
                  September
                    25, 2007

                	
                  822,048,000.00

                
	
                  September
                    25, 2007

                	
                  October
                    25, 2007

                	
                  782,080,000.00

                
	
                  October
                    25, 2007

                	
                  November
                    25, 2007

                	
                  744,000,000.00

                
	
                  November
                    25, 2007

                	
                  December
                    25, 2007

                	
                  707,720,000.00

                
	
                  December
                    25, 2007

                	
                  January
                    25, 2008

                	
                  673,153,000.00

                
	
                  January
                    25, 2008

                	
                  February
                    25, 2008

                	
                  640,219,000.00

                
	
                  February
                    25, 2008

                	
                  March
                    25, 2008

                	
                  608,839,000.00

                
	
                  March
                    25, 2008

                	
                  April
                    25, 2008

                	
                  578,941,000.00

                
	
                  April
                    25, 2008

                	
                  May
                    25, 2008

                	
                  550,454,000.00

                
	
                  May
                    25, 2008

                	
                  June
                    25, 2008

                	
                  125,955,000.00

                
	
                  June
                    25, 2008

                	
                  July
                    25, 2008

                	
                  120,347,000.00

                
	
                  July
                    25, 2008

                	
                  August
                    25, 2008

                	
                  115,052,000.00

                
	
                  August
                    25, 2008

                	
                  September
                    25, 2008

                	
                  110,044,000.00

                
	
                  September
                    25, 2008

                	
                  October
                    25, 2008

                	
                  105,301,000.00

                
	
                  October
                    25, 2008

                	
                  November
                    25, 2008

                	
                  100,965,000.00

                
	
                  November
                    25, 2008

                	
                  December
                    25, 2008

                	
                  96,944,000.00

                
	
                  December
                    25, 2008

                	
                  January
                    25, 2009

                	
                  93,083,000.00

                
	
                  January
                    25, 2009

                	
                  February
                    25, 2009

                	
                  89,378,000.00

                
	
                  February
                    25, 2009

                	
                  March
                    25, 2009

                	
                  85,821,000.00

                
	
                  March
                    25, 2009

                	
                  April
                    25, 2009

                	
                  82,406,000.00

                
	
                  April
                    25, 2009

                	
                  May
                    25, 2009

                	
                  79,128,000.00

                
	
                  May
                    25, 2009

                	
                  June
                    25, 2009

                	
                  73,880,000.00

                
	
                  June
                    25, 2009

                	
                  July
                    25, 2009

                	
                  70,986,000.00

                
	
                  July
                    25, 2009

                	
                  August
                    25, 2009

                	
                  68,205,000.00

                
	
                  August
                    25, 2009

                	
                  September
                    25, 2009

                	
                  65,533,000.00

                
	
                  September
                    25, 2009

                	
                  October
                    25, 2009

                	
                  62,965,000.00

                
	
                  October
                    25, 2009

                	
                  November
                    25, 2009

                	
                  60,498,000.00

                
	
                  November
                    25, 2009

                	
                  December
                    25, 2009

                	
                  58,127,000.00

                
	
                  December
                    25, 2009

                	
                  January
                    25, 2010

                	
                  55,849,000.00

                
	
                  January
                    25, 2010

                	
                  February
                    25, 2010

                	
                  53,660,000.00

                
	
                  February
                    25, 2010

                	
                  March
                    25, 2010

                	
                  51,556,000.00

                
	
                  March
                    25, 2010

                	
                  April
                    25, 2010

                	
                  49,535,000.00

                
	
                  April
                    25, 2010

                	
                  May
                    25, 2010

                	
                  47,592,000.00

                
	
                  May
                    25, 2010

                	
                  June
                    25, 2010

                	
                  45,726,000.00

                
	
                  June
                    25, 2010

                	
                  July
                    25, 2010

                	
                  43,932,000.00

                
	
                  July
                    25, 2010

                	
                  August
                    25, 2010

                	
                  42,209,000.00

                
	
                  August
                    25, 2010

                	
                  September
                    25, 2010

                	
                  40,553,000.00

                
	
                  September
                    25, 2010

                	
                  October
                    25, 2010

                	
                  38,962,000.00

                
	
                  October
                    25, 2010

                	
                  November
                    25, 2010

                	
                  37,433,000.00

                
	
                  November
                    25, 2010

                	
                  December
                    25, 2010

                	
                  35,964,000.00

                
	
                  December
                    25, 2010

                	
                  January
                    25, 2011

                	
                  34,552,000.00

                
	
                  January
                    25, 2011

                	
                  February
                    25, 2011

                	
                  33,196,000.00

                
	
                  February
                    25, 2011

                	
                  March
                    25, 2011

                	
                  31,892,000.00

                
	
                  March
                    25, 2011

                	
                  April
                    25, 2011

                	
                  30,640,000.00

                
	
                  April
                    25, 2011

                	
                  May
                    25, 2011

                	
                  29,381,000.00

                
	
                  May
                    25, 2011

                	
                  June
                    25, 2011

                	
                  28,228,000.00

                
	
                  June
                    25, 2011

                	
                  July
                    25, 2011

                	
                  27,120,000.00

                
	
                  July
                    25, 2011

                	
                  August
                    25, 2011

                	
                  26,055,000.00

                
	
                  August
                    25, 2011

                	
                  September
                    25, 2011

                	
                  25,032,000.00

                
	
                  September
                    25, 2011

                	
                  The
                    Termination Date

                	
                  24,049,000.00

                

        

        

        *
          For
          Party A Amounts: All dates listed above (with the exception of the Effective
          Date), are subject to adjustment in accordance with the Following Business
          Day
          Convention

        

        *
          For
          Party B Amounts: All dates listed above shall not be subject to adjustment
          in
          accordance with any Business Day Convention

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      EXHIBIT
        R

      

      INTEREST
        RATE CAP CONTRACT

      

       

      
         

        
          	
                  

                
	
                  HSBC
                    Bank USA, National Association   

                  452
                    Fifth Avenue     

                  New
                    York, NY 10018    

                  Fax:
                    (212) 525-5517

                

        

        October
          31, 2006

         

        HSBC
          Bank
          USA National Association, not in its

        Individual
          capacity, but solely as cap trustee on behalf 

        Of
          the
          cap trust with respect to the Nomura Home Equity

        Loan,
          Inc., Home Equity Loan Trust, Series 2006-FM2 

        

        Tel:
          410-884-2000

        Fax:
          410-715-2380

        

        Subject: Interest
          Rate Cap

        

        Transaction
          Reference Number: 409886HN/409887HN

        

        
          
            

          

        The
          purpose of this letter agreement (this “Confirmation”) is to confirm the terms
          and conditions of the Transaction entered into between us on the Trade
          Date
          specified below, and subsequently amended as set out below (the
          “Transaction”) between HSBC Bank USA, N.A. (“HSBC”) and HSBC Bank USA, National
          Association, not in its individual capacity, but solely as cap trustee
          (the “Cap
          Trustee) on behalf of a separate trust (the “Cap Trust”) created pursuant to the
          Cap Allocation Agreement between the Cap Trustee and HSBC Bank USA, National
          Association, as Trustee with respect to the Nomura Home Equity Loan, Inc.,
          Home
          Equity Loan Trust, Series 2006-FM2 (in such capacity, the “Counterparty”). This
          Confirmation constitutes a “Confirmation” as referred to in the ISDA Form Master
          Agreement (as defined below), as well as a “Schedule” as referred to in the ISDA
          Form Master Agreement. In this Confirmation “Party A” means HSBC and “Party B”
means the Counterparty. 

        

        
          	
                  1.

                	
                  This
                    Agreement is subject to and incorporates the 2000 ISDA Definitions
                    (the
                    “Definitions”), as published by the International Swaps and Derivatives
                    Association, Inc. (“ISDA”). Any reference to a “Swap Transaction” in the
                    Definitions is deemed to be a reference to a “Transaction” for purposes of
                    this Agreement, and any reference to a “Transaction” in this Agreement is
                    deemed to be a reference to a “Swap Transaction” for purposes of the
                    Definitions. You and we have agreed to enter into this Agreement
                    in lieu
                    of negotiating a Schedule to the 1992 ISDA Master Agreement
                    (Multicurrency—Cross Border) form (the
                    “ISDA Form Master Agreement”) but, rather, an ISDA Form Master Agreement
                    shall be deemed to have been executed by you and us on the date
                    we entered
                    into the Transaction. For avoidance of doubt, the Transaction
                    described
                    herein shall be the sole Transaction governed by such ISDA Form
                    Master
                    Agreement. In the event of any inconsistency between the provisions
                    of
                    this Agreement and the Definitions or the ISDA Form Master Agreement,
                    this
                    Agreement shall prevail for purposes of the Transaction. Terms
                    used and
                    not otherwise defined herein, in the ISDA Form Master Agreement
                    or the Definitions shall have the meanings assigned to them in
                    the Pooling
                    and Servicing Agreement, dated as of October 1, 2006, among,
                    Nomura Credit
                    and Capital, Inc., as Sponsor, Equity One, Inc., as Servicer,
                    Nomura Home
                    Equity Loan, Inc., as Depositor, Wells Fargo Bank, N.A., as Master
                    Servicer and Securities Administrator and HSBC Bank USA, National
                    Association as Trustee (the “Pooling and Servicing Agreement”). Each
                    reference to a “Section” or to a “Section” “of this Agreement” will be
                    construed as a reference to a Section of the 1992 ISDA Form Master
                    Agreement.

                

        

        

        Each
          of
          Party A and Party B represents to the other that it has entered into this
          Transaction in reliance upon such tax, accounting, regulatory, legal, and
          financial advice as it deems necessary and not upon any view expressed
          by the
          other and, in the case of Party B, it has entered into this transaction
          pursuant
          to the direction received by it pursuant to the Pooling and Servicing
          Agreement.

        

        
          	
                  2.

                	
                  The
                    terms of the particular Transaction to which this Confirmation
                    relates are
                    as follows:

                

        

         

        
          
            	 	
                    Notional
                      Amount:

                  	 	
                    With
                      respect to any Calculation Period the
                      amount as set forth in Exhibit I, which is attached hereto
                      and
                      incorporated by reference into this Confirmation
                      and

                  
	 	 	 	 	 
	 	
                    Trade
                      Date:

                  	 	
                    October
                      12, 2006

                  
	 	 	 	 	 
	 	
                    Effective
                      Date:

                  	 	
                    May
                      27, 2008

                  
	 	 	 	 	 
	 	
                    Termination
                      Date:

                  	 	
                    October
                      25, 2011, subject to adjustment in accordance with the Following
                      Business
                      Day Convention.

                  
	 	 	 	 	 
	 	
                    Fixed
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Fixed
                      Amount Payer:

                  	 	
                    Party
                      B

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Amount:

                  	 	
                    USD
                      1,537,000.00

                  
	 	 	 	 	 
	 	 	
                    Fixed
                      Rate Payer 

                  	 	 
	 	 	
                    Payment
                      Date:

                  	 	
                    October
                      31, 2006, subject to adjustment in accordance with the Following
                      Business
                      Day Convention

                  
	 	 	 	 	 
	 	
                    Floating
                      Amounts:

                  	 	 
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer:

                  	 	
                    Party
                      A

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Payer

                  	 	 
	 	 	
                    Period
                      End Dates:

                  	 	
                    The
                      25th calendar day of each month, commencing on June 25, 2008
                      and ending on
                      the Termination Date, inclusive, subject to adjustment in accordance
                      with
                      the Following Business Day Convention

                  
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	
                    Payment
                      Dates:

                  	 	
                    Early
                      Payment - Two (2) Business Days preceding each Floating Rate
                      Payer Period
                      End Date

                  
	 	 	 	 	 
	 	 	
                    Cap
                      Rate:

                  	 	
                    As
                      set forth in Exhibit I, which is attached hereto and incorporated
                      by
                      reference into this Confirmation

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate Option:

                  	 	
                    USD-LIBOR-BBA,
                      provided, however, if the Floating Rate Option for a Calculation
                      Period is
                      greater than 9.50% then the Floating Rate Option for such Calculation
                      Period shall be deemed equal to 9.50%.

                  
	 	 	 	 	 
	 	 	
                    Designated
                      Maturity:

                  	 	
                    One
                      month

                  
	 	 	 	 	 
	 	 	
                    Spread:

                  	 	
                    None

                  
	 	 	 	 	 
	 	 	
                    Floating
                      Rate

                  	 	 
	 	 	
                    Day
                      Count Fraction:

                  	 	
                    Actual/360

                  
	 	 	 	 	 
	 	 	
                    Reset
                      Dates:

                  	 	
                    The
                      first day of each Calculation Period

                  
	 	 	 	 	 
	 	
                    Business
                      Days:

                  	 	
                    New
                      York

                  
	 	 	 	 	 
	 	
                    Calculation
                      Agent:

                  	 	
                    Party
                      A

                  

          

           

        

        3.           
           Provisions
          Deemed Incorporated in a Schedule to the ISDA Form Master Agreement:
          

         

        1)  The
          parties agree that subparagraph (ii) of Section 2(c) of the ISDA Form Master
          Agreement will apply to any Transaction.

         

        2)  Termination
          Provisions.
          For
          purposes of the ISDA Form Master Agreement:

         

        (a)  “Specified
          Entity”
          is not
          applicable to Party A or Party B for any purpose.

         

        (b)  “Specified
          Transaction”
          is not
          applicable to Party A or Party B for any purpose, and, accordingly, Section
          5(a)(v) shall not apply to Party A or Party B.

         

        (c)  The
          “Cross
          Default”
          provisions of Section 5(a)(vi) shall not apply to Party A or Party
          B.

         

        (d)  The
          “Credit
          Event Upon Merger”
          provisions of Section 5(b)(iv) will not apply to Party A or Party
          B.

         

        (e)  With
          respect to Party B, the “Bankruptcy”
          provision of Section 5(a)(vii)(2) of the ISDA Form Master Agreement shall
          not
          apply.

         

        (f)  The
          “Automatic
          Early Termination”
          provision of Section 6(a) will not apply to Party A or to Party B.

         

        (g)  Payments
          on Early Termination.
          For the
          purpose of Section 6(e) of the ISDA Form Master Agreement:

         

        (i)  Market
          Quotation will apply.

         

        (ii)  The
          Second Method will apply.

         

        (h)  “Termination
          Currency” means United States Dollars.

         

        (i)  Events
          of Default.
          The
          provisions of Sections 5(a)(ii), 5(a)(iii) and 5(a)(iv) shall not apply
          to Party
          B. The provisions of Sections 5(a)(ii) and 5(a)(iv) shall not apply to
          Party
          A.

         

        (j)  Tax
          Event.
          The
          provisions of Section 2(d)(i)(4) and 2(d)(ii) of the printed ISDA Form
          Master
          Agreement shall not apply to Party B such that Party B shall not be required
          to
          pay any additional amounts referred to therein.

         

        3)  Tax
          Representations.

         

        (a)  Payer
          Representations.
          For the
          purpose of Section 3(e) of the ISDA Form Master Agreement, Party A and
          Party B
          will make the following representations:

         

        It
          is not
          required by any applicable law, as modified by the practice of any relevant
          governmental revenue authority, of any Relevant Jurisdiction to make any
          deduction or withholding for or on account of any Tax from any payment
          (other
          than interest under Section 2(e), 6(d)(ii) or 6(e) of the ISDA Form Master
          Agreement) to be made by it to the other party under this Agreement. In
          making
          this representation, it may rely on:

        

        (i)  the
          accuracy of any representations made by the other party pursuant to Section
          3(f)
          of the ISDA Form Master Agreement;

         

        (ii)  the
          satisfaction of the agreement contained in Section 4(a)(iii) of the ISDA
          Form
          Master Agreement and the accuracy and effectiveness of any document provided
          by
          the other party pursuant to Section 4(a)(iii) of the ISDA Form Master Agreement;
          and

         

        (iii)  the
          satisfaction of the agreement of the other party contained in Section 4(d)
          of
          the ISDA Form Master Agreement, provided that it shall not be a breach
          of this
          representation where reliance is placed on clause (ii) and the other party
          does
          not deliver a form or document under Section 4(a)(iii) by reason of material
          prejudice to its legal or commercial position.

         

        (b)  Payee
          Representations.
          For the
          purpose of Section 3(f) of the ISDA Form Master Agreement, each of Party
          A and
          Party B make the following representations.

         

        The
          following representation will apply to Party A:

         

        Party
          A
          is a national banking association organized under the federal laws of the
          United
          States and its U.S. taxpayer identification number is 20-1177241.

         

        The
          following representation will apply to Party B:

         

        The
          beneficial owner of the payments made to it under the Agreement is either
          (i) a
“U.S. person” (as that term is used in Section 1.1441-4(a)(3)(ii) of the United
          States Treasury Regulations) for U.S. federal income tax purposes.

         

        4)  Limitation
          on Events of Default.
          Notwithstanding the terms of Sections 5 and 6 of the ISDA Form Master Agreement,
          if at any time and so long as Party B has satisfied in full all its payment
          obligations under Section 2(a)(i) of the ISDA Form Master Agreement and
          has at
          the time no future payment obligations, whether absolute or contingent,
          under
          such Section, then unless Party A is required pursuant to appropriate
          proceedings to return to Party B or otherwise returns to Party B upon demand
          of
          Party B any portion of any such payment, (a) the occurrence of an event
          described in Section 5(a) of the ISDA Form Master Agreement with respect
          to
          Party B shall not constitute an Event of Default or Potential Event of
          Default
          with respect to Party B as Defaulting Party and (b) Party A shall be entitled
          to
          designate an Early Termination Date pursuant to Section 6 of the ISDA Form
          Master Agreement only as a result of the occurrence of a Termination Event
          set
          forth in either Section 5(b)(i) with respect to either Party A or Party
          B as the
          Affected Party.

         

        5)  Documents
          to be Delivered.
          For the
          purpose of Section 4(a)(i) and 4(a)(iii): 

         

        (1)  
          Tax
          forms, documents, or certificates to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                
	
                  Party
                    A and 

                  Party
                    B

                	
                  Any
                    document required or reasonably requested to allow the other
                    party to make
                    payments under this Agreement without any deduction or withholding
                    for or
                    on the account of any Tax or with such deduction or withholding
                    at a
                    reduced rate.

                	
                  Promptly
                    after the earlier of (i) reasonable demand by either party or
                    (ii)
                    learning that such form or document is
                    required.

                

        

        

        (2)  
          Other
          documents to be delivered are:

         

        
          	
                  Party
                    required to deliver document

                	
                  Form/Document/

                  Certificate

                	
                  Date
                    by which to Be delivered

                	
                  Covered
                    by Section 3(d) Representation

                
	
                  Party
                    A and Party B

                	
                  Any
                    documents to evidence the authority of the delivering party for
                    it to
                    execute and deliver this Confirmation.

                	
                  Upon
                    the execution and delivery of this Agreement and such
                    Confirmation.

                	
                  Yes

                
	
                  Party
                    A and Party B

                	
                  A
                    certificate of an authorized officer of the party, as to the
                    incumbency
                    and authority of the respective officers of the party signing
                    this
                    Confirmation.

                	
                  Upon
                    the execution and delivery of this Confirmation.

                	
                  Yes

                
	
                  Party
                    A

                	
                  Legal
                    opinion(s) with respect to such party and its Credit Support
                    Provider, if
                    any, for it, reasonably satisfactory in form and substance to
                    the other
                    party relating to the enforceability of the party’s obligations under this
                    Agreement.

                	
                  Upon
                    the execution and delivery of this Agreement.

                	
                  No

                
	
                  Party
                    A and Party B

                	
                  Indemnification
                    agreement executed by Party A and Nomura Home Equity Loan, Inc.
                    and Nomura
                    Credit and Capital, Inc. with respect to information included
                    in any free
                    writing prospectus and the prospectus supplement related to the
                    Class A
                    Certificates and Class M Certificates.

                	
                  Concurrently
                    with the printing of any preliminary prospectus supplement and
                    the
                    prospectus supplement related to the Class A and Class M
                    Certificates.

                	
                  No

                
	
                  Party
                    A

                	
                  A
                    copy of the most recent annual report of such party (only if
                    available)
                    and its Credit Support Provider, if any, containing in all cases
                    audited
                    consolidated financial statements for each fiscal year certified
                    by
                    independent certified public accountants and prepared in accordance
                    with
                    generally accepted accounting principles in the United States
                    or in the
                    country in which such party is organized.

                	
                  Promptly
                    after request by the other party.

                	
                  Yes

                
	
                  Party
                    B

                	
                  Each
                    other report or other document required to be delivered by or
                    to Party B
                    under the terms of the Pooling and Servicing Agreement, other
                    than those
                    required to be delivered directly by the Trustee to Party A
                    thereunder.

                	
                  Promptly
                    upon request by Party A, or with respect to any particular type
                    of report
                    or other document as to which Party A has previously made request
                    to
                    receive all reports or documents of that type, promptly upon
                    delivery or
                    receipt of such report or document by Party B.

                	
                  Yes

                

        

        

        6)  Other
          Provisions.

         

        (a)  Address
          for Notices:
          For the
          purposes of Section 12(a) of this Agreement: 

         

        Address
          for notices or communications to Party A:

         

        Address: 452
          Fifth
          Avenue, New York, NY 10018

        Attention: Christian
          McGreevy

        Facsimile: 
           212-525-8710

        Telephone:
          212-525-5517

         

        Please
          direct all settlement inquiries to:

        

        HSBC
          Bank
          USA, National Association

        Derivative
          Settlements

        Attention: Jeffrey
          Lombino

        Telephone: (212)
          525-5393

        Fax:  (212)
          525-6903

        

        Address
          for notices or communications to Party B:

        

        Address:             
           Wells
          Fargo Bank, N.A.,

        9062
          Old
          Annapolis Road

        Columbia,
          MD 21045

        Attn:     
           Client Manager, NHEL 2006-FM2

        Fax:       
           410-715-2380

        

        With
          a
          copy to:

        

        Address:             
           HSBC Bank USA, National Association

                      
          525 5th
          Ave,
          8th
          Floor

                      
          New York, NY 10018

        Fax:                        212-525-8710

        

        (For
          all
          purposes)

         

        (b)  Process
          Agent.
          For the
          purpose of Section 13(c):

         

        Party
          A
          appoints as its Process Agent: Not Applicable

        Party
          B
          appoints as it Process Agent: Not Applicable

        

        (c)  Offices.
          The
          provisions of Section 10(a) will not apply to this Agreement; for purposes
          of
          this Transaction, it will be deemed that neither Party A nor Party B have
          any
          Offices other than as set forth in the Notices Section and Party A agrees
          that,
          for purposes of Section 6(b) of the ISDA Form Master Agreement, it shall
          be
          deemed not to have any Office other than one in the United States.

         

        (d)  Multibranch
          Party.
          For the
          purpose of Section 10(c) of the ISDA Form Master Agreement:

         

        Party
          A
          is not a Multibranch Party.

         

        Party
          B
          is not a Multibranch Party.

         

        (e)  Calculation
          Agent.
          The
          Calculation Agent is Party A; provided
          however,
          if an
          Event of Default has occurred with respect to Party A, then Party B or
          a
          Reference Market-maker designated by Party B shall be Calculation
          Agent.

         

        (f)  Credit
          Support Document.
          Initially with respect to Party A, not applicable; however,
          if
          required pursuant to Paragraph 3(6)(q)(iv) hereof, a guaranty satisfactory
          to
          Party B and the Rating Agencies. With respect to Party B, not applicable.
          

         

        (g)  Credit
          Support Provider.

         

        Party
          A:
          Not Applicable

         

        Party
          B:
          Not Applicable

         

        (h)  Governing
          Law.
          The
          parties to this ISDA Agreement hereby agree that the law of the State of
          New
          York shall govern their rights and duties in whole, without regard to the
          conflict of law provisions thereof other than New York General Obligations
          Law
          Sections 5-1401 and 5-1402.

         

        (i)  Non-Petition.
          Party A
          hereby irrevocably and unconditionally agrees that it will not institute
          against, or join any other person in instituting against or cause any other
          person to institute against the Cap Trust, the trust created pursuant to
          the
          Pooling and Servicing Agreement or Party B, any bankruptcy, reorganization,
          arrangement, insolvency, or similar proceeding under the laws of the United
          States, or any other jurisdiction for the non-payment of any amount due
          hereunder or any other reason until the payment in full of the Ceritificates
          and
          the expiration of a period of one year plus ten days (or, if longer, the
          applicable preference period) following such payment.

         

        (j)  [Reserved] 

         

        (k)  Severability.
          If any
          term, provision, covenant, or condition of this Agreement, or the application
          thereof to any party or circumstance, shall be held to be invalid or
          unenforceable (in whole or in part) for any reason, the remaining terms,
          provisions, covenants, and conditions hereof shall continue in full force
          and
          effect and shall remain applicable to all other parties and circumstances
          as if
          this Agreement had been executed with the invalid or unenforceable portion
          eliminated, so long as this Agreement as so modified continues to express,
          without material change, the original intentions of the parties as to the
          subject matter of this Agreement and the deletion of such portion of this
          Agreement will not substantially impair the respective benefits or expectations
          of the parties.

         

        The
          parties shall endeavor to engage in good faith negotiations to replace
          any
          invalid or unenforceable term, provision, covenant or condition with a
          valid or
          enforceable term, provision, covenant or condition, the economic effect
          of which
          comes as close as possible to that of the invalid or unenforceable term,
          provision, covenant or condition.

         

        (l)  Consent
          to Recording.
          Each
          party hereto consents to the monitoring or recording, at any time and from
          time
          to time, by the other party of any and all communications between officers
          or
          employees of the parties, waives any further notice of such monitoring
          or
          recording, and agrees to notify its officers and employees of such monitoring
          or
          recording.

         

        (m)  Waiver
          of Jury Trial.
          Each
          party to this Agreement respectively waives any right it may have to a
          trial by
          jury in respect of any Proceedings relating to this Agreement, any Credit
          Support Document or any of the transactions contemplated hereby.

         

        (n)  Set-Off.
          Notwithstanding
          any provision of this Agreement or any other existing or future agreement,
          each
          party irrevocably waives any and all rights it may have to set off, net,
          recoup
          or otherwise withhold or suspend or condition payment or performance of
          any
          obligation between it and the other party hereunder against any obligation
          between it and the other party under any other agreements. The provisions
          for
          Set-off set forth in Section 6(e) of the ISDA Form Master Agreement shall
          not apply for purposes of this Transaction.

         

        (o)  “Affiliate”
          will
          have the meaning specified in Section 14 of the ISDA Form Master Agreement,
          provided that Party A and Party B shall be deemed to not have any Affiliates
          for
          purposes of this Agreement, including for purposes of Section
          6(b)(ii).

         

        (p) Section
          3
          of the ISDA Form Master Agreement is hereby amended by adding at the end
          thereof
          the following subsection (g):

         

        “(g)
          Relationship
          Between Parties.

        Each
          party represents to the other party on each date when it enters into a
          Transaction that:--

         

        (1)   Nonreliance.
          (i) It
          is not relying on any statement or representation of the other party regarding
          the Transaction (whether written or oral), other than the representations
          expressly made in this Agreement or the Confirmation in respect of that
          Transaction and (ii) it has consulted with its own legal, regulatory, tax,
          business, investment, financial and accounting advisors to the extent it
          has
          deemed necessary, and it has made its own investment, hedging and trading
          decisions based upon its own judgment and upon any advice from such advisors
          as
          it has deemed necessary and not upon any view expressed by the other
          party.

         

        (2)   Evaluation
          and Understanding.

         

        (i)   It
          has
          the capacity to evaluate (internally or through independent professional
          advice)
          the Transaction and has made its own decision to enter into the Transaction
          and
          in the case of Party B, it has been directed by the Pooling and Servicing
          Agreement to enter into this Transaction; and

         

        (ii)   It
          understands the terms, conditions and risks of the Transaction and is willing
          and able to accept those terms and conditions and to assume those risks,
          financially and otherwise.

         

        (3)   Purpose.
          It is
          entering into the Transaction for the purposes of managing its borrowings
          or
          investments, hedging its underlying assets or liabilities or in connection
          with
          a line of business.

         

        (4) Status
          of Parties.
          The
          other party is not acting as agent, fiduciary or advisor for it in respect
          of
          the Transaction,

        

        (5) Eligible
          Contract Participant.
          It is
          an “eligible swap participant” as such term is defined in Section 35.1(b)(2) of
          the regulations (17 C.F.R 35) promulgated under, and it constitutes an
“eligible
          contract participant” as such term is defined in Section 1(a)12 of the Commodity
          Exchange Act, as amended.”

         

        (q)
          The
          ISDA Form Master Agreement is hereby amended as follows

        

        (i) The
          word
“third” shall be replaced by the word “second” in the third line of
          Section 5(a)(i) of the ISDA Form Master Agreement.

        

        (ii)  Transfer,
          Amendment and Assignment.
          No
          transfer, amendment, waiver, supplement, assignment or other modification
          of
          this Transaction shall be permitted by either party (other than a change
          of
          Counterparty in connection with a change of Trustee in accordance with
          the
          Pooling and Servicing Agreement) unless Standard and Poor’s, a Division of the
          McGraw Hill Companies (“S&P”) Moody’s Investor Service, Inc. (“Moody’s”),
          Fitch Ratings (“Fitch”) and Dominion Bond Rating Service (“DBRS”), has been
          provided notice of the same and confirms in writing (including by facsimile
          transmission) that it will not downgrade, qualify, withdraw or otherwise
          modify
          its then-current rating of the Certificates.

        

        (iii) Additional
          Termination Events. Additional
          Termination Events will apply: 

        (a)
          If a
          Rating Agency Downgrade has occurred and Party A has not complied with
          Paragraph
          3(6)(q)(iv) below, then an Additional Termination Event shall have occurred
          with
          respect to Party A and Party A shall be the sole Affected Party with respect
          to
          such an Additional Termination Event.

        

        

        
          	(b)  	
                  If,
                    upon the occurrence of a Swap Disclosure Event (as defined in
                    Paragraph
                    3(6)(r) below) Party A has not, within five (5) Business Days
                    after such
                    Swap Disclosure Event complied with any of the provisions set
                    forth in
                    Paragraph 3(6)(r)(iii) below, then an Additional Termination
                    Event shall
                    have occurred with respect to Party A and Party A shall be the
                    sole
                    Affected Party with respect to such Additional Termination
                    Event.

                

        

        

        
          	(c)  	
                  If,
                    at any time, the Master Servicer or the Servicer gives unrescindable
                    notice that it will purchase the Mortgage Loans pursuant to Section
                    10.01
                    of the Pooling and Servicing Agreement, then an Additional Termination
                    Event shall have occurred with respect to Party B and Party B
                    shall be the
                    sole Affected Party with respect to such and Additional Termination
                    Event;
                    provided, however, that notwithstanding Section 6(b)(iv) of the
                    ISDA Form
                    Master Agreement, only Party B shall have the right to designate
                    an Early
                    Termination Date with respect to this Additional Termination
                    Event.

                

        

        

        (iv)  Rating
          Agency Downgrade.
          In
          the
          event that (1) Party A’s short-term unsecured and unsubordinated debt rating is
          reduced below "A-1" by S&P (or if its short-term rating is not available by
          S&P, in the event that its long-term unsecured and unsubordinated debt
          rating is withdrawn or reduced below “A+” by S&P) or (2) its short-term
          unsecured and unsubordinated debt rating is reduced below “F-1” by Fitch (or, if
          its short-term rating is not available by Fitch, its long-term unsecured
          and
          unsubordinated debt rating is withdrawn or reduced below “A” by Fitch) or (3)
          its short-term unsecured and unsubordinated debt rating is reduced below
“P1” by
          Moody’s (or, if its short-term rating is not available by Moody's, its long-term
          unsecured and unsubordinated debt rating is withdrawn or reduced below
“A1” by
          Moody's) (and together with S&P and Fitch, the “Swap Rating Agencies”, and
          such rating thresholds, “Approved Rating Thresholds”), then within 30 days after
          such rating withdrawal or downgrade (unless, within 30 days after such
          withdrawal or downgrade each Swap Rating Agency has reconfirmed its rating
          for
          Party A which was in effect immediately prior to such withdrawal or downgrade),
          Party A shall, subject to the Rating Agency Condition, at its own expense:
          

        

        (a) assign
          this Transaction to another counterparty, which counterparty shall have
          the
          Approved Rating Thresholds and shall have been approved by Party B on terms
          substantially similar to the terms of this Confirmation;

        

        (b) obtain
          guaranty of, or a contingent agreement of another person with the Approved
          Rating Thresholds, to honor Party A’s obligations under this Confirmation;
          provided that such other person has been approved by Party B; 

        

        (c) post
          collateral which will be sufficient to S & P to maintain or restore the
          ratings of the Notes existing immediately prior to such withdrawal or downgrade
          of Party A’s ratings; or

        

        (d) establish
          any other arrangement satisfactory to Party B and S & P, in each case,
          sufficient to maintain or restore the ratings of the Notes existing immediately
          prior to such withdrawal or downgrade of Party A’s ratings.

        

        Notwithstanding
          the previous paragraph, in the event that Party A’s short-term unsecured and
          unsubordinated debt rating is withdrawn or reduced below “A-3” by S&P or, if
          there is no short-term rating, its long-term unsecured and unsubordinated
          debt
          rating is withdrawn or reduced below “BBB-” by S&P, then within 10 days of
          such rating withdrawal or downgrade (unless, within 10 days after such
          withdrawal or downgrade S&P has reconfirmed the rating of the Notes which
          was  in effect immediately prior to such withdrawal or downgrade), Party A
          shall, subject to the Rating Agency Condition, at its own expense, assign
          this
          Transaction to another counterparty with the Approved Rating Thresholds
          and
          approved by Party B on terms substantially similar to this Confirmation
          and
          obtain a confirmation from S&P that such action is sufficient to maintain or
          restore the immediately prior ratings of the Notes.

        

        For
          purposes of these provisions, “Rating Agency Condition” means, with respect to
          any particular proposed act or omission to act hereunder in connection
          with a
          withdrawal or downgrade of any of Party A’s ratings as described above that
          Party A must consult with and receive from S
&
P
          a written confirmation, prior to taking any such action, that such withdrawal
          or
          downgrade of any of Party A’s ratings, after giving effect to any such proposed
          action or omission, would not cause a downgrade or withdrawal of the ratings
          of
          the Notes existing immediately prior to such withdrawal or downgrade of
          Party
          A’s ratings

        

        r)
          Compliance with Regulation AB. 

        

        (i) Party
          A
          agrees and acknowledges that Nomura Home Equity Loan, Inc. (“the Depositor”) is
          required under Regulation AB as defined under the Pooling and Servicing
          Agreement, to disclose certain financial information regarding Party A
          or its
          group of affiliated entities, if applicable, depending on the aggregate
          “significance percentage” of this Agreement and any other derivative contracts
          between Party A or its group of affiliated entities, if applicable, and
          Counterparty, as calculated from time to time by Nomura Home Equity Loan,
          Inc.
          in accordance with Item 1115 of Regulation AB. 

        

        (ii) It
          shall
          be a swap disclosure event (“Swap Disclosure Event”) if, on any Business Day
          after the date hereof, the Depositor requests from Party A the applicable
          financial information described in Item 1115 of Regulation AB (such request
          to
          be based on a reasonable determination by the Depositor, in good faith,
          that
          such information is required under Regulation AB) (the “Swap
          Financial Disclosure”).

        

        (iii) Upon
          the
          occurrence of a Swap Disclosure Event, Party A, at its own expense, shall
          (1)(a)
          either (i) provide to the Depositor the current Swap Financial Disclosure
          in an
          EDGAR-compatible format (for example, such information may be provided
          in
          Microsoft Word® or Microsoft Excel® format but not in .pdf format) or (ii)
          provide written consent to the Depositor to incorporation by reference
          of such
          current Swap Financial Disclosure that are filed with the Securities and
          Exchange Commission in the reports of the Trust filed pursuant to the Exchange
          Act, (b) if applicable, cause its outside accounting firm to provide its
          consent
          to filing or incorporation by reference of such accounting firm’s report
          relating to their audits of such current Swap Financial Disclosure in the
          Exchange Act Reports of the Depositor, and (c) provide to the Depositor
          any
          updated Swap Financial Disclosure with respect to Party A or any entity
          that
          consolidates Party A within five days of the release of any such updated
          Swap
          Financial Disclosure; (2) secure another entity to replace Party A as party
          to
          this Agreement on terms substantially similar to this Agreement and subject
          to
          prior notification to the Swap Rating Agencies, which entity (or a guarantor
          therefor) meets or exceeds the Approved Rating Thresholds and which satisfies
          the Rating Agency Condition and which entity is able to comply with the
          requirements of Item 1115 of Regulation AB or (3) obtain a guaranty of
          the Party
          A’s obligations under this Agreement, subject to Rating Agency Condition,
          from
          an affiliate of the Party A that is able to comply with the financial
          information disclosure requirements of Item 1115 of Regulation AB, such
          that
          disclosure provided in respect of the affiliate will satisfy any disclosure
          requirements applicable to the Swap Provider, and cause such affiliate
          to
          provide Swap Financial Disclosure. If permitted by Regulation AB, any required
          Swap Financial Disclosure may be provided by incorporation by reference
          from
          reports filed pursuant to the Exchange Act.

        

        (iv) Party
          A
          agrees that, in the event that Party A provides Swap Financial Disclosure
          to the
          Depositor in accordance with clause (iii)(a) of Paragraph 3(6)(r) or causes
          its
          affiliate to provide Swap Financial Disclosure to the Depositor in accordance
          with clause (iii)(c) of Paragraph 3(6)(r), it will indemnify and hold harmless
          the Depositor, its respective directors or officers and any person controlling
          the Depositor, from and against any and all losses, claims, damages and
          liabilities caused by any untrue statement or alleged untrue statement
          of a
          material fact contained in such Swap Financial Disclosure or caused by
          any
          omission or alleged omission to state in such Swap Financial Disclosure
          a
          material fact required to be stated therein or necessary to make the statements
          therein, in light of the circumstances under which they were made, not
          misleading.

        

        (v) If
          the
          Depositor reasonably requests, Party A shall provide such other information
          as
          may be necessary for the Depositor to comply with Item 1115 of Regulation
          AB.

        

        
          (vi)  The
            Depositor shall be an express third party beneficiary of this Agreement
            as if a
            party hereto to the extent of the Depositor’ rights explicitly specified in this
            Paragraph 3(6)(r).

        

        

        4. Account
          Details:

        

        Payments
          to Party
          A:                            
 HSBC
          Bank
          USA, National Association

        ABA
          #
          021-001-088

        For
          credit to Department 299

        A/C:
          000-04929-8

        HSBC
          Derivative Products Group

        

        Payments
          to Party
          B:                            
 Wells
          Fargo Bank, N.A.

                                                          
          ABA# 121-000-248

                                                          
          For Credit to SAS Clearing

                                                          
          A/C# 3970771416

                                                          
          For Further Credit to A/C# 50957101

                                                          
          NHEL 2006-FM2

        5. Office:

        

        
          	 	
                  Party
                    A is acting through its New York Office for the purposes of this
                    Transaction.

                

        

        

        
          	6.  	
                  Please
                    confirm that the forgoing correctly sets forth the terms of our
                    agreement
                    by having an authorized officer sign this Confirmation and return
                    it via
                    facsimile to:

                

        

        

        HSBC
          Bank
          USA, National Association

        Swap
          Documentation

        Attention: Christian
          McGreevy

        Telephone: (212)
          525-8710

        Fax:  (212)
          525-5517

         

        Please
          direct all settlement inquiries to:

        

        HSBC
          Bank
          USA, National Association

        Derivative
          Settlements

        Attention: Jeffrey
          Lombino

        Telephone: (212)
          525-5393

        Fax:  (212)
          525-6903

        This
          message will be the only form of Confirmation dispatched by us. Please
          execute
          and return it to us by facsimile immediately. If you wish to exchange hard
          copy
          forms of this Confirmation, please contact us.

        

        

        Yours
          sincerely,

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        
 

        By:
          /s/
          Antonia Landgraf________ 

        Assistant
          Vice President

        Authorized
          Signature 

        

        

        By:
          /s/
          Charleen Collins_________ 

        Vice
          President

        Authorized
          Signature

        

        

        Confirmed
          as of the date first written above:

        

        

        HSBC
          BANK
          USA, NATIONAL ASSOCIATION

        NOT
          IN
          ITS INDIVIDUAL CAPACITY, BUT SOLELY AS 

        CAP
          TRUSTEE WITH RESPECT TO THE NOMURA HOME

        EQUITY
          LOAN, INC., HOME EQUITY LOAN TRUST,

        SERIES
          2006-FM2

         

        

        By:
          /s/
          Elena Zheng_____________

        Name:
           Elena
          Zheng

        Title:  
           Assistant
          Vice President

        

        Attachment

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        Exhibit
          I

        

          
            	
                    For
                      the Calculation Periods

                  	
                    Notional
                      Amount

                  	
                    Cap
                      Rate

                  
	
                    From
                      and including:*

                  	
                    To
                      but excluding:

                  	
                    in
                      USD:

                  	 
	
                    The
                      Effective Date

                  	
                    June
                      25, 2008

                  	
                    383,085,000.00

                  	
                    5.250%

                  
	
                    June
                      25, 2008

                  	
                    July
                      25, 2008

                  	
                    332,251,000.00

                  	
                    5.250%

                  
	
                    July
                      25, 2008

                  	
                    August
                      25, 2008

                  	
                    287,749,000.00

                  	
                    5.250%

                  
	
                    August
                      25, 2008

                  	
                    September
                      25, 2008

                  	
                    248,791,000.00

                  	
                    5.250%

                  
	
                    September
                      25, 2008

                  	
                    October
                      25, 2008

                  	
                    214,684,000.00

                  	
                    5.250%

                  
	
                    October
                      25, 2008

                  	
                    November
                      25, 2008

                  	
                    199,889,000.00

                  	
                    5.250%

                  
	
                    November
                      25, 2008

                  	
                    December
                      25, 2008

                  	
                    186,974,000.00

                  	
                    5.250%

                  
	
                    December
                      25, 2008

                  	
                    January
                      25, 2009

                  	
                    174,802,000.00

                  	
                    5.250%

                  
	
                    January
                      25, 2009

                  	
                    February
                      25, 2009

                  	
                    163,323,000.00

                  	
                    5.250%

                  
	
                    February
                      25, 2009

                  	
                    March
                      25, 2009

                  	
                    152,498,000.00

                  	
                    5.250%

                  
	
                    March
                      25, 2009

                  	
                    April
                      25, 2009

                  	
                    142,290,000.00

                  	
                    5.250%

                  
	
                    April
                      25, 2009

                  	
                    May
                      25, 2009

                  	
                    132,664,000.00

                  	
                    5.250%

                  
	
                    May
                      25, 2009

                  	
                    June
                      25, 2009

                  	
                    125,686,000.00

                  	
                    5.250%

                  
	
                    June
                      25, 2009

                  	
                    July
                      25, 2009

                  	
                    116,998,000.00

                  	
                    5.250%

                  
	
                    July
                      25, 2009

                  	
                    August
                      25, 2009

                  	
                    108,804,000.00

                  	
                    5.250%

                  
	
                    August
                      25, 2009

                  	
                    September
                      25, 2009

                  	
                    101,077,000.00

                  	
                    5.250%

                  
	
                    September
                      25, 2009

                  	
                    October
                      25, 2009

                  	
                    93,789,000.00

                  	
                    5.250%

                  
	
                    October
                      25, 2009

                  	
                    November
                      25, 2009

                  	
                    86,915,000.00

                  	
                    5.250%

                  
	
                    November
                      25, 2009

                  	
                    December
                      25, 2009

                  	
                    89,286,000.00

                  	
                    5.250%

                  
	
                    December
                      25, 2009

                  	
                    January
                      25, 2010

                  	
                    91,564,000.00

                  	
                    5.250%

                  
	
                    January
                      25, 2010

                  	
                    February
                      25, 2010

                  	
                    90,335,000.00

                  	
                    5.250%

                  
	
                    February
                      25, 2010

                  	
                    March
                      25, 2010

                  	
                    85,235,000.00

                  	
                    5.250%

                  
	
                    March
                      25, 2010

                  	
                    April
                      25, 2010

                  	
                    80,201,000.00

                  	
                    5.250%

                  
	
                    April
                      25, 2010

                  	
                    May
                      25, 2010

                  	
                    75,363,000.00

                  	
                    5.250%

                  
	
                    May
                      25, 2010

                  	
                    June
                      25, 2010

                  	
                    70,797,000.00

                  	
                    5.250%

                  
	
                    June
                      25, 2010

                  	
                    July
                      25, 2010

                  	
                    66,491,000.00

                  	
                    5.250%

                  
	
                    July
                      25, 2010

                  	
                    August
                      25, 2010

                  	
                    62,429,000.00

                  	
                    5.250%

                  
	
                    August
                      25, 2010

                  	
                    September
                      25, 2010

                  	
                    58,597,000.00

                  	
                    5.250%

                  
	
                    September
                      25, 2010

                  	
                    October
                      25, 2010

                  	
                    54,981,000.00

                  	
                    5.250%

                  
	
                    October
                      25, 2010

                  	
                    November
                      25, 2010

                  	
                    51,570,000.00

                  	
                    5.250%

                  
	
                    November
                      25, 2010

                  	
                    December
                      25, 2010

                  	
                    48,352,000.00

                  	
                    5.250%

                  
	
                    December
                      25, 2010

                  	
                    January
                      25, 2011

                  	
                    45,316,000.00

                  	
                    5.250%

                  
	
                    January
                      25, 2011

                  	
                    February
                      25, 2011

                  	
                    42,451,000.00

                  	
                    5.250%

                  
	
                    February
                      25, 2011

                  	
                    March
                      25, 2011

                  	
                    39,748,000.00

                  	
                    5.250%

                  
	
                    March
                      25, 2011

                  	
                    April
                      25, 2011

                  	
                    37,197,000.00

                  	
                    5.250%

                  
	
                    April
                      25, 2011

                  	
                    May
                      25, 2011

                  	
                    34,846,000.00

                  	
                    5.250%

                  
	
                    May
                      25, 2011

                  	
                    June
                      25, 2011

                  	
                    32,572,000.00

                  	
                    5.250%

                  
	
                    June
                      25, 2011

                  	
                    July
                      25, 2011

                  	
                    30,423,000.00

                  	
                    5.250%

                  
	
                    July
                      25, 2011

                  	
                    August
                      25, 2011

                  	
                    28,394,000.00

                  	
                    5.250%

                  
	
                    August
                      25, 2011

                  	
                    September
                      25, 2011

                  	
                    26,480,000.00

                  	
                    5.250%

                  
	
                    September
                      25, 2011

                  	
                    The
                      Termination Date

                  	
                    24,673,000.00

                  	
                    5.250%

                  

          

        

        

        *
          All
          dates listed above (with the exception of the Effective Date), are subject
          to
          adjustment in accordance with the Following Business Day
          Convention

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

      EXHIBIT
        S

      

      FORM
        OF
        POWER OF ATTORNEY

      

      RECORDING
        REQUESTED BY

      AND
        WHEN
        RECORDED MAIL TO

      [Servicer]

      [Servicer’s
        Address]

      

      Attn:
        _________________________________

      

      LIMITED
        POWER OF ATTORNEY

      

      

      KNOW
        ALL
        MEN BY THESE PRESENTS, that ________________, having its principal place
        of
        business at ____________________, as Trustee (the “Trustee”) pursuant to that
        Pooling and Servicing Agreement among ___________________ (the “Depositor”),
        ___________________ (the “Sponsor”), Equity One, Inc., as servicer, Wells Fargo
        Bank, N.A. (“Wells Fargo”), as Master Servicer and Securities Administrator, and
        the Trustee, dated as of October 1, 2006 (the “Pooling and Servicing
        Agreement”), hereby constitutes and appoints Equity One, Inc. (the “Servicer”),
        by and through the Servicer’s officers, the Trustee’s true and lawful
        Attorney-in-Fact, in the Trustee’s name, place and stead and for the Trustee’s
        benefit, in connection with all mortgage loans serviced by the Servicer pursuant
        to the Pooling and Servicing Agreement for the purpose of performing all
        acts
        and executing all documents in the name of the Trustee as may be customarily
        and
        reasonably necessary and appropriate to effectuate the following enumerated
        transactions in respect of any of the mortgages or deeds of trust (the
“Mortgages” and the “Deeds of Trust”, respectively) and promissory notes secured
        thereby (the “Mortgage Notes”) for which the undersigned is acting as Trustee
        for various certificateholders (whether the undersigned is named therein
        as
        mortgagee or beneficiary or has become mortgagee by virtue of endorsement
        of the
        Mortgage Note secured by any such Mortgage or Deed of Trust) and for which
        the
        Servicer is acting as servicer, all subject to the terms of the Pooling and
        Servicing Agreement and Servicing Agreement.

      

      This
        appointment shall apply to the following enumerated transactions
        only:

      

      
        	1.  	
                The
                  modification or re-recording of a Mortgage or Deed of Trust, where
                  said
                  modification or re-recordings is for the purpose of correcting
                  the
                  Mortgage or Deed of Trust to conform same to the original intent
                  of the
                  parties thereto or to correct title errors discovered after such
                  title
                  insurance was issued and said modification or re-recording, in
                  either
                  instance, does not adversely affect the lien of the Mortgage or
                  Deed of
                  Trust as insured.

              

      

      

      
        	2.  	
                The
                  subordination of the lien of a Mortgage or Deed of Trust to an
                  easement in
                  favor of a public utility company of a government agency or unit
                  with
                  powers of eminent domain; this section shall include, without limitation,
                  the execution of partial satisfactions/releases, partial reconveyances
                  or
                  the execution or requests to trustees to accomplish
                  same.

              

      

      

      
        	3.  	
                The
                  conveyance of the properties to the mortgage insurer, or the closing
                  of
                  the title to the property to be acquired as real estate owned,
                  or
                  conveyance of title to real estate
                  owned.

              

      

      

        
        4. The
        completion of loan assumption agreements.

      

      
        	5.  	
                The
                  full satisfaction/release of a Mortgage or Deed of Trust or full
                  conveyance upon payment and discharge of all sums secured thereby,
                  including, without limitation, cancellation of the related Mortgage
                  Note.

              

      

      

      
        	6.  	
                The
                  assignment of any Mortgage or Deed of Trust and the related Mortgage
                  Note,
                  in connection with the repurchase of the mortgage loan secured
                  and
                  evidenced thereby.

              

      

      

      
        	7.  	
                The
                  full assignment of a Mortgage or Deed of Trust upon payment and
                  discharge
                  of all sums secured thereby in conjunction with the refinancing
                  thereof,
                  including, without limitation, the assignment of the related Mortgage
                  Note.

              

      

      

      
        	8.  	
                With
                  respect to a Mortgage or Deed of Trust, the foreclosure, the taking
                  of a
                  deed in lieu of foreclosure, or the completion of judicial or non-judicial
                  foreclosure or termination, cancellation or rescission of any such
                  foreclosure, including, without limitation, any and all of the
                  following
                  acts:

              

      

      

      
        	a.  	
                the
                  substitution of trustee(s) serving under a Deed of Trust, in accordance
                  with state law and the Deed of
                  Trust;

              

      

      

      
        	b.  	
                the
                  preparation and issuance of statements of breach or
                  non-performance;

              

      

      

      
        	c.  	
                the
                  preparation and filing of notices of default and/or notices of
                  sale;

              

      

      

      
        	d.  	
                the
                  cancellation/rescission of notices of default and/or notices of
                  sale;

              

      

      

      
        	e.  	
                the
                  taking of a deed in lieu of foreclosure;
                  and

              

      

      

      
        	f.  	
                the
                  preparation and execution of such other documents and performance
                  of such
                  other actions as may be necessary under the terms of the Mortgage,
                  Deed of
                  Trust or state law to expeditiously complete said transactions
                  in
                  paragraphs 8.a. through 8.e.,
                  above.

              

      

      

      The
        undersigned gives said Attorney-in-Fact full power and authority to execute
        such
        instruments and to do and perform all and every act and thing necessary and
        proper to carry into effect the power or powers granted by or under this
        Limited
        Power of Attorney as fully as the undersigned might or could do, and hereby
        does
        ratify and confirm to all that said Attorney-in-Fact shall lawfully do or
        cause
        to be done by authority hereof. 

      

      Third
        parties without actual notice may rely upon the exercise of the power granted
        under this Limited Power of Attorney; and may be satisfied that this Limited
        Power of Attorney shall continue in full force and effect and has not been
        revoked unless an instrument of revocation has been made in writing by the
        undersigned.

      

      IN
        WITNESS WHEREOF, ________________ as Trustee pursuant to that Pooling and
        Servicing Agreement among the Depositor, the Sponsor, the Servicer, Wells
        Fargo
        and the Trustee, dated as of ___________ 1, 200__ (_____________ Asset-Backed
        Certificates, Series 200__-___), has caused its corporate seal to be hereto
        affixed and these presents to be signed and acknowledged in its name and
        behalf
        by ____________ its duly elected and authorized Vice President this _________
        day of _________, 200__.

      

      
        	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	
                as
                  Trustee for _____ Asset 

                Backed
                  Certificates, Series 200__-___

              
	 	 	 	 	 	 	 	
                By:

              	 
	 	 	 	 	 	 	 	 	 

      

      

      

      
        	
                STATE
                  OF _____________

              
	 
	
                COUNTY
                  OF ___________

              

      

      

      On
        _______________, 200__, before me, the undersigned, a Notary Public in and
        for
        said state, personally appeared ____________, Vice President of
        ____________________ as Trustee for ___________ Asset-Backed Certificates,
        Series 200__-___, personally known to me to be the person whose name is
        subscribed to the within instrument and acknowledged to me that he/she executed
        that same in his/her authorized capacity, and that by his/her signature on
        the
        instrument the entity upon behalf of which the person acted and executed
        the
        instrument.

      

      WITNESS
        my hand and official seal.

      (SEAL)

      
        	 	 
	 	
                Notary
                  Public

              
	 	
                My
                  Commission Expires
                  _________________

              

      

      

      

      

      

      EXHIBIT
        X-1

       

      FORM
        OF SERVICING CRITERIA

      

      
        	
                Standard
                  File Layout - Master Servicing 

              	 	 	 
	
                Column
                  Name

              	
                Description

              	
                Decimal

              	
                Format
                  Comment

              	
                Max
                  Size

              
	
                SER_INVESTOR_NBR

              	
                A
                  value assigned by the Servicer to define a group of loans.

              	
                 

              	
                Text
                  up to 10 digits

              	
                20

              
	
                LOAN_NBR

              	
                A
                  unique identifier assigned to each loan by the investor.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                SERVICER_LOAN_NBR

              	
                A
                  unique number assigned to a loan by the Servicer. This may be different
                  than the LOAN_NBR.

              	
                 

              	
                Text
                  up to 10 digits

              	
                10

              
	
                BORROWER_NAME

              	
                The
                  borrower name as received in the file. It is not separated by first
                  and
                  last name.

              	
                 

              	
                Maximum
                  length of 30 (Last, First)

              	
                30

              
	
                SCHED_PAY_AMT

              	
                Scheduled
                  monthly principal and scheduled interest payment that a borrower
                  is
                  expected to pay, P&I constant.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NOTE_INT_RATE

              	
                The
                  loan interest rate as reported by the Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                NET_INT_RATE

              	
                The
                  loan gross interest rate less the service fee rate as reported
                  by the
                  Servicer.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_RATE

              	
                The
                  servicer's fee rate for a loan as reported by the Servicer.
                  

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                SERV_FEE_AMT

              	
                The
                  servicer's fee amount for a loan as reported by the Servicer.
                  

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_PAY_AMT

              	
                The
                  new loan payment amount as reported by the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NEW_LOAN_RATE

              	
                The
                  new loan rate as reported by the Servicer. 

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ARM_INDEX_RATE

              	
                The
                  index the Servicer is using to calculate a forecasted
                  rate.

              	
                4

              	
                Max
                  length of 6

              	
                6

              
	
                ACTL_BEG_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the beginning of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_END_PRIN_BAL

              	
                The
                  borrower's actual principal balance at the end of the processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                BORR_NEXT_PAY_DUE_DATE

              	
                The
                  date at the end of processing cycle that the borrower's next payment
                  is
                  due to the Servicer, as reported by Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                SERV_CURT_AMT_1

              	
                The
                  first curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_1

              	
                The
                  curtailment date associated with the first curtailment amount.
                  

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_1

              	
                The
                  curtailment interest on the first curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_2

              	
                The
                  second curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_2

              	
                The
                  curtailment date associated with the second curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_
                  AMT_2

              	
                The
                  curtailment interest on the second curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_AMT_3

              	
                The
                  third curtailment amount to be applied.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SERV_CURT_DATE_3

              	
                The
                  curtailment date associated with the third curtailment
                  amount.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                CURT_ADJ_AMT_3

              	
                The
                  curtailment interest on the third curtailment amount, if
                  applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_AMT

              	
                The
                  loan "paid in full" amount as reported by the Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PIF_DATE

              	
                The
                  paid in full date as reported by the Servicer.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                 

              	
                 

              	
                 

              	
                Action
                  Code Key: 15=Bankruptcy, 30=Foreclosure, , 60=PIF, 63=Substitution,
                  65=Repurchase,70=REO 

              	
                2

              
	
                ACTION_CODE

              	
                The
                  standard FNMA numeric code used to indicate the default/delinquent
                  status
                  of a particular loan.

              
	
                INT_ADJ_AMT

              	
                The
                  amount of the interest adjustment as reported by the
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SOLDIER_SAILOR_ADJ_AMT

              	
                The
                  Soldier and Sailor Adjustment amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                NON_ADV_LOAN_AMT

              	
                The
                  Non Recoverable Loan Amount, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                LOAN_LOSS_AMT

              	
                The
                  amount the Servicer is passing as a loss, if applicable.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_BEG_PRIN_BAL

              	
                The
                  scheduled outstanding principal amount due at the beginning of
                  the cycle
                  date to be passed through to investors.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_END_PRIN_BAL

              	
                The
                  scheduled principal balance due to investors at the end of a processing
                  cycle.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_PRIN_AMT

              	
                The
                  scheduled principal amount as reported by the Servicer for the
                  current
                  cycle -- only applicable for Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                SCHED_NET_INT

              	
                The
                  scheduled gross interest amount less the service fee amount for
                  the
                  current cycle as reported by the Servicer -- only applicable for
                  Scheduled/Scheduled Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_PRIN_AMT

              	
                The
                  actual principal amount collected by the Servicer for the current
                  reporting cycle -- only applicable for Actual/Actual
                  Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                ACTL_NET_INT

              	
                The
                  actual gross interest amount less the service fee amount for the
                  current
                  reporting cycle as reported by the Servicer -- only applicable
                  for
                  Actual/Actual Loans.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  AMT

              	
                The
                  penalty amount received when a borrower prepays on his loan as
                  reported by
                  the Servicer. 

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                PREPAY_PENALTY_
                  WAIVED

              	
                The
                  prepayment penalty amount for the loan waived by the
                  servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              
	
                 

              	
                 

              	
                 

              	
                 

              	
                 

              
	
                MOD_DATE

              	
                The
                  Effective Payment Date of the Modification for the loan.

              	
                 

              	
                MM/DD/YYYY

              	
                10

              
	
                MOD_TYPE

              	
                The
                  Modification Type.

              	
                 

              	
                Varchar
                  - value can be alpha or numeric

              	
                30

              
	
                DELINQ_P&I_ADVANCE_AMT

              	
                The
                  current outstanding principal and interest advances made by
                  Servicer.

              	
                2

              	
                No
                  commas(,) or dollar signs ($)

              	
                11

              

      

      

       

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            
            

          

        

      

      

      EXHIBIT
        X-2

       

      Exhibit
        2: Standard
        File Layout - Delinquency Reporting

      

        *The
        column/header names in bold
        are
        the minimum fields Wells Fargo must receive from every
        Servicer

       

      

        
          	
                  Column/Header
                    Name

                	
                  Description

                	
                  Decimal

                	
                  Format
                    Comment

                
	
                  SERVICER_LOAN_NBR

                	
                  A
                    unique number assigned to a loan by the Servicer. This may be
                    different
                    than the LOAN_NBR

                	 	
                   

                
	
                  LOAN_NBR

                	
                  A
                    unique identifier assigned to each loan by the originator.

                	 	
                   

                
	
                  CLIENT_NBR

                	
                  Servicer
                    Client Number

                	 	 
	
                  SERV_INVESTOR_NBR

                	
                  Contains
                    a unique number as assigned by an external servicer to identify
                    a group of
                    loans in their system.

                	 	
                   

                
	
                  BORROWER_FIRST_NAME

                	
                  First
                    Name of the Borrower.

                	 	 
	
                  BORROWER_LAST_NAME

                	
                  Last
                    name of the borrower.

                	 	 
	
                  PROP_ADDRESS

                	
                  Street
                    Name and Number of Property

                	 	
                   

                
	
                  PROP_STATE

                	
                  The
                    state where the property located.

                	 	
                   

                
	
                  PROP_ZIP

                	
                  Zip
                    code where the property is located.

                	 	
                   

                
	
                  BORR_NEXT_PAY_DUE_DATE

                	
                  The
                    date that the borrower's next payment is due to the servicer
                    at the end of
                    processing cycle, as reported by Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  LOAN_TYPE

                	
                  Loan
                    Type (i.e. FHA, VA, Conv)

                	 	
                   

                
	
                  BANKRUPTCY_FILED_DATE

                	
                  The
                    date a particular bankruptcy claim was filed.

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_CHAPTER_CODE

                	
                  The
                    chapter under which the bankruptcy was filed.

                	 	
                   

                
	
                  BANKRUPTCY_CASE_NBR

                	
                  The
                    case number assigned by the court to the bankruptcy
                    filing.

                	 	
                   

                
	
                  POST_PETITION_DUE_DATE

                	
                  The
                    payment due date once the bankruptcy has been approved by the
                    courts

                	 	
                  MM/DD/YYYY

                
	
                  BANKRUPTCY_DCHRG_DISM_DATE

                	
                  The
                    Date The Loan Is Removed From Bankruptcy. Either by Dismissal,
                    Discharged
                    and/or a Motion For Relief Was Granted. 

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_APPR_DATE

                	
                  The
                    Date The Loss Mitigation Was Approved By The Servicer

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_TYPE

                	
                  The
                    Type Of Loss Mitigation Approved For A Loan Such As;

                	 	 
	
                  LOSS_MIT_EST_COMP_DATE

                	
                  The
                    Date The Loss Mitigation /Plan Is Scheduled To End/Close

                	 	
                  MM/DD/YYYY

                
	
                  LOSS_MIT_ACT_COMP_DATE

                	
                  The
                    Date The Loss Mitigation Is Actually Completed

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_APPROVED_DATE

                	
                  The
                    date DA Admin sends a letter to the servicer with instructions
                    to begin
                    foreclosure proceedings.

                	 	
                  MM/DD/YYYY

                
	
                  ATTORNEY_REFERRAL_DATE

                	
                  Date
                    File Was Referred To Attorney to Pursue Foreclosure

                	 	
                  MM/DD/YYYY

                
	
                  FIRST_LEGAL_DATE

                	
                  Notice
                    of 1st legal filed by an Attorney in a Foreclosure Action

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_EXPECTED_DATE

                	
                  The
                    date by which a foreclosure sale is expected to occur.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_DATE

                	
                  The
                    actual date of the foreclosure sale.

                	 	
                  MM/DD/YYYY

                
	
                  FRCLSR_SALE_AMT

                	
                  The
                    amount a property sold for at the foreclosure sale.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  EVICTION_START_DATE

                	
                  The
                    date the servicer initiates eviction of the borrower.

                	 	
                  MM/DD/YYYY

                
	
                  EVICTION_COMPLETED_DATE

                	
                  The
                    date the court revokes legal possession of the property from
                    the
                    borrower.

                	 	
                  MM/DD/YYYY

                
	
                  LIST_PRICE

                	
                  The
                    price at which an REO property is marketed.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  LIST_DATE

                	
                  The
                    date an REO property is listed at a particular price.

                	 	
                  MM/DD/YYYY

                
	
                  OFFER_AMT

                	
                  The
                    dollar value of an offer for an REO property.

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  OFFER_DATE_TIME

                	
                  The
                    date an offer is received by DA Admin or by the Servicer.

                	 	
                  MM/DD/YYYY

                
	
                  REO_CLOSING_DATE

                	
                  The
                    date the REO sale of the property is scheduled to close.

                	 	
                  MM/DD/YYYY

                
	
                  REO_ACTUAL_CLOSING_DATE

                	
                  Actual
                    Date Of REO Sale

                	 	
                  MM/DD/YYYY

                
	
                  OCCUPANT_CODE

                	
                  Classification
                    of how the property is occupied.

                	 	
                   

                
	
                  PROP_CONDITION_CODE

                	
                  A
                    code that indicates the condition of the property.

                	 	
                   

                
	
                  PROP_INSPECTION_DATE

                	
                  The
                    date a property inspection is performed.

                	 	
                  MM/DD/YYYY

                
	
                  APPRAISAL_DATE

                	
                  The
                    date the appraisal was done.

                	 	
                  MM/DD/YYYY

                
	
                  CURR_PROP_VAL

                	
                   The
                    current "as is" value of the property based on brokers price
                    opinion or
                    appraisal.

                	
                  2

                	
                   

                
	
                  REPAIRED_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion or appraisal.

                	
                  2

                	
                   

                
	
                  If
                    applicable:

                	
                   

                	 	
                   

                
	
                  DELINQ_STATUS_CODE

                	
                  FNMA
                    Code Describing Status of Loan

                	 	 
	
                  DELINQ_REASON_CODE

                	
                  The
                    circumstances which caused a borrower to stop paying on a loan.
                    Code
                    indicates the reason why the loan is in default for this
                    cycle.

                	 	 
	
                  MI_CLAIM_FILED_DATE

                	
                  Date
                    Mortgage Insurance Claim Was Filed With Mortgage Insurance
                    Company.

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT

                	
                  Amount
                    of Mortgage Insurance Claim Filed

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MI_CLAIM_PAID_DATE

                	
                  Date
                    Mortgage Insurance Company Disbursed Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_AMT_PAID

                	
                  Amount
                    Mortgage Insurance Company Paid On Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  Date
                    Claim Was Filed With Pool Insurance Company

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  Amount
                    of Claim Filed With Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  Date
                    Claim Was Settled and The Check Was Issued By The Pool
                    Insurer

                	 	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  Amount
                    Paid On Claim By Pool Insurance Company

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_FILED_DATE

                	
                   Date
                    FHA Part A Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_AMT

                	
                   Amount
                    of FHA Part A Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_A_CLAIM_PAID_DATE

                	
                   Date
                    HUD Disbursed Part A Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_A_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part A Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_FILED_DATE

                	
                    Date
                    FHA Part B Claim Was Filed With HUD

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_AMT

                	
                    Amount
                    of FHA Part B Claim Filed

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FHA_PART_B_CLAIM_PAID_DATE

                	
                     Date
                    HUD Disbursed Part B Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  FHA_PART_B_CLAIM_PAID_AMT

                	
                   Amount
                    HUD Paid on Part B Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  VA_CLAIM_FILED_DATE

                	
                   Date
                    VA Claim Was Filed With the Veterans Admin

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_DATE

                	
                   Date
                    Veterans Admin. Disbursed VA Claim Payment

                	 	
                  MM/DD/YYYY

                
	
                  VA_CLAIM_PAID_AMT

                	
                   Amount
                    Veterans Admin. Paid on VA Claim

                	
                  2

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  MOTION_FOR_RELIEF_DATE

                	
                  The
                    date the Motion for Relief was filed

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  FRCLSR_BID_AMT

                	
                  The
                    foreclosure sale bid amount

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FRCLSR_SALE_TYPE

                	
                  The
                    foreclosure sales results: REO, Third Party, Conveyance to
                    HUD/VA

                	 	
                   

                
	
                  REO_PROCEEDS

                	
                  The
                    net proceeds from the sale of the REO property. 

                	 	
                  No
                    commas(,) or dollar signs ($)

                
	
                  BPO_DATE

                	
                  The
                    date the BPO was done.

                	 	
                   

                
	
                  CURRENT_BPO_VAL

                	
                  The
                    current "as is" value of the property based on a brokers price
                    opinion.

                	 	
                   

                
	
                  REPAIRED_BPO_PROP_VAL

                	
                  The
                    amount the property would be worth if repairs are completed pursuant
                    to a
                    broker's price opinion.

                	 	
                   

                
	
                  CURR_APP_VAL

                	
                   The
                    current "as is" value of the property based on an
                    appraisal.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  CURRENT_FICO

                	
                  The
                    current FICO score

                	 	
                   

                
	
                  HAZARD_CLAIM_FILED_DATE

                	
                  The
                    date the Hazard Claim was filed with the Hazard Insurance
                    Company.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  HAZARD_CLAIM_AMT

                	
                  The
                    amount of the Hazard Insurance Claim filed.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  HAZARD_CLAIM_PAID_DATE

                	
                  The
                    date the Hazard Insurance Company disbursed the claim
                    payment.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  HAZARD_CLAIM_PAID_AMT

                	
                  The
                    amount the Hazard Insurance Company paid on the claim.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_FILED_DATE

                	
                  The
                    date the claim was filed with the Pool Insurance Company.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT

                	
                  The
                    amount of the claim filed with the Pool Insurance Company.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  POOL_CLAIM_PAID_DATE

                	
                  The
                    date the claim was settled and the check was issued by the Pool
                    Insurer.

                	
                  10

                	
                  MM/DD/YYYY

                
	
                  POOL_CLAIM_AMT_PAID

                	
                  The
                    amount paid on the claim by the Pool Insurance Company.

                	
                  11

                	
                  No
                    commas(,) or dollar signs ($)

                
	
                  FORECLOSURE_FLAG

                	
                  Y
                    or N

                	 	
                  Text

                
	
                  BANKRUPTCY_FLAG

                	
                  Y
                    or N

                	 	
                  Text

                
	
                  NOD_DATE

                	
                   

                	 	
                  MM/DD/YYYY

                
	
                  MI_CLAIM_DATE

                	
                  Date
                    Mortgage Insurance is filed

                	 	
                  MM/DD/YYYY

                
	
                  NOI_DATE

                	
                   

                	 	
                  MM/DD/YYYY

                
	
                  ACTUAL_PAYMENT_PLAN_START_DATE

                	
                   

                	 	
                  MM/DD/YYYY

                
	
                  ACTUAL_PAYMENT_
                    PLAN_END_DATE

                	
                   

                	 	
                   

                
	
                  LIST_DATE

                	
                   

                	 	
                  MM/DD/YYYY

                
	
                  VACANCY/OCCUPANCY_STATUS

                	
                  The
                    Occupancy status of the defaulted loan's collateral

                	 	
                  Text

                
	
                  ACTUAL_REO_START_DATE

                	
                   

                	 	
                  MM/DD/YYYY

                
	
                  SALES_PRICE

                	
                   

                	 	
                  Number

                
	
                  UPB_LIQUIDATION

                	
                  Outstanding
                    Pricipal Balance of the loan upon Liquidation

                	 	
                  Number

                
	
                  REALIZED_LOSS/GAIN

                	
                  As
                    defined in the Servicing Agreement

                	 	
                  Number

                
	
                  LIQUIDATION_PROCEEDS

                	
                   

                	 	
                  Number

                
	
                  PREPAYMENT_CHARGES_COLLECTED

                	
                  The
                    amount of Prepayment Charges received

                	 	
                  Number

                
	
                  PREPAYMENT_CALCULATION

                	
                  The
                    formula behind the prepayment charge

                	 	
                  Text

                
	
                  PAYOFF_DATE

                	
                  The
                    date on which the loan was paid off

                	 	
                  MM/DD/YYYY

                

        

      

       

       

       

       

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting

       

      

       

      The
        Loss
        Mit Type
        field
        should show the approved Loss Mitigation Code as follows: 

      
        	
                ·  ASUM-

              	
                Approved
                  Assumption

              
	
                ·  BAP-

              	
                Borrower
                  Assistance Program

              
	
                ·  CO-

              	
                Charge
                  Off

              
	
                ·  DIL-

              	
                Deed-in-Lieu

              
	
                ·  FFA-

              	
                Formal
                  Forbearance Agreement

              
	
                ·  MOD-

              	
                Loan
                  Modification

              
	
                ·  PRE-

              	
                Pre-Sale

              
	
                ·  SS-

              	
                Short
                  Sale

              
	
                ·  MISC

              	
                Anything
                  else approved by the PMI or Pool Insurer

              
	 	 

      

       

      NOTE:
        Wells Fargo Bank will accept alternative Loss Mitigation Types to those above,
        provided that they are consistent with industry standards. If Loss Mitigation
        Types other than those above are used, the Servicer must supply Wells Fargo
        Bank
        with a description of each of the Loss Mitigation Types prior to sending
        the
        file.

       

      

       

      The
        Occupant
        Code
        field should show the current status of the property code as
        follows:

      
        	
                ·  Mortgagor

              
	
                ·  Tenant

              
	
                ·  Unknown
                  

              
	
                ·  Vacant

              

      

       

      

       

      The
        Property
        Condition
        field should show the last reported condition of the property as follows:
        

      
        	
                ·  Damaged

              
	
                ·  Excellent

              
	
                ·  Fair

              
	
                ·  Gone

              
	
                ·  Good

              
	
                ·  Poor

              
	
                ·  Special
                  Hazard

              
	
                ·  Unknown

              

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

       

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Reason Code
        field should show the Reason for Delinquency as follows: 

       

      

      
        	
                Delinquency
                  Code

              	
                Delinquency
                  Description

              
	
                001

              	
                FNMA-Death
                  of principal mortgagor

              
	
                002

              	
                FNMA-Illness
                  of principal mortgagor

              
	
                003

              	
                FNMA-Illness
                  of mortgagor’s family member

              
	
                004

              	
                FNMA-Death
                  of mortgagor’s family member

              
	
                005

              	
                FNMA-Marital
                  difficulties

              
	
                006

              	
                FNMA-Curtailment
                  of income

              
	
                007

              	
                FNMA-Excessive
                  Obligation

              
	
                008

              	
                FNMA-Abandonment
                  of property

              
	
                009

              	
                FNMA-Distant
                  employee transfer

              
	
                011

              	
                FNMA-Property
                  problem

              
	
                012

              	
                FNMA-Inability
                  to sell property

              
	
                013

              	
                FNMA-Inability
                  to rent property

              
	
                014

              	
                FNMA-Military
                  Service

              
	
                015

              	
                FNMA-Other

              
	
                016

              	
                FNMA-Unemployment

              
	
                017

              	
                FNMA-Business
                  failure

              
	
                019

              	
                FNMA-Casualty
                  loss

              
	
                022

              	
                FNMA-Energy
                  environment costs

              
	
                023

              	
                FNMA-Servicing
                  problems

              
	
                026

              	
                FNMA-Payment
                  adjustment

              
	
                027

              	
                FNMA-Payment
                  dispute

              
	
                029

              	
                FNMA-Transfer
                  of ownership pending

              
	
                030

              	
                FNMA-Fraud

              
	
                031

              	
                FNMA-Unable
                  to contact borrower

              
	
                INC

              	
                FNMA-Incarceration

              

      

      

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

      Exhibit
        2: Standard
        File Codes - Delinquency Reporting, Continued

       

      The
        FNMA
        Delinquent Status Code
        field should show the Status of Default as follows: 

       

      

      
        	
                Status
                  Code

              	
                Status
                  Description

              
	
                09

              	
                Forbearance

              
	
                17

              	
                Pre-foreclosure
                  Sale Closing Plan Accepted

              
	
                24

              	
                Government
                  Seizure

              
	
                26

              	
                Refinance

              
	
                27

              	
                Assumption

              
	
                28

              	
                Modification

              
	
                29

              	
                Charge-Off

              
	
                30

              	
                Third
                  Party Sale

              
	
                31

              	
                Probate

              
	
                32

              	
                Military
                  Indulgence

              
	
                43

              	
                Foreclosure
                  Started

              
	
                44

              	
                Deed-in-Lieu
                  Started

              
	
                49

              	
                Assignment
                  Completed

              
	
                61

              	
                Second
                  Lien Considerations

              
	
                62

              	
                Veteran’s
                  Affairs-No Bid

              
	
                63

              	
                Veteran’s
                  Affairs-Refund

              
	
                64

              	
                Veteran’s
                  Affairs-Buydown

              
	
                65

              	
                Chapter
                  7 Bankruptcy

              
	
                66

              	
                Chapter
                  11 Bankruptcy

              
	
                67

              	
                Chapter
                  13 Bankruptcy

              

      

       

      

       

       

      

      

      EXHIBIT
        X-3

       

      

      Exhibit
        3 : Calculation
        of Realized Loss/Gain Form 332- Instruction Sheet

      NOTE:
        Do not net or combine items. Show all expenses individually and all credits
        as
        separate line items. Claim packages are due on the remittance report date.
        Late
        submissions may result in claims not being passed until the following month.
        The
        Servicer is responsible to remit all funds pending loss approval and /or
        resolution of any disputed items. 

      

       

      The
        numbers on the 332 form correspond with the numbers listed below.

       

      Liquidation
        and Acquisition Expenses:

      
        	
                1.

              	
                The
                  Actual Unpaid Principal Balance of the Mortgage Loan. For documentation,
                  an Amortization Schedule from date of default through liquidation
                  breaking
                  out the net interest and servicing fees advanced is
                  required.

              
	 	 
	
                2.

              	
                The
                  Total Interest Due less the aggregate amount of servicing fee that
                  would
                  have been earned if all delinquent payments had been made as agreed.
                  For
                  documentation, an Amortization Schedule from date of default through
                  liquidation breaking out the net interest and servicing fees advanced
                  is
                  required.

              
	 	 
	
                3.
                  

              	
                Accrued
                  Servicing Fees based upon the Scheduled Principal Balance of the
                  Mortgage
                  Loan as calculated on a monthly basis. For documentation, an Amortization
                  Schedule from date of default through liquidation breaking out
                  the net
                  interest and servicing fees advanced is required.

              
	 	 
	
                4-12.

              	
                Complete
                  as applicable. Required documentation:

              
	 	 

      

      *
        For
        taxes and insurance advances - see page 2 of 332 form - breakdown required
        showing period

       

      of
        coverage, base tax, interest, penalty. Advances prior to default require
        evidence of servicer efforts to recover advances.

       

      *
        For
        escrow advances - complete payment history 

       

      (to
        calculate advances from last positive escrow balance forward)

       

      *
        Other
        expenses -  copies of corporate advance history showing all payments

       

      *
        REO
        repairs > $1500 require explanation

       

      *
        REO
        repairs >$3000 require evidence of at least 2 bids.

       

      *
        Short
        Sale or Charge Off require P&L supporting the decision and
        WFB’s approved Officer Certificate 

       

      *
        Unusual
        or extraordinary items may require further documentation. 

       

      13.  The
        total
        of lines 1 through 12.

       

      Credits:
        

       

      14-21.     
         Complete
        as applicable. Required documentation:

       

      *
        Copy of
        the HUD 1 from the REO sale. If a 3rd
        Party
        Sale, bid instructions and Escrow
        Agent / Attorney

       

      Letter
        of
        Proceeds
        Breakdown.

       

      *
        Copy of
        EOB for any MI or gov't guarantee 

       

      *
        All
        other credits need to be clearly defined on the 332
        form      
     

       

      
        	 	
                22.

              	
                The
                  total of lines 14 through 21.

              

      

       

      Please
        Note: For
        HUD/VA loans, use line (18a) for Part A/Initial proceeds and line (18b) for
        Part
        B/Supplemental proceeds.

       

      Total
        Realized Loss (or Amount of Any Gain)

       

      23. The
        total
        derived from subtracting line 22 from 13. If the amount represents a realized
        gain, show
        the
        amount in parenthesis ( ). 

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Exhibit
        3A: Calculation
        of Realized Loss/Gain Form 332

       

      Prepared
        by: __________________   Date:
        _______________

       

      Phone:
        ______________________     Email
        Address:_____________________

       

      

       

      
        	
                Servicer
                  Loan No.

              	 	
                Servicer
                  Name

              	 	
                Servicer
                  Address 

                 

              

      

       

      WELLS
        FARGO BANK, N.A. Loan No._____________________________

       

      Borrower's
        Name: _________________________________________________________

       

      Property
        Address: _________________________________________________________

       

       

      Liquidation
        Type: REO Sale  
        3rd
        Party Sale  Short
        Sale     Charge
        Off 

       

      Was
        this loan granted a Bankruptcy deficiency or cramdown  Yes      No

       

      If
“Yes”,
        provide deficiency or cramdown amount
        _______________________________

       

      Liquidation
        and Acquisition Expenses:

      
        
          	
                   

                	
                  (1)

                	
                  Actual
                    Unpaid Principal Balance of Mortgage Loan

                	
                  $
                    ______________

                	
                  (1)

                
	
                   

                	
                  (2)

                	
                  Interest
                    accrued at Net Rate

                	
                  ________________

                	
                  (2)

                
	
                   

                	
                  (3)

                	
                  Accrued
                    Servicing Fees

                	
                  ________________

                	
                  (3)

                
	
                   

                	
                  (4)

                	
                  Attorney's
                    Fees

                	
                  ________________

                	
                  (4)

                
	
                   

                	
                  (5)

                	
                  Taxes

                	
                  ________________

                	
                  (5)

                
	
                   

                	
                  (6)

                	
                  Property
                    Maintenance

                	
                  ________________

                	
                  (6)

                
	
                   

                	
                  (7)

                	
                  MI/Hazard
                    Insurance Premiums

                	
                  ________________

                	
                  (7)

                
	
                   

                	
                  (8)

                	
                  Utility
                    Expenses

                	
                  ________________

                	
                  (8)

                
	
                   

                	
                  (9)

                	
                  Appraisal/BPO

                	
                  ________________

                	
                  (9)

                
	
                   

                	
                  (10)

                	
                  Property
                    Inspections

                	
                  ________________

                	
                  (10)

                
	
                   

                	
                  (11)

                	
                  FC
                    Costs/Other Legal Expenses

                	
                  ________________

                	
                  (11)

                
	
                   

                	
                  (12)

                	
                  Other
                    (itemize)

                	
                  $________________

                	
                  (12)

                
	
                   

                	
                  Cash
                    for Keys__________________________

                	
                   

                	
                  ________________

                	
                   

                
	
                   

                	
                  HOA/Condo
                    Fees_______________________

                	
                   

                	
                  ________________

                	
                   

                
	
                   

                	
                  ______________________________________

                	
                   

                	
                  ________________

                	
                   

                
	
                   

                	
                  ______________________________________

                	
                   

                	
                  ________________

                	
                   

                
	
                   

                	
                  Total
                    Expenses

                	
                   

                	
                  $
                    _______________

                	
                  (13)

                
	
                   

                	
                  Credits:

                	
                   

                	
                   

                	
                   

                
	
                   

                	
                  (14)

                	
                  Escrow
                    Balance

                	
                  $
                    _______________

                	
                  (14)

                
	
                   

                	
                  (15)

                	
                  HIP
                    Refund

                	
                  ________________

                	
                  (15)

                
	
                   

                	
                  (16)

                	
                  Rental
                    Receipts

                	
                  ________________

                	
                  (16)

                
	
                   

                	
                  (17)

                	
                  Hazard
                    Loss Proceeds

                	
                  ________________

                	
                  (17)

                
	
                   

                	
                  (18)

                	
                  Primary
                    Mortgage Insurance Proceeds

                	
                  ________________

                	
                  (18)

                
	 	 	 HUD
                  Part A	 ________________	 (18a)
	 	 	 HUD
                  Part B	
                   ________________

                	 (18b)
	
                   

                	
                  (19)

                	
                  Pool
                    Insurance Proceeds

                	
                  ________________

                	
                  (19)

                
	
                   

                	
                  (20)

                	
                  Proceeds
                    from Sale of Acquired Property

                	
                  ________________

                	
                  (20)

                
	
                   

                	
                  (21)

                	
                  Other
                    (itemize)

                	
                  ________________

                	
                  (21)

                
	
                   

                	
                  _________________________________________

                	
                   

                	
                  
                    ________________

                  

                	
                   

                
	
                   

                	
                  _________________________________________

                	
                   

                	
                  
                    ________________

                  

                	
                   

                
	
                   

                	
                  Total
                    Credits

                	
                  $________________

                	
                  
                    (22)

                  

                
	
                  Total
                    Realized Loss (or Amount of Gain)

                	
                  $________________

                	
                  
                    (23)

                  

                
	
                	
                	
                	
                	
                	
                	
                	
                	
                	
                

           

           

           

           

        

      

       

       

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      Escrow
        Disbursement Detail

      

      

      
        	
                Type

                (Tax
                  /Ins.)

              	
                Date
                  Paid

              	
                Period
                  of Coverage

              	
                Total
                  Paid

              	
                Base
                  Amount

              	
                Penalties

              	
                Interest

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]