Document:

EXHIBIT 4.1

==============================================================================

                                 CWABS, INC.,
                                   Depositor

                         COUNTRYWIDE HOME LOANS, INC.,
                                    Seller

                               PARK MONACO INC.,
                                    Seller

                               PARK SIENNA LLC,
                                    Seller

                     COUNTRYWIDE HOME LOANS SERVICING LP,
                                Master Servicer

                             THE BANK OF NEW YORK,
                                    Trustee

                                      and

                   THE BANK OF NEW YORK TRUST COMPANY, N.A.,
                                  Co-Trustee

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

                        POOLING AND SERVICING AGREEMENT

                         Dated as of December 1, 2006

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

                   ASSET-BACKED CERTIFICATES, SERIES 2006-25

<PAGE>

<TABLE>
<CAPTION>

                                          Table of Contents

                                                                                                Page
                                                                                                ----

                                              ARTICLE I.
                                             DEFINITIONS

<S>                                                                                              <C>
Section 1.01   Defined Terms......................................................................10
Section 1.02   Certain Interpretive Provisions....................................................55

                                             ARTICLE II.
                     CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

Section 2.01   Conveyance of Mortgage Loans.......................................................55
Section 2.02   Acceptance by Trustee of the Mortgage Loans........................................62
Section 2.03   Representations, Warranties and Covenants of the Master Servicer and the
               Sellers............................................................................68
Section 2.04   Representations and Warranties of the Depositor....................................88
Section 2.05   Delivery of Opinion of Counsel in Connection with Substitutions and
               Repurchases........................................................................90
Section 2.06   Authentication and Delivery of Certificates........................................90
Section 2.07   Covenants of the Master Servicer...................................................91

                                             ARTICLE III.
                            ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01   Master Servicer to Service Mortgage Loans..........................................91
Section 3.02   Subservicing; Enforcement of the Obligations of Master Servicer....................93
Section 3.03   Rights of the Depositor, the Sellers, the Certificateholders, the NIM
               Insurer and the Trustee in Respect of the Master Servicer..........................94
Section 3.04   Trustee to Act as Master Servicer..................................................95
Section 3.05   Collection of Mortgage Loan Payments; Certificate Account; Distribution
               Account; Pre-Funding Account; Seller Shortfall Interest Requirement................95
Section 3.06   Collection of Taxes, Assessments and Similar Items; Escrow Accounts................99
Section 3.07   Access to Certain Documentation and Information Regarding the Mortgage
               Loans..............................................................................99
Section 3.08   Permitted Withdrawals from the Certificate Account, Distribution Account,
               Carryover Reserve Fund and the Principal Reserve Fund.............................100
Section 3.09   [Reserved]........................................................................103
Section 3.10   Maintenance of Hazard Insurance...................................................103
Section 3.11   Enforcement of Due-On-Sale Clauses; Assumption Agreements.........................103
Section 3.12   Realization Upon Defaulted Mortgage Loans; Determination of Excess
               Proceeds and Realized Losses; Repurchase of Certain Mortgage Loans................105
Section 3.13   Co-Trustee to Cooperate; Release of Mortgage Files................................108
Section 3.14   Documents, Records and Funds in Possession of Master Servicer to be
               Held for the Trustee..............................................................109
Section 3.15   Servicing Compensation............................................................110

                                                  i
<PAGE>

Section 3.16   Access to Certain Documentation...................................................110
Section 3.17   Annual Statement as to Compliance.................................................110
Section 3.18   [Reserved]........................................................................111
Section 3.19   [Reserved]........................................................................111
Section 3.20   Prepayment Charges................................................................111
Section 3.21   Swap Contract.....................................................................112

                                             ARTICLE IV.
                          DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

Section 4.01   Advances; Remittance Reports......................................................114
Section 4.02   Reduction of Servicing Compensation in Connection with Prepayment
               Interest Shortfalls...............................................................116
Section 4.03   [Reserved]........................................................................116
Section 4.04   Distributions.....................................................................116
Section 4.05   Monthly Statements to Certificateholders..........................................124
Section 4.06   Termination of a Mortgage Insurance Policy........................................125
Section 4.07   Carryover Reserve Fund............................................................126
Section 4.08   Credit Comeback Excess Account....................................................126
Section 4.09   Swap Trust and Swap Account.......................................................127
Section 4.10   Final Maturity Reserve Trust and Final Maturity Reserve Fund......................128

                                              ARTICLE V.
                                           THE CERTIFICATES

Section 5.01   The Certificates..................................................................129
Section 5.02   Certificate Register; Registration of Transfer and Exchange of Certificates.......130
Section 5.03   Mutilated, Destroyed, Lost or Stolen Certificates.................................135
Section 5.04   Persons Deemed Owners.............................................................135
Section 5.05   Access to List of Certificateholders' Names and Addresses.........................135
Section 5.06   Book-Entry Certificates...........................................................136
Section 5.07   Notices to Depository.............................................................137
Section 5.08   Definitive Certificates...........................................................137
Section 5.09   Maintenance of Office or Agency...................................................137

                                             ARTICLE VI.
                          THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

Section 6.01   Respective Liabilities of the Depositor, the Master Servicer and the Sellers......138
Section 6.02   Merger or Consolidation of the Depositor, the Master Servicer or the Sellers......138
Section 6.03   Limitation on Liability of the Depositor, the Sellers, the Master Servicer,
               the NIM Insurer and Others........................................................139
Section 6.04   Limitation on Resignation of Master Servicer......................................139
Section 6.05   Errors and Omissions Insurance; Fidelity Bonds....................................140

                                                 ii
<PAGE>

                                             ARTICLE VII.
                               DEFAULT; TERMINATION OF MASTER SERVICER

Section 7.01   Events of Default.................................................................140
Section 7.02   Trustee to Act; Appointment of Successor..........................................142
Section 7.03   Notification to Certificateholders................................................144

                                            ARTICLE VIII.
                              CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

Section 8.01   Duties of Trustee.................................................................144
Section 8.02   Certain Matters Affecting the Trustee.............................................146
Section 8.03   Trustee Not Liable for Mortgage Loans.............................................147
Section 8.04   Trustee May Own Certificates......................................................148
Section 8.05   Master Servicer to Pay Trustee's Fees and Expenses................................148
Section 8.06   Eligibility Requirements for Trustee..............................................148
Section 8.07   Resignation and Removal of Trustee................................................149
Section 8.08   Successor Trustee.................................................................150
Section 8.09   Merger or Consolidation of Trustee................................................150
Section 8.10   Appointment of Co-Trustee or Separate Trustee.....................................151
Section 8.11   Tax Matters.......................................................................152
Section 8.12   Co-Trustee........................................................................155
Section 8.13   Access to Records of the Trustee..................................................158
Section 8.14   Suits for Enforcement.............................................................158

                                             ARTICLE IX.
                                             TERMINATION

Section 9.01   Termination upon Liquidation or Repurchase of all Mortgage Loans..................159
Section 9.02   Final Distribution on the Certificates............................................160
Section 9.03   Additional Termination Requirements...............................................161
Section 9.04   Auction of the Mortgage Loans and REO Properties..................................162

                                              ARTICLE X.
                                       MISCELLANEOUS PROVISIONS

Section 10.01  Amendment.........................................................................166
Section 10.02  Recordation of Agreement; Counterparts............................................168
Section 10.03  Governing Law.....................................................................168
Section 10.04  Intention of Parties..............................................................168
Section 10.05  Notices...........................................................................170
Section 10.06  Severability of Provisions........................................................171
Section 10.07  Assignment........................................................................171
Section 10.08  Limitation on Rights of Certificateholders........................................171
Section 10.09  Inspection and Audit Rights.......................................................172
Section 10.10  Certificates Nonassessable and Fully Paid.........................................172
Section 10.11  Rights of NIM Insurer.............................................................172

                                                 iii
<PAGE>

                                             ARTICLE XI.
                                        EXCHANGE ACT REPORTING

Section 11.01  Filing Obligations................................................................174
Section 11.02  Form 10-D Filings.................................................................174
Section 11.03  Form 8-K Filings..................................................................175
Section 11.04  Form 10-K Filings.................................................................175
Section 11.05  Sarbanes-Oxley Certification......................................................176
Section 11.06  Form 15 Filing....................................................................176
Section 11.07  Report on Assessment of Compliance and Attestation................................177
Section 11.08  Use of Subservicers and Subcontractors............................................178
Section 11.09  Amendments........................................................................179
Section 11.10  Reconciliation of Accounts........................................................179

</TABLE>

Exhibits
--------

EXHIBIT A            Forms of Certificates
  EXHIBIT A-1        Form of Class 1-A Certificate
  EXHIBIT A-2        Form of Class 2-A-1 Certificate
  EXHIBIT A-3        Form of Class 2-A-2 Certificate
  EXHIBIT A-4        Form of Class 2-A-3 Certificate
  EXHIBIT A-5        Form of Class 2-A-4 Certificate
  EXHIBIT A-6        Form of Class M-1 Certificate
  EXHIBIT A-7        Form of Class M-2 Certificate
  EXHIBIT A-8        Form of Class M-3 Certificate
  EXHIBIT A-9        Form of Class M-4 Certificate
  EXHIBIT A-10       Form of Class M-5 Certificate
  EXHIBIT A-11       Form of Class M-6 Certificate
  EXHIBIT A-12       Form of Class M-7 Certificate
  EXHIBIT A-13       Form of Class M-8 Certificate
  EXHIBIT A-14       Form of Class M-9 Certificate
  EXHIBIT A-15       Form of Class B Certificate
  EXHIBIT B          Form of Class P Certificate
  EXHIBIT C          Form of Class C Certificate
  EXHIBIT D          Form of Class A-R Certificate
  EXHIBIT E          Form of Tax Matters Person Certificate
  EXHIBIT F          Mortgage Loan Schedule
  EXHIBIT F-1        List of Mortgage Loans
  EXHIBIT F-2        Mortgage Loans for which All or a Portion of a
                       Related Mortgage File is not Delivered to the
                       Trustee on or prior to the Closing Date
  EXHIBIT G          Forms of Certification of Trustee
  EXHIBIT G-1        Form of Initial Certification of Trustee
                       (Initial Mortgage Loans)
  EXHIBIT G-2        Form of Interim Certification of Trustee
  EXHIBIT G-3        Form of Delay Delivery Certification
  EXHIBIT G-4        Form of Initial Certification of Trustee
                       (Subsequent Mortgage Loans)

                                      iv
<PAGE>

  EXHIBIT H          Form of Final Certification of Trustee
  EXHIBIT I          Transfer Affidavit for Class A-R Certificates
  EXHIBIT J-1        Form of Transferor Certificate for Class A-R Certificates
  EXHIBIT J-2        Form of Transferor Certificate for Private Certificates
  EXHIBIT K          Form of Investment Letter (Non-Rule 144A)
  EXHIBIT L          Form of Rule 144A Letter
  EXHIBIT M          Form of Request for Document Release
  EXHIBIT N          Form of Request for File Release
  EXHIBIT O          Copy of Depository Agreement
  EXHIBIT P          Form of Subsequent Transfer Agreement
  EXHIBIT Q          [Reserved]
EXHIBIT R            [Reserved]
EXHIBIT S-1          [Reserved]
EXHIBIT S-2          [Reserved]
EXHIBIT T            Officer's Certificate with respect to Prepayments
EXHIBIT U            Form of Swap Contract
EXHIBIT V-1          Form of Swap Contract Assignment Agreement
EXHIBIT V-2          Form of Swap Contract Administration Agreement
EXHIBIT W            Form of Monthly Statement
EXHIBIT X-1          Form of Performance Certification (Subservicer)
EXHIBIT X-2          Form of Performance Certification (Trustee)
EXHIBIT Y            Form of Servicing Criteria to be Addressed in
                       Assessment of Compliance Statement
EXHIBIT Z            List of Item 1119 Parties
EXHIBIT AA           Form of Sarbanes-Oxley Certification (Replacement
                       Master Servicer)
SCHEDULE I           Prepayment Charge Schedule and Prepayment Charge Summary
SCHEDULE II          Collateral Schedule
SCHEDULE III         40-Year Target Schedule

                                      v
<PAGE>

          POOLING AND SERVICING AGREEMENT, dated as of December 1, 2006, by
and among CWABS, INC., a Delaware corporation, as depositor (the "Depositor"),
COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller ("CHL" or a
"Seller"), PARK MONACO INC., a Delaware corporation, as a seller ("Park
Monaco" or a "Seller"), PARK SIENNA LLC, a Delaware limited liability company,
as a seller ("Park Sienna" or a "Seller", and together with CHL and Park
Monaco, the "Sellers"), COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited
partnership, as master servicer (the "Master Servicer"), THE BANK OF NEW YORK,
a New York banking corporation, as trustee (the "Trustee"), and THE BANK OF
NEW YORK TRUST COMPANY, N.A., a national banking association, as co-trustee
(the "Co-Trustee").

                             PRELIMINARY STATEMENT

          The Depositor is the owner of the Trust Fund that is hereby conveyed
to the Trustee in return for the Certificates. The Trust Fund (excluding the
Credit Comeback Excess Account, the Carryover Reserve Fund and the assets held
in the Pre-Funding Account) for federal income tax purposes will consist of
three REMICs (the "Swap-IO REMIC," the "Strip REMIC" and the "Master REMIC").
Each Certificate, other than the Class A-R Certificate, will represent
ownership of one or more regular interests in the Master REMIC for purposes of
the REMIC Provisions. The Class A-R Certificate represents ownership of the
sole class of residual interest in the Swap-IO REMIC, the Strip REMIC and the
Master REMIC. The Master REMIC will hold as assets the several classes of
uncertificated Strip REMIC Interests (other than the STR-A-R Interest). Each
Strip REMIC Interest (other than the STR-A-R Interest) is hereby designated as
a regular interest in the Strip REMIC. The Strip REMIC will hold as assets the
several classes of uncertificated Swap-IO REMIC Interests (other than the
SWR-A-R Interest). Each Swap-IO REMIC Interest (other than the SWR-A-R
Interest) is hereby designated as a regular interest in the Swap-IO REMIC. The
Swap-IO REMIC will hold as assets all property of the Trust Fund (excluding
the Credit Comeback Excess Account, the Carryover Reserve Fund and the assets
held in the Pre-Funding Account). The latest possible maturity date of all
REMIC regular interests created in this Agreement shall be the Latest Possible
Maturity Date.

          None of the REMICs described herein shall hold any interest in the
Swap Trust, Swap Contract, Swap Account or Final Maturity Reserve Trust.

     SWAP-IO REMIC:

          The Swap-IO REMIC Interests will have the principal balances and
pass-through rates as set forth below.

 Swap-IO REMIC
 -------------
   Interest            Initial Principal Balance(1)      Pass-Through Rate
   --------            -------------------------         -----------------
    SWR-1A                  $  5,599,783.00                     (2)
    SWR-1B                  $  5,599,783.00                     (3)
    SWR-2A                  $  6,458,180.50                     (2)
    SWR-2B                  $  6,458,180.50                     (3)
    SWR-3A                  $  7,311,752.00                     (2)
    SWR-3B                  $  7,311,752.00                     (3)

                                      1
<PAGE>

 Swap-IO REMIC
 -------------
   Interest            Initial Principal Balance(1)      Pass-Through Rate
   --------            -------------------------         -----------------
    SWR-4A                  $  8,157,347.50                     (2)
    SWR-4B                  $  8,157,347.50                     (3)
    SWR-5A                  $  8,991,785.00                     (2)
    SWR-5B                  $  8,991,785.00                     (3)
    SWR-6A                  $  9,811,860.00                     (2)
    SWR-6B                  $  9,811,860.00                     (3)
    SWR-7A                  $ 10,351,519.00                     (2)
    SWR-7B                  $ 10,351,519.00                     (3)
    SWR-8A                  $ 11,131,898.00                     (2)
    SWR-8B                  $ 11,131,898.00                     (3)
    SWR-9A                  $ 11,888,325.00                     (2)
    SWR-9B                  $ 11,888,325.00                     (3)
    SWR-10A                 $ 12,617,716.00                     (2)
    SWR-10B                 $ 12,617,716.00                     (3)
    SWR-11A                 $ 13,082,182.50                     (2)
    SWR-11B                 $ 13,082,182.50                     (3)
    SWR-12A                 $331,555,930.50                     (2)
    SWR-12B                 $331,555,930.50                     (3)
    SWR-13A                 $  7,102,707.50                     (2)
    SWR-13B                 $  7,102,707.50                     (3)
    SWR-14A                 $  7,408,186.00                     (2)
    SWR-14B                 $  7,408,186.00                     (3)
    SWR-15A                 $  7,692,723.50                     (2)
    SWR-15B                 $  7,692,723.50                     (3)
    SWR-16A                 $  7,954,836.50                     (2)
    SWR-16B                 $  7,954,836.50                     (3)
    SWR-17A                 $  8,193,771.50                     (2)
    SWR-17B                 $  8,193,771.50                     (3)
    SWR-18A                 $  8,408,456.50                     (2)
    SWR-18B                 $  8,408,456.50                     (3)
    SWR-19A                 $  8,560,393.00                     (2)
    SWR-19B                 $  8,560,393.00                     (3)
    SWR-20A                 $  8,265,971.50                     (2)
    SWR-20B                 $  8,265,971.50                     (3)
    SWR-21A                 $  7,980,612.00                     (2)
    SWR-21B                 $  7,980,612.00                     (3)
    SWR-22A                 $  7,704,499.50                     (2)
    SWR-22B                 $  7,704,499.50                     (3)
    SWR-23A                 $  7,437,326.00                     (2)
    SWR-23B                 $  7,437,326.00                     (3)
    SWR-24A                 $ 74,379,827.50                     (2)
    SWR-24B                 $ 74,379,827.50                     (3)
    SWR-25A                 $  8,005,314.00                     (2)
    SWR-25B                 $  8,005,314.00                     (3)

                                      2
<PAGE>

 Swap-IO REMIC
 -------------
   Interest            Initial Principal Balance(1)      Pass-Through Rate
   --------            -------------------------         -----------------
    SWR-26A                 $  7,537,321.00                     (2)
    SWR-26B                 $  7,537,321.00                     (3)
    SWR-27A                 $  7,096,653.50                     (2)
    SWR-27B                 $  7,096,653.50                     (3)
    SWR-28A                 $  6,681,655.50                     (2)
    SWR-28B                 $  6,681,655.50                     (3)
    SWR-29A                 $  6,290,776.50                     (2)
    SWR-29B                 $  6,290,776.50                     (3)
    SWR-30A                 $  5,922,557.00                     (2)
    SWR-30B                 $  5,922,557.00                     (3)
    SWR-31A                 $  3,673,704.50                     (2)
    SWR-31B                 $  3,673,704.50                     (3)
    SWR-32A                 $  3,536,341.50                     (2)
    SWR-32B                 $  3,536,341.50                     (3)
    SWR-33A                 $  3,403,493.50                     (2)
    SWR-33B                 $  3,403,493.50                     (3)
    SWR-34A                 $  3,275,005.50                     (2)
    SWR-34B                 $  3,275,005.50                     (3)
    SWR-35A                 $  3,150,725.50                     (2)
    SWR-35B                 $  3,150,725.50                     (3)
    SWR-36A                 $ 93,780,185.00                     (2)
    SWR-36B                 $ 93,780,185.00                     (3)
    SWR-37A                 $    577,953.00                     (2)
    SWR-37B                 $    577,953.00                     (3)
    SWR-38A                 $    564,933.50                     (2)
    SWR-38B                 $    564,933.50                     (3)
    SWR-39A                 $    552,027.50                     (2)
    SWR-39B                 $    552,027.50                     (3)
    SWR-40A                 $    539,169.50                     (2)
    SWR-40B                 $    539,169.50                     (3)
    SWR-41A                 $    528,743.50                     (2)
    SWR-41B                 $    528,743.50                     (2)
    SWR-42A                 $    517,672.00                     (3)
    SWR-42B                 $    517,672.00                     (2)
    SWR-43A                 $    506,687.50                     (3)
    SWR-43B                 $    506,687.50                     (2)
    SWR-44A                 $    495,842.50                     (3)
    SWR-44B                 $    495,842.50                     (2)
    SWR-45A                 $    485,179.00                     (3)
    SWR-45B                 $    485,179.00                     (2)
    SWR-46A                 $    474,731.50                     (3)
    SWR-46B                 $    474,731.50                     (2)
    SWR-47A                 $    464,532.00                     (3)
    SWR-47B                 $    464,532.00                     (2)

                                      3
<PAGE>

 Swap-IO REMIC
 -------------
   Interest            Initial Principal Balance(1)      Pass-Through Rate
   --------            -------------------------         -----------------
    SWR-48A                 $    454,727.00                     (3)
    SWR-48B                 $    454,727.00                     (2)
    SWR-49A                 $    445,521.50                     (3)
    SWR-49B                 $    445,521.50                     (2)
    SWR-50A                 $    436,180.00                     (3)
    SWR-50B                 $    436,180.00                     (2)
    SWR-51A                 $    427,145.00                     (3)
    SWR-51B                 $    427,145.00                     (2)
    SWR-52A                 $    418,421.50                     (3)
    SWR-52B                 $    418,421.50                     (2)
    SWR-53A                 $    410,013.50                     (3)
    SWR-53B                 $    410,013.50                     (2)
    SWR-54A                 $    401,919.50                     (3)
    SWR-54B                 $    401,919.50                     (2)
    SWR-55A                 $    394,140.50                     (3)
    SWR-55B                 $    394,140.50                     (2)
    SWR-56A                 $    386,701.50                     (3)
    SWR-56B                 $    386,701.50                     (2)
    SWR-57A                 $    379,537.50                     (3)
    SWR-57B                 $    379,537.50                     (2)
    SWR-58A                 $    372,676.00                     (3)
    SWR-58B                 $    372,676.00                     (2)
    SWR-59A                 $    366,310.50                     (3)
    SWR-59B                 $    366,310.50                     (2)
    SWR-60A                 $181,408,282.00                     (2)
    SWR-60B                 $181,408,282.00                     (3)
    SWR-Support                   (4)                           (5)
    SWR-P                   $        100.00                     (6)
    SWR-40 Year Reserve           (7)                           (7)
    SW-A-R                        (8)                           (8)

-----------------------
(1)  Scheduled principal, prepayments and Realized Losses will be allocated
     first, to the SWR-Support Interest and second, to the numbered classes
     sequentially (from lowest to highest). Amounts so allocated to a numbered
     class shall be further allocated among the "A" and "B" components of such
     numbered class pro-rata until the entire class is reduced to zero.

(2)  Prior to the 61st Distribution Date, a rate equal to twice the Pool Tax
     Cap less 9.92% per annum. On and after the 61st Distribution Date a rate
     equal to the Pool Tax Cap. The "Pool Tax Cap" means the weighted average
     of the Adjusted Net Mortgage Rates of all the Mortgage Loans. For this
     purpose, beginning on the Distribution Date in January 2017 and ending on
     the Distribution Date in December 2036 (the "Last Scheduled Distribution
     Date"), the Adjusted Net Mortgage Rate shall be determined by first
     reducing the interest payable on each 40-Year Mortgage Loan by the
     40-Year Reserve Rate.

                                      4
<PAGE>

(3)  Prior to the 61st Distribution Date, a rate equal to the lesser of (i)
     9.92% per annum and (ii) twice the Pool Tax Cap. On and after the 61st
     Distribution Date, a rate equal to the Pool Tax Cap.

(4)  On the Closing Date and on each Distribution Date, following the
     allocation of Principal Amounts and Realized Losses, the principal
     balance in respect of the SWR-Support Interest will equal the excess of
     (a) the sum of (i) the principal balance of the Mortgage Loans (as of the
     end of the related Due Period, reduced by principal prepayments received
     after such Due Period that are to be distributed on such Distribution
     Date) and (ii) the amount, if any, on deposit in the Pre-Funding Account
     in respect of the Mortgage Loans over (b) the principal balance in
     respect of the remaining Swap-IO REMIC Interests other than the SWR-P and
     the SWR-A-R Interests.

(5)  A rate equal to the Pool Tax Cap.

(6)  On each Distribution Date the SWR-P Interest is entitled to all
     Prepayment Charges collected with respect to the Mortgage Loans. It pays
     no interest.

(7)  Beginning on the Distribution Date in January 2017 and ending on the Last
     Scheduled Distribution Date, the SW-40 Year Reserve Interest shall be
     entitled to a specific portion of the interest payable on each 40-Year
     Mortgage Loan. Specifically, the SW-40 Year Reserve Interest shall be
     entitled to a specific portion of the interest payable on the Stated
     Principal Balance of each 40-Year Mortgage Loan as of the Due Date in the
     month preceding the month of that Distribution Date (after giving effect
     to principal prepayments in the Prepayment Period related to that prior
     Due Date) at a per annum rate equal to 0.80% (the "40-Year Reserve
     Rate").

(8)  The SW-A-R Interest is the sole class of residual interest in the Swap-IO
     REMIC. It has no principal and pays no principal or interest.

     On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the Mortgage Loans shall be
payable with respect to the Swap-IO REMIC Interests in the following manner:

     (1) Interest. Interest is to be distributed with respect to each Swap-IO
REMIC Interest at the rate, or according to the formulas, described above.

     (2) Principal. Principal Distribution Amounts shall be allocated among
the Swap-IO REMIC Interests as described above.

     (3) Prepayment Penalties. All Prepayment Charges are allocated to the
SWR-P Interest.

     STRIP REMIC:

The Strip REMIC Regular Interests will have the principal balances,
pass-through rates and Corresponding Classes of Certificates as set forth in
the following table:

                                      5
<PAGE>

<TABLE>
<CAPTION>

------------------------------- ---------------------------- ---------------------------- ----------------------------
         Strip REMIC                 Initial Principal               Pass-Through             Corresponding Class
           Interest                       Balance                        Rate                   of Certificates
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                                        <C>                           <C>                         <C>
STR-1-A.......................              (1)                          (2)                          1-A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-1.....................              (1)                          (2)                         2-A-1
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-2.....................              (1)                          (2)                         2-A-2
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-3.....................              (1)                          (2)                         2-A-3
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-4.....................              (1)                          (2)                         2-A-4
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-1.......................              (1)                          (2)                          M-1
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-2.......................              (1)                          (2)                          M-2
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-3.......................              (1)                          (2)                          M-3
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-4.......................              (1)                          (2)                          M-4
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-5.......................              (1)                          (2)                          M-5
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-6.......................              (1)                          (2)                          M-6
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-7.......................              (1)                          (2)                          M-7
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-8.......................              (1)                          (2)                          M-8
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-9.......................              (1)                          (2)                          M-9
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-B.........................              (1)                          (2)                           B
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-$100......................             $100                          (3)                          A-R
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-OC......................              (4)                          (2)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-Swap-IO                               (5)                          (5)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-40 Year IO                            (6)                          (6)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-P.........................             $100                          (7)                           P
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-A-R.......................              (8)                          (8)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------

</TABLE>

(1) This Strip REMIC Interest has a principal balance that is initially equal
to 100% of its Corresponding Certificate Class issued by the Master REMIC.
Principal payments, both scheduled and prepaid, Realized Losses and Subsequent
Recoveries attributable to the Swap-IO REMIC Interests held by the Strip REMIC
will be allocated to this class to maintain its size relative to its
Corresponding Certificate Class.

(2) On each Distribution Date, the pass-through rate for this Strip REMIC
Interest will be the "Strip REMIC Cap," which will equal the weighted average
of the pass-through rates of the Swap-IO REMIC Interests (other than the
SWR-P, SWR-40 Year Reserve and SWR-A-R Interests) treating each "B" Interest
the cardinal number of which (for example, SW-1B, SW-2B, SW-3B, etc.) is not
less than the ordinal number of the Distribution Date (first Distribution
Date, second Distribution Date, third Distribution Date, etc.) as capped at a
rate equal to the product of (i) 2 and (ii) LIBOR.

(3) This Strip REMIC Interest pays no interest.

(4) This Strip REMIC Interest has a principal balance that is initially equal
to 100% of the Overcollateralized Amount. Principal payments, both scheduled
and prepaid, Realized Losses and Subsequent Recoveries attributable to the
Swap-IO REMIC Interests held by the Strip REMIC will be allocated to this
class to maintain its size relative to the Overcollateralized Amount.

                                      6
<PAGE>

(5) For each Distribution Date, the STR-C-Swap-IO Interest is entitled to
receive from each Swap REMIC "B" Interest the cardinal number of which (for
example, SW-1B, SW-2B, SW-3B, etc.) is not less than the ordinal number of the
Distribution Date (first Distribution Date, second Distribution Date, third
Distribution Date, etc. ) the interest accruing on such interest in excess of
a per annum rate equal to the product of (i) 2 and (ii) LIBOR.

(6) The STR-C-40 Year IO is entitled to all amounts payable with respect to
the SWR-40 Year Reserve Interest.

(7) The STR-P Interest is entitled to all amounts payable with respect to the
SWR-P Interest. It pays no interest.

(8) The STR-A-R Interest is the sole class of residual interest in the Strip
REMIC. It has no principal balance and pays no principal or interest.

     On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the Swap-IO Interests shall be
payable with respect to the Strip REMIC Interests in the following manner:

     (1) Interest. Interest is to be distributed with respect to each Strip
REMIC Interest at the rate, or according to the formulas, described above.

     (2) Principal. Principal Distribution Amounts shall be allocated among
the Strip REMIC Interests as described above.

     (3) Prepayment Penalties. All Prepayment Charges are allocated to the
STR-P Interest.

                                      7
<PAGE>

     MASTER REMIC:

          The following table specifies the class designation, interest rate,
and principal amount for each class of Master REMIC Interest:

                                Original Certificate
Class                            Principal Balance          Pass-Through Rate
---------------------------  -------------------------    --------------------
Class 1-A..................       $   495,720,000                   (1)
Class 2-A-1................       $   326,203,000                   (1)
Class 2-A-2................       $   107,583,000                   (1)
Class 2-A-3................       $   235,057,000                   (1)
Class-2-A-4................       $    90,937,000                   (1)
Class M-1..................       $    56,575,000                   (1)
Class M-2..................       $    62,775,000                   (1)
Class M-3..................       $    26,350,000                   (1)
Class M-4..................       $    22,475,000                   (1)
Class M-5..................       $    22,475,000                   (1)
Class M-6..................       $    19,375,000                   (1)
Class M-7..................       $    13,175,000                   (1)
Class M-8..................       $    14,725,000                   (1)
Class M-9..................       $    13,950,000                   (1)
Class B....................       $    15,500,000                   (1)
Class C....................               (2)                       (3)
Class P....................       $           100                   (4)
Class A-R..................       $           100                   (5)

(1)  The Certificates will accrue interest at the related Pass-Through Rates
     identified in this Agreement. For federal income tax purposes, including
     the computation of the Class C Distributable Amount and entitlement to
     Net Rate Carryover the pass-through rate in respect of each Class 1-A
     Certificate, Class 2-A Certificate, Class M Certificate and Class B
     Certificate will be subject to a cap equal to the Strip REMIC Cap rather
     than its applicable Net Rate Cap.
(2)  For federal income tax purposes, the Class C Certificates will be treated
     as having a Certificate Principal Balance equal to the Overcollateralized
     Amount.
(3)  For each Interest Accrual Period the Class C Certificates are entitled to
     an amount (the "Class C Distributable Amount") equal to the sum of (a)
     the interest payable on the STR-C-Swap-IO Interest, (b) the interest
     payable on the STR-C-OC Interest, (c) the interest payable on the
     STR-C-40 Year IO Interest and (d) a specified portion of the interest
     payable on the Strip REMIC Regular Interests (other than the STR-$100,
     STR-C-OC, STR-C-Swap-IO, STR-C-40 Year IO and STR-P Interests) equal to
     the excess of the Strip REMIC Cap over the weighted average interest rate
     of the Strip REMIC Regular Interests (other than the STR-$100, STR-C-OC,
     STR-C-Swap-IO, STR-C-40 Year IO and STR-P Interests) with each such Class
     subject to a cap equal to the Pass-Through Rate of the Corresponding
     Master REMIC Class. The Pass-Through Rate of the Class C Certificates
     shall be a rate sufficient to entitle it to an amount equal to all
     interest accrued on the Mortgage Loans less the interest accrued on the
     other interests issued by the Master REMIC. The Class C Distributable
     Amount for any Distribution Date is payable

                                      8
<PAGE>

     from current interest on the Mortgage Loans and any related
     Overcollateralization Reduction Amount for that Distribution Date.
(4)  For each Distribution Date the Class P Certificates are entitled to all
     Prepayment Charges distributed with respect to the STR-P Interest.
(5)  The Class A-R Certificates represent the sole class of residual interest
     in each REMIC created hereunder. The Class A-R Certificates are not
     entitled to distributions of interest.

          The foregoing REMIC structure is intended to cause all of the cash
from the Mortgage Loans to flow through to the Master REMIC as cash flow on
REMIC regular interests, without creating any shortfall--actual or potential
(other than for credit losses)-- to any REMIC regular interest. It is not
intended that the Class A-R Certificates be entitled to any cash flows
pursuant to this Agreement except as provided in Section 3.08(a) hereunder.

                                      9
<PAGE>

                                  ARTICLE I.

                                  DEFINITIONS

          Section 1.01 Defined Terms.

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

          40-Year Target Schedule: Schedule III hereto.

          40-Year Mortgage Loan: A Mortgage Loan with an original term to
maturity of 40 years.

          40-Year Reserve Rate: As defined in the Preliminary Statement.

          Acceptable Bid Amount: Either (i) a bid equal to or greater than the
Minimum Auction Amount or (ii) the highest bid submitted by a Qualified Bidder
in an auction if the Directing Certificateholder agrees to pay the related
Auction Supplement Amount.

          Account: Any Escrow Account, the Carryover Reserve Fund, the
Certificate Account, the Credit Comeback Excess Account, the Distribution
Account, the Pre-Funding Account, the Principal Reserve Fund, the Swap
Account, the Final Maturity Reserve Fund or any other account related to the
Trust Fund or the Mortgage Loans.

          Accrual Period: With respect to any Distribution Date and each Class
of Interest-Bearing Certificates, the period commencing on the immediately
preceding Distribution Date (or, in the case of the first Distribution Date,
the Closing Date) and ending on the day immediately preceding such
Distribution Date. With respect to any Distribution Date and the Class C
Certificates, the calendar month preceding the month in which such
Distribution Date occurs. All calculations of interest on the Interest-Bearing
Certificates will be made on the basis of the actual number of days elapsed in
the related Accrual Period and on a 360-day year. All calculations of interest
on the Class C Certificates will be made on the basis of a 360-day year
consisting of twelve 30-day months.

          Additional Designated Information: As defined in Section 11.02.

          Adjustable Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is adjustable in
accordance with the terms of the related Mortgage Note.

          Adjusted Net Mortgage Rate: As to each Mortgage Loan, the Mortgage
Rate less the related Expense Fee Rate.

          Adjusted Replacement Upfront Amount: As defined in Section 3.21.

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

                                      10
<PAGE>

          Advance: The aggregate of the advances required to be made by the
Master Servicer with respect to any Distribution Date pursuant to Section
4.01, the amount of any such advances being equal to the aggregate of payments
of principal of, and interest on the Stated Principal Balance of, the Mortgage
Loans (net of the Servicing Fees) that were due on the related Due Date and
not received by the Master Servicer as of the close of business on the related
Determination Date including an amount equivalent to interest on the Stated
Principal Balance of each Mortgage Loan as to which the related Mortgaged
Property is an REO Property or as to which the related Mortgaged Property has
been liquidated but such Mortgage Loan has not yet become a Liquidated
Mortgage Loan; provided, however, that the net monthly rental income (if any)
from such REO Property deposited in the Certificate Account for such
Distribution Date pursuant to Section 3.12 may be used to offset such Advance
for the related REO Property; provided, further, that for the avoidance of
doubt, no Advances shall be required to be made in respect of any Liquidated
Mortgage Loan.

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

          Amount Held for Future Distribution: As to any Distribution Date,
the aggregate amount held in the Certificate 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 Mortgage
Loans due after the related Due Date, (ii) Principal Prepayments received in
respect of such Mortgage Loans after the last day of the related Prepayment
Period and (iii) Liquidation Proceeds and Subsequent Recoveries received in
respect of such Mortgage Loans after the last day of the related Due Period.

          Applied Realized Loss Amount: With respect to any Distribution Date
and any Loan Group or Loan Groups, the amount, if any, by which, the aggregate
Certificate Principal Balance of the Class(es) of Certificates listed opposite
such Loan Group(s) in the following table (after all distributions of
principal on such Distribution Date) exceeds the sum of (x) the aggregate
Stated Principal Balance of the Mortgage Loans in such Loan Group(s) for such
Distribution Date and (y) the amount on deposit in the Pre-Funding Account in
respect of such Loan Group(s); provided, however, that an Applied Realized
Loss Amount will not exist for a Class of Class A Certificates unless the
Certificate Principal Balances of the Subordinate Certificates have been
reduced to zero.

              Loan Group(s)                Class(es) of Certificates

                 1 and 2                        Interest-Bearing
                    1                                 1-A
                    2                                 2-A

          Appraised Value: The appraised value of the Mortgaged Property based
upon the appraisal made for the originator of the related Mortgage Loan by an
independent fee appraiser at the time of the origination of the related
Mortgage Loan, or the sales price of the Mortgaged Property at the time of
such origination, whichever is less, or 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.

                                      11
<PAGE>

          Auction Supplement Amount: As defined in Section 9.04(c).

          Bankruptcy Code: Title 11 of the United States Code.

          Bid Determination Date: As defined in Section 9.04(b).

          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 5.06). As of the Closing
Date, each Class of Interest-Bearing Certificates (other than the Class B
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 or California or
the city in which the Corporate Trust Office of the Trustee is located are
authorized or obligated by law or executive order to be closed.

          Carryover Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.07 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-25". Funds in the Carryover Reserve Fund shall be
held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

          Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and Exhibit E.

          Certificate Account: The separate Eligible Account created and
initially maintained by the Master Servicer pursuant to Section 3.05(b) with a
depository institution in the name of the Master Servicer for the benefit of
the Trustee on behalf of the Certificateholders and designated "Countrywide
Home Loans Servicing LP in trust for registered Holders of CWABS, Inc.,
Asset-Backed Certificates, Series 2006-25". Funds in the Certificate Account
shall be held in trust for the Certificateholders for the uses and purposes
set forth in this Agreement.

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

          Certificate Principal Balance: As to any Certificate (other than the
Class C Certificates) and as of any Distribution Date, the Initial Certificate
Principal Balance of such Certificate (A) less the sum of (i) all amounts
distributed with respect to such Certificate in reduction of the Certificate
Principal Balance thereof on previous Distribution Dates pursuant to Section
4.04(b) and (ii) any Applied Realized Loss Amounts allocated to such
Certificate on previous Distribution Dates pursuant to Section 4.04(g), and
(B) increased by any Subsequent Recoveries allocated to such Certificate
pursuant to Section 4.04(h) on such Distribution Date. References herein to
the Certificate Principal Balance of a Class of Certificates shall mean the

                                      12
<PAGE>

Certificate Principal Balances of all Certificates in such Class. The Class C
Certificates do not have a Certificate Principal Balance. With respect to any
Certificate (other than the Class C Certificates) of a Class and any
Distribution Date, the portion of the Certificate Principal Balance of such
Class represented by such Certificate equal to the product of the Percentage
Interest evidenced by such Certificate and the Certificate Principal Balance
of such Class.

          Certificate Register: The register maintained pursuant to Section
5.02 hereof.

          Certificateholder or Holder: The person in whose name a Certificate
is registered in the Certificate Register (initially, Cede & Co., as nominee
for the Depository, in the case of any Class of Book-Entry Certificates),
except that solely for the purpose of giving any consent pursuant to this
Agreement, any Certificate registered in the name of the Depositor or any
affiliate of the Depositor shall be deemed not to be Outstanding and the
Voting Interest evidenced thereby shall not be taken into account in
determining whether the requisite amount of Voting Interests necessary to
effect such consent has been obtained; provided that if any such Person
(including the Depositor) owns 100% of the Voting Interests evidenced by a
Class of Certificates, such Certificates shall be deemed to be Outstanding for
purposes of any provision hereof (other than the second sentence of Section
10.01 hereof) that requires the consent of the Holders of Certificates of a
particular Class as a condition to the taking of any action hereunder. The
Trustee is entitled to rely conclusively on a certification of the Depositor
or any affiliate of the Depositor in determining which Certificates are
registered in the name of an affiliate of the Depositor.

          Certification Party: As defined in Section 11.05.

          Certifying Person: As defined in Section 11.05.

          CHL: Countrywide Home Loans, Inc., a New York corporation, and its
successors and assigns.

          CHL Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule for which CHL is the applicable Seller.

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

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

          Class 1-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest
on the basis of the actual number of days elapsed during the related Accrual
Period and a 360-day year, minus a fraction, expressed as a percentage, the
numerator of which is (a) the product of (x) the sum of (1) the sum of the Net
Swap Payment payable to the Swap Counterparty with respect to such
Distribution Date and the Final Maturity Reserve Deposit for

                                      13
<PAGE>

such Distribution Date times a fraction, the numerator of which is equal to
360 and the denominator of which is equal to the actual number of days in the
related Accrual Period and (2) any Swap Termination Payment payable to the
Swap Counterparty for such Distribution Date (other than a Swap Termination
Payment due to a Swap Counterparty Trigger Event) and (y) a fraction, the
numerator of which is the Interest Funds for Loan Group 1 for such
Distribution Date, and the denominator of which is the Interest Funds for Loan
Group 1 and Loan Group 2 for such Distribution Date, and the denominator of
which is (b) the sum of the aggregate Stated Principal Balance of the Mortgage
Loans in Loan Group 1 as of the first day of the related Due Period (after
giving effect to Principal Prepayments received during the Prepayment Period
that ends during such Due Period) plus any amounts on deposit in the
Pre-Funding Account in respect of Loan Group 1 as of the first day of that Due
Period.

          Class 1-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution
Target Amount and (y) a fraction, the numerator of which is the Principal
Remittance Amount for Loan Group 1 and the denominator of which is the
Principal Remittance Amount for both Loan Groups.

          Class 2-A-1 Certificate: Any Certificate designated as a "Class
2-A-1 Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-2 Certificate: Any Certificate designated as a "Class
2-A-2 Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-3 Certificate: Any Certificate designated as a "Class
2-A-3 Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-4 Certificate: Any Certificate designated as a "Class
2-A-4 Certificate" on the face thereof, in the form of Exhibit A-5 hereto,
representing the right to distributions as set forth herein.

          Class 2-A Certificate: Any Class 2-A-1, Class 2-A-2, Class 2-A-3 or
Class 2-A-4 Certificate.

          Class 2-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest
on the basis of the actual number of days elapsed during the related Accrual
Period and a 360-day year, minus a fraction, expressed as a percentage, the
numerator of which is (a) the product of (x) the sum of (1) the sum of the Net
Swap Payment payable to the Swap Counterparty with respect to such
Distribution Date and the Final Maturity Reserve Deposit for such Distribution
Date times a fraction, the numerator of which is equal to 360 and the
denominator of which is equal to the actual number of days in the related
Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date

                                      14
<PAGE>

(other than a Swap Termination Payment due to a Swap Counterparty Trigger
Event) and (y) a fraction, the numerator of which is the Interest Funds for
Loan Group 2 for such Distribution Date, and the denominator of which is the
Interest Funds for Loan Group 1 and Loan Group 2 for such Distribution Date,
and the denominator of which is (b) the sum of the aggregate Stated Principal
Balance of the Mortgage Loans in Loan Group 2 as of the first day of the
related Due Period (after giving effect to Principal Prepayments received
during the Prepayment Period that ends during such Due Period) plus any
amounts on deposit in the Pre-Funding Account in respect of Loan Group 2 as of
the first day of that Due Period.

          Class 2-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution
Target Amount and (y) a fraction, the numerator of which is the Principal
Remittance Amount for Loan Group 2 and the denominator of which is the
Principal Remittance Amount for both Loan Groups.

          Class A-R Certificate: Any Certificate designated as a "Class A-R
Certificate" on the face thereof, in the form of Exhibit D hereto or, in the
case of the Tax Matters Person Certificate, Exhibit E hereto, in either case
representing the right to distributions as set forth herein.

          Class A Certificate: Any Class 1-A or Class 2-A Certificate.

          Class A Principal Distribution Target Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal
Balance of the Class A Certificates immediately prior to such Distribution
Date, over (2) the lesser of (x) 62.00% of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date and (y) the aggregate
Stated Principal Balance of the Mortgage Loans for such Distribution Date
minus the OC Floor.

          Class B Certificate: Any Certificate designated as a "Class B
Certificate" on the face thereof, in the form of Exhibit A-15 hereto,
representing the right to distributions as set forth herein.

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

          Class C Distributable Amount: As defined in the Preliminary
Statement.

          Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A-6 hereto,
representing the right to distributions as set forth herein.

          Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

          Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A-8 hereto,
representing the right to distributions as set forth herein.

                                      15
<PAGE>

          Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A-9 hereto,
representing the right to distributions as set forth herein.

          Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A-10 hereto,
representing the right to distributions as set forth herein.

          Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A-11 hereto,
representing the right to distributions as set forth herein.

          Class M-7 Certificate: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-12 hereto,
representing the right to distributions as set forth herein.

          Class M-8 Certificate: Any Certificate designated as a "Class M-8
Certificate" on the face thereof, in the form of Exhibit A-13 hereto,
representing the right to distributions as set forth herein.

          Class M-9 Certificate: Any Certificate designated as a "Class M-9
Certificate" on the face thereof, in the form of Exhibit A-14 hereto,
representing the right to distributions as set forth herein.

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

          Class P Principal Distribution Date: The first Distribution Date
that occurs after the end of the latest Prepayment Charge Period for all
Mortgage Loans that have a Prepayment Charge Period.

          Closing Date: December 29, 2006.

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

          Collateral Schedule: Schedule II hereto.

          Combined Class M-1, M-2 and M-3 Principal Distribution Amount: With
respect to any Distribution Date, the excess of (1) the sum of (a) the
aggregate Certificate Principal Balance of the Class A Certificates (after
taking into account distribution of the Class 1-A Principal Distribution
Amount and Class 2-A Principal Distribution Amount for such Distribution Date)
and (b) the aggregate Certificate Principal Balance of the Class M-1, Class
M-2 and Class M-3 Certificates immediately prior to the Distribution Date over
(2) the lesser of (a) 80.80% of the aggregate Stated Principal Balance of the
Mortgage Loans for the Distribution Date and (b) the aggregate Stated
Principal Balance of the Mortgage Loans for the Distribution Date minus the OC
Floor; provided, however, that if the Class M-1, Class M-2 and/or Class M-3

                                      16
<PAGE>

Certificates are the only Classes of Subordinate Certificates outstanding on
such Distribution Date, those Classes will be entitled to receive the entire
remaining Principal Distribution Amount for Loan Group 1 and Loan Group 2
until the Certificate Principal Balances thereof are reduced to zero.

          Commission: The U.S. Securities and Exchange Commission.

          Compensating Interest: With respect to each Loan Group and any
Distribution Date, an amount equal to, in that Loan Group, the lesser of (x)
one-half of the Servicing Fee for the related Due Period and (y) the aggregate
Prepayment Interest Shortfalls for the Mortgage Loans in that Loan Group for
such Distribution Date.

          Corporate Trust Office: The designated office of the Trustee in the
State of New York where at any particular time its corporate trust business
with respect to this Agreement shall be administered, which office at the date
of the execution of this Agreement is located at 101 Barclay Street, New York,
New York 10286 (Attention: Corporate Trust MBS Administration), telephone:
(212) 815-3236, facsimile: (212) 815-3986.

          Co-Trustee: The Bank of New York Trust Company, N.A., a national
banking association, not in its individual capacity, but solely in its
capacity as co-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.

          Covered Mortgage Loan: A Mortgage Loan listed on the Mortgage Loan
Schedule as being covered by a Mortgage Insurance Policy.

          Credit Bureau Risk Score: A statistical credit score obtained by CHL
in connection with the origination of a Mortgage Loan.

          Credit Comeback Excess Account: The separate Eligible Account
created and initially maintained by the Trustee pursuant to Section 4.08 in
the name of the Trustee for the benefit of the Certificateholders and
designated "The Bank of New York in trust for registered Holders of CWABS,
Inc., Asset-Backed Certificates, Series 2006-25". Funds in the Credit Comeback
Excess Account shall be held in trust for the Certificateholders for the uses
and purposes set forth in this Agreement.

          Credit Comeback Excess Amount: With respect to the Credit Comeback
Loans in any Loan Group and any Master Servicer Advance Date, the portion of
the sum of the following (without duplication) attributable to the excess, if
any, of the actual mortgage rate on each Credit Comeback Loan in such Loan
Group and the Mortgage Rate on such Credit Comeback Loan: (i) all scheduled
interest collected during the related Due Period with respect to the Credit
Comeback Loans in such Loan Group, (ii) all interest on prepayments received
during the related Prepayment Period with respect to the Credit Comeback Loans
in such Loan Group, other than Prepayment Interest Excess, (iii) all Advances
relating to interest with respect to the Credit Comeback Loans in such Loan
Group, (iv) all Compensating Interest with respect to the Credit Comeback
Loans in such Loan Group and (v) Liquidation Proceeds with respect to the
Credit Comeback Loans in such Loan Group collected during the related Due
Period (to the extent such

                                      17
<PAGE>

Liquidation Proceeds relate to interest), less all Nonrecoverable Advances for
such Loan Group relating to interest reimbursed during the related Due Period.

          Credit Comeback Excess Cashflow: With respect to any Distribution
Date, any amounts in the Credit Comeback Excess Account available for such
Distribution Date.

          Credit Comeback Loan: Any Fixed Rate Mortgage Loan for which the
related Mortgage Rate is subject to reduction (not exceeding 0.375% per annum)
for good payment history of Scheduled Payments by the related Mortgagor.

          Cumulative Loss Trigger Event: With respect to a Distribution Date
on or after the Stepdown Date, a Cumulative Loss Trigger Event will be in
effect if (x) the aggregate amount of Realized Losses on the Mortgage Loans
from the Cut-off Date for each such Mortgage Loan to (and including) the last
day of the related Due Period (reduced by the aggregate amount of any
Subsequent Recoveries received through the last day of that Due Period)
exceeds (y) the applicable percentage, for such Distribution Date, of the sum
of the aggregate Cut-off Date Principal Balance of the Initial Mortgage Loans
and the Pre-Funded Amount, as set forth below:

<TABLE>
<CAPTION>

Distribution Date                      Percentage
-----------------                      ----------

<S>                                    <C>
January 2009 -- December 2009          1.05% with respect to January 2009, plus an
                                       additional 1/12th of 1.30% for each month
                                       thereafter through December 2009
January 2010 -- December 2010          2.35% with respect to January 2010, plus an
                                       additional 1/12th of 1.40% for each month
                                       thereafter through December 2010
January 2011 -- December 2011          3.75% with respect to January 2011, plus an
                                       additional 1/12th of 1.15% for each month
                                       thereafter through December 2011
January 2012 -- December 2012          4.90% with respect to January 2012, plus an
                                       additional 1/12th of 0.65% for each month
                                       thereafter through December 2012
January 2013 -- December 2013          5.55% with respect to January 2013, plus an
                                       additional 1/12th of 0.05% for each month
                                       thereafter through December 2013
January 2014 and thereafter            5.60%

</TABLE>

          Current Interest: With respect to each Class of Interest-Bearing
Certificates and each Distribution Date, the interest accrued at the
applicable Pass-Through Rate for the applicable Accrual Period on the
Certificate Principal Balance of such Class immediately prior to such
Distribution Date.

                                      18
<PAGE>

          Cut-off Date: When used with respect to any Mortgage Loan the
"Cut-off Date" shall mean the Initial Cut-off Date or the related Subsequent
Cut-off Date, as the case may be.

          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 payments of principal due on or prior to the Cut-off
Date, whether or not received, and all Principal Prepayments received on or
prior to the Cut-off Date, but without giving effect to any installments of
principal received in respect of Due Dates after the Cut-off Date.

          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.

          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 5.06.

          Delay Delivery Mortgage Loans: (i) The Initial Mortgage Loans
identified on the schedule of Mortgage Loans hereto set forth on Exhibit F-2
hereof for which all or a portion of a related Mortgage File is not delivered
to the Co-Trustee on or prior to the Closing Date, and (ii) the Subsequent
Mortgage Loans identified on the schedule of Subsequent Mortgage Loans set
forth in Annex A to each related Subsequent Transfer Agreement for which all
or a portion of the related Mortgage File is not delivered to the Co-Trustee
on or prior to the related Subsequent Transfer Date. The Depositor shall
deliver (or cause delivery of) the Mortgage Files to the Co-Trustee: (A) with
respect to at least 50% of the Initial Mortgage Loans in each Loan Group, not
later than the Closing Date and with respect to at least 10% of the Subsequent
Mortgage Loans in each Loan Group conveyed on a Subsequent Transfer Date, not
later than such Subsequent Transfer Date, (B) with respect to at least an
additional 40% of the Initial Mortgage Loans in each Loan Group, not later
than 20 days after the Closing Date, and not later than 20 days after the
relevant Subsequent Transfer Date with respect to the remaining Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date, and (C) with respect
to the remaining Initial Mortgage Loans, not later than thirty days after the
Closing Date. To the extent that Countrywide Home Loans, Inc. shall be in
possession of any Mortgage Files with respect to any Delay Delivery Mortgage
Loan, until delivery of such Mortgage File to the Co-Trustee as provided in
Section 2.01, Countrywide Home Loans, Inc. shall hold such files as agent and
in trust for the Co-Trustee.

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

                                      19
<PAGE>

          Delinquency Trigger Event: With respect to any Distribution Date on
or after the Stepdown Date, a Delinquency Trigger Event will be in effect if
the Rolling Sixty-Day Delinquency Rate for Outstanding Mortgage Loans equals
or exceeds the product of (x) the Senior Enhancement Percentage for such
Distribution Date and (y) the applicable percentage listed below for the most
senior Class of Interest-Bearing Certificates:

                       Class                        Percentage

              A.....................                   42.00%
              M-1...................                   51.99%
              M-2...................                   70.62%
              M-3...................                   83.13%
              M-4...................                   97.91%
              M-5...................                  119.10%
              M-6...................                  146.42%
              M-7...................                  173.48%
              M-8...................                  218.63%
              M-9...................                  290.18%
              B.....................                  456.00%

          Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate"
or, if not the foregoing, the Percentage Interest appearing on the face
thereof, as applicable.

          Depositor: CWABS, Inc., a Delaware corporation, or its successor in
interest.

          Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(a)(5) of the
Uniform Commercial Code of the State of New York.

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

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

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

          Directing Certificateholder: As defined in Section 9.04(a).

                                      20
<PAGE>

          Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05(c) in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York, in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-25". Funds in the Distribution Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement.

          Distribution Account Deposit Date: As to any Distribution Date, 1:00
p.m. Pacific time on the Business Day immediately preceding such Distribution
Date.

          Distribution Date: The 25th day of each month, or if such day is not
a Business Day, on the first Business Day thereafter, commencing in January
2007.

          Due Date: With respect to any Mortgage Loan and Due Period, the due
date for Scheduled Payments of interest and/or principal on that Mortgage Loan
occurring in such Due Period as provided in the related Mortgage Note.

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

          EDGAR: The Commission's Electronic Data Gathering, Analysis and
Retrieval system.

          Eligible Account: Any of (i) an account or accounts maintained with
a federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is
the principal subsidiary of a holding company, the debt obligations of such
holding company, if Moody's is not a Rating Agency) are rated by each Rating
Agency in one of its two highest long-term and its highest short-term rating
categories respectively, at the time any amounts are held on deposit therein,
or (ii) an account or accounts in a depository institution or trust company in
which such accounts are insured by the FDIC (to the limits established by the
FDIC) and the uninsured deposits in which accounts are otherwise secured such
that, as evidenced by an Opinion of Counsel delivered to the Trustee and to
each Rating Agency, the Certificateholders have a claim with respect to the
funds in such account or a perfected first priority security interest against
any collateral (which shall be limited to Permitted Investments) securing such
funds that is superior to claims of any other depositors or creditors of the
depository institution or trust company in which such account is maintained,
or (iii) a trust account or accounts maintained with the corporate trust
department of a federal or state chartered depository institution or trust
company having capital and surplus of not less than $50,000,000, acting in its
fiduciary capacity or (iv) any other account acceptable to the Rating Agencies
without reduction or withdrawal of their then-current ratings of the
Certificates as evidenced by a letter from each Rating Agency to the Trustee.
Eligible Accounts may bear interest, and may include, if otherwise qualified
under this definition, accounts maintained with the Trustee.

          Eligible Repurchase Month: As defined in Section 3.12(d) hereof.

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

                                      21
<PAGE>

          ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the applicable requirements of
the Underwriter's Exemption.

          ERISA-Restricted Certificates: The Class A-R Certificates, Class P
Certificates, Class C Certificates and Certificates of any Class that does not
have or no longer has a rating of BBB- or its equivalent, or better, from at
least one Rating Agency.

          Escrow Account: As defined in Section 3.06 hereof.

          Event of Default: As defined in Section 7.01 hereof.

          Excess Cashflow: With respect to any Distribution Date the sum of
(i) the amount remaining after the distribution of interest to
Certificateholders for such Distribution Date pursuant to Section
4.04(a)(v)(b), (ii) the amount remaining after the distribution of principal
to Certificateholders for such Distribution Date, pursuant to Section
4.04(b)(1)(B)(ii) or 4.04(b)(2)(B)(iii) and (iii) the Overcollateralization
Reduction Amount for such Distribution Date.

          Excess Deposit: As defined in Section 8.11 hereof.

          Excess Overcollateralization Amount: With respect to any
Distribution Date, the excess, if any, of the Overcollateralized Amount for
such Distribution Date over the Overcollateralization Target Amount for such
Distribution Date.

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

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

          Exchange Act Reports: Any reports on Form 10-D, Form 8-K and Form
10-K required to be filed by the Depositor with respect to the Trust Fund
under the Exchange Act.

          Expense Fee Rate: With respect to any Mortgage Loan, the sum of (i)
the Servicing Fee Rate, (ii) the Trustee Fee Rate, (iii) with respect to a
Covered Mortgage Loan, the applicable Mortgage Insurance Premium Rate and (iv)
with respect to any Mortgage Loan covered by a lender paid mortgage insurance
policy (other than a Mortgage Insurance Policy), the related mortgage
insurance premium rate.

                                      22
<PAGE>

          Extra Principal Distribution Amount: With respect to any
Distribution Date and each of Loan Group 1 and Loan Group 2, the lesser of (1)
the Overcollateralization Deficiency Amount and (2) the Excess Cashflow and
Credit Comeback Excess Cashflow available for payment thereof, to be allocated
between Loan Group 1 and Loan Group 2, pro rata, based on the Principal
Remittance Amount for each such Loan Group for such Distribution Date.

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

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

          Final Maturity Funding Cap: For any Distribution Date beginning with
the Distribution Date in January 2017, the least of (i) the aggregate
Certificate Principal Balance of the Interest-Bearing Certificates immediately
prior to that Distribution Date, (ii) the aggregate Stated Principal Balance
of all outstanding 40-Year Mortgage Loans as of the first day of the related
Due Period (after giving effect to Principal Prepayments received during the
Prepayment Period that ends during such Due Period) and (iii) $29,996,625.

          Final Maturity OC Trigger: With respect to any Distribution Date on
or after the Distribution Date in January 2027, the Final Maturity OC Trigger
will be in effect if and for so long as the sum of (x) the amount on deposit
in the Final Maturity Reserve Fund on that Distribution Date (including any
Final Maturity Reserve Deposit made on the Distribution Date) and (y) the
Overcollateralized Amount for that Distribution Date (calculated after giving
effect to all distributions to be made prior to the time of determination) is
less than the outstanding Stated Principal Balance of all 40-Year Mortgage
Loans as of the Due Date occurring in the month of that Distribution Date
(after giving effect to Principal Prepayments received during the Prepayment
Period ending in the same month as the Distribution Date).

          Final Maturity Required Deposit Trigger: With respect to any
Distribution Date on or after the Distribution Date in January 2017 up to and
including the Distribution Date in December 2036, the Final Maturity Required
Deposit Trigger shall be in effect with respect to such Distribution Date if
the aggregate Stated Principal Balance of the 40-Year Mortgage Loans as of the
Due Date occurring in the month preceding the month of that Distribution Date
(after giving effect to Principal Prepayments in the Prepayment Period related
to that prior Due Date) is greater than the "40-Year Target" specified on the
40-Year Target Schedule for such Distribution Date.

          Final Maturity Reserve Deposit: For any Distribution Date on which
the Final Maturity Required Deposit Trigger is not in effect, $0. For any
Distribution Date on which the Final Maturity Required Deposit Trigger is in
effect, an amount equal to the lesser of (a) one-twelfth of the product of (i)
0.80% and (ii) the aggregate Stated Principal Balance of the 40-Year Mortgage
Loans as of the Due Date occurring in the month preceding the month of that
Distribution Date (after giving effect to Principal Prepayments in the
Prepayment Period related to that prior Due Date) and (b) the excess of (i)
the Final Maturity Funding Cap for such Distribution Date over (ii) the amount
on deposit in the Final Maturity Reserve Fund immediately prior to such
Distribution Date.

                                      23
<PAGE>

          Final Maturity Reserve Fund: The separate Eligible Account created
and initially maintained by the Trustee pursuant to Section 4.09 in the name
of the Trustee for the benefit of the Certificateholders and designated "The
Bank of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-25". Funds in the Final Maturity Reserve Fund shall
be held in trust by the Final Maturity Reserve Trustee for the
Certificateholders for the uses and purposes set forth in this Agreement.

          Final Maturity Reserve Trust: The trust fund established by Section
4.10.

          Final Maturity Reserve Trustee: The Bank of New York, a New York
banking corporation, not in its individual capacity, but solely in its
capacity as trustee for the benefit of the Holders of the Certificates 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.

          Five-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 60 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Fixed Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life
of the related Mortgage and any Credit Comeback Loans, including in each case
any Mortgage Loans delivered in replacement thereof.

          Form 10-D Disclosure Item: With respect to any Person, any material
litigation or governmental proceedings pending against such Person, or against
any of the Trust Fund, the Depositor, the Trustee, any co-trustee, the Master
Servicer or any Subservicer, if such Person has actual knowledge thereof.

          Form 10-K Disclosure Item: With respect to any Person, (a) Form 10-D
Disclosure Item, and (b) any affiliations or relationships between such Person
and any Item 1119 Party.

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

          Funding Period: The period from the Closing Date to and including
the earlier to occur of (x) the date the amount in the Pre-Funding Account is
less than $175,000 and (y) February 12, 2007.

          Gross Margin: The percentage set forth in the related Mortgage Note
to be added to the Index for use in determining the Mortgage Rate for each
Adjustable Rate Mortgage Loan on each of its Adjustment Dates.

                                      24
<PAGE>

          Group 1 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 1 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

          Group 1 Overcollateralization Reduction Amount: With respect to any
Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is (x) the
Principal Remittance Amount for Loan Group 1 for such Distribution Date, and
the denominator of which is (y) the aggregate Principal Remittance Amount for
Loan Group 1 and Loan Group 2 for such Distribution Date.

          Group 1 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 1 Mortgage Loans
on the Closing Date, which shall equal $49.16.

          Group 2 Mortgage Loans: The group of Mortgage Loans identified in
the related Mortgage Loan Schedule as "Group 2 Mortgage Loans", including in
each case any Mortgage Loans delivered in replacement thereof.

          Group 2 Overcollateralization Reduction Amount: With respect to any
Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for Loan Group 2 for such Distribution Date, and
the denominator of which is the aggregate Principal Remittance Amount for Loan
Group 1 and Loan Group 2 for such Distribution Date.

          Group 2 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 2 Mortgage Loans
on the Closing Date, which shall equal $57.01.

          Index: As to any Adjustable Rate Mortgage Loan on any Adjustment
Date related thereto, the index for the adjustment of the Mortgage Rate set
forth as such in the related Mortgage Note, or, if the Index in the Mortgage
Note ceases to be published or becomes unavailable for any reason, then the
Index shall be a new index selected by the Master Servicer, based on
comparable information and in accordance with the Mortgage Note and applicable
law.

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

          Initial Certificate Account Deposit: An amount equal to the
aggregate of all amounts in respect of (i) principal of the Initial Mortgage
Loans due after the Initial Cut-off Date and received by the Master Servicer
before the Closing Date and not applied in computing the Cut-off Date
Principal Balance thereof and (ii) interest on the Initial Mortgage Loans due
after the Initial Cut-off Date and received by the Master Servicer before the
Closing Date.

          Initial Certificate Principal Balance: With respect to any
Certificate (other than the Class C Certificates) the Certificate Principal
Balance of such Certificate or any predecessor Certificate on the Closing
Date.

                                      25
<PAGE>

          Initial Cut-off Date: In the case of any Initial Mortgage Loan, the
later of (x) December 1, 2006 and (y) the date of origination of such Mortgage
Loan.

          Initial Mortgage Loan: A Mortgage Loan conveyed to the Trustee on
the Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

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

          Initial Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits the permissible increase or decrease in the Mortgage Rate on its
initial Adjustment Date.

          Institutional Accredited Investor or IAI: An "accredited investor"
as defined in any of paragraphs (1), (2), (3)and (7) of Rule 501(a) under the
Securities Act or any entity in which all of the equity owners come within
such paragraphs.

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

          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 Master Servicer 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 procedures that the Master
Servicer would follow in servicing mortgage loans held for its own account, in
each case other than any amount included in such Insurance Proceeds in respect
of Insured Expenses and received either prior to or in connection with such
Mortgage Loan becoming a Liquidated Mortgage Loan.

          Insured Expenses: Expenses covered by an Insurance Policy or any
other insurance policy with respect to the Mortgage Loans.

          Interest-Bearing Certificates: The Class A Certificates and the
Subordinate Certificates.

          Interest Carry Forward Amount: With respect to each Class of
Interest-Bearing Certificates and each Distribution Date, the excess of (i)
the Current Interest for such Class with respect to prior Distribution Dates
over (ii) the amount actually distributed to such Class with respect to
interest on such prior Distribution Dates.

          Interest Determination Date: With respect to the first Accrual
Period for the Interest-Bearing Certificates, December 27, 2006. With respect
to any Accrual Period for the Interest-Bearing Certificates thereafter, the
second LIBOR Business Day preceding the commencement of such Accrual Period.

                                      26
<PAGE>

          Interest Funds: With respect to any Distribution Date and Loan
Group, the Interest Remittance Amount for such Loan Group and Distribution
Date, less the portion of the Trustee Fee for such Distribution Date allocable
to such Loan Group, plus the Adjusted Replacement Upfront Amount, if any,
allocable to that Loan Group, less the Mortgage Insurance Premiums for the
Covered Mortgage Loans in that Loan Group for such Distribution Date.

          Interest Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (x) the sum, without duplication,
of (i) all scheduled interest collected during the related Due Period (for the
avoidance of doubt, other than Credit Comeback Excess Amounts) with respect to
the related Mortgage Loans less the related Servicing Fee, (ii) all interest
on prepayments received during the related Prepayment Period with respect to
such Mortgage Loans, other than Prepayment Interest Excess, (iii) all related
Advances relating to interest with respect to such Mortgage Loans, (iv) all
related Compensating Interest with respect to such Mortgage Loans, (v)
Liquidation Proceeds with respect to such Mortgage Loans collected during the
related Due Period (to the extent such Liquidation Proceeds relate to
interest) and (vi) the related Seller Shortfall Interest Requirement, less (y)
all reimbursements to the Master Servicer during the related Due Period for
Advances of interest previously made allocable to such Loan Group.

          Investment Letter: As defined in Section 5.02(b).

          Item 1119 Party: The Depositor, any Seller, the Master Servicer, the
Trustee, any Subservicer, any originator identified in the Prospectus
Supplement, the Swap Counterparty and any other material transaction party, as
identified in Exhibit Z hereto, as updated pursuant to Section 11.04.

          Latest Possible Maturity Date: The Distribution Date following the
third anniversary of the scheduled maturity date of the Mortgage Loan having
the latest scheduled maturity date as of the Cut-off Date.

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

          Limited Exchange Act Reporting Obligations: The obligations of the
Master Servicer under Section 3.17(b), Section 6.02 and Section 6.04 with
respect to notice and information to be provided to the Depositor and Article
XI (except Section 11.07(a)(1) and (2)).

          Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan that has been liquidated through deed-in-lieu of
foreclosure, foreclosure sale, trustee's sale or other realization as provided
by applicable law governing the real property subject to the related Mortgage
and any security agreements and as to which the Master Servicer has certified
in the related Prepayment Period that it has received all amounts it expects
to receive in connection with such liquidation.

          Liquidation Proceeds: Amounts, including Insurance Proceeds,
received in connection with the partial or complete liquidation of Mortgage
Loans, whether through trustee's sale, foreclosure sale or otherwise or
amounts received in connection with any condemnation or

                                      27
<PAGE>

partial release of a Mortgaged Property and any other proceeds received in
connection with an REO Property received in connection with or prior to such
Mortgage Loan becoming a Liquidated Mortgage Loan (other than the amount of
such net proceeds representing any profit realized by the Master Servicer in
connection with the disposition of any such properties), less the sum of
related unreimbursed Advances, Servicing Fees and Servicing Advances.

          Loan Group: Either of Loan Group 1 or Loan Group 2.

          Loan Group 1: The Group 1 Mortgage Loans.

          Loan Group 2: The Group 2 Mortgage Loans.

          Loan Number and Borrower Identification Mortgage Loan Schedule: With
respect to any Subsequent Transfer Date, the Loan Number and Borrower
Identification Mortgage Loan Schedule delivered in connection with such
Subsequent Transfer Date pursuant to Section 2.01(f). Each Loan Number and
Borrower Identification Mortgage Loan Schedule shall contain the information
specified in the definition of "Mortgage Loan Schedule" with respect to the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, and each
Loan Number and Borrower Identification Mortgage Loan Schedule shall be deemed
to be included in the Mortgage Loan Schedule.

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

          Majority Holder: The Holders of Certificates evidencing at least 51%
of the Voting Rights allocated to such Class of Certificates.

          Master REMIC: As defined in the Preliminary Statement.

          Master Servicer: Countrywide Home Loans Servicing LP, a Texas
limited partnership, and its successors and assigns, in its capacity as master
servicer hereunder.

          Master Servicer Advance Date: As to any Distribution Date, the
Business Day immediately preceding such Distribution Date.

          Master Servicer Prepayment Charge Payment Amount: The amounts (i)
payable by the Master Servicer in respect of any Prepayment Charges waived
other than in accordance with the standard set forth in the first sentence of
Section 3.20(a), or (ii) collected from the Master Servicer in respect of a
remedy for the breach of the representation made by CHL set forth in Section
3.20(c).

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

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

                                      28
<PAGE>

          MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the
MERS(R) System.

          MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

          MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

          Minimum Auction Amount: With respect to any auction of the Mortgage
Loans and any REO Properties pursuant to Section 9.04, the sum of (i) the
Termination Price that would be payable by the NIM Insurer if the Optional
Termination were exercised in the following calendar month pursuant to Section
9.01 and (ii) all reasonable fees and expenses incurred by the Trustee in
connection with any auction conducted pursuant to Section 9.04.

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

          Modified Mortgage Loan: As defined in Section 3.12(a).

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

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

          Moody's: Moody's Investors Service, Inc. and its successors.

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

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

          Mortgage Insurance Policy: Either of the Mortgage Insurance Policy
issued by Mortgage Guaranty Insurance Corporation or the Mortgage Insurance
Policy issued by Republic Mortgage Insurance Company with respect to certain
Mortgage Loans identified in the Mortgage Loan Schedule.

          Mortgage Insurance Premium: Either of the premium payable on the
Mortgage Insurance Policy issued by Mortgage Guaranty Insurance Corporation or
the premium payable on the Mortgage Insurance Policy issued by Republic
Mortgage Insurance Company, each on each Distribution Date and amounts due for
premium taxes with respect to West Virginia, Kentucky or other applicable
state taxes relating to such premium.

          Mortgage Insurance Premium Rate: With respect to a Covered Mortgage
Loan, the per annum rate set forth for such Covered Mortgage Loan on the
Mortgage Loan Schedule.

                                      29
<PAGE>

          Mortgage Insurer: Either of Mortgage Guaranty Insurance Corporation
or Republic Mortgage Insurance Company or any replacement Mortgage Insurer, as
applicable.

          Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the deletion of Liquidated
Mortgage Loans and Deleted Mortgage Loans and the addition of (x) Replacement
Mortgage Loans pursuant to the provisions of this Agreement and (y) Subsequent
Mortgage Loans pursuant to the provisions of this Agreement and any Subsequent
Transfer Agreement) transferred to the Trustee as part of the Trust Fund and
from time to time subject to this Agreement, attached hereto as Exhibit F-1,
setting forth in the following information with respect to each Mortgage Loan:

               (i)  the loan number;

               (ii) the Loan Group;

              (iii) the Appraised Value;

               (iv) the Initial Mortgage Rate;

               (v)  the maturity date;

               (vi) the original principal balance;

              (vii) the Cut-off Date Principal Balance;

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

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

               (x)  the Loan-to-Value Ratio at origination;

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

              (xii) a code indicating whether the residential dwelling is
                    either (a) a detached single-family dwelling, (b) a
                    two-family residential property, (c) a three-family
                    residential property, (d) a four-family residential
                    property, (e) planned unit development, (f) a low-rise
                    condominium unit, (g) a high-rise condominium unit or (h)
                    manufactured housing;

             (xiii) a code indicating whether such Mortgage Loan is a Credit
                    Comeback Loan;

              (xiv) the purpose of the Mortgage Loan;

               (xv) with respect to each Adjustable Rate Mortgage Loan:

                    (a) the frequency of each Adjustment Date;

                                      30
<PAGE>

                    (b) the next Adjustment Date;

                    (c) the Maximum Mortgage Rate;

                    (d) the Minimum Mortgage Rate;

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

                    (f) the related Initial Periodic Rate Cap and Subsequent
               Periodic Rate Cap; and

                    (g) the Gross Margin;

              (xvi) a code indicating whether the Mortgage Loan is a CHL
                    Mortgage Loan, a Park Monaco Mortgage Loan or a Park
                    Sienna Mortgage Loan;

             (xvii) the premium rate for any lender-paid mortgage insurance,
                    if applicable;

            (xviii) a code indicating whether the Mortgage Loan is a Fixed
                    Rate Mortgage Loan or an Adjustable Rate Mortgage Loan;

              (xix) a code indicating if such Mortgage Loan is a Covered
                    Mortgage Loan, the applicable Mortgage Insurance Policy
                    and the applicable Mortgage Insurance Premium Rate as set
                    forth in such Mortgage Insurance Policy; and

               (xx) the Servicing Fee Rate for the Mortgage Loan as of the
                    applicable Cut-off Date and, if the Servicing Fee Rate is
                    subject to increase following the initial Adjustment Date
                    for the Mortgage Loan, the Servicing Fee Rate for the
                    Mortgage Loan following the initial Adjustment Date.

Such schedule shall also set forth the total of the amounts described under
(vii) above for all of the Mortgage Loans and for each Loan Group. The
Mortgage Loan Schedule shall be deemed to include each Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f) and all the related Subsequent Mortgage Loans and Subsequent Mortgage
Loan information included therein.

          Mortgage Loans: Such of the mortgage loans transferred and assigned
to the Trustee pursuant to the provisions hereof and any Subsequent Transfer
Agreement as from time to time are held as 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. Any mortgage loan that was intended by the
parties hereto to be transferred to the Trust Fund as indicated by such
Mortgage Loan Schedule which is in fact not so transferred for any reason,
including a breach of the

                                      31
<PAGE>

representation contained in Section 2.02 hereof, shall continue to be a
Mortgage Loan hereunder until the Purchase Price with respect thereto has been
paid to the Trust Fund.

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

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

          Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time; provided, however, the Mortgage Rate for each Credit
Comeback Loan shall be treated for all purposes of payments on the
Certificates, including the calculation of the Pass-Through Rates and the
applicable Net Rate Cap, as reduced by 0.375% on the Due Date following the
end of each of the first four annual periods after the origination date,
irrespective of whether the Mortgagor qualifies for the reduction by having a
good payment history.

          Mortgaged Property: The underlying property securing a Mortgage
Loan.

          Mortgagor: The obligors on a Mortgage Note.

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

          Net Rate Cap: With respect to any Distribution Date and (i) the
Class 1-A Certificates, the Class 1-A Net Rate Cap, (ii) each Class of Class
2-A Certificates, the Class 2-A Net Rate Cap and (iii) each Class of
Subordinate Certificates, the Subordinate Net Rate Cap.

          Net Rate Carryover: With respect to any Class of Interest-Bearing
Certificates and any Distribution Date, the sum of (A) the excess of (i) the
amount of interest that such Class would otherwise have accrued for such
Distribution Date had the Pass-Through Rate for such Class and the related
Accrual Period not been determined based on the applicable Net Rate Cap, over
(ii) the amount of interest accrued on such Class at the applicable Net Rate
Cap for such Distribution Date and (B) the Net Rate Carryover for such Class
for all previous Distribution Dates not previously paid pursuant to Section
4.04, together with interest thereon at the then-applicable Pass-Through Rate
for such Class, without giving effect to the applicable Net Rate Cap.

          Net Swap Payment: With respect to any Distribution Date and payment
by the Swap Contract Administrator to the Swap Counterparty, the excess, if
any, of the "Fixed Amount" (as defined in the Swap Contract) with respect to
such Distribution Date over the "Floating Amount" (as defined in the Swap
Contract) with respect to such Distribution Date. With respect to any
Distribution Date and payment by the Swap Counterparty to the Swap Contract
Administrator, the excess, if any, of the "Floating Amount" (as defined in the
Swap Contract) with respect to such Distribution Date over the "Fixed Amount"
(as defined in the Swap Contract) with respect to such Distribution Date.

                                      32
<PAGE>

          New Confirmation: The confirmation, reference number 1503206B, with
a trade date of December 12, 2006, evidencing a transaction between the Swap
Counterparty and the Swap Contract Administrator relating to the Swap
Contract.

          NIM Insurer: Any insurer guarantying at the request of CHL certain
payments under notes backed or secured by the Class C or Class P Certificates.

          Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Master Servicer that, in the good faith judgment of
the Master Servicer, will not or, in the case of a current delinquency, would
not, be ultimately recoverable by the Master Servicer from the related
Mortgagor, related Liquidation Proceeds or otherwise.

          Non-United States Person: A Person that is not a citizen or resident
of the United States, a corporation, partnership, 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.

          OC Floor: With respect to any Distribution Date, an amount equal to
0.50% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans and the Pre-Funded Amount.

          Officer's Certificate: A certificate (i) in the case of the
Depositor, signed by the Chairman of the Board, the Vice Chairman of the
Board, the President, a Managing Director, a Vice President (however
denominated), an Assistant Vice President, the Treasurer, the Secretary, or
one of the Assistant Treasurers or Assistant Secretaries of the Depositor,
(ii) in the case of the Master Servicer, signed by the President, an Executive
Vice President, a Vice President, an Assistant Vice President, the Treasurer,
or one of the Assistant Treasurers or Assistant Secretaries of Countrywide GP,
Inc., its general partner, (iii) if provided for in this Agreement, signed by
a Servicing Officer, as the case may be, and delivered to the Depositor and
the Trustee, as the case may be, as required by this Agreement, or (iv) in the
case of any other Person, signed by an authorized officer of such Person.

          Old Confirmation: The confirmation, reference number 1503206B, with
a trade date of December 12, 2006 evidencing a transaction between the Swap
Counterparty and CHL relating to the Swap Contract.

          One-Month LIBOR: With respect to any Accrual Period for the
Interest-Bearing Certificates, the rate determined by the Trustee on the
related Interest Determination Date on the basis of the rate for U.S. dollar
deposits for one month as quoted on the Bloomberg Terminal on such Interest
Determination Date; provided that the parties hereto acknowledge that
One-Month LIBOR calculated for the first Accrual Period for the
Interest-Bearing Certificates shall equal 5.35000% per annum. If such rate is
not quoted on the Bloomberg Terminal (or if such service

                                      33
<PAGE>

is no longer offered, such other service for displaying One-Month LIBOR or
comparable rates as may be reasonably selected by the Trustee), One-Month
LIBOR for the applicable Accrual Period for the Interest-Bearing Certificates
will be the Reference Bank Rate. If no such quotations can be obtained by the
Trustee and no Reference Bank Rate is available, One-Month LIBOR will be
One-Month LIBOR applicable to the preceding Accrual Period for the
Interest-Bearing Certificates.

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

          Optional Termination: The termination of the Trust Fund pursuant to
clause (a) of the first sentence of Section 9.01.

          Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than or equal
to 10% of the sum of the aggregate Cut-off Date Principal Balance of the
Initial Mortgage Loans and the Pre-Funded Amount.

          Original Value: The value of the property underlying a Mortgage Loan
based, in the case of the purchase of the underlying Mortgaged Property, on
the lower of an appraisal satisfactory to the Master Servicer or the sales
price of such property or, in the case of a refinancing, on an appraisal
satisfactory to the Master Servicer.

          OTS: The Office of Thrift Supervision.

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

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

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

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

          Overcollateralization Deficiency Amount: With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization
Target Amount exceeds the

                                      34
<PAGE>

Overcollateralized Amount on such Distribution Date (after giving effect to
distribution of the Principal Distribution Amount (other than the portion
thereof consisting of the Extra Principal Distribution Amount) on such
Distribution Date).

          Overcollateralization Reduction Amount: With respect to any
Distribution Date, an amount equal to the lesser of (i) the Excess
Overcollateralization Amount for such Distribution Date and (ii) the aggregate
Principal Remittance Amount for Loan Group 1 and Loan Group 2 for such
Distribution Date.

          Overcollateralization Target Amount: With respect to any
Distribution Date (a) prior to the Stepdown Date, an amount equal to 1.75% of
the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Pre-Funded Amount and (b) on or after the Stepdown
Date, the greater of (i) an amount equal to 3.50% of the aggregate Stated
Principal Balance of the Mortgage Loans for the current Distribution Date and
(ii) the OC Floor; provided, however, that if a Trigger Event is in effect on
any Distribution Date, the Overcollateralization Target Amount will be the
Overcollateralization Target Amount as in effect for the prior Distribution
Date.

          Overcollateralized Amount: With respect to any Distribution Date,
the amount, if any, by which (x) the sum of the aggregate Stated Principal
Balance of the Mortgage Loans for such Distribution Date and any amount on
deposit in the Pre-Funding Account exceeds (y) the aggregate Certificate
Principal Balance of the Interest-Bearing Certificates as of such Distribution
Date (after giving effect to distribution of the Principal Remittance Amounts
to be made on such Distribution Date and, in the case of the Distribution Date
immediately following the end of the Funding Period, any amounts to be
released from the Pre-Funding Account). 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.

          Park Monaco: Park Monaco Inc., a Delaware corporation, and its
successors and assigns.

          Park Monaco Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Monaco is the applicable Seller.

          Park Sienna: Park Sienna LLC, a Delaware limited liability company,
and its successors and assigns.

          Park Sienna Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Sienna is the applicable Seller.

          Pass-Through Margin: With respect to any Accrual Period and Class of
Interest-Bearing Certificates, the per annum rate indicated in the following
table:

                                      35
<PAGE>

-------------------------------------------- --------------- -----------------
                                              Pass-Through     Pass-Through
                   Class                       Margin (1)       Margin (2)
-------------------------------------------- --------------- -----------------
Class 1-A...............................        0.140%          0.280%
-------------------------------------------- --------------- -----------------
Class 2-A-1.............................        0.070%          0.140%
-------------------------------------------- --------------- -----------------
Class 2-A-2.............................        0.120%          0.240%
-------------------------------------------- --------------- -----------------
Class 2-A-3.............................        0.170%          0.340%
-------------------------------------------- --------------- -----------------
Class 2-A-4.............................        0.220%          0.440%
-------------------------------------------- --------------- -----------------
Class M-1...............................        0.250%          0.375%
-------------------------------------------- --------------- -----------------
Class M-2...............................        0.280%          0.420%
-------------------------------------------- --------------- -----------------
Class M-3...............................        0.330%          0.495%
-------------------------------------------- --------------- -----------------
Class M-4...............................        0.390%          0.585%
-------------------------------------------- --------------- -----------------
Class M-5...............................        0.410%          0.615%
-------------------------------------------- --------------- -----------------
Class M-6...............................        0.470%          0.705%
-------------------------------------------- --------------- -----------------
Class M-7...............................        0.950%          1.425%
-------------------------------------------- --------------- -----------------
Class M-8...............................        1.700%          2.550%
-------------------------------------------- --------------- -----------------
Class M-9...............................        1.750%          2.625%
-------------------------------------------- --------------- -----------------
Class B.................................        1.750%          2.625%
-------------------------------------------- --------------- -----------------

(1)  For any Accrual Period relating to any Distribution Date occurring on or
     prior to the Optional Termination Date.
(2)  For any Accrual Period relating to any Distribution Date occurring after
     the Optional Termination Date.

          Pass-Through Rate: With respect to any Accrual Period and each Class
of Interest-Bearing Certificates the lesser of (x) One-Month LIBOR for such
Accrual Period plus the Pass-Through Margin for such Class and Accrual Period
and (y) the applicable Net Rate Cap for such Class and the related
Distribution Date.

          Percentage Interest: With respect to any Interest-Bearing
Certificate, a fraction, expressed as a percentage, the numerator of which is
the Certificate Principal Balance represented by such Certificate and the
denominator of which is the aggregate Certificate Principal Balance of the
related Class. With respect to the Class C, Class P and Class A-R
Certificates, the portion of the Class evidenced thereby, expressed as a
percentage, as stated on the face of such Certificate.

          Performance Certification: As defined in Section 11.05.

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

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

               (ii) general obligations of or obligations guaranteed by any
          state of the United States or the District of Columbia receiving the
          highest long-term debt rating of each Rating Agency, or such lower
          rating as each Rating Agency has

                                      36
<PAGE>

          confirmed in writing is sufficient for the ratings originally
          assigned to the Certificates by such Rating Agency;

               (iii) commercial or finance company paper which is then
          receiving the highest commercial or finance company paper rating of
          each Rating Agency, or such lower rating as each Rating Agency has
          confirmed in writing is sufficient for the ratings originally
          assigned to the Certificates by such 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, provided that the commercial paper
          and/or long term unsecured debt obligations of such depository
          institution or trust company (or in the case of the principal
          depository institution in a holding company system, the commercial
          paper or long-term unsecured debt obligations of such holding
          company, but only if Moody's is not a Rating Agency) are then rated
          one of the two highest long-term and the highest short-term ratings
          of each such Rating Agency for such securities, or such lower
          ratings as each Rating Agency has confirmed in writing is sufficient
          for the ratings originally assigned to the Certificates by such
          Rating Agency;

               (v) 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;

               (vi) 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 (except (x) if
          the Rating Agency is Moody's, such rating shall be the highest
          commercial paper rating of S&P for any such securities) and (y), or
          such lower rating as each Rating Agency has confirmed in writing is
          sufficient for the ratings originally assigned to the Certificates
          by such Rating Agency;

               (vii) interests in any money market fund which at the date of
          acquisition of the interests in such fund and throughout the time
          such interests are held in such fund has the highest applicable long
          term rating by each Rating Agency or such lower rating as each
          Rating Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency;

               (viii) short term investment funds sponsored by any trust
          company or national banking association incorporated under the laws
          of the United States or any state thereof which on the date of
          acquisition has been rated by each Rating Agency in their respective
          highest applicable rating category or such lower rating as each
          Rating Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency; and

                                      37
<PAGE>

               (ix) such other relatively risk free 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, and reasonably acceptable to the
          NIM Insurer, as evidenced by a signed writing delivered by the NIM
          Insurer;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or (iii) is purchased at a deep discount; provided further that no
such instrument shall be a Permitted Investment (A) if such instrument
evidences principal and interest payments derived from obligations underlying
such instrument and the interest payments with respect to such instrument
provide a yield to maturity of greater than 120% of the yield to maturity at
par of such underlying obligations, or (B) if it may be redeemed at a price
below the purchase price (the foregoing clause (B) not to apply to investments
in units of money market funds pursuant to clause (vii) above); provided
further that no amount beneficially owned by any REMIC (including, without
limitation, any amounts collected by the Master Servicer but not yet deposited
in the Certificate Account) may be invested in investments (other than money
market funds) treated as equity interests for Federal income tax purposes,
unless the Master Servicer shall receive an Opinion of Counsel, at the expense
of Master Servicer, to the effect that such investment will not adversely
affect the status of any such REMIC as a REMIC under the Code or result in
imposition of a tax on any such REMIC. Permitted Investments that are subject
to prepayment or call may not be purchased at a price in excess of par.

          Permitted Transferee: Any Person other than (i) the United States,
any State or political subdivision thereof, 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 Class A-R Certificate, (iv) rural electric and
telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an
"electing large partnership" as defined in section 775 of the Code, (vi) a
Person that is not a citizen or resident of the United States, a corporation,
partnership, 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, or 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
unless such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
any REMIC formed hereunder 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

                                      38
<PAGE>

meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or
of any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

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

          Plan: An "employee benefit plan" as defined in section 3(3)of ERISA
that is subject to Title I of ERISA, a "plan" as defined in section 4975 of
the Code that is subject to section 4975 of the Code, or any Person investing
on behalf of or with plan assets (as defined in 29 CFR ss.2510.3-101 or
otherwise under ERISA) of such an employee benefit plan or plan.

          Pool Tax Cap: As defined in the Preliminary Statement.

          Pool Stated Principal Balance: The aggregate of the Stated Principal
Balances of the Mortgage Loans which were Outstanding Mortgage Loans.

          Pre-Funded Amount: The amount deposited in the Pre-Funding Account
on the Closing Date, which shall equal $106.17.

          Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New
York, in trust for registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-25." Funds in the Pre-Funding Account shall be held
in trust for the Certificateholders for the uses and purposes set forth in
this Agreement and shall not be a part of any REMIC created hereunder,
provided, however that any investment income earned from Permitted Investments
made with funds in the Pre-Funding Account will be for the account of CHL.

          Prepayment Assumption: The applicable rate of prepayment, as
described in the Prospectus Supplement relating to the Certificates.

          Prepayment Charge: With respect to any Mortgage Loan, the charges or
premiums, if any, due in connection with a full or partial prepayment of such
Mortgage Loan within the related Prepayment Charge Period in accordance with
the terms thereof (other than any Master Servicer Prepayment Charge Payment
Amount).

          Prepayment Charge Period: With respect to any Mortgage Loan, the
period of time during which a Prepayment Charge may be imposed.

                                      39
<PAGE>

          Prepayment Charge Schedule: As of the Initial Cut-off Date with
respect to each Initial Mortgage Loan and as of the Subsequent Cut-off Date
with respect to each Subsequent Mortgage Loan, a list attached hereto as
Schedule I (including the Prepayment Charge Summary attached thereto), setting
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 state of origination of the related Mortgage Loan;

               (iv) the date on which the first monthly payment was due on the
          related Mortgage Loan;

               (v) the term of the related Prepayment Charge; and

               (vi) the principal balance of the related Mortgage Loan as of
          the Cut-off Date.

          As of the Closing Date, the Prepayment Charge Schedule shall contain
the necessary information for each Initial Mortgage Loan. The Prepayment
Charge Schedule shall be amended by the Master Servicer upon the sale of any
Subsequent Mortgage Loans to the Trust Fund. In addition, the Prepayment
Charge Schedule shall be amended from time to time by the Master Servicer in
accordance with the provisions of this Agreement and a copy of each related
amendment shall be furnished by the Master Servicer to the Class P and Class C
Certificateholders and the NIM Insurer.

          Prepayment Interest Excess: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a Principal Prepayment during
the period from the related Due Date to the end of the related Prepayment
Period, any payment of interest received in connection therewith (net of any
applicable Servicing Fee) representing interest accrued for any portion of
such month of receipt.

          Prepayment Interest Shortfall: With respect to any Distribution
Date, for each Mortgage Loan that was the subject of a partial Principal
Prepayment or a Principal Prepayment in full during the period from the
beginning of the related Prepayment Period to the Due Date in such Prepayment
Period (other than a Principal Prepayment in full resulting from the purchase
of a Mortgage Loan pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof)
and for each Mortgage Loan that became a Liquidated Mortgage Loan during the
related Due Period, the amount, if any, by which (i) one month's interest at
the applicable Net Mortgage Rate on the Stated Principal Balance of such
Mortgage Loan immediately prior to such prepayment (or liquidation) or in the
case of a partial Principal Prepayment on the amount of such prepayment (or
Liquidation Proceeds) exceeds (ii) the amount of interest paid or collected in
connection with such Principal Prepayment or such Liquidation Proceeds.

          Prepayment Period: As to any Distribution Date and related Due Date,
the period beginning with the opening of business on the sixteenth day of the
calendar month preceding the

                                      40
<PAGE>

month in which such Distribution Date occurs (or, with respect to the first
Distribution Date, the period beginning with the opening of business on
December 2, 2006) and ending on the close of business on the fifteenth day of
the month in which such Distribution Date occurs.

          Prime Rate: The prime commercial lending rate of The Bank of New
York, as publicly announced to be in effect from time to time. The Prime Rate
shall be adjusted automatically, without notice, on the effective date of any
change in such prime commercial lending rate. The Prime Rate is not
necessarily The Bank of New York's lowest rate of interest.

          Principal Distribution Amount: With respect to each Distribution
Date and a Loan Group, the sum of (i) the Principal Remittance Amount for such
Loan Group for such Distribution Date less any portion of such amount used to
cover any payment due to the Swap Counterparty with respect to such
Distribution Date pursuant to Section 4.09, (ii) the Extra Principal
Distribution Amount for such Loan Group for such Distribution Date, and (iii)
with respect to the Distribution Date immediately following the end of the
Funding Period, the amount, if any, remaining in the Pre-Funding Account at
the end of the Funding Period (net of any investment income therefrom)
allocable to such Loan Group, minus (iv) (a) the amount of any Group 1
Overcollateralization Reduction Amount, in the case of Loan Group 1 and (b)
the amount of any Group 2 Overcollateralization Reduction Amount, in the case
of Loan Group 2.

          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, 2.04, 3.12 and 9.01
hereof) that is received in advance of its scheduled Due Date to the extent it
is not accompanied by an amount as to interest representing scheduled interest
due on any date or dates in any month or months subsequent to the month of
prepayment. Partial Principal Prepayments shall be applied by the Master
Servicer in accordance with the terms of the related Mortgage Note.

          Principal Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (a) the sum, without duplication,
of: (i) the scheduled principal collected with respect to the Mortgage Loans
during the related Due Period or advanced with respect to such Distribution
Date, (ii) Principal Prepayments collected in the related Prepayment Period,
with respect to the Mortgage Loans, (iii) the Stated Principal Balance of each
Mortgage Loan that was repurchased by a Seller or purchased by the Master
Servicer with respect to such Distribution Date, (iv) the amount, if any, by
which the aggregate unpaid principal balance of any Replacement Mortgage Loans
delivered by the Sellers in connection with a substitution of a Mortgage Loan
is less than the aggregate unpaid principal balance of any Deleted Mortgage
Loans and (v) all Liquidation Proceeds (to the extent such Liquidation
Proceeds related to principal) and Subsequent Recoveries collected during the
related Due Period; less (b) all Advances relating to principal and certain
expenses reimbursable pursuant to Section 6.03 and reimbursed during the
related Due Period, in each case with respect to such Loan Group.

          Principal Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 3.08 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-25". Funds in the Principal Reserve Fund

                                      41
<PAGE>

shall be held in trust for the Certificateholders for the uses and purposes
set forth in this Agreement.

          Private Certificates: The Class B, Class C and Class P Certificates.

          Prospectus: The prospectus dated November 27, 2006, relating to
asset-backed securities to be sold by the Depositor.

          Prospectus Supplement: The prospectus supplement dated December 28,
2006, relating to the public offering of the certain Classes of Certificates
offered thereby.

          PTCE 95-60: As defined in Section 5.02(b).

          PUD: A Planned Unit Development.

          Purchase Price: With respect to any Mortgage Loan (x) required to be
(1) repurchased by a Seller or purchased by the Master Servicer, as
applicable, pursuant to Section 2.02, 2.03 or 3.12 hereof or (2) repurchased
by the Depositor pursuant to Section 2.04 hereof, or (y) that the Master
Servicer has a right to purchase pursuant to Section 3.12 hereof, an amount
equal to the sum of (i) 100% of the unpaid principal balance (or, if such
purchase is effected by the Master Servicer, the Stated Principal Balance) of
the Mortgage Loan as of the date of such purchase, (ii) accrued interest
thereon at the applicable Mortgage Rate (or, if such purchase is effected by
the Master Servicer, at the Net Mortgage Rate) from (a) the date through which
interest was last paid by the Mortgagor (or, if such purchase or repurchase,
as the case may be, is effected by the Master Servicer, the date through which
interest was last advanced and not reimbursed by the Master Servicer) to (b)
the Due Date in the month in which the Purchase Price is to be distributed to
Certificateholders and (iii) any costs, expenses and damages incurred by the
Trust Fund resulting from any violation of any predatory or abusive lending
law in connection with such Mortgage Loan.

          Qualified Bidder: With respect to any auction pursuant to Section
9.04, any institution that is a regular purchaser and/or seller in the
secondary market of residential mortgage loans as determined by the Trustee
(or any advisor on its behalf), in its sole discretion, and any holder of an
interest in the Class C Certificates; provided, however, that neither CHL nor
any of its affiliates shall constitute a Qualified Bidder.

          Qualified Institutional Buyer or QIB: A "qualified institutional
buyer" within the meaning of Rule 144A.

          Rating Agency: Each of Moody's and S&P. If any such organization or
its successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
identified as a "Rating Agency" in the Underwriter's Exemption and 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 Liquidated Mortgage Loan, an
amount (not less than zero or more than the Stated Principal Balance of the
Mortgage Loan) as of the date of

                                      42
<PAGE>

such liquidation, equal to (i) the Stated Principal Balance of such Liquidated
Mortgage Loan as of the date of such liquidation, minus (ii) the Liquidation
Proceeds, if any, received in connection with such liquidation during the
month in which such liquidation occurs, to the extent applied as recoveries of
principal of the Liquidated Mortgage Loan. With respect to each Mortgage Loan
that has become the subject of a Deficient Valuation, (i) if the value of the
related Mortgaged Property was reduced below the principal balance of the
related Mortgage Note, the amount by which the value of the Mortgaged Property
was reduced below the principal balance of the related Mortgage Note, and (ii)
if the principal amount due under the related Mortgage Note has been reduced,
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.

          Record Date: With respect to any Distribution Date and the
Interest-Bearing Certificates, the Business Day immediately preceding such
Distribution Date, or if any such Certificates are no longer Book-Entry
Certificates, the Record Date with respect to such Certificates shall be the
last Business Day of the month preceding the month of such Distribution Date.
With respect to any Distribution Date and the Class A-R, Class C and Class P
Certificates and the first Distribution Date, the Closing Date, and with
respect to any other Distribution Date, the last Business Day of the month
preceding the month of such Distribution Date.

          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 amounts approximately equal to
the outstanding aggregate Certificate Principal Balance of the
Interest-Bearing Certificates on such Interest Determination Date, provided
that at least two such Reference Banks provide such rate. If fewer than two
offered rates appear, the Reference Bank Rate will be the arithmetic mean
(rounded upwards, if necessary, to the nearest whole multiple of 0.03125%) of
the rates quoted by one or more major banks in New York City, selected by the
Trustee, as of 11:00 a.m., New York City time, on such date for loans in U.S.
dollars to leading European banks for a period of one month in amounts
approximately equal to the aggregate Certificate Principal Balance of the
Interest-Bearing Certificates on such Interest Determination Date.

          Reference Banks: Barclays Bank PLC, Deutsche Bank and NatWest, N.A.,
provided that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Trustee which are
engaged in transactions in Eurodollar deposits in the international
Eurocurrency market (i) with an established place of business in London,
England, (ii) not controlling, under the control of or under common control
with the Depositor, CHL or the Master Servicer and (iii) which have been
designated as such by the Trustee.

          Refinancing Mortgage Loan: Any Mortgage Loan originated in
connection with the refinancing of an existing mortgage loan.

          Regular Certificate: Any Certificate other than the Class A-R
Certificates.

                                      43
<PAGE>

          Regulation AB: Subpart 229.1100 - Asset Backed Securities
(Regulation AB), 17 C.F.R. ss.ss.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 and publicly available.

          Relief Act: The Servicemembers Civil Relief Act.

          REMIC Provisions: Provisions of the federal income tax law relating
to real estate mortgage investment conduits which appear at section 860A
through 860G of Subchapter M of Chapter 1 of the Code, and related provisions,
and regulations and rulings promulgated thereunder, as the foregoing may be in
effect from time to time.

          Remittance Report: A report prepared by the Master Servicer and
delivered to the Trustee and the NIM Insurer in accordance with Section 4.04.

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

          Replacement Mortgage Loan: A Mortgage Loan substituted by a Seller
for a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for File Release, (i) have a Stated Principal Balance,
after deduction of the principal portion of the Scheduled Payment due in the
month of substitution, not in excess of, and not less than 90% of the Stated
Principal Balance of the Deleted Mortgage Loan; (ii) with respect to any Fixed
Rate Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per
annum higher than the Mortgage Rate of the Deleted Mortgage Loan and, with
respect to any Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate
no more than 1% per annum higher or lower than the Maximum Mortgage Rate of
the Deleted Mortgage Loan; (b) have a Minimum Mortgage Rate no more than 1%
per annum higher or lower than the Minimum Mortgage Rate of the Deleted
Mortgage Loan; (c) have the same Index and intervals between Adjustment Dates
as that of the Deleted Mortgage Loan; (d) have a Gross Margin not more than 1%
per annum higher or lower than that of the Deleted Mortgage Loan; and (e) have
an Initial Periodic Rate Cap and a Subsequent Periodic Rate Cap each not more
than 1% lower than that of the Deleted Mortgage Loan; (iii) have the same or
higher credit quality characteristics than that of the Deleted Mortgage Loan;
(iv) be accruing interest at a rate not more than 1% per annum higher or lower
than that of the Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio no
higher than that of the Deleted Mortgage Loan; (vi) have a remaining term to
maturity not greater than (and not more than one year less than) that of the
Deleted Mortgage Loan; (vii) not permit conversion of the Mortgage Rate from a
fixed rate to a variable rate or vice versa; (viii) provide for a Prepayment
Charge on terms substantially similar to those of the Prepayment Charge, if
any, of the Deleted Mortgage Loan; (ix) have the same occupancy type and lien
priority as the Deleted Mortgage Loan; (x) be covered by the applicable
Mortgage Insurance Policy if the Deleted Mortgage Loan was covered by such
Mortgage Insurance Policy and (xi) comply with each representation and
warranty set forth in Section 2.03 as of the date of substitution; provided,
however, that notwithstanding the foregoing, to the extent that compliance
with clause (xi) of this definition would cause a proposed Replacement
Mortgage Loan to fail to comply with one or more of clauses (i), (ii), (iv),
(viii) and/or (ix) of this definition, then such proposed Replacement Mortgage
Loan must comply with clause (xi) and need not comply with one

                                      44
<PAGE>

or more of clauses (i), (ii), (iv), (viii) and/or (ix), to the extent, and
only to the extent, necessary to assure that the Replacement Mortgage Loan
otherwise complies with clause (xi).

          Reportable Event: Any event required to be reported on Form 8-K, and
in any event, the following:

          (a) entry into a definitive agreement related to the Trust Fund, the
Certificates or the Mortgage Loans, or an amendment to a Transaction Document,
even if the Depositor is not a party to such agreement (e.g., a servicing
agreement with a servicer contemplated by Item 1108(a)(3)of Regulation AB);

          (b) termination of a Transaction Document (other than by expiration
of the agreement on its stated termination date or as a result of all parties
completing their obligations under such agreement), even if the Depositor is
not a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3)of Regulation AB);

          (c) with respect to the Master Servicer only, if the Master Servicer
becomes aware of any bankruptcy or receivership with respect to CHL, the
Depositor, the Master Servicer, any Subservicer, the Trustee, the Swap
Counterparty, any enhancement or support provider contemplated by Items
1114(b) or 1115 of Regulation AB, or any other material party contemplated by
Item 1101(d)(1) of Regulation AB;

          (d) with respect to the Trustee, the Master Servicer and the
Depositor only, the occurrence of an early amortization, performance trigger
or other event, including an Event of Default under this Agreement;

          (e) any amendment to this Agreement;

          (f) the resignation, removal, replacement, substitution of the
Master Servicer, any Subservicer, the Trustee or any co-trustee;

          (g) with respect to the Master Servicer only, if the Master Servicer
becomes aware that (i) any material enhancement or support specified in Item
1114(a)(1) through (3)of Regulation AB or Item 1115 of Regulation AB that was
previously applicable regarding one or more classes of the Certificates has
terminated other than by expiration of the contract on its stated termination
date or as a result of all parties completing their obligations under such
agreement; (ii) any material enhancement specified in Item 1114(a)(1) through
(3)of Regulation AB or Item 1115 of Regulation AB has been added with respect
to one or more classes of the Certificates; or (iii) any existing material
enhancement or support specified in Item 1114(a)(1) through (3)of Regulation
AB or Item 1115 of Regulation AB with respect to one or more classes of the
Certificates has been materially amended or modified; and

          (h) with respect to the Trustee, the Master Servicer and the
Depositor only, a required distribution to Holders of the Certificates is not
made as of the required Distribution Date under this Agreement.

                                      45
<PAGE>

          Reporting Subcontractor: With respect to the Master Servicer or the
Trustee, any Subcontractor determined by such Person pursuant to Section
11.08(b) to be "participating in the servicing function" within the meaning of
Item 1122 of Regulation AB. References to a Reporting Subcontractor shall
refer only to the Subcontractor of such Person and shall not refer to
Subcontractors generally.

          Representing Party: As defined in Section 2.03(e).

          Request for Document Release: A Request for Document Release
submitted by the Master Servicer to the Co-Trustee, substantially in the form
of Exhibit M.

          Request for File Release: A Request for File Release submitted by
the Master Servicer to the Co-Trustee, substantially in the form of Exhibit N.

          Required Carryover Reserve Fund Deposit: With respect to any
Distribution Date, an amount equal to the excess of (i) $1,000 over (ii) the
amount of funds on deposit in the Carryover Reserve Fund after all other
deposits and withdrawals from such account on such Distribution Date.

          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, including the applicable Mortgage Insurance Policy with
respect to a Covered Mortgage Loan.

          Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant
Secretary, any Trust Officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also 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.

          Rolling Sixty-Day Delinquency Rate: With respect to any Distribution
Date on or after the Stepdown Date and any Loan Group or Loan Groups, the
average of the Sixty-Day Delinquency Rates for such Loan Group or Loan Groups
and such Distribution Date and the two immediately preceding Distribution
Dates.

          Rule 144A: Rule 144A under the Securities Act.

          Rule 144A Letter: As defined in Section 5.02(b).

          S&P: Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, Inc. and its successors.

          Sarbanes-Oxley Certification: As defined in Section 11.05.

          Scheduled Payment: With respect to any Mortgage Loan, the scheduled
monthly payment of principal and/or interest due on any Due Date on such
Mortgage Loan which is payable by the related Mortgagor from time to time
under the related Mortgage Note, determined: (a) after giving effect to (i)
any Deficient Valuation and/or Debt Service Reduction

                                      46
<PAGE>

with respect to such Mortgage Loan and (ii) any reduction in the amount of
interest collectible from the related Mortgagor pursuant to the Relief Act or
any similar state or local law; (b) without giving effect to any extension
granted or agreed to by the Master Servicer pursuant to Section 3.05(a); and
(c) on the assumption that all other amounts, if any, due under such Mortgage
Loan are paid when due.

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

          Sellers: CHL, in its capacity as seller of the CHL Mortgage Loans to
the Depositor, Park Monaco, in its capacity as seller of the Park Monaco
Mortgage Loans to the Depositor and Park Sienna, in its capacity as seller of
the Park Sienna Mortgage Loans to the Depositor.

          Seller Shortfall Interest Requirement: With respect to the
Distribution Date in each of January 2007, February 2007 and March 2007, is
the sum of:

          (a) the product of: (1) the excess of the aggregate Stated Principal
Balance for such Distribution Date of all the Mortgage Loans in the Mortgage
Pool (including the Subsequent Mortgage Loans, if any) owned by the Trust Fund
at the beginning of the related Due Period, over the aggregate Stated
Principal Balance for such Distribution Date of such Mortgage Loans (including
such Subsequent Mortgage Loans, if any) that have a scheduled payment of
interest due in the related Due Period, and (2) a fraction, the numerator of
which is the weighted average Net Mortgage Rate of all the Mortgage Loans in
the Mortgage Pool (including such Subsequent Mortgage Loans, if any) (weighted
on the basis of the Stated Principal Balances thereof for such Distribution
Date) and the denominator of which is 12; and

          (b) the product of: (1) the amount on deposit in the Pre-Funding
Account at the beginning of the related Due Period, and (2) a fraction, the
numerator of which is the weighted average Net Mortgage Rate of the Mortgage
Loans (including Subsequent Mortgage Loans, if any) owned by the Trust Fund at
the beginning of the related Due Period (weighted on the basis of the Stated
Principal Balances thereof for such Distribution Date) and the denominator of
which is 12.

          Senior Certificates: The Class A and Class A-R Certificates.

          Senior Enhancement Percentage: With respect to a Distribution Date
on or after the Stepdown Date, the fraction (expressed as a percentage) (1)
the numerator of which is the excess of (a) the aggregate Stated Principal
Balance of the Mortgage Loans for the preceding Distribution Date over (b) (i)
before the Certificate Principal Balances of the Senior Certificates have been
reduced to zero, the sum of the Certificate Principal Balances of the Senior
Certificates, or (ii) after the Certificate Principal Balances of the Senior
Certificates have been reduced to zero, the Certificate Principal Balance of
the most senior Class of Subordinate Certificates outstanding, as of the
related Master Servicer Advance Date, and (2) the denominator of which is the
aggregate Stated Principal Balance of the Mortgage Loans for the preceding
Distribution Date.

          Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer
of its servicing

                                      47
<PAGE>

obligations hereunder, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.10.

          Servicing Criteria: The "servicing criteria" set forth in Item
1122(d) of Regulation AB.

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

          Servicing Fee Rate: With respect to each Mortgage Loan, the per
annum rate set forth on the Mortgage Loan Schedule for such Mortgage Loan.

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

          Sixty-Day Delinquency Rate: With respect to any Distribution Date on
or after the Stepdown Date, a fraction, expressed as a percentage, the
numerator of which is the aggregate Stated Principal Balance for such
Distribution Date of all Mortgage Loans 60 or more days delinquent as of the
close of business on the last day of the calendar month preceding such
Distribution Date (including Mortgage Loans in foreclosure, bankruptcy and REO
Properties) and the denominator of which is the aggregate Stated Principal
Balance for such Distribution Date of all Mortgage Loans.

          Stated Principal Balance: With respect to any Mortgage Loan or
related REO Property (i) as of the Cut-off Date, the unpaid principal balance
of the Mortgage Loan as of such date (before any adjustment to the
amortization schedule for any moratorium or similar waiver or grace period),
after giving effect to any partial prepayments or Liquidation Proceeds
received prior to such date and to the payment of principal due on or prior to
such date and irrespective any delinquency in payment by the related
Mortgagor, and (ii) as of any other Distribution Date, the Stated Principal
Balance of the Mortgage Loan as of its Cut-off Date, minus the sum of (a) the
principal portion of the Scheduled Payments (x) due with respect to such
Mortgage Loan during each Due Period ending prior to such Distribution Date
and (y) that were received by the Master Servicer as of the close of business
on the Determination Date related to such Distribution Date or with respect to
which Advances were made as of the Master Servicer Advance Date related to
such Distribution Date, (b) all Principal Prepayments with respect to such
Mortgage Loan received by the Master Servicer during each Prepayment Period
ending prior to such Distribution Date, (c) all Liquidation Proceeds collected
with respect to such Mortgage Loan during each Due Period ending prior to such
Distribution Date, to the extent applied by the Master Servicer as recoveries
of principal in accordance with Section 3.12 and (d)

                                      48
<PAGE>

any Realized Loss previously incurred in connection with a Deficient
Valuation. The Stated Principal Balance of any Mortgage Loan that becomes a
Liquidated Mortgage Loan will be zero on each date following the Due Period in
which such Mortgage Loan becomes a Liquidated Mortgage Loan. References herein
to the Stated Principal Balance of the Mortgage Loans at any time shall mean
the aggregate Stated Principal Balance of all Mortgage Loans in the Trust Fund
as of such time, and references herein to the Stated Principal Balance of a
Loan Group at any time shall mean the aggregate Stated Principal Balance of
all Mortgage Loans in such Loan Group at such time.

          Stepdown Date: The earlier to occur of (a) the Distribution Date
following the Distribution Date on which the aggregate Certificate Principal
Balance of the Senior Certificates is reduced to zero, and (b) the later to
occur of (x) the Distribution Date in January 2010 and (y) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Senior Certificates (after calculating anticipated distributions on such
Distribution Date) is less than or equal to 62.00% of the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date.

          Stepdown Target Subordination Percentage: For each Class of
Subordinate Certificates (other than the Class M-1, Class M-2 and Class M-3
Certificates), the respective percentage indicated in the following table:

                                                       Stepdown Target
                                                        Subordination
                                                         Percentage
                                                 ----------------------------
Class M-4.................................                  16.30%
Class M-5.................................                  13.40%
Class M-6.................................                  10.90%
Class M-7.................................                   9.20%
Class M-8.................................                   7.30%
Class M-9.................................                   5.50%
Class B...................................                   3.50%

          Strip REMIC: As defined in the Preliminary Statement.

          Strip REMIC Cap: As defined in the Preliminary Statement.

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

          Subordinate 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, Class M-9 and Class B
Certificates.

                                      49
<PAGE>

          Subordinate Class Principal Distribution Amount: With respect to any
Distribution Date and any Class of Subordinate Certificates (other than the
Class M-1, Class M-2 and Class M-3 Certificates), the excess of (1) the sum of
(a) the aggregate Certificate Principal Balance of the Class A Certificates
(after taking into account distribution of the Class 1-A Principal
Distribution Amount and the Class 2-A Principal Distribution Amount for such
Distribution Date), (b) the aggregate Certificate Principal Balance of the
Class M-1, Class M-2 and Class M-3 Certificates (after taking into account
distribution of the Combined Class M-1, M-2 and M-3 Principal Distribution
Amount for such Distribution Date), (c) the aggregate Certificate Principal
Balance of any Classes of Subordinate Certificates (other than the Class M-1,
Class M-2 and Class M-3 Certificates) that are senior to the subject Class (in
each case, after taking into account distribution of the Subordinate Class
Principal Distribution Amount(s) for such senior Class(es) of Certificates for
such Distribution Date) and (d) the Certificate Principal Balance of the
subject Class of Subordinate Certificates immediately prior to such
Distribution Date over (2) the lesser of (a) the product of (x) 100% minus the
Stepdown Target Subordination Percentage for the subject Class of Certificates
and (y) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date and (b) the aggregate Stated Principal Balance of the
Mortgage Loans for such Distribution Date minus the OC Floor; provided,
however, that if such Class of Subordinate Certificates is the only Class of
Subordinate Certificates outstanding on such Distribution Date, that Class
will be entitled to receive the entire remaining Principal Distribution Amount
for Loan Group 1 and Loan Group 2 until the Certificate Principal Balance
thereof is reduced to zero.

          Subordinate Net Rate Cap: With respect to any Distribution Date and
each Class of Subordinate Certificates, the weighted average of the Class 1-A
Net Rate Cap and the Class 2-A Net Rate Cap, weighted on the basis of the
excess (if any) of the sum of the aggregate Stated Principal Balance of the
Mortgage Loans in the related Loan Group as of the first day of the related
Due Period (after giving effect to Principal Prepayments received during the
Prepayment Period that ends during such Due Period) and the amount on deposit
in the Pre-Funding Account in respect of that Loan Group as of the first day
of such Due Period over the Certificate Principal Balance of the related
Senior Certificates immediately prior to such Distribution Date.

          Subsequent Certificate Account Deposit: With respect to any
Subsequent Transfer Date, an amount equal to the aggregate of all amounts in
respect of (i) principal of the related Subsequent Mortgage Loans due after
the related Subsequent Cut-off Date and received by the Master Servicer on or
before such Subsequent Transfer Date and not applied in computing the Cut-off
Date Principal Balance thereof and (ii) interest on such Subsequent Mortgage
Loans due after such Subsequent Cut-off Date and received by the Master
Servicer on or before the Subsequent Transfer Date.

          Subsequent Cut-off Date: In the case of any Subsequent Mortgage
Loan, the later of (x) the first day of the month of the related Subsequent
Transfer Date and (y) the date of origination of such Subsequent Mortgage
Loan.

          Subsequent Mortgage Loan: Any Mortgage Loan conveyed to the Trustee
on a Subsequent Transfer Date, and listed on the related Loan Number and
Borrower Identification Mortgage Loan Schedule delivered pursuant to Section
2.01(f). When used with respect to a

                                      50
<PAGE>

single Subsequent Transfer Date, "Subsequent Mortgage Loan" shall mean a
Subsequent Mortgage Loan conveyed to the Trustee on such Subsequent Transfer
Date.

          Subsequent Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that
limits permissible increases and decreases in the Mortgage Rate on any
Adjustment Date (other than the initial Adjustment Date).

          Subsequent Recoveries: As to any Distribution Date, with respect to
a Liquidated Mortgage Loan that resulted in a Realized Loss in a prior
calendar month, unexpected amounts received by the Master Servicer (net of any
related expenses permitted to be reimbursed pursuant to Section 3.08 and 3.12)
specifically related to such Liquidated Mortgage Loan after the classification
of such Mortgage Loan as a Liquidated Mortgage Loan.

          Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit P hereto, executed and delivered by the
Sellers, the Depositor and the Trustee as provided in Section 2.01(d).

          Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
"Subsequent Transfer Date" identified in such Subsequent Transfer Agreement;
provided, however, the Subsequent Transfer Date for any Subsequent Transfer
Agreement must be a Business Day and may not be a date earlier than the date
on which the Subsequent Transfer Agreement is executed and delivered by the
parties thereto pursuant to Section 2.01(d).

          Subsequent Transfer Date Purchase Amount: With respect to any
Subsequent Transfer Date, the "Subsequent Transfer Date Purchase Amount"
identified in the related Subsequent Transfer Agreement which shall be an
estimate of the aggregate Stated Principal Balances of the Subsequent Mortgage
Loans identified in such Subsequent Transfer Agreement.

          Subsequent Transfer Date Transfer Amount: With respect to any
Subsequent Transfer Date, an amount equal to the lesser of (i) the aggregate
Stated Principal Balances as of the related Subsequent Cut-off Dates of the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, as listed
on the related Loan Number and Borrower Identification Mortgage Loan Schedule
delivered pursuant to Section 2.01(f) and (ii) the amount on deposit in the
Pre-Funding Account.

          Subservicer: As defined in Section 3.02(a).

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

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

          Substitution Amount: With respect to any Mortgage Loan substituted
pursuant to Section 2.03(e), the excess of (x) the principal balance of the
Mortgage Loan that is substituted for, over (y) the principal balance of the
related substitute Mortgage Loan, each balance being determined as of the date
of substitution.

                                      51
<PAGE>

          Successful Auction: An auction held pursuant to Section 9.04 at
which at least three Qualified Bidders submitted bids and at least one of
those bids was an Acceptable Bid Amount.

          Swap Account: The separate Eligible Account created and initially
maintained by the Swap Trustee pursuant to Section 4.09.

          Swap Contract: The transaction (as assigned to the Swap Contract
Administrator pursuant to the Swap Contract Assignment Agreement) evidenced by
the New Confirmation, including the Credit Support Annex annexed thereto, a
form of which is attached hereto as Exhibit U.

          Swap Contract Administration Agreement: The swap contract
administration agreement dated as of the Closing Date among CHL, the Trustee
and the Swap Contract Administrator, a form of which is attached hereto as
Exhibit V-2.

          Swap Contract Administrator: The Bank of New York, in its capacity
as swap contract administrator under the Swap Contract Administration
Agreement and its successors and assigns.

          Swap Contract Assignment Agreement: The Assignment Agreement dated
as of the Closing Date among CHL, the Swap Contract Administrator and the Swap
Counterparty, a form of which is attached hereto as Exhibit V-1.

          Swap Contract Termination Date: The Distribution Date in December
2011.

          Swap Counterparty: Barclays Bank PLC and its successors.

          Swap Counterparty Trigger Event: Either (i) an "Event of Default"
under the Swap Contract with respect to which the Swap Counterparty is the
sole "Defaulting Party" (as defined in the Swap Contract) or (ii) a
"Termination Event" (other than an Illegality or a Tax Event (as such terms
are defined in the Swap Contract)) or "Additional Termination Event" under the
Swap Contract with respect to which the Swap Counterparty is the sole
"Affected Party" (as defined in the Swap Contract).

          Swap-IO REMIC: As defined in the Preliminary Statement.

          Swap Termination Payment: The payment payable to either party under
the Swap Contract due to an early termination of the Swap Contract.

          Swap Trust: The trust fund established by Section 4.09.

          Swap Trustee: The Bank of New York, a New York banking corporation,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Holders of the Interest-Bearing Certificates 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.

                                      52
<PAGE>

          Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and Treasury
regulation ss. 301.6231(a)(7)-1. Initially, this person shall be the Trustee.

          Tax Matters Person Certificate: With respect to the Master REMIC,
the Strip REMIC and the Swap-IO REMIC, the Class A-R Certificate with a
Denomination of $0.05 and in the form of Exhibit E hereto.

          Termination Price: As defined in Section 9.01.

          Terminator: As defined in Section 9.01.

          Three-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 36 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Transaction Documents: This Agreement, the Swap Contract, the Swap
Contract Administration Agreement, each Mortgage Insurance Policy and any
other document or agreement entered into in connection with the Trust Fund,
the Certificates or the Mortgage Loans.

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

          Transfer Affidavit: As defined in Section 5.02(c).

          Transferor Certificate: As defined in Section 5.02(b).

          Trigger Event: With respect to any Distribution Date on or after the
Stepdown Date, either a Delinquency Trigger Event with respect to that
Distribution Date or a Cumulative Loss Trigger Event with respect to that
Distribution Date.

          Trust Fund: The corpus of the trust created hereunder consisting of
(i) the Mortgage Loans and all interest and principal received on or with
respect thereto after the Cut-off Date to the extent not applied in computing
the Cut-off Date Principal Balance thereof, exclusive of interest not required
to be deposited in the Certificate Account pursuant to Section 3.05(b)(2);
(ii) the Certificate Account, the Distribution Account, the Principal Reserve
Fund, the Carryover Reserve Fund, the Credit Comeback Excess Account, the
Pre-Funding Account and all amounts deposited therein pursuant to the
applicable provisions of this Agreement; (iii) property that secured a
Mortgage Loan and has been acquired by foreclosure, deed in lieu of
foreclosure or otherwise; (iv) the mortgagee's rights under the Insurance
Policies with respect to the Mortgage Loan; and (v) all proceeds of the
conversion, voluntary or involuntary, of any of the foregoing into cash or
other liquid property.

          Trustee: The Bank of New York, a New York banking corporation, 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

                                      53
<PAGE>

may be a party and any successor trustee as may from time to time be serving
as successor trustee hereunder.

          Trustee Advance Notice: As defined in Section 4.01(d).

          Trustee Advance Rate: With respect to any Advance made by the
Trustee pursuant to Section 4.01(d), a per annum rate of interest determined
as of the date of such Advance equal to the Prime Rate in effect on such date
plus 5.00%.

          Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the sum of (i) the Pool
Stated Principal Balance and (ii) any amounts remaining in the Pre-Funding
Account (excluding any investment earnings thereon) with respect to such
Distribution Date.

          Trustee Fee Rate: With respect to each Mortgage Loan, the per annum
rate agreed upon in writing on or prior to the Closing Date by the Trustee and
the Depositor, which is 0.009% per annum.

          Two-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 24 months after origination thereof before such
Mortgage Rate becomes subject to adjustment.

          Underwriter's Exemption: Prohibited Transaction Exemption 2002-41,
67 Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department
of Labor.

          Underwriters: Countrywide Securities Corporation and Greenwich
Capital Markets, Inc.

          Unpaid Realized Loss Amount: For any Class of Certificates and any
Distribution Date, (x) the portion of the aggregate Applied Realized Loss
Amount previously allocated to that Class remaining unpaid from prior
Distribution Dates minus (y) any increase in the Certificate Principal Balance
of that Class due to the allocation of Subsequent Recoveries to the
Certificate Principal Balance of that Class pursuant to Section 4.04(h).

          Voting Rights: The voting rights of all the Certificates that are
allocated to any Certificates for purposes of the voting provisions hereunder.
Voting Rights allocated to each Class of Certificates shall be allocated 97%
to the Certificates other than the Class A-R, Class C and Class P Certificates
(with the allocation among the Certificates to be in proportion to the
Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other such Classes), and 1% to each of the Class A-R,
Class C and Class P Certificates. Voting Rights will be allocated among the
Certificates of each such Class in accordance with their respective Percentage
Interests.

          Winning Bidder: With respect to a Successful Auction, the Qualified
Bidder that bids the highest price.

                                      54
<PAGE>

          Section 1.02 Certain Interpretive Provisions.

          All terms defined in this Agreement shall have the defined meanings
when used in any certificate, agreement or other document delivered pursuant
hereto unless otherwise defined therein. For purposes of this Agreement and
all such certificates and other documents, unless the context otherwise
requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined,
shall have the respective meanings given to them under generally accepted
accounting principles; (b) the words "hereof," "herein" and "hereunder" and
words of similar import refer to this Agreement (or the certificate, agreement
or other document in which they are used) as a whole and not to any particular
provision of this Agreement (or such certificate, agreement or document); (c)
references to any Section, Schedule or Exhibit are references to Sections,
Schedules and Exhibits in or to this Agreement, and references to any
paragraph, subsection, clause or other subdivision within any Section or
definition refer to such paragraph, subsection, clause or other subdivision of
such Section or definition; (d) the term "including" means "including without
limitation"; (e) references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or
regulation; (f) references to any agreement refer to that agreement as amended
from time to time; (g) references to any Person include that Person's
permitted successors and assigns; and (h) a Mortgage Loan is "30 days
delinquent" if a Scheduled Payment has not been received by the close of
business on the Due Date on which the next Scheduled Payment is due. Similarly
for "60 days delinquent," "90 days delinquent" and so on.

                                  ARTICLE II.
                         CONVEYANCE OF MORTGAGE LOANS;
                        REPRESENTATIONS AND WARRANTIES

          Section 2.01 Conveyance of Mortgage Loans.

          (a) Each Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, all the right, title and
interest of such Seller in and to the applicable Initial Mortgage Loans,
including all interest and principal received and receivable by such Seller on
or with respect to applicable Initial Mortgage Loans after the Initial Cut-off
Date (to the extent not applied in computing the Cut-off Date Principal
Balance thereof) or deposited into the Certificate Account by the Master
Servicer on behalf of such Seller as part of the Initial Certificate Account
Deposit as provided in this Agreement, other than principal due on the
applicable Initial Mortgage Loans on or prior to the Initial Cut-off Date and
interest accruing prior to the Initial Cut-off Date. The Master Servicer
confirms that, on behalf of the Sellers, concurrently with the transfer and
assignment, it has deposited into the Certificate Account the Initial
Certificate Account Deposit.

          Immediately upon the conveyance of the Initial Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right, title and interest in and to
the Initial Mortgage Loans.

                                      55
<PAGE>

          CHL further agrees (x) to cause The Bank of New York to enter into
the Swap Contract Administration Agreement as Swap Contract Administrator and
(y) to assign all of its right, title and interest in and to the interest rate
swap transaction evidenced by the Old Confirmation, and to cause all of its
obligations in respect of such transaction to be assumed by, the Swap Contract
Administrator, on the terms and conditions set forth in the Swap Contract
Assignment Agreement.

          (b) Subject to the execution and delivery of the related Subsequent
Transfer Agreement as provided by Section 2.01(d) and the terms and conditions
of this Agreement, each Seller sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, on each Subsequent
Transfer Date, all the right, title and interest of such Seller in and to the
related Subsequent Mortgage Loans, including all interest and principal
received and receivable by such Seller on or with respect to such Subsequent
Mortgage Loans after the related Subsequent Cut-off Date (to the extent not
applied in computing the Cut-off Date Principal Balance thereof) or deposited
into the Certificate Account by the Master Servicer on behalf of such Seller
as part of any related Subsequent Certificate Account Deposit as provided in
this Agreement, other than principal due on such Subsequent Mortgage Loans on
or prior to the related Subsequent Cut-off Date and interest accruing prior to
the related Subsequent Cut-off Date.

          Immediately upon the conveyance of the Subsequent Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers,
assigns, sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right, title and interest in the
Subsequent Mortgage Loans.

          (c) Each Seller 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 of this Agreement, hereby sells, transfers, assigns and otherwise
conveys to the Trustee for the use and benefit of the Certificateholders,
without recourse, all right, title and interest in the portion of the Trust
Fund not otherwise conveyed to the Trustee pursuant to Section 2.01(a) or (b).

          (d) On any Business Day during the Funding Period designated by CHL
to the Trustee, the Sellers, the Depositor and the Trustee shall complete,
execute and deliver a Subsequent Transfer Agreement. After the execution and
delivery of such Subsequent Transfer Agreement, on the Subsequent Transfer
Date, the Trustee shall set aside in the Pre-Funding Account an amount equal
to the related Subsequent Transfer Date Purchase Amount.

          (e) The transfer of Subsequent Mortgage Loans on the Subsequent
Transfer Date is subject to the satisfaction of each of the following
conditions:

               (1) the Trustee and the Underwriters will be provided Opinions
     of Counsel addressed to the Rating Agencies as with respect to the sale
     of the Subsequent Mortgage Loans conveyed on such Subsequent Transfer
     Date (such opinions being substantially similar to the opinions delivered
     on the Closing Date to the Rating Agencies with respect to the sale of
     the Initial Mortgage Loans on the Closing Date), to be delivered as
     provided in Section 2.01(f);

                                      56
<PAGE>

               (2) the execution and delivery of such Subsequent Transfer
     Agreement or conveyance of the related Subsequent Mortgage Loans does not
     result in a reduction or withdrawal of any ratings assigned to the
     Certificates by the Rating Agencies;

               (3) the Depositor shall deliver to the Trustee an Officer's
     Certificate confirming the satisfaction of each of the conditions set
     forth in this Section 2.01(e) required to be satisfied by such Subsequent
     Transfer Date;

               (4) each Subsequent Mortgage Loan conveyed on such Subsequent
     Transfer Date satisfies the representations and warranties applicable to
     it under this Agreement, provided, however, that with respect to a breach
     of a representation and warranty with respect to a Subsequent Mortgage
     Loan set forth in this clause (4), the obligation under Section 2.03(e)
     of this Agreement of the applicable Seller, to cure, repurchase or
     replace such Subsequent Mortgage Loan shall constitute the sole remedy
     against such Seller respecting such breach available to
     Certificateholders, the Depositor or the Trustee;

               (5) the Subsequent Mortgage Loans conveyed on such Subsequent
     Transfer Date were selected in a manner reasonably believed not to be
     adverse to the interests of the Certificateholders;

               (6) no Subsequent Mortgage Loan conveyed on such Subsequent
     Transfer Date was 30 or more days delinquent as of the related Cut-off
     Date;

               (7) following the conveyance of the Subsequent Mortgage Loans
     on such Subsequent Transfer Date, the characteristics of each Loan Group
     will not vary by more than the amount specified below (other than (i) the
     percentage of Mortgage Loans secured by Mortgaged Properties located in
     the State of California, which will not exceed 50% of the Mortgage Loans
     in each Loan Group and (ii) the percentage of Mortgage Loans in the
     Credit Grade Categories of "C" or below, which will not exceed 15% of the
     Mortgage Loans in each Loan Group) from the characteristics listed below;
     provided that for the purpose of making such calculations, the
     characteristics for any Initial Mortgage Loan made will be taken as of
     the Initial Cut-off Date and the characteristics for any Subsequent
     Mortgage Loans will be taken as of the Subsequent Cut-off Date:

<TABLE>
<CAPTION>

     Loan Group 1
     Characteristic                                                 Value            Permitted Variance
     -------------------------                                 ----------------    -----------------------
     <S>                                                          <C>                     <C>
     Weighted Average Mortgage Rate.........................        8.266%                 +/-0.10%
     Weighted Average Original Loan-to-Value Ratio..........        80.62%                 +/-3.00%
     Weighted Average Credit Bureau Risk Score..............      601 points              +/-5 points
     Percentage Originated under CHL's Full Documentation
     Program................................................        66.76%                 +/-3.00%
     Weighted Average Gross Margin of
     Adjustable Rate Mortgage Loans.........................        6.529%                 +/-0.10%

                                      57
<PAGE>

     Loan Group 1
     Characteristic                                                 Value            Permitted Variance
     -------------------------                                 ----------------    -----------------------
     Weighted Average Mortgage Rate.........................        8.092%                 +/-0.10%
     Weighted Average Original Loan-to-Value Ratio..........        80.76%                 +/-3.00%
     Weighted Average Credit Bureau Risk Score..............      618 points              +/-5 points
     Percentage Originated under CHL's Full Documentation
     Program................................................        57.57%                 +/-3.00%
     Weighted Average Gross Margin of
     Adjustable Rate Mortgage Loans.........................        6.279%                 +/-0.10%

<PAGE>

</TABLE>

               (8) none of the Sellers or the Depositor is insolvent and
     neither of the Sellers nor the Depositor will be rendered insolvent by
     the conveyance of Subsequent Mortgage Loans on such Subsequent Transfer
     Date; and

               (9) the Trustee and the Underwriters will be provided with an
     Opinion of Counsel, which Opinion of Counsel shall not be at the expense
     of either the Trustee or the Trust Fund, addressed to the Trustee, to the
     effect that such purchase of Subsequent Mortgage Loans will not (i)
     result in the imposition of the tax on "prohibited transactions" on the
     Trust Fund or contributions after the Startup Date, as defined in
     Sections 860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause
     any REMIC formed hereunder to fail to qualify as a REMIC, such opinion to
     be delivered as provided in Section 2.01(f).

          The Trustee shall not be required to investigate or otherwise verify
compliance with these conditions, except for its own receipt of documents
specified above, and shall be entitled to rely on the required Officer's
Certificate.

          (f) Within six Business Days after each Subsequent Transfer Date,
upon (1) delivery to the Trustee by the Depositor of the Opinions of Counsel
referred to in Section 2.01(e)(1) and (e)(9), (2) delivery to the Trustee by
CHL (on behalf of each Seller) of a Loan Number and Borrower Identification
Mortgage Loan Schedule reflecting the Subsequent Mortgage Loans conveyed on
such Subsequent Transfer Date and the Loan Group into which each Subsequent
Mortgage Loan was conveyed, (3)deposit in the Certificate Account by the
Master Servicer on behalf of the Sellers of the applicable Subsequent
Certificate Account Deposit, and (4) delivery to the Trustee by the Depositor
of an Officer's Certificate confirming the satisfaction of each of the
conditions precedent set forth in this Section 2.01(f), the Trustee shall pay
the applicable Seller the Subsequent Transfer Date Transfer Amount from such
funds that were set aside in the Pre-Funding Account pursuant to Section
2.01(d). The positive difference, if any, between the Subsequent Transfer Date
Transfer Amount and the Subsequent Transfer Date Purchase Amount shall be
re-invested by the Trustee in the Pre-Funding Account.

          The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except
for its own receipt of documents specified above, and shall be entitled to
rely on the required Officer's Certificate.

                                      58
<PAGE>

          Within thirty days after each Subsequent Transfer Date, the
Depositor shall deliver to the Trustee a letter of a nationally recognized
firm of independent public accountants stating whether or not the Subsequent
Mortgage Loans conveyed on such Subsequent Transfer Date conform to the
characteristics described in Section 2.01(e)(6) and (7).

          (g) In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered to, and deposited with, the Co-Trustee (or,
in the case of the Delay Delivery Mortgage Loans, will deliver to, and deposit
with, the Co-Trustee within the time periods specified in the definition of
Delay Delivery Mortgage Loans) (except as provided in clause (vi) below) for
the benefit of the Certificateholders, the following documents or instruments
with respect to each such Mortgage Loan so assigned (with respect to each
Mortgage Loan, clause (i) through (vi) below, together, the "Mortgage File"
for each such Mortgage Loan):

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening
          endorsements that show a complete chain of endorsement from the
          originator to the Person endorsing the Mortgage Note (each such
          endorsement being sufficient to transfer all right, title and
          interest of the party so endorsing, as noteholder or assignee
          thereof, in and to that Mortgage Note), or, if the original Mortgage
          Note has been lost or destroyed and not replaced, an original lost
          note affidavit, stating that the original Mortgage Note was lost or
          destroyed, together with a copy of the related Mortgage Note and all
          such intervening endorsements;

               (ii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each MERS
          Mortgage Loan, the original Mortgage or a copy of such Mortgage,
          with recording information, noting the presence of the MIN of the
          Mortgage Loan and language indicating that the Mortgage Loan is a
          MOM Loan if the Mortgage Loan is a MOM Loan, with evidence of
          recording indicated thereon, or a copy of the Mortgage certified by
          the public recording office in which such Mortgage has been
          recorded;

               (iii) in the case of each Mortgage Loan that is not a MERS
          Mortgage Loan, a duly executed assignment of the Mortgage to
          "Asset-Backed Certificates, Series 2006-25, CWABS, Inc., by The Bank
          of New York, a New York banking corporation, as trustee under the
          Pooling and Servicing Agreement dated as of December 1, 2006,
          without recourse" or a copy of such assignment, with recording
          information, (each such assignment, when duly and validly completed,
          to be in recordable form and sufficient to effect the assignment of
          and transfer to the assignee thereof, under the Mortgage to which
          such assignment relates);

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

                                      59
<PAGE>

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

               (vi) the original or duplicate original lender's title policy
          or a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto or, in the event such original
          title policy has not been received from the insurer, such original
          or duplicate original lender's title policy and all riders thereto
          shall be delivered within one year of the Closing Date.

          In addition, in connection with the assignment of any MERS Mortgage
Loan, each Seller agrees that it will cause, at such Seller's own expense, the
MERS(R) System to indicate (and provide evidence to the Trustee that it has
done so) that such Mortgage Loans have been assigned by such Seller 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 "[IDENTIFY TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY
THE FIELD NAME FOR TRUSTEE]" which identifies the Trustee and (b) the code
"[IDENTIFY SERIES SPECIFIC CODE NUMBER]" in the field "Pool Field" which
identifies the series of the Certificates issued in connection with such
Mortgage Loans. The Sellers further agree that they will not, and will not
permit the Master Servicer to, and the Master Servicer agrees that it will
not, alter the codes referenced in this paragraph with respect to any Mortgage
Loan during the term of this Agreement unless and until such Mortgage Loan is
repurchased in accordance with the terms of this Agreement.

          In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan a Seller cannot deliver the original recorded Mortgage or
all interim recorded assignments of the Mortgage satisfying the requirements
of clause (ii), (iii) or (iv) concurrently with the execution and delivery
hereof, such Seller shall deliver or cause to be delivered to the Co-Trustee a
true copy of such Mortgage and of each such undelivered interim assignment of
the Mortgage each certified by such Seller, the applicable title company,
escrow agent or attorney, or the originator of such Mortgage, as the case may
be, to be a true and complete copy of the original Mortgage or assignment of
Mortgage submitted for recording. For any such Mortgage Loan that is not a
MERS Mortgage Loan each Seller shall promptly deliver or cause to be delivered
to the Co-Trustee such original Mortgage and such assignment or assignments
with evidence of recording indicated thereon upon receipt thereof from the
public recording official, or a copy thereof, certified, if appropriate, by
the relevant recording office, but in no event shall any such delivery be made
later than 270 days following the Closing Date; provided that in the event
that by such date such Seller is unable to deliver or cause to be delivered
each such Mortgage and each interim assignment by reason of the fact that any
such documents have not been returned by the appropriate recording office, or,
in the case of each interim assignment, because the related Mortgage has not
been returned by the appropriate recording office, such Seller shall deliver
or cause to be delivered such documents to the Co-Trustee as promptly as
possible upon receipt thereof. If the public recording office in which a
Mortgage or interim assignment thereof is recorded retains the original of
such Mortgage or assignment, a copy of the original Mortgage or assignment so
retained, with evidence of recording thereon, certified to be true and
complete by such recording office, shall satisfy a Seller's obligations in
Section 2.01. If any document submitted for recording pursuant to this
Agreement is (x) lost prior to recording or

                                      60
<PAGE>

rejected by the applicable recording office, the applicable Seller shall
immediately prepare or cause to be prepared a substitute and submit it for
recording, and shall deliver copies and originals thereof in accordance with
the foregoing or (y) lost after recording, the applicable Seller shall deliver
to the Co-Trustee a copy of such document certified by the applicable public
recording office to be a true and complete copy of the original recorded
document. Each Seller shall promptly forward or cause to be forwarded to the
Co-Trustee (x) from time to time additional original documents evidencing an
assumption or modification of a Mortgage Loan and (y) any other documents
required to be delivered by the Depositor or the Master Servicer to the
Co-Trustee within the time periods specified in this Section 2.01.

          With respect to each Mortgage Loan other than a MERS Mortgage Loan
as to which the related Mortgaged Property and Mortgage File are located in
any jurisdiction under the laws of which the recordation of the assignment
specified in clause (iii) above is not necessary to protect the Trustee's and
the Certificateholders' interest in the related Mortgage Loan, as evidenced by
an Opinion of Counsel delivered by CHL to the Trustee within 90 days of the
Closing Date (which opinion may be in the form of a "survey" opinion and is
not required to be delivered by counsel admitted to practice law in the
jurisdiction as to which such opinion applies), in lieu of recording the
assignment specified in clause (iii) above, the applicable Seller may deliver
an unrecorded assignment in blank, in form otherwise suitable for recording to
the Co-Trustee; provided that if the related Mortgage has not been returned
from the applicable public recording office, such assignment, or any copy
thereof, of the Mortgage may exclude the information to be provided by the
recording office. As to any Mortgage Loan other than a MERS Mortgage Loan, the
procedures of the preceding sentence shall be applicable only so long as the
related Mortgage File is maintained in the possession of the Co-Trustee in the
State or jurisdiction described in such sentence. In the event that with
respect to Mortgage Loans other than MERS Mortgage Loans (I) any Seller, the
Depositor, the Master Servicer or the NIM Insurer gives written notice to the
Trustee that recording is required to protect the right, title and interest of
the Trustee on behalf of the Certificateholders in and to any Mortgage Loan,
(II) a court recharacterizes any sale of the Mortgage Loans as a financing, or
(III) as a result of any change in or amendment to the laws of the State or
jurisdiction described in the first sentence of this paragraph or any
applicable political subdivision thereof, or any change in official position
regarding application or interpretation of such laws, including a holding by a
court of competent jurisdiction, such recording is so required, the Co-Trustee
shall complete the assignment in the manner specified in clause (iii) above
and CHL shall submit or cause to be submitted for recording as specified above
or, should CHL fail to perform such obligations, the Trustee shall cause the
Master Servicer, at the Master Servicer's expense, to cause each such
previously unrecorded assignment to be submitted for recording as specified
above. In the event a Mortgage File is released to the Master Servicer as a
result of the Master Servicer's having completed a Request for Document
Release, the Trustee shall complete the assignment of the related Mortgage in
the manner specified in clause (iii) above.

          So long as the Co-Trustee or its agent maintains an office in the
State of California, the Co-Trustee or its agent shall maintain possession of
and not remove or attempt to remove from the State of California any of the
Mortgage Files as to which the related Mortgaged Property is located in such
State. In the event that a Seller fails to record an assignment of a Mortgage
Loan as herein provided within 90 days of notice of an event set forth in
clause (I), (II) or (III) of the preceding paragraph, the Master Servicer
shall prepare and, if required hereunder,

                                      61
<PAGE>

file such assignments for recordation in the appropriate real property or
other records office. Each Seller hereby appoints the Master Servicer (and any
successor servicer hereunder) as its attorney-in-fact with full power and
authority acting in its stead for the purpose of such preparation, execution
and filing.

          In the case of Mortgage Loans that become the subject of a Principal
Prepayment between the Closing Date (in the case of Initial Mortgage Loans) or
related Subsequent Transfer Date (in the case of Subsequent Mortgage Loans)
and the Cut-off Date, CHL shall deposit or cause to be deposited in the
Certificate Account the amount required to be deposited therein with respect
to such payment pursuant to Section 3.05 hereof.

          Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date (in the case of Initial Mortgage Loans) or
within twenty days after the related Subsequent Transfer Date (in the case of
Subsequent Mortgage Loans), CHL (on behalf of each Seller) shall either (i)
deliver to the Co-Trustee the Mortgage File as required pursuant to this
Section 2.01 for each Delay Delivery Mortgage Loan or (ii) (A) repurchase the
Delay Delivery Mortgage Loan or (B) substitute the Delay Delivery Mortgage
Loan for a Replacement Mortgage Loan, which repurchase or substitution shall
be accomplished in the manner and subject to the conditions set forth in
Section 2.03, provided that if CHL fails to deliver a Mortgage File for any
Delay Delivery Mortgage Loan within the period provided in the prior sentence,
the cure period provided for in Section 2.02 or in Section 2.03 shall not
apply to the initial delivery of the Mortgage File for such Delay Delivery
Mortgage Loan, but rather CHL shall have five (5) Business Days to cure such
failure to deliver. CHL shall promptly provide each Rating Agency with written
notice of any cure, repurchase or substitution made pursuant to the proviso of
the preceding sentence. On or before the thirtieth (30th) day (or if such
thirtieth day is not a Business Day, the succeeding Business Day) after the
Closing Date (in the case of Initial Mortgage Loans) or within twenty days
after the related Subsequent Transfer Date (in the case of Subsequent Mortgage
Loans), the Trustee shall, in accordance with the provisions of Section 2.02,
send a Delay Delivery Certification substantially in the form annexed hereto
as Exhibit G-3 (with any applicable exceptions noted thereon) for all Delay
Delivery Mortgage Loans delivered within thirty (30) days after such date. The
Trustee will promptly send a copy of such Delay Delivery Certification to each
Rating Agency.

          Each Seller has entered into this Agreement in consideration for the
purchase of the Mortgage Loans sold by such Seller to the Depositor and has
agreed to take the actions specified herein. The Depositor, concurrently with
the execution and delivery of this Agreement, hereby sells, transfers, assigns
and otherwise conveys to the Trustee for the use and benefit of the
Certificateholders, without recourse, all right, title and interest in the
portion of the Trust Fund not otherwise conveyed to the Trustee pursuant to
Sections 2.01(a) or (b).

          Section 2.02 Acceptance by Trustee of the Mortgage Loans.

          (a) The Co-Trustee acknowledges receipt, subject to the limitations
contained in and any exceptions noted in the Initial Certification in the form
annexed hereto as Exhibit G-1 and in the list of exceptions attached thereto,
of the documents referred to in clauses (i) and (iii) of Section 2.01(g) above
with respect to the Initial Mortgage Loans and all other assets included in
the Trust Fund and declares that it holds and will hold such documents and the
other

                                      62
<PAGE>

documents delivered to it constituting the Mortgage Files, and that it holds
or will hold such other assets included in the Trust Fund, in trust for the
exclusive use and benefit of all present and future Certificateholders.

          The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Initial
Certification substantially in the form annexed hereto as Exhibit G-1 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification), the documents described in Section 2.01(g)(i) and, in the
case of each Initial Mortgage Loan that is not a MERS Mortgage Loan, the
documents described in Section 2.01(g)(iii) with respect to such Initial
Mortgage Loans as are in the Co-Trustee's possession and based on its review
and examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Initial Mortgage Loan. The Trustee
agrees to execute and deliver within 30 days after the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Interim
Certification substantially in the form annexed hereto as Exhibit G-2 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification) all documents required to be delivered to the Co-Trustee
pursuant to the Agreement with respect to such Initial Mortgage Loans are in
its possession (except those documents described in Section 2.01(g)(vi)) and
based on its review and examination and only as to the foregoing documents,
(i) such documents appear regular on their face and relate to such Initial
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (ix) and (xv) of the definition of the "Mortgage Loan Schedule"
accurately reflects information set forth in the Mortgage File. On or before
the thirtieth (30th) day after the Closing Date (or if such thirtieth day is
not a Business Day, the succeeding Business Day), the Trustee shall deliver to
the Depositor, the Master Servicer and CHL (on behalf of each Seller) a Delay
Delivery Certification with respect to the Initial Mortgage Loans
substantially in the form annexed hereto as Exhibit G-3, with any applicable
exceptions noted thereon. The Trustee or the Co-Trustee, as applicable, shall
be under no duty or obligation to inspect, review or examine such documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.

          Not later than 180 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer, CHL (on behalf of each Seller)
and any Certificateholder that so requests, a Final Certification with respect
to the Initial Mortgage Loans substantially in the form annexed hereto as
Exhibit H, with any applicable exceptions noted thereon.

          In connection with the Trustee's completion and delivery of such
Final Certification, the Co-Trustee, at the direction of the Trustee, shall
review each Mortgage File with respect to the Initial Mortgage Loans to
determine that such Mortgage File contains the following documents:

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening
          endorsements that show a complete chain

                                      63
<PAGE>

          of endorsement from the originator to the Person endorsing the
          Mortgage Note (each such endorsement being sufficient to transfer
          all right, title and interest of the party so endorsing, as
          noteholder or assignee thereof, in and to that Mortgage Note), or,
          if the original Mortgage Note has been lost or destroyed and not
          replaced, an original lost note affidavit, stating that the original
          Mortgage Note was lost or destroyed, together with a copy of the
          related Mortgage Note and all such intervening endorsements;

               (ii) in the case of each Initial Mortgage Loan that is not a
          MERS Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each
          Initial Mortgage Loan that is a MERS Mortgage Loan, the original
          Mortgage or a copy of such Mortgage, with recording information,
          noting the presence of the MIN of the Initial Mortgage Loan and
          language indicating that the Mortgage Loan is a MOM Loan if the
          Initial Mortgage Loan is a MOM Loan, with evidence of recording
          indicated thereon, or a copy of the Mortgage certified by the public
          recording office in which Mortgage has been recorded;

               (iii) in the case of each Initial Mortgage Loan that is not a
          MERS Mortgage Loan, a duly executed assignment of the Mortgage or a
          copy thereof with recording information, in either case in the form
          permitted by Section 2.01;

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

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

               (vi) the original or duplicate original lender's title policy
          or a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto.

          If, in the course of such review, the Co-Trustee finds any document
or documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include
such exceptions in such Final Certification (and the Trustee shall state in
such Final Certification whether any Mortgage File does not then include the
original or duplicate original lender's title policy or a printout of the
electronic equivalent and all riders thereto). If the public recording office
in which a Mortgage or assignment thereof is recorded retains the original of
such Mortgage or assignment, a copy of the original Mortgage or assignment so
retained, with evidence of recording thereon, certified to be true and
complete by such recording office, shall be deemed to satisfy the requirements
of clause (ii), (iii) or (iv) above, as applicable. CHL shall promptly correct
or cure such defect referred to above within 90 days from the date it was so
notified of such defect and, if CHL does not correct or cure such defect
within such period, CHL shall either (A) if the time to cure such defect
expires prior to the end of the second anniversary of the Closing Date,
substitute for the related Initial Mortgage

                                      64
<PAGE>

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 (B)
purchase such Initial Mortgage Loan from the Trust Fund within 90 days from
the date CHL was notified of such defect in writing at the Purchase Price of
such Initial Mortgage Loan; provided that any such substitution pursuant to
(A) above or repurchase pursuant to (B) above shall not be effected prior to
the delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof and any substitution pursuant to (A) above shall not be effected prior
to the additional delivery to the Co-Trustee of a Request for File Release. No
substitution will be made in any calendar month after the Determination Date
for such month. The Purchase Price for any such Initial Mortgage Loan shall be
deposited by CHL in the Certificate Account and, upon receipt of such deposit
and Request for File Release with respect thereto, the Co-Trustee shall
release the related Mortgage File to CHL and shall execute and deliver at
CHL's request such instruments of transfer or assignment as CHL has prepared,
in each case without recourse, as shall be necessary to vest in CHL, or a
designee, the Trustee's interest in any Initial Mortgage Loan released
pursuant hereto. If pursuant to the foregoing provisions CHL repurchases an
Initial Mortgage Loan that is a MERS Mortgage Loan, the Master Servicer shall
cause MERS to execute and deliver an assignment of the Mortgage in recordable
form to transfer the Mortgage from MERS to CHL and shall cause such Mortgage
to be removed from registration on the MERS(R) System in accordance with MERS'
rules and regulations.

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

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase any Mortgage Loan that does not meet the requirements of
Section 2.02(a) above shall constitute the sole remedy respecting such defect
available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against any Seller.

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase, pursuant to Section 2.02(a), any Initial Mortgage Loan
whose Mortgage File contains any document or documents that does not meet the
requirements of clauses (i)-(iv) and (vi) above and which defect is not
corrected or cured by CHL within 90 days from the date it was notified of such
defect, shall constitute the sole remedy respecting such defect available to
the Trustee, the Co-Trustee, the Depositor and any Certificateholder against
any Seller.

          (b) The Trustee agrees to execute and deliver on the Subsequent
Transfer Date to the Depositor, the Master Servicer and CHL (on behalf of each
Seller) an Initial Certification substantially in the form annexed hereto as
Exhibit G-4 to the effect that, as to each Subsequent Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Subsequent Mortgage Loan paid in
full or any Subsequent Mortgage Loan specifically identified in such
certification as not covered by such certification), the documents described
in Section 2.01(g)(i) and, in the case of each Subsequent Mortgage Loan that
is not a MERS Mortgage Loan, the documents described in Section 2.01(g)(iii),
with respect to such Subsequent Mortgage Loan are in its possession, and based
on its review and examination and only as to the foregoing

                                      65
<PAGE>

documents, such documents appear regular on their face and relate to such
Subsequent Mortgage Loan.

          The Trustee agrees to execute and deliver within 30 days after the
Subsequent Transfer Date to the Depositor, the Master Servicer and CHL (on
behalf of each Seller) an Interim Certification substantially in the form
annexed hereto as Exhibit G-2 to the effect that, as to each Subsequent
Mortgage Loan listed in the Mortgage Loan Schedule (other than any Subsequent
Mortgage Loan paid in full or any Subsequent Mortgage Loan specifically
identified in such certification as not covered by such certification), all
documents required to be delivered to it pursuant to this Agreement with
respect to such Subsequent Mortgage Loan are in its possession (except those
described in Section 2.01(g)(vi)) and based on its review and examination and
only as to the foregoing documents, (i) such documents appear regular on their
face and relate to such Subsequent Mortgage Loan, and (ii) the information set
forth in items (i), (iv), (v), (vi), (viii), (ix) and (xv) of the definition
of the "Mortgage Loan Schedule" accurately reflects information set forth in
the Mortgage File. On or before the thirtieth (30th) day after the Subsequent
Transfer Date (or if such thirtieth day is not a Business Day, the succeeding
Business Day), the Trustee shall deliver to the Depositor, the Master Servicer
and CHL (on behalf of each Seller) a Delay Delivery Certification with respect
to the Subsequent Mortgage Loans substantially in the form annexed hereto as
Exhibit G-3, with any applicable exceptions noted thereon, together with a
Subsequent Certification substantially in the form annexed hereto as Exhibit
G-4. The Trustee shall be under no duty or obligation to inspect, review or
examine such documents, instruments, certificates or other papers to determine
that the same are genuine, enforceable or appropriate for the represented
purpose or that they have actually been recorded in the real estate records or
that they are other than what they purport to be on their face.

          Not later than 180 days after the Subsequent Transfer Date, the
Trustee shall deliver to the Depositor, the Master Servicer, CHL (on behalf of
each Seller) and to any Certificateholder that so requests a Final
Certification with respect to the Subsequent Mortgage Loans substantially in
the form annexed hereto as Exhibit H, with any applicable exceptions noted
thereon.

          In connection with the Trustee's completion and delivery of such
Final Certification, the Co-Trustee shall review each Mortgage File with
respect to the Subsequent Mortgage Loans to determine that such Mortgage File
contains the following documents:

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening
          endorsements that show a complete chain of endorsement from the
          originator to the Person endorsing the Mortgage Note (each such
          endorsement being sufficient to transfer all right, title and
          interest of the party so endorsing, as noteholder or assignee
          thereof, in and to that Mortgage Note), or, if the original Mortgage
          Note has been lost or destroyed and not replaced, an original lost
          note affidavit, stating that the original Mortgage Note was lost or
          destroyed, together with a copy of the related Mortgage Note and all
          such intervening endorsements;

                                      66
<PAGE>

               (ii) in the case of each Subsequent Mortgage Loan that is not a
          MERS Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each
          Subsequent Mortgage Loan that is a MERS Mortgage Loan, the original
          Mortgage or a copy of such Mortgage, with recording information,
          noting the presence of the MIN of the Subsequent Mortgage Loan and
          language indicating that the Subsequent Mortgage Loan is a MOM Loan
          if the Subsequent Mortgage Loan is a MOM Loan, with evidence of
          recording indicated thereon, or a copy of the Mortgage certified by
          the public recording office in which Mortgage has been recorded;

               (iii) in the case of each Subsequent Mortgage Loan that is not
          a MERS Mortgage Loan, a duly executed assignment of the Mortgage or
          a copy thereof with recording information, in either case in the
          form permitted by Section 2.01;

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage
          Loan);

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

               (vi) the original or duplicate original lender's title policy
          or a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto.

          If, in the course of such review, the Trustee finds any document or
documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include
such exceptions in such Final Certification (and the Trustee shall state in
such Final Certification whether any Mortgage File does not then include the
original or duplicate original lender's title policy or a printout of the
electronic equivalent and all riders thereto). If the public recording office
in which a Mortgage or assignment thereof is recorded retains the original of
such Mortgage or assignment, a copy of the original Mortgage or assignment so
retained, with evidence of recording thereon, certified to be true and
complete by such recording office, shall be deemed to satisfy the requirements
of clause (ii), (iii) or (iv) above, as applicable. CHL shall promptly correct
or cure such defect referred to above within 90 days from the date it was so
notified of such defect and, if CHL does not correct or cure such defect
within such period, CHL shall either (A) if the time to cure such defect
expires prior to the end of the second anniversary of the Closing Date,
substitute for the related Subsequent 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 (B) purchase such Subsequent
Mortgage Loan from the Trust Fund within 90 days from the date CHL was
notified of such defect in writing at the Purchase Price of such Subsequent
Mortgage Loan; provided that any such substitution pursuant to (A) above or
repurchase pursuant to (B) above shall not be effected prior to the delivery
to the Trustee of the Opinion of Counsel required by Section 2.05 hereof and
any substitution pursuant to (A) above shall not be effected prior to the
additional delivery to the Trustee of a Request for File Release. No
substitution will be made in any calendar month after

                                      67
<PAGE>

the Determination Date for such month. The Purchase Price for any such
Subsequent Mortgage Loan shall be deposited by CHL in the Certificate Account
and, upon receipt of such deposit and Request for File Release with respect
thereto, the Trustee shall release the related Mortgage File to CHL and shall
execute and deliver at CHL's request such instruments of transfer or
assignment as CHL has prepared, in each case without recourse, as shall be
necessary to vest in CHL, or a designee, the Trustee's interest in any
Subsequent Mortgage Loan released pursuant hereto. If pursuant to the
foregoing provisions CHL repurchases a Subsequent Mortgage Loan that is a MERS
Mortgage Loan, the Master Servicer shall cause MERS to execute and deliver an
assignment of the Mortgage in recordable form to transfer the Mortgage from
MERS to CHL and shall cause such Mortgage to be removed from registration on
the MERS(R) System in accordance with MERS' rules and regulations.

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

          It is understood and agreed that the obligation of the Sellers to
substitute for or to purchase, pursuant to Section 2.02(b), any Subsequent
Mortgage Loan whose Mortgage File contains any document or documents that does
not meet the requirements of clauses (i)-(iv) and (vi) above and which defect
is not corrected or cured by such Seller within 90 days from the date it was
notified of such defect, shall constitute the sole remedy respecting such
defect available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against the Sellers.

          Section 2.03 Representations, Warranties and Covenants of the Master
                       Servicer and the Sellers.

          (a) The Master Servicer hereby represents and warrants to the
Depositor and the Trustee as follows, as of the date hereof with respect to
the Initial Mortgage Loans, and the related Subsequent Transfer Date with
respect to the Subsequent Mortgage Loans:

               (1) The Master Servicer is duly organized as a Texas limited
     partnership and is validly existing and in good standing under the laws
     of the State of Texas and is duly authorized and qualified to transact
     any and all business contemplated by this Agreement to be conducted by
     the Master Servicer in any state in which a Mortgaged Property is located
     or is otherwise not required under applicable law to effect such
     qualification and, in any event, is in compliance with the doing business
     laws of any such state, to the extent necessary to ensure its ability to
     enforce each Mortgage Loan, to service the Mortgage Loans in accordance
     with the terms of this Agreement and to perform any of its other
     obligations under this Agreement in accordance with the terms hereof.

               (2) The Master Servicer has the full partnership power and
     authority to sell and 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
     partnership action on the part of the Master Servicer the

                                      68
<PAGE>

     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 Master Servicer, enforceable against the Master
     Servicer in accordance with its terms, except that (a) the enforceability
     hereof may be limited by bankruptcy, insolvency, moratorium, receivership
     and other similar laws relating to creditors' rights generally and (b)
     the remedy of specific performance and injunctive and other forms of
     equitable relief may be subject to equitable defenses and to the
     discretion of the court before which any proceeding therefor may be
     brought.

               (3) The execution and delivery of this Agreement by the Master
     Servicer, the servicing of the Mortgage Loans by the Master Servicer
     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 Master
     Servicer and will not (A) result in a material breach of any term or
     provision of the certificate of limited partnership, partnership
     agreement or other organizational document of the Master Servicer or (B)
     materially conflict with, result in a material breach, violation or
     acceleration of, or result in a material default under, the terms of any
     other material agreement or instrument to which the Master Servicer is a
     party or by which it may be bound, or (C) constitute a material violation
     of any statute, order or regulation applicable to the Master Servicer of
     any court, regulatory body, administrative agency or governmental body
     having jurisdiction over the Master Servicer; and the Master Servicer is
     not in breach or violation of any material indenture or other material
     agreement or instrument, or in violation of any statute, order or
     regulation of any court, regulatory body, administrative agency or
     governmental body having jurisdiction over it which breach or violation
     may materially impair the Master Servicer's ability to perform or meet
     any of its obligations under this Agreement.

               (4) The Master Servicer is an approved servicer of conventional
     mortgage loans for Fannie Mae and 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.

               (5) No litigation is pending or, to the best of the Master
     Servicer's knowledge, threatened, 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 service the
     Mortgage Loans or to perform any of its other obligations under this
     Agreement or any Subsequent Transfer Agreement in accordance with the
     terms hereof or thereof.

               (6) 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 of the transactions
     contemplated hereby, or if any such consent, approval, authorization or
     order is required, the Master Servicer has obtained the same.

                                      69
<PAGE>

               (7) The Master 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 for as long
     as such Mortgage Loans are registered with MERS.

               (8) The Master Servicer has fully furnished and will fully
     furnish, in accordance with the Fair Credit Reporting Act and its
     implementing regulations, accurate and complete information (i.e.,
     favorable and unfavorable) on its borrower credit files to Equifax,
     Experian, and Trans Union Credit Information Company (three of the credit
     repositories), on a monthly basis for the Mortgage Loans in Loan Group 1.

          (b) CHL hereby represents and warrants to the Depositor and the
Trustee as follows, as of the Initial Cut-off Date in the case of the Initial
Mortgage Loans and as of the related Subsequent Cut-off Date in the case of
the Subsequent Mortgage Loans (unless otherwise indicated or the context
otherwise requires, percentages with respect to the Initial Mortgage Loans in
the Trust Fund or in a Loan Group or Loan Groups are measured by the Cut-off
Date Principal Balance of the Initial Mortgage Loans in the Trust Fund or of
the Initial Mortgage Loans in the related Loan Group or Loan Groups, as
applicable):

               (1) CHL is duly organized as a New York corporation and is
     validly existing and in good standing under the laws of the State of New
     York and is duly authorized and qualified to transact any and all
     business contemplated by this Agreement and each Subsequent Transfer
     Agreement to be conducted by CHL 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 CHL Mortgage Loans
     in accordance with the terms of this Agreement and each Subsequent
     Transfer Agreement and to perform any of its other obligations under this
     Agreement and each Subsequent Transfer Agreement in accordance with the
     terms hereof and thereof.

               (2) CHL has the full corporate power and authority to sell each
     CHL Mortgage Loan, and to execute, deliver and perform, and to enter into
     and consummate the transactions contemplated by this Agreement and each
     Subsequent Transfer Agreement and has duly authorized by all necessary
     corporate action on the part of CHL the execution, delivery and
     performance of this Agreement and each Subsequent Transfer Agreement; and
     this Agreement and each Subsequent Transfer Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of CHL, enforceable
     against CHL 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.

               (3) The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by CHL, the sale of the CHL Mortgage Loans
     by CHL

                                      70
<PAGE>

     under this Agreement and each Subsequent Transfer Agreement, the
     consummation of any other of the transactions contemplated by this
     Agreement and each Subsequent Transfer Agreement, and the fulfillment of
     or compliance with the terms hereof and thereof are in the ordinary
     course of business of CHL and will not (A) result in a material breach of
     any term or provision of the charter or by-laws of CHL 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 CHL is a party or by which it may be
     bound, or (C) constitute a material violation of any statute, order or
     regulation applicable to CHL of any court, regulatory body,
     administrative agency or governmental body having jurisdiction over CHL;
     and CHL 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 CHL's ability to perform or meet any of its
     obligations under this Agreement and each Subsequent Transfer Agreement.

               (4) CHL is an approved seller of conventional mortgage loans
     for Fannie Mae and 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.

               (5) No litigation is pending or, to the best of CHL's
     knowledge, threatened, against CHL that would materially and adversely
     affect the execution, delivery or enforceability of this Agreement or any
     Subsequent Transfer Agreement or the ability of CHL to sell the CHL
     Mortgage Loans or to perform any of its other obligations under this
     Agreement or any Subsequent Transfer Agreement in accordance with the
     terms hereof or thereof.

               (6) No consent, approval, authorization or order of any court
     or governmental agency or body is required for the execution, delivery
     and performance by CHL of, or compliance by CHL with, this Agreement or
     any Subsequent Transfer Agreement or the consummation of the transactions
     contemplated hereby, or if any such consent, approval, authorization or
     order is required, CHL has obtained the same.

               (7) The information set forth on Exhibit F-1 hereto with
     respect to each Initial Mortgage Loan is true and correct in all material
     respects as of the Closing Date.

               (8) CHL will treat the transfer of the CHL Mortgage Loans to
     the Depositor as a sale of the CHL Mortgage Loans for all tax, accounting
     and regulatory purposes.

               (9) None of the Mortgage Loans is 30 days or more delinquent.

               (10) No Mortgage Loan had a Loan-to-Value Ratio at origination
     in excess of 100.00%.

               (11) Each Mortgage Loan is secured by a valid and enforceable
     first lien on the related Mortgaged Property subject only to (1) the lien
     of non-delinquent

                                      71
<PAGE>

     current real property taxes and assessments, (2) covenants, conditions
     and restrictions, rights of way, easements and other matters of public
     record as of the date of recording of such Mortgage, such exceptions
     appearing of record being acceptable to mortgage lending institutions
     generally or specifically reflected in the appraisal made in connection
     with the origination of the related Mortgage Loan and (3)other matters to
     which like properties are commonly subject that do not materially
     interfere with the benefits of the security intended to be provided by
     such Mortgage.

               (12) Immediately prior to the assignment of each CHL Mortgage
     Loan to the Depositor, CHL had good title to, and was the sole owner of,
     such CHL Mortgage Loan free and clear of any pledge, lien, encumbrance or
     security interest and had full right and authority, subject to no
     interest or participation of, or agreement with, any other party, to sell
     and assign the same pursuant to this Agreement.

               (13) There is no delinquent tax or assessment lien against any
     Mortgaged Property.

               (14) There is no valid offset, claim, defense or counterclaim
     to any Mortgage Note or Mortgage, including the obligation of the
     Mortgagor to pay the unpaid principal of or interest on such Mortgage
     Note.

               (15) There are no mechanics' liens or claims for work, labor or
     material affecting any Mortgaged Property that are or may be a lien prior
     to, or equal with, the lien of such Mortgage, except those that are
     insured against by the title insurance policy referred to in item (18)
     below.

               (16) As of the Closing Date in the case of the Initial Mortgage
     Loans and as of the related Subsequent Transfer Date in the case of the
     Subsequent Mortgage Loans, to the best of CHL's knowledge, each Mortgaged
     Property is free of material damage and is in good repair.

               (17) As of the Closing Date in the case of the Initial Mortgage
     Loans and as of the related Subsequent Transfer Date in the case of the
     Subsequent Mortgage Loans, neither CHL nor any prior holder of any
     Mortgage has modified the Mortgage in any material respect (except that a
     Mortgage Loan may have been modified by a written instrument that has
     been recorded or submitted for recordation, if necessary, to protect the
     interests of the Certificateholders and the original or a copy of which
     has been delivered to the Trustee); satisfied, cancelled or subordinated
     such Mortgage in whole or in part; released the related Mortgaged
     Property in whole or in part from the lien of such Mortgage; or executed
     any instrument of release, cancellation, modification (except as
     expressly permitted above) or satisfaction with respect thereto.

               (18) A lender's policy of title insurance together with a
     condominium endorsement and extended coverage endorsement, if applicable,
     in an amount at least equal to the Cut-off Date Principal Balance of each
     such Mortgage Loan or a commitment (binder) to issue the same was
     effective on the date of the origination of each Mortgage Loan, each such
     policy is valid and remains in full force and effect, and

                                      72
<PAGE>

     each such policy was issued by a title insurer qualified to do business
     in the jurisdiction where the Mortgaged Property is located and
     acceptable to Fannie Mae and Freddie Mac and is in a form acceptable to
     Fannie Mae and Freddie Mac, which policy insures the Sellers and
     successor owners of indebtedness secured by the insured Mortgage, as to
     the first priority lien, of the Mortgage subject to the exceptions set
     forth in paragraph (11) above; to the best of CHL's knowledge, no claims
     have been made under such mortgage title insurance policy and no prior
     holder of the related Mortgage, including any Seller, has done, by act or
     omission, anything that would impair the coverage of such mortgage title
     insurance policy.

               (19) No Initial Mortgage Loan was the subject of a Principal
     Prepayment in full between the Initial Cut-off Date and the Closing Date.
     No Subsequent Mortgage Loan was the subject of a Principal Prepayment in
     full between the Subsequent Cut-off Date and the Subsequent Transfer
     Date.

               (20) To the best of CHL's knowledge, all of the improvements
     that were included for the purpose of determining the Appraised Value of
     the Mortgaged Property lie wholly within the boundaries and building
     restriction lines of such property, and no improvements on adjoining
     properties encroach upon the Mortgaged Property.

               (21) To the best of CHL's knowledge, no improvement located on
     or being part of the Mortgaged Property is in violation of any applicable
     zoning law or regulation. To the best of CHL's knowledge, all
     inspections, licenses and certificates required to be made or issued with
     respect to all occupied portions of the Mortgaged Property and, with
     respect to the use and occupancy of the same, including but not limited
     to certificates of occupancy and fire underwriting certificates, have
     been made or obtained from the appropriate authorities, unless the lack
     thereof would not have a material adverse effect on the value of such
     Mortgaged Property, and the Mortgaged Property is lawfully occupied under
     applicable law.

               (22) The Mortgage Note and the related Mortgage are genuine,
     and each is the legal, valid and binding obligation of the maker thereof,
     enforceable in accordance with its terms and under applicable law, except
     that (a) the enforceability thereof may be limited by bankruptcy,
     insolvency, moratorium, receivership and other similar laws relating to
     creditors' rights generally and (b) the remedy of specific performance
     and injunctive and other forms of equitable relief may be subject to
     equitable defenses and to the discretion of the court before which any
     proceeding therefor may be brought. To the best of CHL's knowledge, all
     parties to the Mortgage Note and the Mortgage had legal capacity to
     execute the Mortgage Note and the Mortgage and each Mortgage Note and
     Mortgage have been duly and properly executed by such parties.

               (23) The proceeds of the Mortgage Loan have been fully
     disbursed, there is no requirement for future advances thereunder, and
     any and all requirements as to completion of any on-site or off-site
     improvements and as to disbursements of any escrow funds therefor have
     been complied with. All costs, fees and expenses incurred in making, or
     closing or recording the Mortgage Loan were paid.

                                      73
<PAGE>

               (24) The related Mortgage contains customary and enforceable
     provisions that render the rights and remedies of the holder thereof
     adequate for the realization against the Mortgaged Property of the
     benefits of the security, including, (i) in the case of a Mortgage
     designated as a deed of trust, by trustee's sale, and (ii) otherwise by
     judicial foreclosure.

               (25) With respect to each Mortgage constituting a deed of
     trust, a trustee, duly qualified under applicable law to serve as such,
     has been properly designated and currently so serves and is named in such
     Mortgage, and no fees or expenses are or will become payable by the
     Certificateholders to the trustee under the deed of trust, except in
     connection with a trustee's sale after default by the Mortgagor.

               (26) Each Mortgage Note and each Mortgage is acceptable in form
     to Fannie Mae and Freddie Mac.

               (27) There exist no deficiencies with respect to escrow
     deposits and payments, if such are required, for which customary
     arrangements for repayment thereof have not been made, and no escrow
     deposits or payments of other charges or payments due the Sellers have
     been capitalized under the Mortgage or the related Mortgage Note.

               (28) The origination, underwriting, servicing and collection
     practices with respect to each Mortgage Loan have been in all respects
     legal, proper, prudent and customary in the mortgage lending and
     servicing business, as conducted by prudent lending institutions which
     service mortgage loans of the same type in the jurisdiction in which the
     Mortgaged Property is located.

               (29) There is no pledged account or other security other than
     real estate securing the Mortgagor's obligations.

               (30) No Mortgage Loan has a shared appreciation feature, or
     other contingent interest feature.

               (31) Each Mortgage Loan contains a customary "due on sale"
     clause.

               (32) No less than approximately the percentage specified in the
     Collateral Schedule of the Initial Mortgage Loans in Loan Group 1 and
     Loan Group 2 are secured by single family detached dwellings. No more
     than approximately the percentage specified in the Collateral Schedule of
     the Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured
     by two- to four-family dwellings. No more than approximately the
     percentage specified in the Collateral Schedule of the Initial Mortgage
     Loans in Loan Group 1 and Loan Group 2 are secured by low-rise
     condominium units. No more than approximately the percentage specified in
     the Collateral Schedule of the Initial Mortgage Loans in Loan Group 1 and
     Loan Group 2 are secured by high-rise condominium units. No more than
     approximately the percentage specified in the Collateral Schedule of the
     Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured by
     manufactured housing. No more than approximately the percentage specified
     in the Collateral Schedule of the Initial Mortgage Loans in Loan Group 1
     and Loan Group 2 are secured by PUDs.

                                      74
<PAGE>

               (33) Each Initial Mortgage Loan in Loan Group 1 and Loan Group
     2 was originated on or after the date specified in the Collateral
     Schedule.

               (34) Each Initial Mortgage Loan that is an Adjustable Rate
     Mortgage Loan, other than a Two-Year Hybrid Mortgage Loan, a Three-Year
     Hybrid Mortgage Loan or a Five-Year Hybrid Mortgage Loan, had an initial
     Adjustment Date no later than the applicable date specified on the
     Collateral Schedule; each Initial Mortgage Loan that is a Two-Year Hybrid
     Mortgage Loan had an initial Adjustment Date no later than the applicable
     date specified on the Collateral Schedule; each Initial Mortgage Loan
     that is a Three-Year Hybrid Mortgage Loan had an initial Adjustment Date
     no later than the applicable date specified on the Collateral Schedule;
     and each Initial Mortgage Loan that is a Five-Year Hybrid Mortgage Loan
     had an initial Adjustment Date no later than the applicable date
     specified on the Collateral Schedule.

               (35) Approximately the percentage specified in the Collateral
     Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan Group 2
     provide for a Prepayment Charge.

               (36) On the basis of representations made by the Mortgagors in
     their loan applications, no more than approximately the percentage
     specified in the Collateral Schedule of the Initial Mortgage Loans in
     Loan Group 1 and Loan Group 2, respectively, are secured by investor
     properties, and no less than approximately the percentage specified in
     the Collateral Schedule of the Initial Mortgage Loans in Loan Group 1 and
     Loan Group 2 respectively, are secured by owner-occupied Mortgaged
     Properties that are primary residences.

               (37) At the Cut-off Date, the improvements upon each Mortgaged
     Property are covered by a valid and existing hazard insurance policy with
     a generally acceptable carrier that provides for fire and extended
     coverage and coverage for such other hazards as are customary in the area
     where the Mortgaged Property is located in an amount that is at least
     equal to the lesser of (i) the maximum insurable value of the
     improvements securing such Mortgage Loan or (ii) the greater of (a) the
     outstanding principal balance of the Mortgage Loan and (b) an amount such
     that the proceeds of such policy shall be sufficient to prevent the
     Mortgagor and/or the mortgagee from becoming a co-insurer. If the
     Mortgaged Property is a condominium unit, it is included under the
     coverage afforded by a blanket policy for the condominium unit. All such
     individual insurance policies and all flood policies referred to in item
     (38) below contain a standard mortgagee clause naming the applicable
     Seller or the original mortgagee, and its successors in interest, as
     mortgagee, and the applicable Seller has received no notice that any
     premiums due and payable thereon have not been paid; the Mortgage
     obligates the Mortgagor thereunder to maintain all such insurance,
     including flood insurance, at the Mortgagor's cost and expense, and upon
     the Mortgagor's failure to do so, authorizes the holder of the Mortgage
     to obtain and maintain such insurance at the Mortgagor's cost and expense
     and to seek reimbursement therefor from the Mortgagor.

               (38) If the Mortgaged Property is in an area identified in the
     Federal Register by the Federal Emergency Management Agency as having
     special flood hazards,

                                      75
<PAGE>

     a flood insurance policy in a form meeting the requirements of the
     current guidelines of the Flood Insurance Administration is in effect
     with respect to such Mortgaged Property with a generally acceptable
     carrier in an amount representing coverage not less than the least of (A)
     the original outstanding principal balance of the Mortgage Loan, (B) the
     minimum amount required to compensate for damage or loss on a replacement
     cost basis, or (C) the maximum amount of insurance that is available
     under the Flood Disaster Protection Act of 1973, as amended.

               (39) To the best of CHL's knowledge, there is no proceeding
     occurring, pending or threatened for the total or partial condemnation of
     the Mortgaged Property.

               (40) There is no material monetary default existing under any
     Mortgage or the related Mortgage Note and, to the best of CHL's
     knowledge, there is no material event that, with the passage of time or
     with notice and the expiration of any grace or cure period, would
     constitute a default, breach, violation or event of acceleration under
     the Mortgage or the related Mortgage Note; and no Seller has waived any
     default, breach, violation or event of acceleration.

               (41) Each Mortgaged Property is improved by a one- to
     four-family residential dwelling, including condominium units and
     dwelling units in PUDs. To the best of CHL's knowledge, no improvement to
     a Mortgaged Property includes a cooperative or a mobile home or
     constitutes other than real property under state law.

               (42) Each Mortgage Loan is being serviced by the Master
     Servicer.

               (43) Any future advances made prior to the Cut-off Date have
     been consolidated with the outstanding principal amount secured by the
     Mortgage, and the secured principal amount, as consolidated, bears a
     single interest rate and single repayment term reflected on the Mortgage
     Loan Schedule. The consolidated principal amount does not exceed the
     original principal amount of the Mortgage Loan. The Mortgage Note does
     not permit or obligate the Master Servicer to make future advances to the
     Mortgagor at the option of the Mortgagor.

               (44) All taxes, governmental assessments, insurance premiums,
     water, sewer and municipal charges, leasehold payments or ground rents
     that previously became due and owing have been paid, or an escrow of
     funds has been established in an amount sufficient to pay for every such
     item that remains unpaid and that has been assessed, but is not yet due
     and payable. Except for (A) payments in the nature of escrow payments,
     and (B) interest accruing from the date of the Mortgage Note or date of
     disbursement of the Mortgage proceeds, whichever is later, to the day
     that precedes by one month the Due Date of the first installment of
     principal and interest, including without limitation, taxes and insurance
     payments, the Master Servicer has not advanced funds, or induced,
     solicited or knowingly received any advance of funds by a party other
     than the Mortgagor, directly or indirectly, for the payment of any amount
     required by the Mortgage.

                                      76
<PAGE>

               (45) The Mortgage Loans originated by CHL were underwritten in
     all material respects in accordance with CHL's underwriting guidelines
     for credit blemished quality mortgage loans or, with respect to Mortgage
     Loans purchased by CHL were underwritten in all material respects in
     accordance with customary and prudent underwriting guidelines generally
     used by originators of credit blemished quality mortgage loans.

               (46) Prior to the approval of the Mortgage Loan application, an
     appraisal of the related Mortgaged Property was obtained from a qualified
     appraiser, duly appointed by the originator, who had no interest, direct
     or indirect, in the Mortgaged Property or in any loan made on the
     security thereof, and whose compensation is not affected by the approval
     or disapproval of the Mortgage Loan; such appraisal is in a form
     acceptable to Fannie Mae and Freddie Mac.

               (47) None of the Mortgage Loans is a graduated payment mortgage
     loan or a growing equity mortgage loan, and no Mortgage Loan is subject
     to a buydown or similar arrangement.

               (48) The Mortgage Rates borne by the Initial Mortgage Loans in
     Loan Group 1 and Loan Group 2 as of the Cut-off Date ranged between the
     approximate per annum percentages specified on the Collateral Schedule
     and the weighted average Mortgage Rate as of the Cut-off Date was
     approximately the per annum rate specified on the Collateral Schedule.

               (49) The Mortgage Loans were selected from among the
     outstanding one- to four-family mortgage loans in the applicable Seller's
     portfolio at the Closing Date as to which the representations and
     warranties made as to the Mortgage Loans set forth in this Section
     2.03(b) and Sections 2.03(c) and 2.03(d) can be made. No selection was
     made in a manner that would adversely affect the interests of
     Certificateholders.

               (50) The Gross Margins on the Initial Mortgage Loans in Loan
     Group 1 and Loan Group 2 range between the approximate percentages
     specified on the Collateral Schedule, and the weighted average Gross
     Margin was approximately the percentage specified in the Collateral
     Schedule.

               (51) Each of the Initial Mortgage Loans in the Mortgage Pool
     has a Due Date on or before the date specified in the Collateral
     Schedule.

               (52) The Mortgage Loans, individually and in the aggregate,
     conform in all material respects to the descriptions thereof in the
     Prospectus Supplement.

               (53) There is no obligation on the part of any Seller under the
     terms of the Mortgage or related Mortgage Note to make payments in
     addition to those made by the Mortgagor.

               (54) Any leasehold estate securing a Mortgage Loan has a term
     of not less than five years in excess of the term of the related Mortgage
     Loan.

                                      77
<PAGE>

               (55) Each Mortgage Loan represents a "qualified mortgage"
     within the meaning of Section 860(a)(3)of the Code (but without regard to
     the rule in Treasury Regulation ss. 1.860G-2(f)(2) that treats a
     defective obligation as a qualified mortgage, or any substantially
     similar successor provision) and applicable Treasury regulations
     promulgated thereunder.

               (56) No Mortgage Loan was either a "consumer credit contract"
     or a "purchase money loan" as such terms are defined in 16 C.F.R. ss. 433
     nor is any Mortgage Loan a "mortgage" as defined in 15 U.S.C. ss.
     1602(aa).

               (57) To the extent required under applicable law, each
     originator and subsequent mortgagee or servicer of the Mortgage Loan
     complied with all licensing requirements and was authorized to transact
     and do business in the jurisdiction in which the related Mortgaged
     Property is located at all times when it held or serviced the Mortgage
     Loan. Any and all requirements of any federal, state or local laws or
     regulations, including, without limitation, usury, truth-in-lending, real
     estate settlement procedures, consumer credit protection, anti-predatory
     lending, fair credit reporting, unfair collection practice, equal credit
     opportunity, fair housing and disclosure laws and regulations, applicable
     to the solicitation, origination, collection and servicing of such
     Mortgage Loan have been complied with in all material respects; and any
     obligations of the holder of the Mortgage Note, Mortgage and other loan
     documents have been complied with in all material respects; servicing of
     each Mortgage Loan has been in accordance with prudent mortgage servicing
     standards, any applicable laws, rules and regulations and in accordance
     with the terms of the Mortgage Notes, Mortgage and other loan documents,
     whether such origination and servicing was done by the applicable Seller,
     its affiliates, or any third party which originated the Mortgage Loan on
     behalf of, or sold the Mortgage Loan to, any of them, or any servicing
     agent of any of the foregoing.

               (58) The methodology used in underwriting the extension of
     credit for the Mortgage Loan employs objective mathematical principles
     which relate the borrower's income, assets and liabilities to the
     proposed payment and such underwriting methodology does not rely on the
     extent of the borrower's equity in the collateral as the principal
     determining factor in approving such credit extension. Such underwriting
     methodology confirmed that at the time of origination
     (application/approval) the borrower had a reasonable ability to make
     timely payments on the Mortgage Loan.

               (59) No borrower was required to purchase any credit life,
     disability, accident or health insurance product as a condition of
     obtaining the extension of credit. No borrower obtained a prepaid
     single-premium credit life, disability, accident or health insurance
     policy in connection with the origination of the Mortgage Loan.

               (60) If the Mortgage Loan provides that the interest rate on
     the principal balance of the related Mortgage Loan may be adjusted, all
     of the terms of the related Mortgage pertaining to interest rate
     adjustments, payment adjustments and adjustments of the outstanding
     principal balance have been made in accordance with the terms of the

                                      78
<PAGE>

     related Mortgage Note and applicable law and are enforceable and such
     adjustments will not affect the priority of the Mortgage lien.

               (61) The Mortgaged Property complies with all applicable laws,
     rules and regulations relating to environmental matters, including but
     not limited to those relating to radon, asbestos and lead paint and no
     Seller nor, to the best of CHL's knowledge, the Mortgagor, has received
     any notice of any violation or potential violation of such law.

               (62) There is no action, suit or proceeding pending, or to the
     best of CHL's knowledge, threatened or likely to be asserted with respect
     to the Mortgage Loan against or affecting any Seller before or by any
     court, administrative agency, arbitrator or governmental body.

               (63) No action, inaction, or event has occurred and no state of
     fact exists or has existed that has resulted or will result in the
     exclusion from, denial of, or defense to coverage under any applicable
     hazard insurance policy, irrespective of the cause of such failure of
     coverage. In connection with the placement of any such insurance, no
     commission, fee, or other compensation has been or will be received by
     CHL or any designee of CHL or any corporation in which CHL or any
     officer, director, or employee had a financial interest at the time of
     placement of such insurance.

               (64) Each Mortgage Loan has a fully assignable life of loan tax
     service contract which may be assigned without the payment of any fee.

               (65) No Mortgagor has notified CHL or the Master Servicer on
     CHL's behalf, and CHL has no knowledge, of any relief requested or
     allowed to a Mortgagor under the Relief Act or any similar state or local
     law.

               (66) Each Mortgage Loan was originated by a savings and loan
     association, savings bank, commercial bank, credit union, insurance
     company, or mortgage banking company which is supervised and examined by
     a federal or state authority, or by a mortgagee approved by the Secretary
     of Housing and Urban Development pursuant to Sections 2.03 and 2.11 of
     the National Housing Act.

               (67) Each Mortgage Loan was (A) originated no earlier than six
     months prior to the time the applicable Seller purchased such Mortgage
     Loan pursuant to a mortgage loan purchase agreement or other similar
     agreement and (B) underwritten or reunderwritten by the applicable Seller
     in accordance with the applicable Seller's underwriting guidelines in
     effect at the time the loan was underwritten or reunderwritten, as
     applicable.

               (68) Each Mortgage Loan, at the time it was originated and as
     of the Closing Date or the related Subsequent Transfer Date, as
     applicable, complied in all material respects with applicable local,
     state and federal laws, including, but not limited to, all predatory and
     abusive lending laws.

                                      79
<PAGE>

               (69) None of the Mortgage Loans is a "high cost" mortgage loan
     as defined by applicable federal, state and local predatory and abusive
     lending laws.

               (70) Each Prepayment Charge is enforceable and was originated
     in compliance with all applicable federal, state and local laws.

               (71) None of the Mortgage Loans that are secured by property
     located in the State of Illinois are in violation of the provisions of
     the Illinois Interest Act; 815 Ill. Comp. Stat. 205/0.01 (2004).

               (72) There is no Mortgage Loan in the Trust Fund that was
     originated on or after March 7, 2003, which is a "high cost home loan" as
     defined under the Georgia Fair Lending Act.

               (73) No Mortgage Loan in the Trust Fund is a High Cost Loan or
     Covered Loan, as applicable (as such terms are defined in the
     then-current Standard & Poor's LEVELS(R) Glossary) and no Mortgage Loan
     originated on or after October 1, 2002 through March 6, 2003 is governed
     by the Georgia Fair Lending Act.

               (74) Each Mortgage Loan is secured by a "single family
     residence" within the meaning of Section 25(e)(10) of the Code. The fair
     market value of the manufactured home securing each Mortgage Loan was at
     least equal to 80% of the adjusted issue price of the contract at either
     (i) the time the contract was originated (determined pursuant to the
     REMIC Provisions) or (ii) the time the contract is transferred to the
     purchaser.

               (75) No Mortgage Loan in the Trust Fund is a "high cost home,"
     "covered" (excluding home loans defined as "covered home loans" in the
     New Jersey Home Ownership Security Act of 2002 that were originated
     between November 26, 2003 and July 7, 2004), "high risk home" or
     "predatory" loan under any applicable state, federal or local law (or a
     similarly classified loan using different terminology under a law
     imposing heightened regulatory scrutiny or additional legal liability for
     residential mortgage loans having high interest rates, points and/or
     fees).

               (76) There is no Mortgage Loan in the Trust Fund that was
     originated on or after October 1, 2002 and before March 7, 2003, which is
     secured by property located in the State of Georgia.

               (77) Representations and Warranties relating to the Mortgage
     Loans in Loan Group 1:

               (i) Each Mortgage Loan in Loan Group 1 is in compliance with
          the anti-predatory lending eligibility for purchase requirements of
          Fannie Mae's Selling Guide;

               (ii) No Mortgage Loan in Loan Group 1 is subject to the
          requirements of the Home Ownership and Equity Protection Act of 1994
          ("HOEPA");

                                      80
<PAGE>

               (iii) Each Mortgage Loan in Loan Group 1 at the time it was
          made complied in all material respects with applicable local, state,
          and federal laws, including, but not limited to, all applicable
          predatory and abusive lending laws;

               (iv) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Loan" as defined in the Georgia Fair Lending Act, as amended (the
          "Georgia Act"). No Mortgage Loan in Loan Group 1 subject to the
          Georgia Act and secured by owner occupied real property or an owner
          occupied manufactured home located in the State of Georgia was
          originated (or modified) on or after October 1, 2002 through and
          including March 6, 2003;

               (v) No Mortgage Loan in Loan Group 1 is a "High-Cost Home Loan"
          as defined in New York Banking Law 6-1;

               (vi) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Loan" as defined in the Arkansas Home Loan Protection Act effective
          July 16, 2003 (Act 1340 of 2003);

               (vii) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Loan" as defined in the Kentucky high-cost home loan statute
          effective June 24, 2003 (Ky. Rev. Stat. Section 360.100);

               (viii) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Loan" as defined in the New Jersey Home Ownership Act effective
          November 27, 2003 (N.J.S.A. 46:10B-22 et seq.);

               (ix) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Loan" as defined in the New Mexico Home Loan Protection Act
          effective January 1, 2004 (N.M. Stat. Ann. ss.ss. 58-21A-1 et seq.);

               (x) No Mortgage Loan in Loan Group 1 is a "High-Risk Home Loan"
          as defined in the Illinois High-Risk Home Loan Act effective January
          1, 2004 (815 Ill. Comp. Stat. 137/1 et seq.);

               (xi) No Mortgage Loan in Loan Group 1 is a "High-Cost Home
          Mortgage Loan" as defined in the Massachusetts Predatory Home Loan
          Practices Act, effective November 7, 2004 (Mass. Ann. Laws Ch.
          183C);

               (xii) No Mortgage Loan in Loan Group 1 is a "High Cost Home
          Loan" as defined in the Indiana Home Loan Practices Act, effective
          January 1, 2005 (Ind. Code Ann. Sections 24-9-1 through 24-9-9);

               (xiii) No Mortgage Loan in Loan Group 1 is a balloon mortgage
          loan that has an original stated maturity of less than seven (7)
          years;

               (xiv) No borrower related to a Mortgage Loan in Loan Group 1
          was encouraged or required to select a Mortgage Loan product offered
          by the Mortgage Loan's originator which is a higher cost product
          designed for less

                                      81
<PAGE>

          creditworthy borrowers, unless at the time of such Mortgage Loan's
          origination, such borrower did not qualify taking into account
          credit history and debt-to-income ratios for a lower-cost credit
          product then offered by such Mortgage Loan's originator or any
          affiliate of the Mortgage Loan's originator. If, at the time of loan
          application, the borrower may have qualified for a lower-cost credit
          product then offered by any mortgage lending affiliate of the
          Mortgage Loan's originator, the Mortgage Loan's originator referred
          the borrower's application to such affiliate for underwriting
          consideration;

               (xv) The methodology used in underwriting the extension of
          credit for each Mortgage Loan in Loan Group 1 employs objective
          mathematical principles which relate the borrower's income, assets
          and liabilities to the proposed payment and such underwriting
          methodology does not rely on the extent of the borrower's equity in
          the collateral as the principal determining factor in approving such
          credit extension. Such underwriting methodology confirmed that at
          the time of origination (application/approval) the borrower had a
          reasonable ability to make timely payments on such Mortgage Loan;

               (xvi) With respect to any Mortgage Loan in Loan Group 1 that
          contains a provision permitting imposition of a premium upon a
          prepayment prior to maturity: (i) prior to the loan's origination,
          the borrower agreed to such premium in exchange for a monetary
          benefit, including but not limited to a rate or fee reduction, (ii)
          prior to the loan's origination, the borrower was offered the option
          of obtaining a mortgage loan that did not require payment of such a
          premium, (iii) the prepayment premium is disclosed to the borrower
          in the loan documents pursuant to applicable state and federal law,
          (iv) for loans originated on or after September 1, 2004, the
          duration of the prepayment period shall not exceed three (3)years
          from the date of the note, unless the loan was modified to reduce
          the prepayment period to no more than three years from the date of
          the note and the borrower was notified in writing of such reduction
          in prepayment period, and (v) notwithstanding any state or federal
          law to the contrary, the Master Servicer shall not impose such
          prepayment premium in any instance when the mortgage debt is
          accelerated as the result of the borrower's default in making the
          loan payments;

               (xvii) No borrower related to a Mortgage Loan in Loan Group 1
          was required to purchase any credit, life, disability, accident or
          health insurance product as a condition of obtaining the extension
          of credit. No borrower related to a Mortgage Loan in Loan Group 1
          obtained a prepaid single-premium credit, life, disability, accident
          or health insurance policy in connection with the origination of the
          Mortgage Loan in Loan Group 1; No proceeds from any Mortgage Loan in
          Loan Group 1 were used to purchase single premium credit insurance
          policies as part of the origination of, or as a condition to
          closing, such Mortgage Loan;

               (xviii) All points and fees related to each Mortgage Loan in
          Loan Group 1 were disclosed in writing to the borrower in accordance
          with applicable state and federal law and regulation. Except in the
          case of a Mortgage Loan in Loan Group

                                      82
<PAGE>

          1 in an original principal amount of less than $60,000 which would
          have resulted in an unprofitable origination, no borrower was
          charged "points and fees" (whether or not financed) in an amount
          greater than 5% of the principal amount of such loan, such 5%
          limitation is calculated in accordance with Fannie Mae's
          anti-predatory lending requirements as set forth in the Fannie Mae
          Selling Guide;

               (xix) 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
          in Loan Group 1 has been disclosed in writing to the borrower in
          accordance with applicable state and federal law and regulation; and

               (xx) The Master Servicer will transmit full-file credit
          reporting data for each Mortgage Loan pursuant to Fannie Mae Guide
          Announcement 95-19 and that for each Mortgage Loan, Master Servicer
          agrees it shall report one of the following statuses each month as
          follows: new origination, current, delinquent (30-, 60-, 90-days,
          etc.), foreclosed, or charged-off.

               (78) The representations in Section 2.03(c)(1)-(6) and
     2.03(d)(1)-(6) are true and correct.

          (c) Park Monaco hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

               (1) Park Monaco is duly organized as a Delaware corporation and
     is validly existing and in good standing under the laws of the State of
     Delaware and is duly authorized and qualified to transact any and all
     business contemplated by this Agreement and each Subsequent Transfer
     Agreement to be conducted by Park Monaco in any state in which a
     Mortgaged Property securing a Park Monaco Mortgage Loan is located or is
     otherwise not required under applicable law to effect such qualification
     and, in any event, is in compliance with the doing business laws of any
     such state, to the extent necessary to ensure its ability to enforce each
     Park Monaco Mortgage Loan, to sell the Park Monaco Mortgage Loans in
     accordance with the terms of this Agreement and each Subsequent Transfer
     Agreement and to perform any of its other obligations under this
     Agreement in accordance with the terms hereof.

               (2) Park Monaco has the full company power and authority to
     sell each Park Monaco Mortgage Loan, and to execute, deliver and perform,
     and to enter into and consummate the transactions contemplated by this
     Agreement and each Subsequent Transfer Agreement and has duly authorized
     by all necessary corporate action on the part of Park Monaco the
     execution, delivery and performance of this Agreement and each Subsequent
     Transfer Agreement; and this Agreement and each Subsequent Transfer
     Agreement, assuming the due authorization, execution and delivery hereof
     by the other parties hereto, constitutes a legal, valid and binding
     obligation of Park Monaco, enforceable against Park Monaco 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

                                      83
<PAGE>

     remedy of specific performance and injunctive and other forms of
     equitable relief may be subject to equitable defenses and to the
     discretion of the court before which any proceeding therefor may be
     brought.

               (3) The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by Park Monaco, the sale of the Park Monaco
     Mortgage Loans by Park Monaco under this Agreement and each Subsequent
     Transfer Agreement, the consummation of any other of the transactions
     contemplated by this Agreement and each Subsequent Transfer Agreement,
     and the fulfillment of or compliance with the terms hereof are in the
     ordinary course of business of Park Monaco and will not (A) result in a
     material breach of any term or provision of the certificate of
     incorporation or by-laws of Park Monaco 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 Park Monaco is a party or by which it may be bound,
     or (C) constitute a material violation of any statute, order or
     regulation applicable to Park Monaco of any court, regulatory body,
     administrative agency or governmental body having jurisdiction over Park
     Monaco; and Park Monaco 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 Park Monaco's ability to
     perform or meet any of its obligations under this Agreement.

               (4) No litigation is pending or, to the best of Park Monaco's
     knowledge, threatened, against Park Monaco that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or any Subsequent Transfer Agreement or the ability of Park
     Monaco to sell the Park Monaco Mortgage Loans or to perform any of its
     other obligations under this Agreement or any Subsequent Transfer
     Agreement in accordance with the terms hereof or thereof.

               (5) No consent, approval, authorization or order of any court
     or governmental agency or body is required for the execution, delivery
     and performance by Park Monaco of, or compliance by Park Monaco with,
     this Agreement or any Subsequent Transfer Agreement or the consummation
     of the transactions contemplated hereby, or if any such consent,
     approval, authorization or order is required, Park Monaco has obtained
     the same.

               (6) Park Monaco will treat the transfer of the Park Monaco
     Mortgage Loans to the Depositor as a sale of the Park Monaco Mortgage
     Loans for all tax, accounting and regulatory purposes.

               (7) Immediately prior to the assignment of each Park Monaco
     Mortgage Loan to the Depositor, Park Monaco had good title to, and was
     the sole owner of, such Park Monaco Mortgage Loan free and clear of any
     pledge, lien, encumbrance or security interest and had full right and
     authority, subject to no interest or participation of, or agreement with,
     any other party, to sell and assign the same pursuant to this Agreement.

                                      84
<PAGE>

          (d) Park Sienna hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

               (1) Park Sienna is duly organized as a Delaware limited
     liability company and is validly existing and in good standing under the
     laws of the State of Delaware and is duly authorized and qualified to
     transact any and all business contemplated by this Agreement and each
     Subsequent Transfer Agreement to be conducted by Park Sienna in any state
     in which a Mortgaged Property securing a Park Sienna Mortgage Loan is
     located or is otherwise not required under applicable law to effect such
     qualification and, in any event, is in compliance with the doing business
     laws of any such state, to the extent necessary to ensure its ability to
     enforce each Park Sienna Mortgage Loan, to sell the Park Sienna Mortgage
     Loans in accordance with the terms of this Agreement and each Subsequent
     Transfer Agreement and to perform any of its other obligations under this
     Agreement in accordance with the terms hereof.

               (2) Park Sienna has the full company power and authority to
     sell each Park Sienna Mortgage Loan, and to execute, deliver and perform,
     and to enter into and consummate the transactions contemplated by this
     Agreement and each Subsequent Transfer Agreement and has duly authorized
     by all necessary company action on the part of Park Sienna the execution,
     delivery and performance of this Agreement and each Subsequent Transfer
     Agreement; and this Agreement and each Subsequent Transfer Agreement,
     assuming the due authorization, execution and delivery hereof by the
     other parties hereto, constitutes a legal, valid and binding obligation
     of Park Sienna, enforceable against Park Sienna 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.

               (3) The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by Park Sienna, the sale of the Park Sienna
     Mortgage Loans by Park Sienna under this Agreement and each Subsequent
     Transfer Agreement, the consummation of any other of the transactions
     contemplated by this Agreement and each Subsequent Transfer Agreement and
     the fulfillment of or compliance with the terms hereof are in the
     ordinary course of business of Park Sienna and will not (A) result in a
     material breach of any term or provision of the certificate of formation
     or limited liability company agreement of Park Sienna 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 Park Sienna is a party or by which it
     may be bound, or (C) constitute a material violation of any statute,
     order or regulation applicable to Park Sienna of any court, regulatory
     body, administrative agency or governmental body having jurisdiction over
     Park Sienna; and Park Sienna 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

                                      85
<PAGE>

     violation may materially impair Park Sienna's ability to perform or
     meet any of its obligations under this Agreement.

               (4) No litigation is pending or, to the best of Park Sienna's
     knowledge, threatened, against Park Sienna that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or any Subsequent Transfer Agreement or the ability of Park
     Sienna to sell the Park Sienna Mortgage Loans or to perform any of its
     other obligations under this Agreement or any Subsequent Transfer
     Agreement in accordance with the terms hereof or thereof.

               (5) No consent, approval, authorization or order of any court
     or governmental agency or body is required for the execution, delivery
     and performance by Park Sienna of, or compliance by Park Sienna with,
     this Agreement or any Subsequent Transfer Agreement or the consummation
     of the transactions contemplated hereby, or if any such consent,
     approval, authorization or order is required, Park Sienna has obtained
     the same.

               (6) Park Sienna will treat the transfer of the Park Sienna
     Mortgage Loans to the Depositor as a sale of the Park Sienna Mortgage
     Loans for all tax, accounting and regulatory purposes.

               (7) Immediately prior to the assignment of each Park Sienna
     Mortgage Loan to the Depositor, Park Sienna had good title to, and was
     the sole owner of, such the Park Sienna Mortgage Loan free and clear of
     any pledge, lien, encumbrance or security interest and had full right and
     authority, subject to no interest or participation of, or agreement with,
     any other party, to sell and assign the same pursuant to this Agreement.

          (e) Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in Section 2.03(a) through (d) that
materially and adversely affects the interests of the Certificateholders in
any Mortgage Loan, the party discovering such breach shall give prompt notice
thereof to the other parties and the NIM Insurer. Each of the Master Servicer
and the Sellers (each, a "Representing Party") hereby covenants with respect
to the representations and warranties set forth in Sections 2.03(a) through
(d) that within 90 days of the earlier of the discovery by such Representing
Party or receipt of written notice by such Representing Party from any party
of a breach of any representation or warranty set forth herein made 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, shall, (i) if such 90-day period expires prior to
the second anniversary of the Closing Date, remove such Mortgage Loan (a
"Deleted Mortgage Loan") from the Trust Fund and substitute in its place a
Replacement Mortgage Loan, in the manner and subject to the conditions set
forth in this Section; or (ii) repurchase the affected Mortgage Loan or
Mortgage Loans from the Trustee at the Purchase Price in the manner set forth
below; provided that (a) 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 the Opinion of Counsel required by Section 2.05 hereof, (b)
any such substitution pursuant to (i) above shall not be effected prior to the
additional delivery to the Trustee of a Request for File Release and (c) any
such substitution pursuant to (i) above shall include a payment by the
applicable Representing Party of any amount as calculated under item (iii) of
the

                                      86
<PAGE>

definition of "Purchase Price". Any Representing Party liable for a breach
under this Section 2.03 shall promptly reimburse the Master Servicer or the
Trustee for any expenses reasonably incurred by the Master Servicer or the
Trustee in respect of enforcing the remedies for such breach. To enable the
Master Servicer to amend the Mortgage Loan Schedule, any Representing Party
liable for a breach under this Section 2.03 shall, unless it cures such breach
in a timely fashion pursuant to this Section 2.03, promptly notify the Master
Servicer whether such Representing Party intends either to repurchase, or to
substitute for, the Mortgage Loan affected by such breach. With respect to the
representations and warranties described in this Section that are made to the
best of the Representing Party's knowledge, if it is discovered by any of the
Depositor, the Master Servicer, the Sellers 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 Representing Party's lack of knowledge with respect to the
substance of such representation or warranty, such inaccuracy shall be deemed
a breach of the applicable representation or warranty. Any breach of a
representation set forth in Section 2.03(a)(8), (b)(72), (b)(75), (b)(76) or
(b)(77) shall be deemed to materially and adversely affect the
Certificateholders.

          With respect to any Replacement Mortgage Loan or Loans, the
applicable Seller delivering such Replacement Mortgage Loan shall deliver to
the Trustee for the benefit of the Certificateholders the related Mortgage
Note, Mortgage and assignment of the Mortgage, and such other documents and
agreements as are required by Section 2.01, with the Mortgage Note endorsed
and the Mortgage assigned as required by Section 2.01. No substitution 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
applicable Seller delivering such Replacement Mortgage Loan on such
Distribution Date. 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 applicable Seller
shall be entitled to retain all amounts received in respect of such Deleted
Mortgage Loan. The Master Servicer shall amend the Mortgage Loan Schedule for
the benefit of the Certificateholders to reflect the removal of such Deleted
Mortgage Loan and the substitution of the Replacement Mortgage Loan or Loans
and the Master Servicer shall deliver the amended Mortgage Loan Schedule to
the Trustee. Upon such substitution, the Replacement Mortgage Loan or Loans
shall be subject to the terms of this Agreement in all respects, and the
applicable Seller delivering such Replacement Mortgage Loan 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
2.03(b), (c) or (d) with respect to such Mortgage Loan. Upon any such
substitution and the deposit to the Certificate Account of the amount required
to be deposited therein in connection with such substitution as described in
the following paragraph, the Co-Trustee shall release to the Representing
Party the Mortgage File relating to such Deleted Mortgage Loan and held for
the benefit of the Certificateholders and shall execute and deliver at the
Master Servicer's direction such instruments of transfer or assignment as have
been prepared by the Master Servicer, in each case without recourse, as shall
be necessary to vest in the applicable Seller, or its respective designee,
title to the Trustee's interest in any Deleted Mortgage Loan substituted for
pursuant to this Section 2.03.

                                      87
<PAGE>

          For any month in which any Seller substitutes one or more
Replacement Mortgage Loans for one or more Deleted Mortgage Loans, the Master
Servicer will determine the amount (if any) by which the aggregate principal
balance of all such 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 all such
Deleted Mortgage Loans. An amount equal to the aggregate of the deficiencies
described in the preceding sentence (such amount, the "Substitution Adjustment
Amount") shall be forwarded by the applicable Seller to the Master Servicer
and deposited by the Master Servicer into the Certificate Account not later
than the Determination Date for the Distribution Date relating to the
Prepayment Period during which the related Mortgage Loan became required to be
purchased or replaced hereunder.

          In the event that a Seller shall have repurchased a Mortgage Loan,
the Purchase Price therefor shall be deposited in the Certificate Account
pursuant to Section 3.05 on the Determination Date for the Distribution Date
in the month following the month during which such Seller became obligated to
repurchase or replace such Mortgage Loan and upon such deposit of the Purchase
Price, the delivery of the Opinion of Counsel required by Section 2.05, if
any, and the receipt of a Request for File Release, the Co-Trustee shall
release the related Mortgage File held for the benefit of the
Certificateholders to such Seller, and the Trustee shall execute and deliver
at such Person's direction the related instruments of transfer or assignment
prepared by such Seller, in each case without recourse, as shall be necessary
to transfer title from the Trustee for the benefit of the Certificateholders
and transfer the Trustee's interest to such Seller to any Mortgage Loan
purchased pursuant to this Section 2.03. It is understood and agreed that the
obligation under this Agreement of the Sellers to cure, repurchase or replace
any Mortgage Loan as to which a breach has occurred and is continuing shall
constitute the sole remedy against the Sellers respecting such breach
available to Certificateholders, the Depositor or the Trustee.

          (f) The representations and warranties set forth in this Section
2.03 shall survive delivery of the respective Mortgage Files to the Co-Trustee
for the benefit of the Certificateholders with respect to each Mortgage Loan.

          Section 2.04 Representations and Warranties of the Depositor.

          The Depositor hereby represents and warrants to the Master Servicer
and the Trustee as follows, as of the date hereof and as of each Subsequent
Transfer Date:

               (1) The Depositor is duly organized and is validly existing as
     a corporation in good standing under the laws of the State of Delaware
     and has full power and authority (corporate and other) necessary to own
     or hold its properties and to conduct its business as now conducted by it
     and to enter into and perform its obligations under this Agreement and
     each Subsequent Transfer Agreement.

               (2) 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 each Subsequent Transfer
     Agreement and has duly authorized, by all necessary corporate action on
     its part, the execution, delivery and

                                      88
<PAGE>

     performance of this Agreement and each Subsequent Transfer Agreement; and
     this Agreement and each Subsequent Transfer Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of the Depositor,
     enforceable against the Depositor in accordance with its terms, subject,
     as to enforceability, to (i) bankruptcy, insolvency, reorganization,
     moratorium and other similar laws affecting creditors' rights generally
     and (ii) general principles of equity, regardless of whether enforcement
     is sought in a proceeding in equity or at law.

               (3) The execution and delivery of this Agreement and each
     Subsequent Transfer 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.

               (4) 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 any Subsequent Transfer Agreement or the ability of
     the Depositor to perform its obligations under this Agreement or any
     Subsequent Transfer Agreement in accordance with the terms hereof or
     thereof.

               (5) 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 any Subsequent Transfer Agreement or the consummation
     of the transactions contemplated hereby, or if any such consent,
     approval, authorization or order is required, the Depositor has obtained
     the same.

          The Depositor hereby represents and warrants to the Trustee with
respect to each Mortgage Loan, as of the Closing Date or the related
Subsequent Transfer Date, as applicable, following the transfer of such
Mortgage Loan to it by the Sellers, the Depositor had good title to the
Initial Mortgage Loans or related Subsequent Mortgage Loans, as applicable,
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 the two immediately preceding paragraphs shall survive delivery
of the Mortgage Files to the Co-Trustee. Upon discovery by the Depositor or
the Trustee, of a breach of any of the foregoing

                                      89
<PAGE>

representations and warranties set forth in the immediately preceding
paragraph (referred to herein as a "breach"), which breach materially and
adversely affects the interest of the Certificateholders, the party
discovering such breach shall give prompt written notice to the others and to
each Rating Agency and the NIM Insurer. The Depositor hereby covenants with
respect to the representations and warranties made by it in this Section 2.04
that within 90 days of the earlier of the discovery by it or receipt of
written notice by it from any party of a breach of any representation or
warranty set forth herein made 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, shall
repurchase or replace the affected Mortgage Loan or Loans in accordance with
the procedure set forth in Section 2.03(e).

          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, 2.03 or
2.04 shall be made unless the Representing Party making such repurchase or
substitution delivers to the Trustee an Opinion of Counsel (which such
Representing Party shall use reasonable efforts to obtain), 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 the Trust
Fund or contributions after the Closing Date, as defined in sections
860F(a)(2) and 860G(d) of the Code, respectively or (ii) cause any REMIC
formed hereunder 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, 2.03 or 2.04) upon the earlier of (a) the occurrence of a default or
imminent default with respect to such 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, any Seller, the Master Servicer
or the Trustee that any Mortgage Loan does not constitute a "qualified
mortgage" within the meaning of section 860G(a)(3)of the Code, the party
discovering such fact shall promptly (and in any event within five Business
Days of discovery) give written notice thereof to the other parties and the
NIM Insurer. In connection therewith, the Trustee shall require CHL, at CHL's
option, to either (i) substitute, if the conditions in Section 2.03(e) with
respect to substitutions are satisfied, a Replacement Mortgage Loan for the
affected Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within
90 days of such discovery in the same manner as it would a Mortgage Loan for a
breach of representation or warranty contained in Section 2.03. The Trustee
shall reconvey to CHL the Mortgage Loan to be released pursuant hereto in the
same manner, and on the same terms and conditions, as it would a Mortgage Loan
repurchased for breach of a representation or warranty contained in Section
2.03.

          Section 2.06 Authentication and Delivery of Certificates.

          The Trustee acknowledges the transfer and assignment to it of the
Trust Fund and, concurrently with such transfer and assignment, has executed,
authenticated and delivered, to or

                                      90
<PAGE>

upon the order of the Depositor, the Certificates in authorized denominations
evidencing the entire ownership of the Trust Fund. The Trustee agrees to hold
the Trust Fund and exercise the rights referred to above for the benefit of
all present and future Holders of the Certificates and to perform the duties
set forth in this Agreement.

          Section 2.07 Covenants of the Master Servicer.

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

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

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

                                 ARTICLE III.
                ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

            Section 3.01 Master Servicer to Service Mortgage Loans.

          For and on behalf of the Certificateholders, the Master Servicer
shall service and administer the Mortgage Loans in accordance with customary
and usual standards of practice of prudent mortgage loan lenders in the
respective states in which the Mortgaged Properties are located, including
taking all required and appropriate actions under each Required Insurance
Policy and taking all required and appropriate actions under each Mortgage
Insurance Policy on behalf of the Co-Trustee, other than the payment of each
Mortgage Insurance Premium and obtaining the approval of each Mortgage Insurer
with respect to the appointment of a successor servicer. In connection with
such servicing and administration, the Master Servicer shall have full power
and authority, acting alone and/or through subservicers as provided in Section
3.02 hereof, subject to the terms hereof (i) to execute and deliver, on behalf
of the Certificateholders and the Trustee, customary consents or waivers and
other instruments and documents, (ii) to consent to transfers of any Mortgaged
Property and assumptions of the Mortgage Notes and related Mortgages (but only
in the manner provided in this Agreement), (iii) to collect any Insurance
Proceeds, other Liquidation Proceeds and Subsequent Recoveries, and (iv)
subject to Section 3.12(b), to effectuate foreclosure or other conversion of
the ownership of the Mortgaged Property securing any Mortgage Loan; provided
that the Master Servicer shall take no action that is inconsistent with or
prejudices the interests of the Trustee or the Certificateholders in any
Mortgage Loan or the rights and interests of the Depositor and the Trustee
under this Agreement. The Master Servicer shall represent and protect the
interest of the Trustee in the same manner as it currently protects its own
interest in mortgage loans in its own portfolio in any claim, proceeding or
litigation regarding a Mortgage Loan and shall not make or permit any
modification, waiver or amendment of any term of any Mortgage Loan which would
(i) cause

                                      91
<PAGE>

any REMIC formed hereunder to fail to qualify as a REMIC, (ii) result in the
imposition of any tax under section 860(a) or 860(d) of the Code or (iii)
cause any Covered Mortgage Loan to not be covered by the applicable Mortgage
Insurance Policy, but in any case the Master Servicer shall not act in any
manner that is a lesser standard than that provided in the first sentence of
this Section 3.01. Without limiting the generality of the foregoing, the
Master Servicer, in its own name or in the name of the Depositor and the
Trustee, is hereby authorized and empowered by the Depositor and the Trustee,
when the Master Servicer believes it appropriate in its reasonable judgment,
to execute and deliver, on behalf of the Trustee, the Depositor, the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other
comparable instruments, with respect to the Mortgage Loans, and with respect
to the Mortgaged Properties held for the benefit of the Certificateholders.
The Master Servicer shall prepare and deliver to the Depositor and/or the
Trustee such documents requiring execution and delivery by any or all of them
as are necessary or appropriate to enable the Master Servicer to service and
administer the Mortgage Loans. Upon receipt of such documents, the Depositor
and/or the Trustee shall execute such documents and deliver them to the Master
Servicer. The Master Servicer further is authorized and empowered by the
Trustee, on behalf of the Certificateholders and the Trustee, in its own name
or in the name of the Subservicer, when the Master Servicer or the
Subservicer, as the case may be, believes it appropriate in its best judgment
to register any Mortgage Loan on the MERS(R) System, or cause the removal from
the registration of any Mortgage Loan on the MERS(R) System, to execute and
deliver, on behalf of the Trustee and the Certificateholders or any of them,
any and all instruments of assignment and other comparable instruments with
respect to such assignment or re-recording of a Mortgage in the name of MERS,
solely as nominee for the Trustee and its successors and assigns.

          In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for
the purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further
as provided in Section 3.08. All costs incurred by the Master Servicer, if
any, in effecting the timely payments of taxes and assessments on the
Mortgaged Properties and related insurance premiums shall not, for the purpose
of calculating monthly distributions to the Certificateholders, be added to
the Stated Principal Balance under the related Mortgage Loans, notwithstanding
that the terms of such Mortgage Loans so permit.

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

          In addition, the Master Servicer shall administer each Mortgage
Insurance Policy on behalf of itself, the Sellers, the Depositor and the
Trustee for the benefit of the Certificateholders, when it is necessary to
make claims and receive payments under each Mortgage Insurance Policy. In
connection with its activities as Master Servicer of the Mortgage Loans, the
Master Servicer agrees to present, on behalf of itself, the Trustee and the
Certificateholders, claims to the insurer under any primary insurance policies
and, in this regard, to take any reasonable action necessary to permit
recovery under any primary insurance policies respecting defaulted Mortgage
Loans. Any amounts collected by the Master Servicer under any primary
insurance policies shall be deposited in the Certificate Account.

                                      92
<PAGE>

          The Master Servicer shall take whatever action is appropriate to
maximize the amounts payable under each Mortgage Insurance Policy and to
service the Covered Mortgage Loans in the manner required by the applicable
Mortgage Insurance Policy. The Master Servicer shall prepare and submit all
claims eligible for submission under each Mortgage Insurance Policy and shall,
except as otherwise specified in this Agreement, perform all of the
obligations of the insured under each Mortgage Insurance Policy. If either
Mortgage Insurance Policy is terminated for any reason other than the
exhaustion of its coverage, or if the financial strength rating of either
Mortgage Insurer is reduced to below investment grade, the Master Servicer
will use its best efforts to obtain a comparable policy from an insurer that
is acceptable to the Rating Agencies. The replacement policy, if available,
shall provide coverage equal to the then remaining coverage of the applicable
Mortgage Insurance Policy. However, if the premium cost of a replacement
policy exceeds the premium cost of that Mortgage Insurance Policy, the
coverage amount of the replacement policy will be reduced so that its premium
cost will not exceed the premium cost of that Mortgage Insurance Policy.

          In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Rates, Scheduled Payments or Stated Principal Balances that were made
by the Master Servicer in a manner not consistent with the terms of the
related Mortgage Note and this Agreement, the Master Servicer, upon discovery
or receipt of notice thereof, immediately shall deliver to the Trustee for
deposit in the Distribution Account from its own funds the amount of any such
shortfall and shall indemnify and hold harmless the Trust Fund, the Trustee,
the Depositor and any successor master servicer in respect of any such
liability. Such indemnities shall survive the termination or discharge of this
Agreement. Notwithstanding the foregoing, this Section 3.01 shall not limit
the ability of the Master Servicer to seek recovery of any such amounts from
the related Mortgagor under the terms of the related Mortgage Note, as
permitted by law and shall not be an expense of the Trust.

          Section 3.02 Subservicing; Enforcement of the Obligations of Master
                       Servicer.

          (a) The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (each, a "Subservicer") pursuant to a
subservicing agreement (each, a "Subservicing Agreement"); provided that (i)
such subservicing arrangement and the terms of the related subservicing
agreement must provide for the servicing of such Mortgage Loans in a manner
consistent with the servicing arrangements contemplated hereunder, (ii) that
such subservicing agreements would not result in a withdrawal or a downgrading
by any Rating Agency of the ratings on any Class of Certificates, as evidenced
by a letter to that effect delivered by each Rating Agency to the Depositor
and the NIM Insurer and (iii) the NIM Insurer shall have consented to such
subservicing agreements (which consent shall not be unreasonably withheld)
with Subservicers, for the servicing and administration of the Mortgage Loans.
The Master Servicer shall deliver to the Trustee copies of all Sub-Servicing
Agreements, and any amendments or modifications thereof, promptly upon the
Master Servicer's execution and delivery of such instruments. The Master
Servicer, with the written consent of the NIM Insurer (which consent shall not
be unreasonably withheld), shall be entitled to terminate any Subservicing
Agreement and the rights and obligations of any Subservicer pursuant to any
Subservicing Agreement in accordance with the terms and conditions of such
Subservicing Agreement. Notwithstanding the provisions of any subservicing
agreement, any of the

                                      93
<PAGE>

provisions of this Agreement relating to agreements or arrangements between
the Master Servicer or a subservicer or reference to actions taken through a
Master Servicer or otherwise, the Master Servicer shall remain obligated and
liable to the Depositor, the Trustee and the Certificateholders for the
servicing and administration of the Mortgage Loans in accordance with the
provisions of this Agreement without diminution of such obligation or
liability by virtue of such subservicing agreements or arrangements or by
virtue of indemnification from the subservicer and to the same extent and
under the same terms and conditions as if the Master Servicer alone were
servicing and administering the Mortgage Loans. Every subservicing agreement
entered into by the Master Servicer shall contain a provision giving the
successor Master Servicer the option to terminate such agreement without cost
in the event a successor Master Servicer is appointed. All actions of each
subservicer performed pursuant to the related subservicing agreement shall be
performed as an agent of the Master Servicer with the same force and effect as
if performed directly by the Master Servicer.

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

          Section 3.03 Rights of the Depositor, the Sellers, the
                       Certificateholders, the NIM Insurer and the
                       Trustee in Respect of the Master Servicer.

          None of the Trustee, the Sellers, the Certificateholders, the NIM
Insurer or the Depositor shall have any responsibility or liability for any
action or failure to act by the Master Servicer, and none of them is obligated
to supervise the performance of the Master Servicer hereunder or otherwise.
The Master Servicer shall afford (and any Subservicing Agreement shall provide
that each Subservicer shall afford) the Depositor, the NIM Insurer and the
Trustee, upon reasonable notice, during normal business hours, access to all
records maintained by the Master Servicer (and any such Subservicer) in
respect of the Master Servicer's rights and obligations hereunder and access
to officers of the Master Servicer (and those of any such Subservicer)
responsible for such obligations. Upon request, the Master Servicer shall
furnish to the Depositor, the NIM Insurer and the Trustee its (and any such
Subservicer's) most recent financial statements and such other information
relating to the Master Servicer's capacity to perform its obligations under
this Agreement that it possesses. To the extent such information is not
otherwise available to the public, the Depositor, the NIM Insurer and the
Trustee shall not disseminate any information obtained pursuant to the
preceding two sentences without the Masters Servicer's (or any such
Subservicer's) written consent, except as required pursuant to this Agreement
or to the extent that it is necessary to do so (i) in working with legal
counsel, auditors, taxing authorities or other governmental agencies, rating
agencies or reinsurers or (ii) pursuant to any law, rule, regulation, order,
judgment, writ, injunction or decree of any court or governmental authority
having jurisdiction over the Depositor, the Trustee, the NIM Insurer or the
Trust Fund, and in either case, the Depositor, the NIM Insurer or the Trustee,
as the case may be, shall use its reasonable best efforts to assure the
confidentiality of any such disseminated non-public information. The Depositor
may, but is not obligated to, enforce the obligations of the Master 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 under
this Agreement or exercise the rights of the Master Servicer under this
Agreement; provided by virtue of such

                                      94
<PAGE>

performance by the Depositor of its designee. The Depositor shall not have any
responsibility or liability for any action or failure to act by the Master
Servicer and is not obligated to supervise the performance of the Master
Servicer under this Agreement or otherwise.

          Section 3.04 Trustee to Act as Master Servicer.

          In the event that the Master Servicer shall for any reason no longer
be the Master Servicer hereunder (including by reason of an Event of Default
or termination by the Depositor), the Trustee or its designee shall thereupon
assume all of the rights and obligations of the Master Servicer hereunder
arising thereafter (except that the Trustee shall not be (i) liable for losses
of the Master Servicer pursuant to Section 3.10 hereof or any acts or
omissions of the predecessor Master Servicer hereunder, (ii) obligated to make
Advances if it is prohibited from doing so by applicable law, (iii) obligated
to effectuate repurchases or substitutions of Mortgage Loans hereunder,
including pursuant to Section 2.02 or 2.03 hereof, (iv) responsible for
expenses of the Master Servicer pursuant to Section 2.03 or (v) deemed to have
made any representations and warranties hereunder, including pursuant to
Section 2.03 or the first paragraph of Section 6.02 hereof). If the Master
Servicer shall for any reason no longer be the Master Servicer (including by
reason of any Event of Default or termination by the Depositor), the Trustee
(or any other successor servicer) may, at its option, succeed to any rights
and obligations of the Master Servicer under any subservicing agreement in
accordance with the terms thereof; provided that the Trustee (or any other
successor servicer) shall not incur any liability or have any obligations in
its capacity as servicer under a subservicing agreement arising prior to the
date of such succession unless it expressly elects to succeed to the rights
and obligations of the Master Servicer thereunder; and the Master Servicer
shall not thereby be relieved of any liability or obligations under the
subservicing agreement arising prior to the date of such succession.

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

          Section 3.05 Collection of Mortgage Loan Payments; Certificate
                       Account; Distribution Account; Pre-Funding Account;
                       Seller Shortfall Interest Requirement.

          (a) The Master Servicer shall make reasonable efforts in accordance
with customary and usual standards of practice of prudent mortgage lenders in
the respective states in which the Mortgaged Properties are located to collect
all payments called for under the terms and provisions of the Mortgage Loans
to the extent such procedures shall be consistent with this Agreement and the
terms and provisions of any related Required Insurance Policy. Consistent with
the foregoing, the Master Servicer may in its discretion (i) waive any late
payment charge or, subject to Section 3.20, any Prepayment Charge or penalty
interest in connection with the prepayment of a Mortgage Loan and (ii) extend
the due dates for payments due on a Mortgage Note for a period not greater
than 270 days. In the event of any such arrangement, the Master Servicer shall
make Advances on the related Mortgage Loan during the scheduled period in
accordance with the amortization schedule of such Mortgage Loan without
modification thereof

                                      95
<PAGE>

by reason of such arrangements. In addition, the NIM Insurer's prior written
consent shall be required for any waiver of Prepayment Charges or for the
extension of the due dates for payments due on a Mortgage Note, if the
aggregate number of outstanding Mortgage Loans that have been granted such
waivers or extensions exceeds 5% of the aggregate number of Initial Mortgage
Loans and Subsequent Mortgage Loans. The Master Servicer shall not be required
to institute or join in litigation with respect to collection of any payment
(whether under a Mortgage, Mortgage Note or otherwise or against any public or
governmental authority with respect to a taking or condemnation) if it
reasonably believes that enforcing the provision of the Mortgage or other
instrument pursuant to which such payment is required is prohibited by
applicable law.

          (b) The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited
on a daily basis within two Business Days of receipt, except as otherwise
specifically provided herein, the following payments and collections remitted
by Subservicers or received by it in respect of 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:

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

               (2) all payments on account of interest on the Mortgage Loans
     (net of the related Servicing Fee and Prepayment Interest Excess
     permitted under Section 3.15 hereof to the extent not previously paid to
     or withheld by the Master Servicer);

               (3) all Insurance Proceeds;

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

               (5) all Compensating Interest;

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

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

               (8) the Purchase Price and any Substitution Adjustment Amount;

               (9) all Advances made by the Master Servicer or the Trustee
     pursuant to Section 4.01 hereof;

               (10) all Prepayment Charges and Master Servicer Prepayment
     Charge Payment Amounts; and

                                      96
<PAGE>

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

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

          No later than 1:00 p.m. Pacific time on the Master Servicer Advance
Date in each of January 2007, February 2007 and March 2007, CHL shall remit to
the Master Servicer, and the Master Servicer shall deposit in the Certificate
Account, the Seller Shortfall Interest Requirement (if any) for such Master
Servicer Advance Date.

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

               (1) the aggregate amount remitted by the Master Servicer
     pursuant to the second paragraph of Section 3.08(a); and

               (2) any amount required to be deposited by the Master Servicer
     pursuant to Section 3.05(e) in connection with any losses on Permitted
     Investments.

          The foregoing requirements for remittance by the Master Servicer and
deposit by the Trustee into the Distribution Account shall be exclusive. In
the event that the Master Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time direct the Trustee to withdraw such amount from the
Distribution Account, any provision herein to the contrary notwithstanding.
Such direction may be accomplished by delivering a written notice to the
Trustee that describes the amounts deposited in error in the Distribution
Account. All funds deposited in the Distribution Account shall be held by the
Trustee in trust for the Certificateholders until disbursed in accordance with
this Agreement or withdrawn in accordance with Section 3.08. In no event shall
the Trustee incur liability for withdrawals from the Distribution Account at
the direction of the Master Servicer.

          (d) If the Pre-Funded Amount is greater than zero, the Trustee shall
establish and maintain, on behalf of the Certificateholders, the Pre-Funding
Account, and on the Closing Date, CHL shall remit the Pre-Funded Amount to the
Trustee for deposit in the Pre-Funding Account.

                                      97
<PAGE>

          On the Business Day before the Distribution Date following the end
of the Funding Period, the Trustee shall (i) withdraw the amount on deposit in
the Pre-Funding Account (net of investment income), (ii) promptly deposit such
amount in the Distribution Account, and (iii) distribute each amount to the
Certificates on the Distribution Date pursuant to Section 4.04.

          (e) Each institution that maintains the Certificate Account, the
Distribution Account or the Pre-Funding Account shall invest the funds in each
such account, as directed by the Master Servicer, in Permitted Investments,
which shall mature not later than (x) in the case of the Certificate Account,
the second Business Day next preceding the related Distribution Account
Deposit Date (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account, then such Permitted
Investment shall mature not later than the Business Day next preceding such
Distribution Account Deposit Date) and (y) in the case of the Distribution
Account and the Pre-Funding Account, the Business Day immediately preceding
the first Distribution Date that follows the date of such investment (except
that if such Permitted Investment is an obligation of the institution that
maintains such Distribution Account or Pre-Funding Account, then such
Permitted Investment shall mature not later than such Distribution Date), in
each case, shall not be sold or disposed of prior to its maturity. All such
Permitted Investments shall be made in the name of the Trustee, for the
benefit of the Certificateholders. In the case of (i) the Certificate Account
and the Distribution Account, all income and gain net of any losses realized
from any such investment shall be for the benefit of the Master Servicer as
servicing compensation and shall be remitted to it monthly as provided herein
and (ii) the Pre-Funding Account, all income and gain net of any losses
realized from any such investment shall be for the benefit of the Depositor
and shall be remitted to the Depositor as provided herein. The amount of any
losses incurred in the Certificate Account or the Distribution Account in
respect of any such investments shall be deposited by the Master Servicer in
the Certificate Account or paid to the Trustee for deposit into the
Distribution Account out of the Master Servicer's own funds immediately as
realized. The amount of any losses incurred in the Pre-Funding Account in
respect of any such investments shall be paid by the Master Servicer to the
Trustee for deposit into the Pre-Funding Account out of the Master Servicer's
own funds immediately as realized. The Trustee shall not be liable for the
amount of any loss incurred in respect of any investment or lack of investment
of funds held in the Certificate Account, the Distribution Account or the
Pre-Funding Account and made in accordance with this Section 3.05.

          (f) The Master Servicer shall give at least 30 days' advance notice
to the Trustee, each Seller, each Rating Agency and the Depositor of any
proposed change of location of the Certificate Account prior to any change
thereof. The Trustee shall give at least 30 days' advance notice to the Master
Servicer, each Seller, each Rating Agency and the Depositor of any proposed
change of the location of the Distribution Account, the Pre-Funding Account or
the Carryover Reserve Fund prior to any change thereof.

          (g) Except as otherwise expressly provided in this Agreement, if any
default occurs under any Permitted Investment, the Trustee may and, subject to
Sections 8.01 and 8.02(a)(4), at the request of the Holders of Certificates
representing more than 50% of the Voting Rights or the NIM Insurer, shall take
any action appropriate to enforce payment or performance, including the
institution and prosecution of appropriate proceedings.

                                      98
<PAGE>

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

          To the extent required by the related Mortgage Note, the Master
Servicer shall establish and maintain one or more accounts (each, an "Escrow
Account") and deposit and retain therein all collections from the Mortgagors
(or advances by the Master Servicer) for the payment of taxes, assessments,
hazard insurance premiums or comparable items for the account of the
Mortgagors. Nothing herein shall require the Master Servicer to compel a
Mortgagor to establish an Escrow Account in violation of applicable law.

          Withdrawals of amounts so collected from the Escrow Accounts may be
made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to
reimburse the Master Servicer out of related collections for any payments made
pursuant to Sections 3.01 hereof (with respect to taxes and assessments and
insurance premiums) and 3.10 hereof (with respect to hazard insurance), to
refund to any Mortgagors any sums as may be determined to be overages, to pay
interest, if required by law or the terms of the related Mortgage or Mortgage
Note, to Mortgagors on balances in the Escrow Account or to clear and
terminate the Escrow Account at the termination of this Agreement in
accordance with Section 9.01 hereof. The Escrow Accounts shall not be a part
of the Trust Fund.

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

          The Master Servicer shall afford the Depositor, the NIM Insurer and
the Trustee reasonable access to all records and documentation regarding the
Mortgage Loans and all accounts, insurance policies and other matters relating
to this Agreement, such access being afforded without charge, but only upon
reasonable request and during normal business hours at the offices of the
Master Servicer designated by it. Upon request, the Master Servicer shall
furnish to the Trustee and the NIM Insurer its most recent publicly available
financial statements and any other information relating to its capacity to
perform its obligations under this Agreement reasonably requested by the NIM
Insurer.

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

                                      99
<PAGE>

          Section 3.08 Permitted Withdrawals from the Certificate Account,
                       Distribution Account, Carryover Reserve Fund and
                       the Principal Reserve Fund.

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

               (i) to pay to the Master Servicer (to the extent not previously
          paid to or withheld by the Master Servicer), as servicing
          compensation in accordance with Section 3.15, 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 to the Master Servicer, those
          other amounts set forth in Section 3.15;

               (ii) to reimburse each of the Master Servicer and the Trustee
          for Advances made by it with respect to the Mortgage Loans, such
          right of reimbursement pursuant to this subclause (ii) being limited
          to amounts received on particular Mortgage Loan(s) (including, for
          this purpose, Liquidation Proceeds, Insurance Proceeds and
          Subsequent Recoveries) that represent late recoveries of payments of
          principal and/or interest on such particular Mortgage Loan(s) in
          respect of which any such Advance was made;

               (iii) [Reserved];

               (iv) to reimburse each of the Master Servicer and the Trustee
          for any Nonrecoverable Advance previously made;

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

               (vi) to pay the Master Servicer any unpaid Servicing Fees and
          to reimburse it for any unreimbursed Servicing Advances, the Master
          Servicer's right to reimbursement of Servicing Advances pursuant to
          this subclause (vi) with respect to any Mortgage Loan being limited
          to amounts received on particular Mortgage Loan(s) (including, for
          this purpose, Liquidation Proceeds, Insurance Proceeds and
          Subsequent Recoveries and purchase and repurchase proceeds) that
          represent late recoveries of the payments for which such advances
          were made pursuant to Section 3.01 or Section 3.06;

               (vii) to pay to the applicable Seller, the Depositor or the
          Master Servicer, as applicable, with respect to each Mortgage Loan
          or property acquired in respect thereof that has been purchased
          pursuant to Section 2.02, 2.03, 2.04 or 3.12, all amounts received
          thereon and not taken into account in determining the related
          Purchase Price of such repurchased Mortgage Loan;

               (viii) to reimburse the applicable Seller, the Master Servicer,
          the NIM Insurer or the Depositor for expenses incurred by any of
          them in connection with the Mortgage Loans or Certificates and
          reimbursable pursuant to Section 6.03 hereof; provided that such
          amount shall only be withdrawn following the

                                     100
<PAGE>

          withdrawal from the Certificate Account for deposit into the
          Distribution Account pursuant to the following paragraph;

               (ix) to pay any lender-paid primary mortgage insurance
          premiums;

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

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

          In addition, no later than 1:00 p.m. Pacific time on the
Distribution Account Deposit Date, the Master Servicer shall withdraw from the
Certificate Account and remit to the Trustee the Interest Remittance Amount,
Principal Remittance Amount, Prepayment Charges collected and the Master
Servicer Prepayment Charge Payment Amount for each Loan Group, and the Trustee
shall deposit such amount in the Distribution Account.

          The Trustee shall establish and maintain, on behalf of the
Certificateholders, a Principal Reserve Fund in the name of the Trustee. On
the Closing Date, CHL shall deposit into the Principal Reserve Fund $200.00.
Funds on deposit in the Principal Reserve Fund shall not be invested. The
Principal Reserve Fund shall be treated as an "outside reserve fund" under
applicable Treasury regulations and shall not be part of any REMIC created
under this Agreement.

          On the Business Day before the first Distribution Date, the Trustee
shall transfer $100.00 from the Principal Reserve Fund to the Distribution
Account, and on the first Distribution Date, the Trustee shall withdraw $100
and distribute such amount to the Class A-R Certificates in reduction of the
Certificate Principal Balance thereof.

          On the Business Day before the Class P Principal Distribution Date,
the Trustee shall transfer from the Principal Reserve Fund to the Distribution
Account $100.00 and shall distribute such amount to the Class P Certificates
on the Class P Principal Distribution Date. Following the distributions to be
made in accordance with the preceding sentence, the Trustee shall then
terminate the Principal Reserve Fund.

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

          (b) The Trustee shall withdraw funds from the Distribution Account
for distribution to the Certificateholders and remittance to the Final
Maturity Reserve Fund and the Swap Account in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to the third paragraph

                                     101
<PAGE>

of Section 8.11). In addition, the Trustee may from time to time make
withdrawals from the Distribution Account for the following purposes:

               (i) to pay the Trustee the Trustee Fee on each Distribution
          Date;

               (ii) to pay to the Master Servicer, as additional servicing
          compensation, earnings on or investment income with respect to funds
          in or credited to the Distribution Account;

               (iii) to withdraw pursuant to Section 3.05 any amount deposited
          in the Distribution Account and not required to be deposited
          therein;

               (iv) to reimburse the Trustee for any unreimbursed Advances
          made by it pursuant to Section 4.01(d) hereof, such right of
          reimbursement pursuant to this subclause (iv) being limited to (x)
          amounts received on the related Mortgage Loan(s) in respect of which
          any such Advance was made and (y) amounts not otherwise reimbursed
          to the Trustee pursuant to Section 3.08(a)(ii) hereof;

               (v) to reimburse the Trustee for any Nonrecoverable Advance
          previously made by the Trustee pursuant to Section 4.01(d) hereof,
          such right of reimbursement pursuant to this subclause (v) being
          limited to amounts not otherwise reimbursed to the Trustee pursuant
          to Section 3.08(a)(iv) hereof;

               (vi) to pay to the Co-Trustee, for payment to each Mortgage
          Insurer as provided below, the related Mortgage Insurance Premium;
          and

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

          The Co-Trustee shall pay the applicable Mortgage Insurance Premium
to the related Mortgage Insurer in accordance with the following wiring
instructions:

          Mortgage Guaranty Insurance Corporation, Account #112663706, US
Bank, 777 E. Wisconsin Ave., Milwaukee, Wisconsin 53201, ABA #075000022, Txt:
Attention: Premium Pay - ID # 3147644561 Deal # 2075.

          Republic Mortgage Insurance Company, Account #0006-8879-9128, Bank
of America, ABA #026009593, Attn: Pool/Bulk Team CWABS 2006-25.

          (c) The Trustee shall withdraw funds from the Carryover Reserve Fund
for distribution to the Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to the third paragraph of
Section 8.11). In addition, the Trustee may from time to time make withdrawals
from the Carryover Reserve Fund for the following purposes:

               (1) to withdraw any amount deposited in the Carryover Reserve
     Fund and not required to be deposited therein; and

                                     102
<PAGE>

               (2) to clear and terminate the Carryover Reserve Fund upon
     termination of the Agreement pursuant to Section 9.01 hereof.

          Section 3.09 [Reserved].

          Section 3.10 Maintenance of Hazard Insurance.

          The Master Servicer shall cause to be maintained, for each Mortgage
Loan, hazard insurance with extended coverage in an amount that is at least
equal to the lesser of (i) the maximum insurable value of the improvements
securing such Mortgage Loan and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan and (b) an amount such that the
proceeds of such policy shall be sufficient to prevent the related Mortgagor
and/or mortgagee from becoming a co-insurer. Each such policy of standard
hazard insurance shall contain, or have an accompanying endorsement that
contains, a standard mortgagee clause. The Master Servicer shall also cause
flood insurance to be maintained on property acquired upon foreclosure or deed
in lieu of foreclosure of any Mortgage Loan, to the extent described below.
Pursuant to Section 3.05 hereof, any amounts collected by the Master Servicer
under any such policies (other than the amounts to be applied to the
restoration or repair of the related Mortgaged Property or property thus
acquired or amounts released to the Mortgagor in accordance with the Master
Servicer's normal servicing procedures) shall be deposited in the Certificate
Account. Any cost incurred by the Master Servicer in maintaining any such
insurance shall not, for the purpose of calculating monthly distributions to
the Certificateholders or remittances to the Trustee for their benefit, be
added to the principal balance of the Mortgage Loan, notwithstanding that the
terms of the Mortgage Loan so permit. Such costs shall be recoverable by the
Master Servicer out of late payments by the related Mortgagor or out of
Liquidation Proceeds or Subsequent Recoveries to the extent permitted by
Section 3.08 hereof. It is understood and agreed that no earthquake or other
additional insurance is to be required of any Mortgagor or maintained on
property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special
flood hazard area and such area is participating in the national flood
insurance program, the Master Servicer shall cause flood insurance to be
maintained with respect to such Mortgage Loan. Such flood insurance shall be
in an amount equal to the lesser of (i) the original principal balance of the
related Mortgage Loan, (ii) the replacement value of the improvements that are
part of such Mortgaged Property, or (iii) the maximum amount of such insurance
available for the related Mortgaged Property under the Flood Disaster
Protection Act of 1973, as amended. If the hazard policy contains a deductible
clause, the Master Servicer will be required to deposit from its own funds
into the Certificate Account the amounts that would have been deposited
therein but for the deductible clause.

          Section 3.11 Enforcement of Due-On-Sale Clauses; Assumption
                       Agreements.

          (a) Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master Servicer shall to the extent that it has knowledge of
such conveyance, enforce any due-on-sale clause contained in any Mortgage Note
or Mortgage, to the extent permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect

                                     103
<PAGE>

or jeopardize coverage under any Required Insurance Policy. Notwithstanding
the foregoing, the Master Servicer is not required to exercise such rights
with respect to a Mortgage Loan if the Person to whom the related Mortgaged
Property has been conveyed or is proposed to be conveyed satisfies the terms
and conditions contained in the Mortgage Note and Mortgage related thereto and
the consent of the mortgagee under such Mortgage Note or Mortgage is not
otherwise so required under such Mortgage Note or Mortgage as a condition to
such transfer. In the event that the Master Servicer is prohibited by law from
enforcing any such due-on-sale clause, or if coverage under any Required
Insurance Policy would be adversely affected, or if nonenforcement is
otherwise permitted hereunder, the Master Servicer is authorized, subject to
Section 3.11(b), to take or enter into an assumption and modification
agreement from or with the person to whom such property has been or is about
to be conveyed, pursuant to which such person becomes liable under the
Mortgage Note and, unless prohibited by applicable state law, the Mortgagor
remains liable thereon, provided that the Mortgage Loan shall continue to be
covered (if so covered before the Master Servicer enters such agreement) by
the applicable Required Insurance Policies. The Master Servicer, subject to
Section 3.11(b), is also authorized with the prior approval of the insurers
under any Required Insurance Policies to enter into a substitution of
liability agreement with such Person, pursuant to which the original Mortgagor
is released from liability and such Person is substituted as Mortgagor and
becomes liable under the Mortgage Note. The Master Servicer shall notify the
Trustee that any such substitution, modification or assumption agreement has
been completed by forwarding to the Co-Trustee the executed original of such
substitution or assumption agreement, which document 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.

          (b) Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.11(a) hereof, in any case in which
a Mortgaged Property has been conveyed to a Person by a Mortgagor, and such
Person is to enter into an assumption agreement or modification agreement or
supplement to the Mortgage Note or Mortgage that requires the signature of the
Trustee, or if an instrument of release signed by the Trustee is required
releasing the Mortgagor from liability on the Mortgage Loan, the Master
Servicer shall prepare and deliver or cause to be prepared and delivered to
the Trustee for signature and shall direct, in writing, the Trustee to execute
the assumption agreement with the Person to whom the Mortgaged Property is to
be conveyed and such modification agreement or supplement to the Mortgage Note
or Mortgage or other instruments as are reasonable or necessary to carry out
the terms of the Mortgage Note or Mortgage or otherwise to comply with any
applicable laws regarding assumptions or the transfer of the Mortgaged
Property to such Person. In connection with any such assumption, no material
term of the Mortgage Note (including, but not limited to, the Mortgage Rate,
the amount of the Scheduled Payment, the Maximum Mortgage Rate, the Minimum
Mortgage Rate, the Gross Margin, the Initial Periodic Rate Cap, the Subsequent
Periodic Rate Cap, the Adjustment Date and any other term affecting the amount
or timing of payment on the Mortgage Loan) may be changed. In addition, the
substitute Mortgagor and the Mortgaged Property must be acceptable to the
Master Servicer in accordance with its underwriting standards as then in
effect. The Master Servicer shall notify the Trustee that any such
substitution or assumption agreement has been completed by forwarding to the
Trustee the original of such substitution or assumption agreement, which in
the case of the original shall be added to the related Mortgage File and
shall, for all purposes, be considered a part of such Mortgage File to the
same extent as all other documents and instruments constituting a part

                                     104
<PAGE>

thereof. Any fee collected by the Master Servicer for entering into an
assumption or substitution of liability agreement will be retained by the
Master Servicer as additional servicing compensation.

          Section 3.12 Realization Upon Defaulted Mortgage Loans;
                       Determination of Excess Proceeds and Realized
                       Losses; Repurchase of Certain Mortgage Loans.

          (a) The Master Servicer may agree to a modification of any Mortgage
Loan (the "Modified Mortgage Loan") if (i) CHL purchases the Modified Mortgage
Loan from the Trust Fund immediately following the modification as described
below and (ii) the Stated Principal Balance of such Mortgage Loan, when taken
together with the aggregate of the Stated Principal Balances of all other
Mortgage Loans in the same Loan Group that have been so modified since the
Closing Date at the time of those modifications, does not exceed an amount
equal to 5% of the aggregate initial Certificate Principal Balance of the
Certificates. Effective immediately after the modification, and, in any event,
on the same Business Day on which the modification occurs, all interest of the
Trustee in the Modified Mortgage Loan shall automatically be deemed
transferred and assigned to CHL and all benefits and burdens of ownership
thereof, including the right to accrued interest thereon from the date of
modification and the risk of default thereon, shall pass to CHL. The Master
Servicer shall promptly deliver to the Trustee a certification of a Servicing
Officer to the effect that all requirements of this paragraph have been
satisfied with respect to the Modified Mortgage Loan. For federal income tax
purposes, the Trustee shall account for such purchase as a prepayment in full
of the Modified Mortgage Loan. CHL shall remit the Purchase Price to the
Master Servicer for deposit into the Certificate Account pursuant to Section
3.05 within one Business Day after the purchase of the Modified Mortgage Loan.
Upon receipt by the Trustee of written notification of any such deposit signed
by a Servicing Officer, the Trustee shall release to CHL or its designee the
related Mortgage File and shall execute and deliver such instruments of
transfer or assignment, in each case without recourse, as shall be necessary
to vest in CHL any Modified Mortgage Loan previously transferred and assigned
pursuant hereto. CHL covenants and agrees to indemnify the Trust Fund against
any liability for any "prohibited transaction" taxes and any related interest,
additions, and penalties imposed on the Trust Fund established hereunder as a
result of any modification of a Mortgage Loan effected pursuant to this
subsection (a), any holding of a Modified Mortgage Loan by the Trust Fund or
any purchase of a Modified Mortgage Loan by CHL (but such obligation shall not
prevent CHL or any other appropriate Person from in good faith contesting any
such tax in appropriate proceedings and shall not prevent CHL from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings). CHL shall have no right of reimbursement for any amount paid
pursuant to the foregoing indemnification, except to the extent that the
amount of any tax, interest, and penalties, together with interest thereon, is
refunded to the Trust Fund or CHL. If the Master Servicer agrees to a
modification of any Mortgage Loan pursuant to this Section 3.12(a), and if
such Mortgage Loan carries a Prepayment Charge provision, CHL shall deliver to
the Trustee the amount of the Prepayment Charge, if any, that would have been
due had such Mortgage Loan been prepaid at the time of such modification, for
deposit into the Certificate Account (not later than 1:00 p.m. Pacific time on
the Master Servicer Advance Date immediately succeeding the date of such
modification) for distribution in accordance with the terms of this Agreement.

                                     105
<PAGE>

          (b) The Master Servicer shall use reasonable efforts to foreclose
upon or otherwise comparably convert the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments.
In connection with such foreclosure or other conversion, the Master Servicer
shall follow such practices and procedures as it shall deem necessary or
advisable and as shall be normal and usual in its general mortgage servicing
activities and the requirements of the insurer under any Required Insurance
Policy; provided that the Master Servicer shall not be required to expend its
own funds in connection with any foreclosure or towards the restoration of any
property unless it shall determine (i) that such restoration and/or
foreclosure will increase the proceeds of liquidation of the Mortgage Loan
after reimbursement to itself of such expenses and (ii) that such expenses
will be recoverable to it through Liquidation Proceeds (respecting which it
shall have priority for purposes of withdrawals from the Certificate Account
pursuant to Section 3.08 hereof). The Master Servicer shall be responsible for
all other costs and expenses incurred by it in any such proceedings; provided
that it shall be entitled to reimbursement thereof from the proceeds of
liquidation of the related Mortgaged Property and any related Subsequent
Recoveries, as contemplated in Section 3.08 hereof. If the Master Servicer has
knowledge that a Mortgaged Property that the Master Servicer is contemplating
acquiring in foreclosure or by deed-in-lieu of foreclosure is located within a
one-mile radius of any site with environmental or hazardous waste risks known
to the Master Servicer, the Master Servicer will, prior to acquiring the
Mortgaged Property, consider such risks and only take action in accordance
with its established environmental review procedures.

          With respect to any REO Property, the deed or certificate of sale
shall be taken in the name of the Trustee for the benefit of the
Certificateholders (or the Trustee's nominee on behalf of the
Certificateholders). The Trustee's name shall be placed on the title to such
REO Property solely as the Trustee hereunder and not in its individual
capacity. The Master Servicer shall ensure that the title to such REO Property
references this Agreement and the Trustee's capacity thereunder. Pursuant to
its efforts to sell such REO Property, the Master Servicer shall either itself
or through an agent selected by the Master Servicer protect and conserve such
REO Property in the same manner and to such extent as is customary in the
locality where such REO Property is located and may, incident to its
conservation and protection of the interests of the Certificateholders, rent
the same, or any part thereof, as the Master Servicer deems to be in the best
interest of the Master Servicer and the Certificateholders for the period
prior to the sale of such REO Property. The Master Servicer shall prepare for
and deliver to the Trustee a statement with respect to each REO Property that
has been rented showing the aggregate rental income received and all expenses
incurred in connection with the management and maintenance of such REO
Property at such times as is necessary to enable the Trustee to comply with
the reporting requirements of the REMIC Provisions. The net monthly rental
income, if any, from such REO Property shall be deposited in the Certificate
Account no later than the close of business on each Determination Date. The
Master Servicer shall perform the tax reporting and withholding related to
foreclosures, abandonments and cancellation of indebtedness income as
specified by Sections 1445, 6050J and 6050P of the Code by preparing and
filing such tax and information returns, as may be required.

          In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as
soon as practicable in a manner that

                                     106
<PAGE>

maximizes the Liquidation Proceeds, but in no event later than three years
after its acquisition by the Trust Fund or, at the expense of the Trust Fund,
the Master Servicer shall request, more than 60 days prior to the day on which
such three-year period would otherwise expire, an extension of the three-year
grace period. In the event the Trustee shall have been supplied with an
Opinion of Counsel (such opinion not to be an expense of the Trustee) to the
effect that the holding by the Trust Fund of such Mortgaged Property
subsequent to such three-year period will not result in the imposition of
taxes on "prohibited transactions" of the Trust Fund as defined in section
860F of the Code or cause any REMIC formed hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding, and the Trust Fund
may continue to hold such Mortgaged Property (subject to any conditions
contained in such Opinion of Counsel) after the expiration of such three-year
period. 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 the Trust Fund
to the imposition of any federal, state or local income taxes on the income
earned from such Mortgaged Property under section 860G(c) of the Code or
otherwise, unless the Master Servicer has agreed to indemnify and hold
harmless the Trust Fund with respect to the imposition of any such taxes.

          The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of
bringing such a proceeding. The income earned from the management of any
Mortgaged Properties acquired through foreclosure or other judicial
proceeding, net of reimbursement to the Master Servicer for expenses incurred
(including any property or other taxes) in connection with such management and
net of unreimbursed Servicing Fees, Advances, Servicing Advances and any
management fee paid or to be paid with respect to the management of such
Mortgaged Property, shall be applied to the payment of principal of, and
interest on, the related defaulted Mortgage Loans (with interest accruing as
though such Mortgage Loans were still current) and all such income shall be
deemed, for all purposes in this Agreement, to be payments on account of
principal and interest on the related Mortgage Notes and shall be deposited
into the Certificate 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 and
any Subsequent Recoveries, net of any payment to the Master Servicer as
provided above, shall be deposited in the Certificate Account as provided in
Section 3.05 for distribution on the related Distribution Date, except that
any Excess Proceeds shall be retained by the Master Servicer as additional
servicing compensation.

          The proceeds of any Liquidated Mortgage Loan, as well as any
recovery resulting from a partial collection of Liquidation Proceeds or any
income from an REO Property, will be applied in the following order of
priority: first, to reimburse the Master Servicer for any related unreimbursed
Servicing Advances and Servicing Fees, pursuant to Section 3.08(a)(vi) or this
Section 3.12; second, to reimburse the Master Servicer for any unreimbursed
Advances, pursuant

                                     107
<PAGE>

to Section 3.08(a)(ii) or this Section 3.12; 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 Due
Date occurring in the month in which such amounts are required to be
distributed; and fourth, as a recovery of principal of the Mortgage Loan.

          (c) [Reserved].

          (d) The Master Servicer, in its sole discretion, shall have the
right to elect (by written notice sent to the Trustee) to purchase for its own
account from the Trust Fund any Mortgage Loan that is 150 days or more
delinquent at a price equal to the Purchase Price; provided, however, that the
Master Servicer may only exercise this right on or before the last day of the
calendar month in which such Mortgage Loan became 150 days delinquent (such
month, the "Eligible Repurchase Month"); provided further, that any such
Mortgage Loan which becomes current but thereafter becomes delinquent may be
purchased by the Master Servicer pursuant to this Section in any ensuing
Eligible Repurchase Month. The Purchase Price for any Mortgage Loan purchased
hereunder shall be deposited in the Certificate Account. Any purchase of a
Mortgage Loan pursuant to this Section 3.12(d) shall be accomplished by
remittance to the Master Servicer for deposit in the Certificate Account of
the Purchase Price. The Trustee, upon receipt of certification from the Master
Servicer of such deposit and a Request for File Release from the Master
Servicer, shall release or cause to be released to the purchaser of such
Mortgage Loan the related Mortgage File and shall execute and deliver such
instruments of transfer or assignment prepared by the purchaser of such
Mortgage Loan, in each case without recourse, as shall be necessary to vest in
the purchaser of such Mortgage Loan any Mortgage Loan released pursuant hereto
and the purchaser of such Mortgage Loan shall succeed to all the Trustee's
right, title and interest in and to such Mortgage Loan and all security and
documents related thereto. Such assignment shall be an assignment outright and
not for security. The purchaser of such Mortgage Loan shall thereupon own such
Mortgage Loan, and all security and documents, free of any further obligation
to the Trustee or the Certificateholders with respect thereto.

          Section 3.13 Co-Trustee to Cooperate; Release of Mortgage Files.

          Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will promptly notify
the Co-Trustee by delivering a Request for File Release. Upon receipt of such
request, the Co-Trustee shall promptly release the related Mortgage File to
the Master Servicer, and the Co-Trustee shall at the Master Servicer's
direction execute and deliver to the Master Servicer the request for
reconveyance, deed of reconveyance or release or satisfaction of mortgage or
such instrument releasing the lien of the Mortgage in each case provided by
the Master Servicer, together with the Mortgage Note with written evidence of
cancellation thereon. The Master Servicer is authorized to cause the removal
from the registration on the MERS(R) System of such Mortgage and to execute
and deliver, on behalf of the Trust Fund and the Certificateholders or any of
them, any and all instruments of satisfaction or cancellation or of partial or
full release. No expenses incurred in connection with any instrument of
satisfaction or deed of reconveyance shall be chargeable to the Certificate
Account, the Distribution Account, the Carryover Reserve Fund or the related
subservicing account. From time to time and as shall be appropriate for the
servicing or foreclosure of any Mortgage Loan,

                                     108
<PAGE>

including for such purpose, collection under any policy of flood insurance any
fidelity bond or errors or omissions policy, or for the purposes of effecting
a partial release of any Mortgaged Property from the lien of the Mortgage or
the making of any corrections to the Mortgage Note or the Mortgage or any of
the other documents included in the Mortgage File, the Co-Trustee shall, upon
delivery to the Co-Trustee of a Request for Document Release or a Request for
File Release, as applicable, release the documents specified in such request
or the Mortgage File, as the case may be, to the Master Servicer. Subject to
the further limitations set forth below, the Master Servicer shall cause the
Mortgage File or documents so released to be returned to the Co-Trustee when
the need therefor by the Master Servicer no longer exists, unless the Mortgage
Loan is liquidated and the proceeds thereof are deposited in the Certificate
Account, in which case the Master Servicer shall deliver to the Co-Trustee a
Request for File Release for any remaining documents in the Mortgage File not
in the possession of the Master Servicer.

          If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this
Agreement, the Master Servicer shall deliver or cause to be delivered to the
Trustee, for signature, as appropriate, any court pleadings, requests for
trustee's sale or other documents necessary to effectuate such foreclosure or
any legal action brought to obtain judgment against the Mortgagor on the
Mortgage Note or the Mortgage or to obtain a deficiency judgment or to enforce
any other remedies or rights provided by the Mortgage Note or the Mortgage or
otherwise available at law or in equity. Notwithstanding the foregoing, the
Master Servicer shall cause possession of any Mortgage File or of the
documents therein that shall have been released by the Co-Trustee to be
returned to the Co-Trustee within 21 calendar days after possession thereof
shall have been released by the Co-Trustee unless (i) the Mortgage Loan has
been liquidated and the Liquidation Proceeds relating to the Mortgage Loan
have been deposited in the Certificate Account, and the Master Servicer shall
have delivered to the Co-Trustee a Request for File Release or (ii) the
Mortgage File or document shall have been delivered to an attorney or to a
public trustee or other public official as required by law for purposes of
initiating or pursuing legal action or other proceedings for the foreclosure
of the Mortgaged Property and the Master Servicer shall have delivered to the
Trustee an Officer's Certificate of a Servicing Officer certifying as to the
name and address of the Person to which the Mortgage File or the documents
therein were delivered and the purpose or purposes of such delivery.

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

          Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Co-Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or that otherwise
are collected by the Master Servicer as Liquidation Proceeds, Insurance
Proceeds or Subsequent Recoveries in respect of any Mortgage Loan. All
Mortgage Files and funds collected or held by, or under the control of, the
Master Servicer in respect of any Mortgage Loans, whether from the collection
of principal and interest payments or from Liquidation Proceeds or Subsequent
Recoveries including but not limited to, any funds on deposit in the
Certificate Account, shall be held by the Master Servicer for and on behalf of
the Trust Fund and shall be and remain the sole and exclusive property of the
Trust Fund, subject to the applicable

                                     109
<PAGE>

provisions of this Agreement. The Master Servicer also agrees that it shall
not create, incur or subject any Mortgage File or any funds that are deposited
in the Certificate Account, the Distribution Account, the Carryover Reserve
Fund or in any Escrow Account (as defined in Section 3.06), or any funds that
otherwise are or may become due or payable to the Trustee for the benefit of
the Certificateholders, to any claim, lien, security interest, judgment, levy,
writ of attachment or other encumbrance, or assert by legal action or
otherwise any claim or right of set off against any Mortgage File or any funds
collected on, or in connection with, a Mortgage Loan, except, however, that
the Master Servicer shall be entitled to set off against and deduct from any
such funds any amounts that are properly due and payable to the Master
Servicer under this Agreement.

          Section 3.15 Servicing Compensation.

          As compensation for its activities hereunder, the Master Servicer
shall be entitled to retain or withdraw from the Certificate Account out of
each payment of interest on a Mortgage Loan included in the Trust Fund an
amount equal to interest at the applicable Servicing Fee Rate on the Stated
Principal Balance of the related Mortgage Loan for the period covered by such
interest payment.

          Additional servicing compensation in the form of any Excess
Proceeds, assumption fees, late payment charges, Prepayment Interest Excess,
and all income and gain net of any losses realized from Permitted Investments
shall be retained by the Master Servicer to the extent not required to be
deposited in the Certificate Account pursuant to Section 3.05 or 3.12(b)
hereof. The Master Servicer shall be required to pay all expenses incurred by
it in connection with its servicing activities hereunder (including payment of
any premiums for hazard insurance, as required by Section 3.10 hereof and
maintenance of the other forms of insurance coverage required by Section 3.10
hereof) and shall not be entitled to reimbursement therefor except as
specifically provided in Sections 3.08 and 3.12 hereof.

          Section 3.16 Access to Certain Documentation.

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

          Section 3.17 Annual Statement as to Compliance.

          (a) The Master Servicer shall deliver to the Depositor and the
Trustee on or before March 15 of each year, commencing with its 2007 fiscal
year, an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Master Servicer during

                                     110
<PAGE>

the preceding calendar year (or applicable portion thereof) and of the
performance of the Master Servicer under this Agreement, has been made under
such officer's supervision and (ii) to the best of such officer's knowledge,
based on such review, the Master Servicer has fulfilled all its obligations
under this Agreement, in all material respects throughout such year (or
applicable 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 and (iii) to the best of such
officer's knowledge, each Subservicer has fulfilled all its obligations under
its Subservicing Agreement in all material respects throughout such year, or,
if there has been a failure to fulfill any such obligation in any material
respect specifying each such failure known to such officer and the nature and
status thereof.

          (b) The Master Servicer shall cause each Subservicer to deliver to
the Depositor and the Trustee on or before March 15 of each year, commencing
with its 2007 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of such Subservicer during the
preceding calendar year (or applicable portion thereof) and of the performance
of the Subservicer under the applicable Subservicing Agreement or primary
servicing agreement, has been made under such officer's supervision and (ii)
to the best of such officer's knowledge, based on such review, such
Subservicer has fulfilled all its obligations under the applicable
Subservicing Agreement or primary servicing agreement, in all material
respects throughout such year (or applicable 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.

          (c) The Trustee shall forward a copy of each such statement to each
Rating Agency. Copies of such statement shall be provided by the Trustee to
any Certificateholder or Certificate Owner upon request at the Master
Servicer's expense, provided such statement is delivered by the Master
Servicer to the Trustee.

          Section 3.18 [Reserved].

          Section 3.19 [Reserved].

          Section 3.20 Prepayment Charges.

          (a) Notwithstanding anything in this Agreement to the contrary, in
the event of a Principal Prepayment in full or in part of a Mortgage Loan, the
Master Servicer may not waive any Prepayment Charge or portion thereof
required by the terms of the related Mortgage Note unless (i) such Mortgage
Loan is in default or the Master Servicer believes that such a default is
imminent, and the Master Servicer determines that such waiver would maximize
recovery of Liquidation Proceeds for such Mortgage Loan, taking into account
the value of such Prepayment Charge, or (ii) (A) the enforceability thereof is
limited (1) by bankruptcy, insolvency, moratorium, receivership, or other
similar law relating to creditors' rights generally or (2) due to acceleration
in connection with a foreclosure or other involuntary payment, or (B) the
enforceability is otherwise limited or prohibited by applicable law. In the
event of a Principal Prepayment in full or in part with respect to any
Mortgage Loan, the Master Servicer shall deliver to the Trustee an Officer's
Certificate substantially in the form of Exhibit T no later than the third
Business Day following the immediately succeeding Determination Date with a

                                     111
<PAGE>

copy to the Class P Certificateholders. If the Master Servicer has waived or
does not collect all or a portion of a Prepayment Charge relating to a
Principal Prepayment in full or in part due to any action or omission of the
Master Servicer, other than as provided above, the Master Servicer shall
deliver to the Trustee, together with the Principal Prepayment in full or in
part, the amount of such Prepayment Charge (or such portion thereof as had
been waived) for deposit into the Certificate Account (not later than 1:00
p.m. Pacific time on the immediately succeeding Master Servicer Advance Date,
in the case of such Prepayment Charge) for distribution in accordance with the
terms of this Agreement.

          (b) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing subsection (a), the party
discovering the breach shall give prompt written notice to the other parties.

          (c) CHL represents and warrants to the Depositor and the Trustee, as
of the Closing Date and each Subsequent Transfer Date, that the information in
the Prepayment Charge Schedule (including the attached prepayment charge
summary) is complete and accurate in all material respects at the dates as of
which the information is furnished and each Prepayment Charge is permissible
and enforceable in accordance with its terms under applicable state law,
except as the enforceability thereof is limited due to acceleration in
connection with a foreclosure or other involuntary payment.

          (d) Upon discovery by the Master Servicer or a Responsible Officer
of the Trustee of a breach of the foregoing clause (c) that materially and
adversely affects right of the Holders of the Class P Certificates to any
Prepayment Charge, the party discovering the breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the
Master Servicer or receipt of notice by the Master Servicer of breach, the
Master Servicer shall cure the breach in all material respects or shall pay
into the Certificate Account the amount of the Prepayment Charge that would
otherwise be due from the Mortgagor, less any amount representing such
Prepayment Charge previously collected and paid by the Master Servicer into
the Certificate Account.

          Section 3.21 Swap Contract.

          CHL shall cause The Bank of New York to enter into the Swap Contract
Administration Agreement and shall assign all of its right, title and interest
in and to the interest rate swap transaction evidenced by the Swap Contract
to, and shall cause all of its obligations in respect of such transaction to
be assumed by, the Swap Contract Administrator, on the terms and conditions
set forth in the Swap Contract Assignment Agreement. The Trustee's rights to
receive certain proceeds of the Swap Contract as provided in the Swap Contract
Administration Agreement shall be rights of the Trustee as Swap Trustee
hereunder, shall be an asset of the Swap Trust and shall not be an asset of
the Trust Fund nor of any REMIC. The Swap Trustee shall deposit any amounts
received from time to time from the Swap Contract Administrator with respect
to the Swap Contract into the Swap Account. The Master Servicer shall deposit
any amounts received on behalf of the Swap Trustee from time to time with
respect to the Swap Contract into the Swap Account.

                                     112
<PAGE>

          On the Business Day preceding each Distribution Date, the Swap
Trustee shall notify the Swap Contract Administrator of any amounts
distributable to the Interest-Bearing Certificates pursuant to Section
4.04(d)(3) through (8) that will remain unpaid following all distributions to
be made on such Distribution Date pursuant to Section 4.04(a) through (c).

          No later than two Business Days following each Distribution Date,
the Trustee shall provide the Swap Contract Administrator with information
regarding the aggregate Certificate Principal Balance of the Interest-Bearing
Certificates after all distributions on such Distribution Date.

          Upon the Swap Contract Administrator obtaining actual knowledge of
the rating of the Swap Counterparty falling below the Approved Ratings
Threshold (as defined in the Swap Contract) or upon the Swap Contract
Administrator obtaining actual knowledge of the rating of the Swap
Counterparty falling below the Required Ratings Threshold (as defined in the
Swap Contract), the Swap Trustee shall direct the Swap Contract Administrator
to (i) demand payment of the Delivery Amount (as defined in the Swap Contract)
from the Swap Counterparty on each Valuation Date (as defined in the Swap
Contract) and perform its other obligations in accordance with the Swap
Contract and (ii) take such other action required under the Swap Contract. If
a Delivery Amount is demanded, the Swap Contract Administrator, in accordance
with the Swap Contract Administration Agreement, shall establish an account to
hold cash and other eligible investments pledged under the Swap Contract. Any
cash or other Eligible Collateral (as defined in the Swap Contract) pledged
under the Swap Contract shall not be part of the Distribution Account or the
Swap Account unless remitted to such accounts by the Swap Contract
Administrator in accordance with the Swap Contract Administration Agreement.
If Eligible Collateral with a value equal to the Delivery Amount is not
delivered to the Swap Contract Administrator by the Swap Counterparty, the
Swap Trustee shall direct the Swap Contract Administrator to notify the Swap
Counterparty of such failure.

          Upon the Swap Trustee obtaining actual knowledge of an Event of
Default (as defined in the Swap Contract) or Termination Event (as defined in
the Swap Contract) for which the Swap Contract Administrator has the right to
designate an Early Termination Date (as defined in the Swap Contract), the
Swap Trustee shall act at the written direction of the Depositor as to whether
to direct the Swap Contract Administrator to designate an Early Termination
Date; provided, however, that the Swap Trustee shall provide written notice to
each Rating Agency following the Event of Default or Termination Event. Upon
the termination of the Swap Contract under the circumstances contemplated by
this Section 3.21, the Swap Trustee shall use its reasonable best efforts to
enforce the rights of the Swap Contract Administrator as may be permitted by
the terms of the Swap Contract and consistent with the terms hereof and CHL
shall assist the Swap Contract Administrator in procuring a replacement swap
contract with terms approximating those of the original Swap Contract.

          Any Swap Termination Payment received from the Swap Counterparty
shall be used to pay any upfront amount required under any replacement swap
contract and any excess shall be distributed to CHL and will not be available
to make distributions in respect of any Class of Certificates. In the event
that a replacement swap contract cannot be procured, any Swap Termination
Payment received from the Swap Counterparty in respect of the termination of
the original Swap Contract shall, in accordance with the Swap Contract
Administration Agreement,

                                     113
<PAGE>

be retained by the Swap Contract Administrator and remitted to the Swap
Trustee on subsequent Distribution Dates up to and including the Swap Contract
Termination Date to pay any amounts distributable to the Interest-Bearing
Certificates pursuant to Section 4.04(d)(3) through (8) that will remain
unpaid following all distributions to be made on such Distribution Date
pursuant to Section 4.04(a) through (c). Any portion of such upfront amount
remaining after the Swap Contract Termination Date shall be distributed to CHL
and will not be available to make distributions in respect of any Class of
Certificates.

          In the event that the swap counterparty in respect of a replacement
swap contract pays any upfront amount to the Swap Contract Administrator in
connection with entering into the replacement swap contract and such upfront
amount is received by the Swap Contract Administrator prior to the
Distribution Date on which any Swap Termination Payment will be payable to the
Swap Counterparty in respect of the original Swap Contract, a portion of that
upfront amount equal to the lesser of (x) that upfront amount and (y) the
amount of the Swap Termination Payment due to the Swap Counterparty in respect
of the original Swap Contract (the "Adjusted Replacement Upfront Amount")
shall be included in Interest Funds for Loan Group 1 and Loan Group 2 for that
Distribution Date, pro rata, based upon their respective Interest Funds for
that Distribution Date, and any upfront amount in excess of the Adjusted
Replacement Upfront Amount shall be distributed to CHL and will not be
available to make distributions in respect of any Class of Certificates. Any
upfront amount paid to the Swap Contract Administrator by the swap
counterparty in respect of a replacement swap contract after the Distribution
Date on which any Swap Termination Payment will be payable to the Swap
Counterparty in respect of the original Swap Contract, such upfront amount
shall, in accordance with the Swap Contract Administration Agreement, be
retained by the Swap Contract Administrator and remitted to the Swap Trustee
on subsequent Distribution Dates up to and including the Swap Contract
Termination Date to pay any amounts distributable to the Interest-Bearing
Certificates pursuant to Section 4.04(d)(3) through (8) that will remain
unpaid following all distributions to be made on such Distribution Date
pursuant to Section 4.04(a) through (c).

          The Swap Counterparty shall be an express third party beneficiary of
this Agreement for the purpose of enforcing the provisions hereof to the
extent of the Swap Counterparty's rights explicitly specified herein as if a
party hereto.

                                  ARTICLE IV.
               DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

          Section 4.01 Advances; Remittance Reports.

          (a) Within two Business Days after each Determination Date, the
Master Servicer shall deliver to the Trustee by facsimile or electronic mail
(or by such other means as the Master Servicer and the Trustee, as the case
may be, may agree from time to time) a Remittance Report with respect to the
related Distribution Date. The Trustee shall not be responsible to recompute,
recalculate or verify any information provided to it by the Master Servicer.

          (b) Subject to the conditions of this Article IV, the Master
Servicer, as required below, shall make an Advance and deposit such Advance in
the Certificate Account.

                                     114
<PAGE>

Each such Advance shall be remitted to the Certificate Account no later than
1:00 p.m. Pacific time on the Master Servicer Advance Date in immediately
available funds. The Trustee will provide notice to the Master Servicer by
facsimile by the close of business on any Master Servicer Advance Date in the
event that the amount remitted by the Master Servicer to the Trustee on the
Distribution Account Deposit Date is less than the Advances required to be
made by the Master Servicer for such Distribution Date. The Master Servicer
shall be obligated to make any such Advance only to the extent that such
advance would not be a Nonrecoverable Advance. If the Master Servicer shall
have determined that it has made a Nonrecoverable Advance or that a proposed
Advance or a lesser portion of such Advance would constitute a Nonrecoverable
Advance, the Master Servicer shall deliver (i) to the Trustee for the benefit
of the Certificateholders funds constituting the remaining portion of such
Advance, if applicable, and (ii) to the Depositor, each Rating Agency and the
Trustee an Officer's Certificate setting forth the basis for such
determination.

          (c) In lieu of making all or a portion of such Advance from its own
funds, the Master Servicer may (i) cause to be made an appropriate entry in
its records relating to the Certificate Account that any Amount Held for
Future Distributions has been used by the Master Servicer in discharge of its
obligation to make any such Advance and (ii) transfer such funds from the
Certificate Account to the Distribution Account. Any funds so applied and
transferred shall be replaced by the Master Servicer by deposit in the
Certificate Account no later than the close of business on the Business Day
immediately preceding the Distribution Date on which such funds are required
to be distributed pursuant to this Agreement. The Master Servicer shall be
entitled to be reimbursed from the Certificate Account for all Advances of its
own funds made pursuant to this Section as provided in Section 3.08. The
obligation to make Advances with respect to any Mortgage Loan shall continue
until such Mortgage Loan is paid in full or becomes a Liquidated Mortgage Loan
or until the purchase or repurchase thereof (or substitution therefor) from
the Trustee pursuant to any applicable provision of this Agreement, except as
otherwise provided in this Section 4.01.

          (d) If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in
paragraphs (b) and (c) immediately above, it shall use its best efforts to
give written notice thereof to the Trustee (each such notice a "Trustee
Advance Notice"; and such notice may be given by facsimile), not later than
3:00 p.m., New York time, on the Business Day immediately preceding the
related Master Servicer Advance Date, specifying the amount that it will be
unable to deposit (each such amount an "Advance Deficiency") and certifying
that such Advance Deficiency constitutes an Advance hereunder and is not a
Nonrecoverable Advance. If the Trustee receives a Trustee Advance Notice on or
before 3:30 p.m., (New York time) on a Master Servicer Advance Date, the
Trustee shall, not later than 3:00 p.m., (New York time), on the related
Distribution Date, deposit in the Distribution Account an amount equal to the
Advance Deficiency identified in such Trustee Advance Notice unless it is
prohibited from so doing by applicable law. Notwithstanding the foregoing, the
Trustee shall not be required to make such deposit if the Trustee shall have
received written notification from the Master Servicer that the Master
Servicer has deposited or caused to be deposited in the Certificate Account an
amount equal to such Advance Deficiency. All Advances made by the Trustee
pursuant to this Section 4.01(d) shall accrue interest on behalf of the
Trustee at the Trustee Advance Rate from and including the date such Advances
are made to but excluding the date of repayment, with such interest being an
obligation of the Master

                                     115
<PAGE>

Servicer and not the Trust Fund. The Master Servicer shall reimburse the
Trustee for the amount of any Advance made by the Trustee pursuant to this
Section 4.01(d) together with accrued interest, not later than 6:00 p.m. (New
York time) on the Business Day following the related Distribution Date. In the
event that the Master Servicer does not reimburse the Trustee in accordance
with the requirements of the preceding sentence, the Trustee shall immediately
(i) terminate all of the rights and obligations of the Master Servicer under
this Agreement in accordance with Section 7.01 and (ii) subject to the
limitations set forth in Section 3.04, assume all of the rights and
obligations of the Master Servicer hereunder.

          (e) The Master Servicer shall, not later than the close of business
on the second Business Day immediately preceding each Distribution Date,
deliver to the Trustee a report (in form and substance reasonably satisfactory
to the Trustee) that indicates (i) the Mortgage Loans with respect to which
the Master Servicer has determined that the related Scheduled Payments should
be advanced and (ii) the amount of the related Scheduled Payments. The Master
Servicer shall deliver to the Trustee on the related Master Servicer Advance
Date an Officer's Certificate of a Servicing Officer indicating the amount of
any proposed Advance determined by the Master Servicer to be a Nonrecoverable
Advance.

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

          In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, the Master Servicer shall remit any related Compensating
Interest as part of the related Interest Remittance Amount as provided in this
Agreement. The Master Servicer shall not be entitled to any recovery or
reimbursement for Compensating Interest from the Depositor, the Trustee, any
Seller, the Trust Fund or the Certificateholders.

          Section 4.03 [Reserved].

          Section 4.04 Distributions.

          (a) On each Distribution Date, the Interest Funds for such
Distribution Date shall be distributed by the Trustee from the Distribution
Account in the following order of priority:

               (i) from the Interest Funds for Loan Group 1 and Loan Group 2,
          pro rata based on the Interest Funds for each such Loan Group, to
          the Final Maturity Reserve Fund, the Final Maturity Reserve Deposit
          with respect to such Distribution Date;

               (ii) from the Interest Funds for Loan Group 1 and Loan Group 2,
          pro rata based on the Interest Funds for each such Loan Group, to
          the Swap Account, the amount of any Net Swap Payment and any Swap
          Termination Payment (other than a Swap Termination Payment due to a
          Swap Counterparty Trigger Event) payable to the Swap Counterparty
          with respect to such Distribution Date;

               (iii) concurrently:

                                     116
<PAGE>

                    (a) from Interest Funds for Loan Group 1, to the Class 1-A
               Certificates, the Current Interest and Interest Carry Forward
               Amount for such Class and such Distribution Date,

                    (b) from Interest Funds for Loan Group 2, concurrently to
               each Class of Class 2-A Certificates, the Current Interest and
               Interest Carry Forward Amount for each such Class and such
               Distribution Date, pro rata, based on their respective
               entitlements;

               (iv) from the remaining Interest Funds for Loan Group 1 and
          Loan Group 2, concurrently, to each Class of Class A Certificates,
          any remaining Current Interest and Interest Carry Forward Amount not
          paid pursuant to clause (iii)(a) and (iii)(b), pro rata, based on
          the Certificate Principal Balances thereof, to the extent needed to
          pay any Current Interest and Interest Carry Forward Amount for each
          such Class; provided that Interest Funds remaining after such
          allocation to pay any Current Interest and Interest Carry Forward
          Amount based on the Certificate Principal Balances of the
          Certificates will be distributed to each Class of Class A
          Certificates with respect to which there remains any unpaid Current
          Interest and Interest Carry Forward Amount (after the distribution
          based on Certificate Principal Balances), pro rata, based on the
          amount of such remaining unpaid Current Interest and Interest Carry
          Forward Amount; and

               (v) from the remaining Interest Funds for Loan Group 1 and Loan
          Group 2, sequentially:

                    (a) 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 and Class B Certificates, in that order, the Current
               Interest for each such Class, and

                    (b) any remainder as part of the Excess Cashflow.

          (b) On each Distribution Date, the Principal Distribution Amount
for such Distribution Date with respect to Loan Group 1 and Loan Group 2
shall be distributed by the Trustee from the Distribution Account in the
following order of priority:

               (1) with respect to any Distribution Date prior to the Stepdown
     Date or on which a Trigger Event is in effect, sequentially:

               (A) concurrently:

               (i) from the Principal Distribution Amount for Loan Group 1,
          sequentially:

                    (a) to the Class 1-A Certificates, until the Certificate
               Principal Balance thereof is reduced to zero; and

                    (b) to the Classes of Class 2-A Certificates (after the
               distribution of the Principal Distribution Amount from Loan
               Group 2 as

                                     117
<PAGE>

               provided in clause (ii)(a) below), in the order and priorities
               set forth in clause (3) below, until the Certificate Principal
               Balances thereof are reduced to zero;

               (ii) from the Principal Distribution Amount for Loan Group 2,
          sequentially:

                    (a) to the Classes of Class 2-A Certificates, in the order
               and priorities set forth in clause (3) below, until the
               Certificate Principal Balances thereof are reduced to zero; and

                    (b) to the Class 1-A Certificates (after the distribution
               of the Principal Distribution Amount from Loan Group 1 as
               provided in clause (i)(a) above), until the Certificate
               Principal Balance thereof is reduced to zero;

               (B) from the remaining Principal Distribution Amounts for Loan
          Group 1 and Loan Group 2, sequentially:

               (i) 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 and Class
          B Certificates, in that order, in each case until the Certificate
          Principal Balance thereof is reduced to zero; and

               (ii) any remainder as part of the Excess Cashflow.

               (2) with respect to any Distribution Date on or after the
     Stepdown Date and so long as a Trigger Event is not in effect,
     sequentially:

               (A) concurrently:

               (i) from the Principal Distribution Amount for Loan Group 1, in
          an amount up to the Class 1-A Principal Distribution Amount,
          sequentially:

                    (a) to the Class 1-A Certificates, until the Certificate
               Principal Balance thereof is reduced to zero; and

                    (b) to the Classes of Class 2-A Certificates (after the
               distribution of the Principal Distribution Amount from Loan
               Group 2 as provided in clause (ii)(a) below), in the amounts
               and order of priority set forth in clause (3)below, until the
               Certificate Principal Balances thereof are reduced to zero; and

                                     118
<PAGE>

               (ii) from the Principal Distribution Amount for Loan Group 2,
          in an amount up to the Class 2-A Principal Distribution Amount,
          sequentially:

                    (a) to the Classes of Class 2-A Certificates, in the
               amounts and order of priority set forth in clause (3) below,
               until the Certificate Principal Balances thereof are reduced to
               zero; and

                    (b) to the Class 1-A Certificates (after the distribution
               of the Principal Distribution Amount from Loan Group 1 as
               provided in clause (i)(a) above), until the Certificate
               Principal Balance thereof is reduced to zero; and

               (B) from the remaining Principal Distribution Amounts for Loan
          Group 1 and Loan Group 2, sequentially:

               (i) sequentially, to the Class M-1, Class M-2 and Class M-3
          Certificates, in that order, the Combined Class M-1, M-2 and M-3
          Principal Distribution Amount, until the Certificate Principal
          Balances thereof are reduced to zero;

               (ii) sequentially, to the Class M-4, Class M-5, Class M-6,
          Class M-7, Class M-8, Class M-9 and Class B Certificates, in that
          order, the Subordinate Class Principal Distribution Amount for each
          such Class, in each case until the Certificate Principal Balance
          thereof is reduced to zero; and

               (iii) any remainder as part of the Excess Cashflow.

               (3) On each Distribution Date on which any principal amounts
     are to be distributed to the Class 2-A Certificates, such amounts shall
     be distributed sequentially, to the Class 2-A-1, Class 2-A-2, Class
     2-A-3 and Class 2-A-4 Certificates, in that order, in each case until
     the Certificate Principal Balances thereof are reduced to zero.

          (c) With respect to any Distribution Date, any Excess Cashflow and,
in the case of clauses (1) and (2) below and in the case of the payment of
Unpaid Realized Loss Amounts pursuant to clause (3) below, any Credit Comeback
Excess Cashflow, shall be distributed in the following order of priority, in
each case first to the extent of the remaining Credit Comeback Excess
Cashflow, if applicable, and second to the extent of the remaining Excess
Cashflow:

               (1) to the Class or Classes of Interest-Bearing Certificates
     then entitled to receive distributions in respect of principal, in an
     aggregate amount equal to the Extra Principal Distribution Amount for
     each Loan Group, payable to each such Class as part of the Principal
     Distribution Amount for Loan Group 1 and Loan Group 2 pursuant to Section
     4.04(b) above;

                                     119
<PAGE>

               (2) concurrently, to each Class of Class A Certificates, pro
     rata based on the Unpaid Realized Loss Amount for each such Class, in an
     amount equal to the Unpaid Realized Loss Amount for each such Class;

               (3) 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 and Class B
     Certificates, in that order, in each case first in an amount equal to any
     Interest Carry Forward Amount for such Class and then in an amount equal
     to the Unpaid Realized Loss Amount for such Class;

               (4) to the Carryover Reserve Fund and from the Carryover
     Reserve Fund to each Class of Interest-Bearing Certificates, pro rata
     based on the Certificate Principal Balances thereof, to the extent needed
     to pay any Net Rate Carryover for each such Class; provided that any
     Excess Cashflow remaining after such allocation to pay Net Rate Carryover
     based on the Certificate Principal Balances of those Classes shall be
     distributed to each Class of Interest-Bearing Certificates with respect
     to which there remains any unpaid Net Rate Carryover (after the
     distribution based on the Certificate Principal Balances), pro rata,
     based on the amount of such unpaid Net Rate Carryover;

               (5) to the Carryover Reserve Fund, in an amount equal to the
     Required Carryover Reserve Fund Deposit (after giving effect to other
     deposits and withdrawals therefrom on such Distribution Date);

               (6) if the Final Maturity OC Trigger is in effect,
     sequentially, in the following order of priority:

               (i) to the Classes of Class A Certificates, pro rata, based on
          the Class 1-A Principal Distribution Amount (in the case of clause
          (x)) and the Class 2-A Principal Distribution Amount (in the case of
          clause (y)), concurrently: (x) to the Class 1-A Certificates, until
          the Certificate Principal Balance thereof is reduced to zero, and
          (y) sequentially, to the Class 2-A-1, Class 2-A-2, Class 2-A-3 and
          Class 2-A-4 Certificates, in that order, in each case, until the
          Certificate Principal Balance thereof is reduced to zero; provided,
          however, that any amounts remaining after such allocation based on
          the Class 1-A Principal Distribution Amount and the Class 2-A
          Principal Distribution Amount will be distributed to the outstanding
          Class 1-A Certificates or the outstanding Classes of Class 2-A
          Certificates, as the case may be, pursuant to clause (x) or clause
          (y), as the case may be; and

               (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 and
          Class B Certificates, in that order, in each case until the
          Certificate Principal Balance thereof is reduced to zero;

               (7) to the Swap Account, in an amount equal to any Swap
     Termination Payment due to the Swap Counterparty as a result of a Swap
     Counterparty Trigger Event;

                                     120
<PAGE>

               (8) to the Class C Certificates, the Class C Distributable
     Amount for such Distribution Date; and

               (9) to the Class A-R Certificates, any remaining amount.

          (d) On each Distribution Date on or prior to the Swap Contract
Termination Date, following the deposits to the Swap Account pursuant to
Section 4.04(a)(ii) and Section 4.09 and the distributions described under
Section 4.04(c), the Swap Trustee shall distribute amounts on deposit in the
Swap Account in the following amounts and order of priority:

               (1) to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Net Swap Payment payable to the Swap Counterparty with
     respect to such Distribution Date;

               (2) to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Swap Termination Payment (other than a Swap Termination
     Payment due to a Swap Counterparty Trigger Event) payable to the Swap
     Counterparty with respect to such Distribution Date;

               (3) concurrently, to each Class of Class A Certificates, any
     remaining Current Interest and Interest Carry Forward Amount, pro rata
     based on their respective entitlements;

               (4) 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 and Class B
     Certificates, in that order, in each case in an amount equal to any
     remaining Current Interest and Interest Carry Forward Amount for such
     Class;

               (5) to the Class or Classes of Interest-Bearing Certificates
     then entitled to receive distributions in respect of principal, in an
     aggregate amount equal to the Overcollateralization Deficiency Amount
     remaining unpaid following the distributions described under Section
     4.04(c), payable to such Classes in the same manner in which the Extra
     Principal Distribution Amount in respect of Loan Group 1 and Loan Group 2
     would be distributed to such Classes as described under Section 4.04(c);

               (6) concurrently, to each Class of Interest-Bearing
     Certificates, to the extent needed to pay any remaining Net Rate
     Carryover for each such Class, pro rata, based on the amount of such
     remaining Net Rate Carryover;

               (7) concurrently, to each Class of Class A Certificates, pro
     rata, based on the remaining Unpaid Realized Loss Amount for each such
     Class, in an amount equal to the remaining Unpaid Realized Loss Amount
     for each such Class;

               (8) 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 and Class B
     Certificates, in that order, in each case in an amount equal to the
     remaining Unpaid Realized Loss Amount for each such Class; and

                                     121
<PAGE>

               (9) to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Swap Termination Payment due to a Swap Counterparty
     Trigger Event payable to the Swap Counterparty with respect to such
     Distribution Date.

          (e) To the extent that a Class of Interest-Bearing Certificates
receives interest in excess of the applicable Net Rate Cap, if such interest
is paid pursuant to Section 4.04(c), then it shall be deemed to have been paid
to the Carryover Reserve Fund and then paid by the Carryover Reserve Fund to
those Certificateholders, and if such interest is paid pursuant to Section
4.04(d), then such interest shall be deemed to have been paid to the Swap
Account and then paid by the Swap Account to those Certificateholders. For
purposes of the Code, amounts deemed deposited in the Carryover Reserve Fund
shall be deemed to have first been distributed to the Class C Certificates.

          (f) On each Distribution Date, all Prepayment Charges and Master
Servicer Prepayment Charge Payment Amounts shall be distributed to the Class P
Certificates. On the Class P Principal Distribution Date, the Trustee shall
make the $100.00 distribution to the Class P Certificates as specified in
Section 3.08.

          (g) On each Distribution Date, the Trustee shall allocate any
Applied Realized Loss Amount to reduce the Certificate Principal Balances of
the Class B, Class M-9, Class M-8, Class M-7, Class M-6, Class M-5, Class M-4,
Class M-3, Class M-2 and Class M-1 Certificates, sequentially, in that order,
in each case until the Certificate Principal Balance thereof is reduced to
zero. After the Certificate Principal Balances of the Subordinate Certificates
have been reduced to zero, (i) the Trustee shall allocate any Applied Realized
Loss Amount with respect to Loan Group 1 to reduce the Certificate Principal
Balance of the Class 1-A Certificates, until the Certificate Principal Balance
of such Class has been reduced to zero, and (ii) the Trustee shall allocate
any Applied Realized Loss Amount with respect to Loan Group 2 to reduce the
Certificate Principal Balances of each Class of Class 2-A Certificates, on a
pro rata basis according to their respective Certificate Principal Balances,
until the Certificate Principal Balances of such Classes have been reduced to
zero.

          (h) On each Distribution Date, the Trustee shall allocate the amount
of the Subsequent Recoveries with respect to either Loan Group, if any, first
to increase the Certificate Principal Balance of the Class 1-A Certificates
(in the case of any Subsequent Recoveries with respect to Loan Group 1) or the
Certificate Principal Balances of the Classes of Class 2-A Certificates (in
the case of any Subsequent Recoveries with respect to Loan Group 2) to which
Applied Realized Loss Amounts have been previously allocated (such increases,
in the case of Subsequent Recoveries with respect to Loan Group 2, to be made
among the Classes of Class 2-A Certificates on a pro rata basis according to
their respective Certificate Principal Balances), in each case by not more
than the amount of the Unpaid Realized Loss Amount of such Class, and then to
increase the Certificate Principal Balance of the Subordinate Certificates to
which Applied Realized Loss Amounts have been previously allocated,
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 and Class B Certificates, in that
order, in each case by not more than the amount of the Unpaid Realized Loss
Amount of such Class.

                                     122
<PAGE>

          Holders of Certificates to which any Subsequent Recoveries have been
allocated shall 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.

          Subject to Section 9.02 hereof respecting the final distribution, on
each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire
transfer in immediately available funds to the account of such Holder at a
bank or other entity having appropriate facilities therefor, if (i) such
Holder has so notified the Trustee at least five Business Days prior to the
related Record Date and (ii) such Holder shall hold Regular Certificates with
an aggregate initial Certificate Principal Balance of not less than $1,000,000
or evidencing a Percentage Interest aggregating 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 9.02 hereof
respecting the final distribution, distributions with respect to Certificates
registered in the name of a Depository shall be made to such Depository in
immediately available funds.

          On or before 5:00 p.m. Pacific time on the fifth Business Day
following each Determination Date (but in no event later than 5:00 p.m.
Pacific time on the third Business Day before the related Distribution Date),
the Master Servicer shall deliver a report to the Trustee (in the form of a
computer readable magnetic tape or by such other means as the Master Servicer
and the Trustee may agree from time to time) containing such data and
information as agreed to by the Master Servicer and the Trustee (including,
without limitation, the actual mortgage rate for each Credit Comeback Loan)
such as to permit the Trustee to prepare the Monthly Statement and make the
required distributions for the related Distribution Date (the "Remittance
Report"). The Trustee shall not be responsible to recompute, recalculate or
verify information provided to it by the Master Servicer and shall be
permitted to conclusively rely on any information provided to it by the Master
Servicer.

          (i) On the earlier of (i) the Distribution Date in December 2036 and
(ii) the termination of this Agreement pursuant to Section 9.01, after giving
effect to the distribution of all available funds, all amounts on deposit in
the Final Maturity Reserve Fund will be distributed in the following order of
priority:

               (1) to the Classes of Class A Certificates, pro rata, based on
     the Class 1-A Principal Distribution Amount (in the case of clause (x))
     and the Class 2-A Principal Distribution Amount (in the case of clause
     (y)), concurrently: (x) to the Class 1-A Certificates, until the
     Certificate Principal Balance thereof is reduced to zero, and (y)
     sequentially, to the Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class
     2-A-4 Certificates, in that order, in each case, until the Certificate
     Principal Balance thereof is reduced to zero; provided, however, that any
     amounts remaining after such allocation based on the Class 1-A Principal
     Distribution Amount and the Class 2-A Principal Distribution Amount will
     be distributed to the outstanding Class 1-A Certificates or the
     outstanding Classes of Class 2-A Certificates, as the case may be,
     pursuant to clause (x) or clause (y), as the case may be; and

                                     123
<PAGE>

               (2) 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 and Class B
     Certificates, in that order, until the Certificate Principal Balances
     thereof are reduced to zero; and

               (3) to the Class C Certificates, all remaining amounts.

          Section 4.05 Monthly Statements to Certificateholders.

          (a) Concurrently with each distribution on a Distribution Date, the
Trustee will forward by mail to each Rating Agency and make available to
Certificateholders on the Trustee's website
(http://www.bnyinvestorreporting.com) a statement generally setting forth the
information contained in Exhibit W.

          (b) The Trustee's responsibility for disbursing the above
information to the Certificateholders is limited to the availability,
timeliness and accuracy of the information derived from the Master Servicer.
The Trustee shall send a copy of each statement provided pursuant to this
Section 4.05 to each Rating Agency and the NIM Insurer. The Trustee may make
the above information available to Certificateholders via the Trustee's
website at http://www.bnyinvestorreporting.com.

          (c) Within a reasonable period of time after the end of each
calendar year, the Trustee shall cause to be furnished to each Person who at
any time during the calendar year was a Certificateholder, a statement
containing the information regarding (i) the amount of distributions to that
Certificateholder allocable to principal, separately identifying (A) the
aggregate amount of any Principal Prepayments included therein and (B) the
aggregate of all scheduled payments of principal included therein, (ii) the
amount of distributions to that Certificateholder allocable to interest and
(iii) the related amount of the Servicing Fees paid to or retained by the
Master Servicer, in each case aggregated for such calendar year or applicable
portion thereof during which such Person was a Certificateholder. Such
obligation of the Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Trustee
pursuant to any requirements of the Code as from time to time in effect.

          (d) Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class A-R Certificates the Form 1066 and each
Form 1066Q and shall respond promptly to written requests made not more
frequently than quarterly by any Holder of Class A-R Certificates with respect
to the following matters:

               (1) The original projected principal and interest cash flows on
     the Closing Date on each related Class of regular and residual interests
     created hereunder and on the Mortgage Loans, based on the Prepayment
     Assumption;

               (2) The projected remaining principal and interest cash flows
     as of the end of any calendar quarter with respect to each related Class
     of regular and residual interests created hereunder and the Mortgage
     Loans, based on the Prepayment Assumption;

                                     124
<PAGE>

               (3) The applicable Prepayment Assumption and any interest rate
     assumptions used in determining the projected principal and interest cash
     flows described above;

               (4) 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 related 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;

               (5) The treatment of losses realized with respect to the
     Mortgage Loans or the regular interests created hereunder, including the
     timing and amount of any cancellation of indebtedness income of the
     related REMIC with respect to such regular interests or bad debt
     deductions claimed with respect to the Mortgage Loans;

               (6) The amount and timing of any non-interest expenses of the
     related REMIC; and

               (7) Any taxes (including penalties and interest) imposed on the
     related 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 (1), (2), (3)and (4) above shall
be provided by the Depositor pursuant to Section 8.11.

          Section 4.06 Termination of a Mortgage Insurance Policy.

          If on any given date the rating of Mortgage Guaranty Insurance
Corporation's claims-paying ability is downgraded below and remains below
"AA-" from S&P or "Aa3" from Moody's, the Master Servicer may direct the
Co-Trustee to terminate the Mortgage Insurance Policy issued by Mortgage
Guaranty Insurance Corporation and the Co-Trustee shall act in accordance with
such direction. The Master Servicer hereby covenants and agrees that it will
not direct the Co-Trustee to exercise its right to terminate such Mortgage
Insurance Policy unless the Co-Trustee obtains a mortgage insurance policy
that meets the following conditions: (i) such mortgage insurance policy must
be issued by a mortgage insurer that has a rating with respect to its
claims-paying ability at or above "AA " from S&P or "Aa3" from Moody's and
(ii) such mortgage insurance policy must cover the related Covered Mortgage
Loans outstanding as of such date.

          In addition, if during the period which the Depositor is required to
file Exchange Act Reports with respect to the Trust Fund, either (a) Mortgage
Guaranty Insurance Corporation shall fail to provide to CHL any information
required to be provided pursuant to Section 2(b) of the Item 1114 Agreement,
dated as of November 7, 2006, between CHL, the Depositor, CWMBS, Inc., CWALT,
Inc., CWHEQ, Inc. and Mortgage Guaranty Insurance Corporation, within the time
period required by such agreement or (b) Republic Mortgage Insurance Company
shall fail to provide to CHL any information required to be provided pursuant
to Section 2(b) of the Item 1114 Agreement, dated as of March 29, 2006,
between CHL, the Depositor, CWMBS, Inc., CWALT, Inc., CWHEQ, Inc. and Republic
Mortgage Insurance Company, within the time

                                     125
<PAGE>

period required by such agreement, then the Co-Trustee shall act at the
written direction of the Depositor as to whether to terminate the applicable
Mortgage Insurance Policy; provided, however, that the Co-Trustee shall
provide written notice to each Rating Agency of any such termination. Upon the
termination of such Mortgage Insurance Policy under the circumstances
contemplated by this paragraph, CHL shall assist the Co-Trustee in procuring a
replacement mortgage insurance policy that meets the criteria for a
replacement mortgage insurance policy specified in the preceding paragraph.

          Section 4.07 Carryover Reserve Fund.

          (a) On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Holders of the Certificates, the
Carryover Reserve Fund and shall deposit $1,000 therein. The Carryover Reserve
Fund shall be an Eligible Account, and funds on deposit therein shall be held
separate and apart from, and shall not be commingled with, any other moneys,
including without limitation, other moneys held by the Trustee pursuant to
this Agreement.

          (b) The Trustee shall make withdrawals from the Carryover Reserve
Fund to make distributions in respect of Net Rate Carryover as to the extent
required by Section 4.04.

          (c) The Carryover Reserve Fund shall not constitute an asset of any
REMIC created hereunder. The Class C Certificates shall evidence ownership of
the Carryover Reserve Fund for federal tax purposes.

          (d) Funds in the Carryover Reserve Fund shall be invested by the
Trustee in The Bank of New York cash reserves. All investments shall be made
in the name of the Trustee, for the benefit of the Holders of the
Interest-Bearing Certificates. Any net investment earnings on such amounts
shall be retained therein until withdrawn as provided in Section 3.08.

          Section 4.08 Credit Comeback Excess Account.

          On the Closing Date, the Trustee shall establish and maintain in its
name, in trust for the benefit of the Certificateholders, the Credit Comeback
Excess Account. The Credit Comeback Excess Account shall be an Eligible
Account, and funds on deposit therein shall be held separate and apart from,
and shall not be commingled with, any other moneys, including without
limitation, other moneys held by the Trustee pursuant to this Agreement.

          On each Distribution Date, the Trustee shall deposit all Credit
Comeback Excess Amounts in the Credit Comeback Excess Account. The Trustee
shall make withdrawals from the Credit Comeback Excess Account to make
distributions as and to the extent required by Section 4.04.

          Funds in the Credit Comeback Excess Account with respect to Loan
Group 1 and Loan Group 2 may be invested in Permitted Investments at the
written direction of the Majority Holder of the Class C Certificates, which
Permitted Investments shall mature not later than the Business Day immediately
preceding the first Distribution Date that follows the date of such investment
(except that if such Permitted Investment is an obligation of the institution
that maintains the Credit Comeback Excess Account, then such Permitted
Investment shall mature

                                     126
<PAGE>

not later than such Distribution Date) and shall not be sold or disposed of
prior to maturity. All such Permitted Investments shall be made in the name of
the Trustee, for the benefit of the Certificateholders. In the absence of such
written direction, all funds in the Credit Comeback Excess Account shall be
invested by the Trustee in The Bank of New York cash reserves. Any net
investment earnings on amounts in the Credit Comeback Excess Account with
respect to Loan Group 1 and Loan Group 2 shall be payable pro rata to the
Holders of the Class C Certificates in accordance with their Percentage
Interests. Any losses incurred in the Credit Comeback Excess Account in
respect of any such investments shall be charged against amounts on deposit in
the Credit Comeback Excess Account (or such investments) immediately as
realized.

          The Trustee shall not be liable for the amount of any loss incurred
in respect of any investment or lack of investment of funds held in the Credit
Comeback Excess Account and made in accordance with this Section 4.08. The
Credit Comeback Excess Account shall not constitute an asset of any REMIC
created hereunder. The Class C Certificates shall evidence ownership of the
Credit Comeback Excess Account for federal tax purposes.

          Section 4.09 Swap Trust and Swap Account.

          On the Closing Date, there is hereby established a separate trust
(the "Swap Trust"), the assets of which shall consist of the Trustee's rights
and obligations under the Swap Contract Administration Agreement. The Swap
Trust shall be maintained by the Swap Trustee, who initially, shall be the
Trustee. The Swap Trustee shall hold the assets of the Swap Trust in trust for
the benefit of the Holders of the Interest-Bearing Certificates and the Swap
Counterparty. No later than the Closing Date, the Swap Trustee shall establish
and maintain a separate, segregated trust account to be held in the Swap
Trust, titled, "Swap Account, The Bank of New York, as Swap Trustee, in trust
for the Swap Counterparty and the registered holders of CWABS, Inc.,
Asset-Backed Certificates, Series 2006-25." Such account shall be an Eligible
Account and funds on deposit therein shall be held separate and apart from,
and shall not be commingled with, any other moneys, including, without
limitation, other moneys of the Trustee held pursuant to this Agreement.
Amounts therein shall be held uninvested. Funds on deposit in the Swap Account
shall be distributed in the amounts and in the order of priority described
under Section 4.04(d). For federal income tax purposes, the Swap Trust,
including the Swap Account, shall be owned by the Class C Certificates.

          On each Distribution Date, the Trustee shall make a deposit to the
Swap Account pursuant to Section 4.04(a)(ii), and to the extent that the
amount of such deposit is insufficient to pay any Net Swap Payment and/or Swap
Termination Payment (other than a Swap Termination Payment due to a Swap
Counterparty Trigger Event) due to the Swap Counterparty with respect to such
Distribution Date, the Trustee shall withdraw, out of amounts on deposit in
the Distribution Account in respect of the Principal Remittance Amount for
Loan Group 1 and Loan Group 2, pro rata on the basis of those respective
Principal Remittance Amounts, such additional amount as is necessary to cover
the remaining portion of any such Net Swap Payment and/or Swap Termination
Payment (other than a Swap Termination Payment due to a Swap Counterparty
Trigger Event) due to the Swap Counterparty with respect to such Distribution
Date.

                                     127
<PAGE>

          Section 4.10 Final Maturity Reserve Trust and Final Maturity Reserve
                       Fund.

          (a) On the Closing Date, there is hereby established a separate
trust (the "Final Maturity Reserve Trust"), the assets of which shall consist
of the Final Maturity Reserve Fund.

          (b) On the Closing Date, the Final Maturity Reserve Trustee shall
establish and maintain in its name, in trust for the benefit of the Holders of
the Interest-Bearing Certificates, the Final Maturity Reserve Fund and shall
deposit $1,000 therein upon receipt from or on behalf of the Depositor of such
amount. The Final Maturity Reserve Fund shall be an Eligible Account, and
funds on deposit therein shall be held separate and apart from, and shall not
be commingled with, any other moneys, including without limitation, other
moneys held by the Trustee pursuant to this Agreement. The Final Maturity
Reserve Fund shall not constitute an asset of the Trust Fund or any REMIC
created hereunder.

          The Final Maturity Reserve Trustee shall make deposits to and
withdrawals from the Final Maturity Reserve Fund as specified in Section 4.04.

          Funds in the Final Maturity Reserve Fund may be invested in
Permitted Investments at the direction of the Holders of the Class C
Certificates, which Permitted Investments shall mature not later than the
Business Day immediately preceding the first Distribution Date that follows
the date of such investment (except that if such Permitted Investment is an
obligation of the institution that maintains the Final Maturity Reserve Fund,
then such Permitted Investment shall mature not later than such Distribution
Date) and shall not be sold or disposed of prior to maturity. All such
Permitted Investments shall be made in the name of the Final Maturity Reserve
Trustee, for the benefit of the Holders of the Certificates. In the absence of
such written direction, all funds in the Final Maturity Reserve Fund shall be
invested by the Final Maturity Reserve Trustee in The Bank of New York cash
reserves. Any net investment earnings on such amounts shall be retained
therein until withdrawn as provided in Section 3.08. Any losses incurred in
the Final Maturity Reserve Fund in respect of any such investments shall be
charged against amounts on deposit in the Final Maturity Reserve Fund (or such
investments) immediately as realized. The Final Maturity Reserve Trustee shall
not be liable for the amount of any loss incurred in respect of any investment
or lack of investment of funds held in the Final Maturity Reserve Fund and
made in accordance with this Section 4.10.

          The Final Maturity Reserve Trustee may withhold from the amounts
withdrawn from the Final Maturity Reserve Fund pursuant to Section 4.04 the
amount of any taxes that it is authorized to retain pursuant to the third
paragraph of Section 8.11. In addition, the Final Maturity Reserve Trustee may
from time to time make withdrawals from the Final Maturity Reserve Fund for
the following purposes:

          (i) to withdraw any amount deposited in the Final Maturity Reserve
Fund and not required to be deposited therein; and

          (ii) to clear and terminate the Final Maturity Reserve Fund upon the
termination of this Agreement pursuant to Section 9.01.

                                     128
<PAGE>

                                  ARTICLE V.
                               THE CERTIFICATES

          Section 5.01 The Certificates.

          The Certificates shall be substantially in the forms attached hereto
as Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and Exhibit E.
The Certificates shall be issuable in registered form, in the minimum dollar
denominations, integral dollar multiples in excess thereof and aggregate
dollar denominations as set forth in the following table:

<TABLE>
<CAPTION>

                                         Minimum                Integral Multiples in        Original Certificate
            Class                      Denomination               Excess of Minimum            Principal Balance
------------------------------- ---------------------------- ---------------------------- ----------------------------
            <S>                          <C>                             <C>                    <C>
             1-A                          $20,000                        $1                     $  495,720,000
            2-A-1                         $20,000                        $1                     $  326,203,000
            2-A-2                         $20,000                        $1                     $  107,583,000
            2-A-3                         $20,000                        $1                     $  235,057,000
            2-A-4                         $20,000                        $1                     $   90,937,000
             M-1                          $20,000                        $1                     $   56,575,000
             M-2                          $20,000                        $1                     $   62,775,000
             M-3                          $20,000                        $1                     $   26,350,000
             M-4                          $20,000                        $1                     $   22,475,000
             M-5                          $20,000                        $1                     $   22,475,000
             M-6                          $20,000                        $1                     $   19,375,000
             M-7                          $20,000                        $1                     $   13,175,000
             M-8                          $20,000                        $1                     $   14,725,000
             M-9                          $20,000                        $1                     $   13,950,000
              B                          $100,000                        $1                     $   15,500,000
             A-R                         $99.95(1)                       N/A                              $100
              C                             N/A                          N/A                               N/A
              P                             N/A                          N/A                              $100

</TABLE>

(1)   The Tax Matters Person Certificate may be issued in a denomination
      of $0.05.

          The Certificates shall be executed by manual or facsimile signature
on behalf of the Trustee by an authorized officer. Certificates bearing the
manual or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall
bind the Trustee, notwithstanding that such individuals or any of them have
ceased to be so authorized prior to the authentication and delivery of such
Certificates or did not hold such offices at the date of such authentication
and delivery. No Certificate shall be entitled to any benefit under this
Agreement, or be valid for any purpose, unless there appears on such
Certificate a certificate of authentication substantially in the form set
forth as attached hereto executed by the Trustee by manual signature, and such
certificate of authentication upon any Certificate shall be conclusive
evidence, and the only evidence, that such Certificate has been duly
authenticated and delivered hereunder. All Certificates shall be dated the
date of their authentication. On the Closing Date, the Trustee shall
authenticate the Certificates to be issued at the written direction of the
Depositor, or any affiliate thereof.

                                     129
<PAGE>

          The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

          Section 5.02 Certificate Register; Registration of Transfer and
                       Exchange of Certificates.

          (a) The Trustee shall maintain a Certificate Register for the Trust
Fund in which, subject to the provisions of subsections (b) and (c) below and
to such reasonable regulations as it may prescribe, the Trustee shall provide
for the registration of Certificates and of Transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of Transfer
of any Certificate, the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Certificates of the
same Class and of like aggregate Percentage Interest.

          At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates that the Certificateholder making
the exchange is entitled to receive. Every Certificate presented or
surrendered for registration of Transfer or exchange shall be accompanied by a
written instrument of Transfer in form satisfactory to the Trustee duly
executed by the Holder thereof or his attorney duly authorized in writing.

          No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required.

          All Certificates surrendered for registration of Transfer or
exchange shall be canceled and subsequently destroyed by the Trustee in
accordance with the Trustee's customary procedures.

          (b) No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such state securities laws, in order to assure
compliance with the Securities Act and such state securities laws, the
Certificateholder desiring to effect such Transfer and such
Certificateholder's prospective transferee shall (except in connection with
any transfer of a Private Certificate to an affiliate of the Depositor (either
directly or through a nominee) in connection with the initial issuance of the
Certificates) each certify to the Trustee in writing the facts surrounding the
Transfer in substantially the form set forth in Exhibit J-2 (a "Transferor
Certificate") and (i) deliver a letter in substantially the form of either
Exhibit K (in the case of the Class P and Class C Certificates and in the case
of a Class B Certificate that after the proposed transfer will be a Definitive
Certificate) (the "Investment Letter") or Exhibit L (in the case of any
Private Certificate) (the "Rule 144A Letter") or (ii) there shall be delivered
to the Trustee at the expense of the Certificateholder desiring to effect such
transfer an Opinion of

                                     130
<PAGE>

Counsel that such Transfer may be made pursuant to an exemption from the
Securities Act; provided, however, that in the case of the delivery of an
Investment Letter in connection with the transfer of any Class C or Class P
Certificate to a transferee that is formed with the purpose of issuing notes
backed by such Class C or Class P Certificate, as the case may be, clause (b)
and (c) of the form of Investment Letter shall not be applicable and shall be
deleted by such transferee. 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 Co-Trustee, the Trustee and
the Master Servicer shall cooperate with the Depositor in providing the Rule
144A information referenced in the preceding sentence, including providing to
the Depositor such information regarding the Certificates, the Mortgage Loans
and other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate desiring to effect such Transfer shall, and does hereby
agree to, indemnify the Co-Trustee, the Trustee, the Depositor, the Trust
Fund, each Seller, the Master Servicer and the NIM Insurer 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 beneficial interest in any Class B Certificate that is a
Book-Entry Certificate may be held by any Person that is not a Qualified
Institutional Buyer. Notwithstanding the foregoing, a beneficial interest in a
Class B Certificate that is a Book-Entry Certificate may be transferred by any
Certificate Owner holding such interest to any Institutional Accredited
Investor (other than a Qualified Institutional Buyer) that takes delivery in
the form of a Definitive Certificate upon delivery to the Trustee of (i) such
certifications and/or opinions as are contemplated by the first paragraph of
this Section 5.02(b) and (ii) such written orders and instructions as are
required under the applicable procedures of the Depository to direct the
Trustee to debit the account of a Depository Participant by the denomination
of the transferred interests in such Book-Entry Certificate. Upon delivery to
the Trustee of the certifications and/or opinions contemplated by the first
paragraph of this Section 5.02(b), the Trustee, subject to and in accordance
with the applicable procedures of the Depository, shall reduce the
denomination of the subject Book-Entry Certificate by the denomination of the
transferred interests in such Book-Entry Certificate, and shall cause a
Definitive Certificate of the same Class as such Book-Entry Certificate, and
in a denomination equal to the reduction in the denomination of such
Book-Entry Certificate, to be executed, authenticated and delivered in
accordance with this Agreement to the applicable transferee. Also
notwithstanding the foregoing, any Class B Certificate that is a Definitive
Certificate may be transferred by any Certificateholder holding such
Certificate to any Qualified Institutional Buyer that takes delivery in the
form of a beneficial interest in a Book-Entry Certificate upon delivery to the
Trustee of (i) such certifications and/or opinions as are contemplated by the
first paragraph of this Section 5.02(b) and (ii) such written orders and
instructions as are required under the applicable procedures of the Depository
to direct the Trustee to credit the account of a Depository Participant by the
denomination of the transferred interests in such Class B Certificate. Upon
delivery to the Trustee of the Definitive Certificate to be transferred and
the certifications and/or opinions contemplated by the first paragraph of this
Section 5.02(b), the Trustee, subject to and in accordance with the applicable
procedures of the Depository, shall increase the denomination of the existing
Book-Entry Certificate for the Class

                                     131
<PAGE>

B Certificates by the denomination of the transferred interests in such
Definitive Certificate, shall instruct the Depository to credit the account of
the applicable Depository Participant, and shall cause the subject Definitive
Certificate to be cancelled.

          No Transfer of an ERISA-Restricted Certificate (other than a
transfer of an ERISA-Restricted Certificate to an affiliate of the Depositor
(either directly or through a nominee) in connection with the initial issuance
of the Certificates) shall be made unless the Trustee shall have received
either (i) a written representation from the transferee of such Certificate
acceptable to and in form and substance satisfactory to the Trustee (in the
event such Certificate is a Private Certificate, such requirement is satisfied
only by the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit K or Exhibit L, or in the event such
Certificate is a Residual Certificate, such requirement is satisfied only by
the Trustee's receipt of a representation letter from the transferee
substantially in the form of Exhibit I), to the effect that (x) such
transferee is not a Plan, or (y) in the case of an ERISA-Restricted
Certificate that has been the subject of an ERISA-Qualifying Underwriting, a
representation that the transferee is an insurance company which is purchasing
such Certificate with funds contained in an "insurance company general
account" (as such term is defined in section V(e) of Prohibited Transaction
Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and holding of
such Certificate satisfy the requirements for exemptive relief under Sections
I and III of PTCE 95-60 or (ii) in the case of any ERISA-Restricted
Certificate presented for registration in the name of an employee benefit plan
or arrangement subject to ERISA, or a plan or arrangement subject to Section
4975 of the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan or arrangement or any other person acting on behalf
of any such plan or arrangement, an Opinion of Counsel satisfactory to the
Trustee, addressed to the Trustee and the Master Servicer, to the effect that
the purchase and holding of such ERISA-Restricted Certificate will not result
in a non-exempt prohibited transaction under ERISA or the Code and will not
subject the Trustee or the Master Servicer to any obligation in addition to
those expressly undertaken in this Agreement, which Opinion of Counsel shall
not be an expense of the Trustee, the Master Servicer, or the Trust Fund. For
purposes of the preceding sentence, one of such representations, as
appropriate, shall be deemed to have been made to the Trustee by the
transferee's acceptance of an ERISA-Restricted Certificate (or the acceptance
by a Certificate Owner of the beneficial interest in any such Class of
ERISA-Restricted Certificates) unless the Trustee shall have received from the
transferee an Opinion of Counsel as described in clause (ii) or a written
representation acceptable in form and substance to the Trustee.
Notwithstanding anything else to the contrary herein, any purported transfer
of an ERISA-Restricted Certificate to or on behalf of an employee benefit plan
subject to Section 406 of ERISA or a plan subject to Section 4975 of the Code
without the delivery to the Trustee of an Opinion of Counsel satisfactory to
the Trustee meeting the requirements of clause (i) of the first sentence of
this paragraph as described above shall be void and of no effect. The Trustee
shall be under no liability to any Person for any registration of transfer of
any ERISA-Restricted Certificate that is in fact not permitted by this Section
5.02(b) or for making any payments due on such Certificate to the Holder
thereof or taking any other action with respect to such Holder under the
provisions of this Agreement so long as the Trustee, with respect to the
transfer of such Classes of Certificates, required delivery of such
certificates and other documentation or evidence as are expressly required by
the terms of this Agreement and examined such certificates and other
documentation or evidence to determine compliance as to form with the express
requirements hereof. The Trustee shall be entitled, but not obligated, to
recover from any Holder of any

                                     132
<PAGE>

ERISA-Restricted Certificate that was in fact an employee benefit plan or
arrangement subject to Section 406 of ERISA or a plan or arrangement subject
to Section 4975 of the Code or a Person acting on behalf of any such plan or
arrangement at the time it became a Holder or, at such subsequent time as it
became such a plan or arrangement or Person acting on behalf of such a plan or
arrangement, all payments made on such ERISA-Restricted Certificate at and
after either such time. Any such payments so recovered by the Trustee shall be
paid and delivered by the Trustee to the last preceding Holder of such
Certificate that is not such a plan or arrangement or Person acting on behalf
of a plan or arrangement.

          Until the Swap Trust and the Final Maturity Reserve Fund terminate,
no transfer of an Interest-Bearing Certificate that is not an ERISA-Restricted
Certificate (other than a transfer of an Interest-Bearing Certificate to an
affiliate of the Depositor (either directly or through a nominee) in
connection with the initial issuance of the Certificates) shall be made unless
the Trustee shall have received either (i) a written representation from the
transferee of such Interest-Bearing Certificate acceptable to and in form and
substance satisfactory to the Trustee to the effect that such transferee is
not a Plan, or (ii) a written representation that the purchase and holding of
the Interest-Bearing Certificate satisfy the requirements for exemptive relief
under PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the service
provider exemption provided under Section 408(b)(17) of ERISA and Section
4975(d)(20) of the Code or a similar exemption. In the event that such
representation is not delivered, one of the foregoing representations, as
appropriate, shall be deemed to have been made by the transferee's (including
an initial acquiror's) acceptance of the Interest-Bearing Certificate. In the
event that such representation is violated, such transfer or acquisition shall
be void and of no effect.

          Each Plan that acquires a Private Certificate (or any beneficial
interest therein) that is not an ERISA-Restricted Certificate will be required
to deliver to the Trustee or its transferor a representation that it is an
"accredited investor" as defined in Rule 501(a)(1) under the Securities Act,
and each investor that acquires a Private Certificate (or any beneficial
interest therein) that is not an ERISA-Restricted Certificate will be required
to deliver to the Trustee or its transferor an agreement to obtain from its
transferee such a representation and agreement. For purposes of the preceding
sentence, any investor acquiring a Private Certificate (or any beneficial
interest therein) that is not an ERISA-Restricted Certificate shall be deemed
to have made to the Trustee or its transferor the representation and agreement
set forth in the preceding sentence by the transferee's acceptance of such
Certificate (or beneficial interest therein).

          (c) Each Person who has or who acquires any Ownership Interest in a
Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

               (1) Each Person holding or acquiring any Ownership Interest in
     a Class A-R Certificate shall be a Permitted Transferee and shall
     promptly notify the Trustee of any change or impending change in its
     status as a Permitted Transferee.

               (2) Except in connection with (i) the registration of the Tax
     Matters Person Certificate in the name of the Trustee or (ii) any
     registration in the name of, or transfer of a Class A-R Certificate to,
     an affiliate of the Depositor (either directly or

                                     133
<PAGE>

     through a nominee) in connection with the initial issuance of the
     Certificates, no Ownership Interest in a Class A-R Certificate may be
     registered or transferred, and the Trustee shall not register the
     Transfer of any Class A-R Certificate, unless the Trustee shall have been
     furnished with a certificate (a "Transferor Certificate") of the
     transferor in the form attached hereto as Exhibit J-1 and an affidavit (a
     "Transfer Affidavit") of the initial owner or the proposed transferee in
     the form attached hereto as Exhibit I.

               (3) Each Person holding or acquiring any Ownership Interest in
     a Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit
     from any other Person to whom such Person attempts to Transfer its
     Ownership Interest in a Class A-R Certificate, (B) to obtain a Transfer
     Affidavit from any Person for whom such Person is acting as nominee,
     trustee or agent in connection with any Transfer of a Class A-R
     Certificate and (C) not to Transfer its Ownership Interest in a Class A-R
     Certificate, or to cause the Transfer of an Ownership Interest in a Class
     A-R Certificate to any other Person, if it has actual knowledge that such
     Person is not a Permitted Transferee or that such Transfer Affidavit is
     false.

               (4) Any attempted or purported Transfer of any Ownership
     Interest in a Class A-R Certificate in violation of the provisions of
     this Section 5.02(c) shall be absolutely null and void and shall vest no
     rights in the purported Transferee. If any purported transferee shall
     become a Holder of a Class A-R Certificate in violation of the provisions
     of this Section 5.02(c), then the last preceding Permitted Transferee
     shall be restored to all rights as Holder thereof retroactive to the date
     of registration of Transfer of such Class A-R Certificate. The Trustee
     shall be under no liability to any Person for any registration of
     Transfer of a Class A-R Certificate that is in fact not permitted by
     Section 5.02(b) and this Section 5.02(c) or for making any payments due
     on such Certificate to the Holder thereof or taking any other action with
     respect to such Holder under the provisions of this Agreement so long as
     the Transfer was registered after receipt of the related Transfer
     Affidavit and Transferor Certificate. The Trustee shall be entitled but
     not obligated to recover from any Holder of a Class A-R Certificate that
     was in fact not a Permitted Transferee at the time it became a Holder or,
     at such subsequent time as it became other than a Permitted Transferee,
     all payments made on such Class A-R Certificate at and after either such
     time. Any such payments so recovered by the Trustee shall be paid and
     delivered by the Trustee to the last preceding Permitted Transferee of
     such Certificate.

               (5) The Master Servicer shall use its best efforts to make
     available, upon receipt of written request from the Trustee, all
     information necessary to compute any tax imposed under section 860E(e) of
     the Code as a result of a Transfer of an Ownership Interest in a Class
     A-R Certificate to any Holder who is not a Permitted Transferee.

          The restrictions on Transfers of a Class A-R Certificate set forth
in this Section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, any Seller or
the Master Servicer, to the effect that the elimination of such restrictions
will not cause any REMIC

                                     134
<PAGE>

formed hereunder to fail to qualify as a REMIC at any time that the
Certificates are outstanding or result in the imposition of any tax on the
Trust Fund, a Certificateholder or another Person. Each Person holding or
acquiring any Ownership Interest in a Class A-R Certificate, by acceptance of
its Ownership Interest, shall be deemed to consent to any amendment of this
Agreement that, based on an Opinion of Counsel furnished to the Trustee, is
reasonably necessary (a) to ensure that the record ownership of, or any
beneficial interest in, a Class A-R Certificate is not transferred, directly
or indirectly, to a Person that is not a Permitted Transferee and (b) to
provide for a means to compel the Transfer of a Class A-R Certificate that is
held by a Person that is not a Permitted Transferee to a Holder that is a
Permitted Transferee.

          (d) The preparation and delivery of all affidavits, certifications
and opinions referred to above in this Section 5.02 shall not be an expense of
the Trust Fund, the Trustee, the Depositor, any Seller or the Master Servicer.

          Section 5.03 Mutilated, Destroyed, Lost or Stolen Certificates.

          If (a) any mutilated Certificate is surrendered to the Trustee, or
the Trustee receives evidence to its satisfaction of the destruction, loss or
theft of any Certificate and of the ownership thereof and (b) there is
delivered to the Master Servicer and the Trustee such security or indemnity as
may be required by them to save each of them harmless, then, in the absence of
notice to the Trustee that such Certificate has been acquired by a bona fide
purchaser, the Trustee shall execute, authenticate and deliver, in exchange
for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a
new Certificate of like Class, tenor and Percentage Interest. In connection
with the issuance of any new Certificate under this Section 5.03, the Trustee
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Any replacement Certificate issued pursuant to this Section 5.03 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
Trustee under the terms of this Section 5.03 shall be canceled and destroyed
by the Trustee in accordance with its standard procedures without liability on
its part.

          Section 5.04 Persons Deemed Owners.

          The Master Servicer, the Trustee, the NIM Insurer and any agent of
the Master Servicer, the Trustee or the NIM Insurer 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 Master Servicer, the Trustee,
the NIM Insurer or any agent of the Master Servicer, the Trustee or the NIM
Insurer shall be affected by any notice to the contrary.

          Section 5.05 Access to List of Certificateholders' Names and
                       Addresses.

          If three or more Certificateholders or Certificate Owners (a)
request such information in writing from the Trustee, (b) state that such
Certificateholders or Certificate Owners desire to communicate with other
Certificateholders or Certificate Owners with respect

                                     135
<PAGE>

to their rights under this Agreement or under the Certificates and (c) provide
a copy of the communication that such Certificateholders or Certificate Owners
propose to transmit or if the Depositor or Master Servicer shall request such
information in writing from the Trustee, then the Trustee shall, within ten
Business Days after the receipt of such request, provide the Depositor, the
Master Servicer or such Certificateholders or Certificate Owners at such
recipients' expense the most recent list of the Certificateholders of the
Trust Fund held by the Trustee, if any. The Depositor and every
Certificateholder or Certificate Owner, by receiving and holding a
Certificate, agree that the Trustee shall not be held accountable by reason of
the disclosure of any such information as to the list of the
Certificateholders hereunder, regardless of the source from which such
information was derived.

          Section 5.06 Book-Entry Certificates.

          The Book-Entry Certificates, upon original issuance, shall be issued
in the form of one typewritten Certificate (or more than one, if required by
the Depository) for each Class of such 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 5.08. Unless and until definitive,
fully registered Certificates ("Definitive Certificates") have been issued to
the Certificate Owners of such Certificates pursuant to Section 5.08:

          (a) the provisions of this Section shall be in full force and
effect;

          (b) the Depositor, the Sellers, the Master Servicer and the Trustee
may deal with the Depository and the Depository Participants for all purposes
(including the making of distributions) as the authorized representative of
the respective Certificate Owners of such Certificates;

          (c) registration of the Book-Entry Certificates may not be
transferred by the Trustee except to another Depository;

          (d) the rights of the respective Certificate Owners of such
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to 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 5.08, the
Depository will make book-entry transfers among the Depository Participants
and receive and transmit distributions of principal and interest on the
related Certificates to such Depository Participants;

          (e) the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

          (f) the Trustee may rely and shall be fully protected in relying
upon information furnished by the Depository with respect to its Depository
Participants; and

          (g) to the extent the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

                                     136
<PAGE>

          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 (or, in
the case of the Class B Certificates, by Certificate Owners (acting through
the Depository and the Depository Participants) owning Book-Entry Certificates
and by Certificateholders (other than the Depository) owning Definitive
Certificates).

          Section 5.07 Notices to Depository.

          Whenever any notice or other communication is required to be given
to Certificateholders of any Class with respect to which Book-Entry
Certificates have been issued, unless and until Definitive Certificates shall
have been issued to the related Certificate Owners, the Trustee shall give all
such notices and communications to the Depository.

          Section 5.08 Definitive Certificates.

          If, after Book-Entry Certificates have been issued with respect to
any Certificates, (a) the Depositor advises the Trustee that the Depository is
no longer willing or able to discharge properly its responsibilities under the
Depository Agreement with respect to such Certificates and the Trustee or the
Depositor is unable to locate a qualified successor or (b) after the
occurrence and continuation of an Event of Default, Certificate Owners of such
Book-Entry Certificates having not less than 51% of the Voting Rights
evidenced by any Class of Book-Entry Certificates advise the Trustee and the
Depository in writing through the Depository Participants that the
continuation of a book-entry system with respect to Certificates of such Class
through the Depository (or its successor) is no longer in the best interests
of the Certificate Owners of such Class, then the Trustee shall notify all
Certificate Owners of such Certificates, through the Depository, of the
occurrence of any such event and of the availability of Definitive
Certificates to Certificate Owners of such Class requesting the same. The
Depositor shall provide the Trustee with an adequate inventory of Certificates
to facilitate the issuance and transfer of Definitive Certificates. Upon
surrender to the Trustee of any such Certificates by the Depository,
accompanied by registration instructions from the Depository for registration,
the Trustee shall authenticate and deliver such Definitive Certificates.
Neither the Depositor nor the Trustee shall be liable for any delay in
delivery of such instructions and each may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of such
Definitive Certificates, all references herein to obligations imposed upon or
to be performed by the Depository shall be deemed to be imposed upon and
performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates and the Trustee shall recognize the Holders of such
Definitive Certificates as Certificateholders hereunder.

          Section 5.09 Maintenance of Office or Agency.

          The Trustee will maintain or cause to be maintained at its expense
an office or offices or agency or agencies in New York City where Certificates
may be surrendered for registration of transfer or exchange. The Trustee
initially designates its offices at 101 Barclay

                                     137
<PAGE>

Street, New York, New York 10286, Attention: Corporate Trust MBS
Administration, as offices for such purposes. The Trustee will give prompt
written notice to the Certificateholders of any change in such location of any
such office or agency.

                                  ARTICLE VI.
              THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

          Section 6.01 Respective Liabilities of the Depositor, the Master
                       Servicer and the Sellers.

          The Depositor, the Master Servicer and each Seller shall each be
liable in accordance herewith only to the extent of the obligations
specifically and respectively imposed upon and undertaken by them herein.

          Section 6.02 Merger or Consolidation of the Depositor, the Master
                       Servicer or the Sellers.

          The Depositor will keep in full effect its existence, rights and
franchises as a corporation under the laws of the United States or under the
laws of one of the states thereof and will each obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its duties under this Agreement. The Master Servicer will keep in effect its
existence, rights and franchises as a limited partnership under the laws of
the United States or under the laws of one of the states thereof and will
obtain and preserve its qualification or registration to do business as a
foreign partnership in each jurisdiction in which such qualification or
registration is or shall be necessary to protect the validity and
enforceability of this Agreement or any of the Mortgage Loans and to perform
its duties under this Agreement.

          Any Person into which the Depositor, the Master Servicer or any
Seller may be merged or consolidated, or any Person resulting from any merger
or consolidation to which the Depositor, the Master Servicer or any Seller
shall be a party, or any person succeeding to the business of the Depositor,
the Master Servicer or any Seller, shall be the successor of the Depositor,
the Master Servicer or such Seller, as the case may be, hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding; provided that
the successor or surviving Person to the Master Servicer shall be qualified to
service mortgage loans on behalf of Fannie Mae and Freddie Mac.

          As a condition to the effectiveness of any merger or consolidation,
at least 15 calendar days prior to the effective date of any merger or
consolidation of the Master Servicer, the Master Servicer shall provide (x)
written notice to the Depositor of any successor pursuant to this Section and
(y) in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to a replacement Master Servicer.

                                     138
<PAGE>

          Section 6.03 Limitation on Liability of the Depositor, the Sellers,
                       the Master Servicer, the NIM Insurer and Others.

          None of the Depositor, the Sellers, the NIM Insurer or the Master
Servicer or any of the directors, officers, employees or agents of the
Depositor, the Sellers, the NIM Insurer or the Master Servicer shall be under
any liability to the Trustee (except as provided in Section 8.05), the Trust
Fund or the Certificateholders for any action taken or for refraining from the
taking of any action in good faith pursuant to this Agreement, or for errors
in judgment; provided that this provision shall not protect the Depositor, the
Sellers, the Master Servicer or any such Person against any breach of
representations or warranties made by it herein or protect the Depositor, the
Sellers, the Master Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Depositor, the Sellers, the NIM Insurer,
the Master Servicer and any director, officer, employee or agent of the
Depositor, the Sellers, the NIM Insurer or 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. The
Depositor, the Sellers, the NIM Insurer, the Master Servicer and any director,
officer, employee or agent of the Depositor, the Sellers, the NIM Insurer or
the Master Servicer shall be indemnified by the Trust Fund and held harmless
against any loss, liability or expense incurred in connection with any audit,
controversy or judicial proceeding relating to a governmental taxing authority
or any legal action relating to this Agreement or the Certificates, other than
any loss, liability or expense related to any specific Mortgage Loan or
Mortgage Loans (except as any such loss, liability or expense shall be
otherwise reimbursable pursuant to this Agreement) and any loss, liability or
expense incurred by reason of willful misfeasance, bad faith or gross
negligence in the performance of duties hereunder or by reason of reckless
disregard of obligations and duties hereunder. None of the Depositor, the
Sellers, the NIM Insurer or the Master Servicer shall be under any obligation
to appear in, prosecute or defend any legal action that is not incidental to
its respective duties hereunder and that in its opinion may involve it in any
expense or liability; provided that any of the Depositor, the Sellers, the NIM
Insurer or the Master Servicer may, in its discretion undertake any such
action that it may deem necessary or desirable in respect of this Agreement
and the rights and duties of the parties hereto and interests of the Trustee
and the Certificateholders hereunder. In such event, the legal expenses and
costs of such action and any liability resulting therefrom shall be, expenses,
costs and liabilities of the Trust Fund, and the Depositor, the Sellers, the
NIM Insurer and the Master Servicer shall be entitled to be reimbursed
therefor out of the Certificate Account as provided by Section 3.08 hereof.

          Section 6.04 Limitation on Resignation of Master Servicer.

          The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that its duties hereunder
are no longer permissible under applicable law or (ii) upon appointment of a
successor servicer that is reasonably acceptable to the Trustee and the NIM
Insurer and the written confirmation from each Rating Agency (which
confirmation shall be furnished to the Depositor, the Trustee and the NIM
Insurer) that such resignation will not cause such Rating Agency to reduce the
then-current rating of the Certificates. Any such determination pursuant to
clause (i) of the preceding sentence permitting the resignation of the Master
Servicer shall be evidenced by an Opinion of Counsel to

                                     139
<PAGE>

such effect delivered to the Trustee. No resignation of the Master Servicer
shall become effective until the Trustee 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 and the Depositor shall have received the information described in
the following sentence. As a condition to the effectiveness of any such
resignation, at least 15 calendar days prior to the effective date of such
resignation, the Master Servicer shall provide (x) written notice to the
Depositor of any successor pursuant to this Section and (y) in writing and in
form and substance reasonably satisfactory to the Depositor, all information
reasonably requested by the Depositor in order to comply with its reporting
obligation under Item 6.02 of Form 8-K with respect to the resignation of the
Master Servicer.

          Section 6.05 Errors and Omissions Insurance; Fidelity Bonds.

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

          The Master Servicer shall provide the Trustee and the NIM Insurer
(upon such party's reasonable request) with copies of any such insurance
policies and fidelity bond. The Master Servicer shall be deemed to have
complied with this provision if an Affiliate of the Master Servicer has such
errors and omissions and fidelity bond coverage and, by the terms of such
insurance policy or fidelity bond, the coverage afforded thereunder extends to
the Master Servicer.

                                 ARTICLE VII.
                    DEFAULT; TERMINATION OF MASTER SERVICER

          Section 7.01 Events of Default.

          "Event of Default," wherever used herein, means any one of the
following events:

               (1) any failure by the Master Servicer to deposit in the
     Certificate Account or the Distribution Account or remit to the Trustee
     any payment (excluding a payment required to be made under Section 4.01
     hereof) required to be made under the terms of this Agreement, which
     failure shall continue unremedied for five calendar days and, with
     respect to a payment required to be made under Section 4.01(b) or (c)
     hereof, for one Business Day, after the date on which written notice of
     such failure shall have been given to the Master Servicer by the Trustee,
     the NIM Insurer or the Depositor, or to the Trustee, the NIM Insurer and
     the Master Servicer by the Holders of Certificates evidencing not less
     than 25% of the Voting Rights; or

                                     140
<PAGE>

               (2) any failure by the Master Servicer to observe or perform in
     any material respect any other of the covenants or agreements on the part
     of the Master Servicer contained in this Agreement (except with respect
     to a failure related to a Limited Exchange Act Reporting Obligation) or
     any representation or warranty shall prove to be untrue, which failure or
     breach shall continue unremedied for a period of 60 days after the date
     on which written notice of such failure shall have been given to the
     Master Servicer by the Trustee, the NIM Insurer or the Depositor, or to
     the Trustee by the Holders of Certificates evidencing not less than 25%
     of the Voting Rights; provided, that the sixty-day cure period shall not
     apply to the initial delivery of the Mortgage File for Delay Delivery
     Mortgage Loans or the failure to repurchase or substitute in lieu
     thereof; or

               (3) a decree or order of a court or agency or supervisory
     authority having jurisdiction in the premises for the appointment of a
     receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities or similar proceedings, or for the
     winding-up or liquidation of its affairs, shall have been entered against
     the Master Servicer and such decree or order shall have remained in force
     undischarged or unstayed for a period of 60 consecutive days; or

               (4) the Master Servicer shall consent to the appointment of a
     receiver or liquidator in any insolvency, readjustment of debt,
     marshalling of assets and liabilities or similar proceedings of or
     relating to the Master Servicer or all or substantially all of the
     property of the Master Servicer; or

               (5) the Master Servicer shall admit in writing its inability to
     pay its debts generally as they become due, file a petition to take
     advantage of, or commence a voluntary case under, any applicable
     insolvency or reorganization statute, make an assignment for the benefit
     of its creditors, or voluntarily suspend payment of its obligations; or

               (6) the Master Servicer shall fail to reimburse in full the
     Trustee not later than 6:00 p.m. (New York time) on the Business Day
     following the related Distribution Date for any Advance made by the
     Trustee pursuant to Section 4.01(d) together with accrued and unpaid
     interest.

          If an Event of Default shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the
Trustee shall, but only at the direction of either the NIM Insurer or the
Holders of Certificates evidencing not less than 25% of the Voting Rights, by
notice in writing to the Master Servicer (with a copy to each Rating Agency
and the Depositor), terminate all of the rights and obligations of the Master
Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder. In
addition, if during the period that the Depositor is required to file Exchange
Act Reports with respect to the Trust Fund, the Master Servicer shall fail to
observe or perform any of the obligations that constitute a Limited Exchange
Act Reporting Obligation or the obligations set forth in Section 3.17(a) or
Section 11.07(a)(1) and (2), and such failure continues for the lesser of 10
calendar days or such period in which the applicable Exchange Act Report can
be filed timely (without taking into account any extensions), so long as such
failure

                                     141
<PAGE>

shall not have been remedied, the Trustee shall, but only at the direction of
the Depositor, terminate all of the rights and obligations of the Master
Servicer under this Agreement and in and to the Mortgage Loans and the
proceeds thereof, other than its rights as a Certificateholder hereunder. The
Depositor shall not be entitled to terminate the rights and obligations of the
Master Servicer if a failure of the Master Servicer to identify a
Subcontractor "participating in the servicing function" within the meaning of
Item 1122 of Regulation AB was attributable solely to the role or functions of
such Subcontractor with respect to mortgage loans other than the Mortgage
Loans.

          On or after the receipt by the Master Servicer of such written
notice, all authority and power of the Master Servicer hereunder, whether with
respect to the Mortgage Loans or otherwise, shall pass to and be vested in the
Trustee. The Trustee shall thereupon make any Advance described in Section
4.01 hereof subject to Section 3.04 hereof. The Trustee is hereby authorized
and empowered to execute and deliver, on behalf of the Master Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments,
and to do or accomplish all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, whether to complete the
transfer and endorsement or assignment of the Mortgage Loans and related
documents, or otherwise. Unless expressly provided in such written notice, no
such termination shall affect any obligation of the Master Servicer to pay
amounts owed pursuant to Article VIII. The Master Servicer agrees to cooperate
with the Trustee in effecting the termination of the Master Servicer's
responsibilities and rights hereunder, including, without limitation, the
transfer to the Trustee of all cash amounts which shall at the time be
credited to the Certificate Account, or thereafter be received with respect to
the Mortgage Loans. The Trustee shall promptly notify the Rating Agencies and
the Depositor of the occurrence of an Event of Default.

          Notwithstanding any termination of the activities of a Master
Servicer hereunder, such Master Servicer shall be entitled to receive, out of
any late collection of a Scheduled Payment on a Mortgage Loan that was due
prior to the notice terminating such Master Servicer's rights and obligations
as Master Servicer hereunder and received after such notice, that portion
thereof to which such Master Servicer would have been entitled pursuant to
Sections 3.08(a)(i) through (viii), and any other amounts payable to such
Master Servicer hereunder the entitlement to which arose prior to the
termination of its activities hereunder.

          If the Master Servicer is terminated, the Trustee shall provide the
Depositor in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect
to a successor master servicer in the event the Trustee should succeed to the
duties of the Master Servicer as set forth herein.

          Section 7.02 Trustee to Act; Appointment of Successor.

          On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent
provided in Section 3.04, be the successor to the Master Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Master Servicer by the terms
and provisions hereof

                                     142
<PAGE>

and applicable law including the obligation to make advances pursuant to
Section 4.01. As compensation therefor, the Trustee shall be entitled to all
fees, costs and expenses relating to the Mortgage Loans that the Master
Servicer would have been entitled to if the Master Servicer had continued to
act hereunder. Notwithstanding the foregoing, if the Trustee has become the
successor to the Master Servicer in accordance with Section 7.01 hereof, the
Trustee may, if it shall be unwilling to so act, or shall, if it is prohibited
by applicable law from making Advances pursuant to Section 4.01 hereof or if
it is otherwise unable to so act, (i) appoint any established mortgage loan
servicing institution reasonably acceptable to the NIM Insurer (as evidenced
by the prior written consent of the NIM Insurer), or (ii) if it is unable for
60 days to appoint a successor servicer reasonably acceptable to the NIM
Insurer, 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 and the NIM
Insurer guaranteed notes (without giving any effect to any policy or guaranty
provided by the NIM Insurer) by each Rating Agency as the successor to the
Master Servicer hereunder in the assumption of all or any part of the
responsibilities, duties or liabilities of the Master Servicer hereunder. Any
successor Master Servicer shall be an institution that is a Fannie Mae and
Freddie Mac approved seller/servicer in good standing, that has been approved
by each Mortgage Insurer if required, that has a net worth of at least
$15,000,000 and that is willing to service the Mortgage Loans and executes and
delivers to the Depositor and the Trustee an agreement accepting such
delegation and assignment, that contains an assumption by such Person of the
rights, powers, duties, responsibilities, obligations and liabilities of the
Master Servicer (other than liabilities and indemnities of the Master Servicer
under Section 6.03 hereof incurred prior to termination of the Master Servicer
under Section 7.01), with like effect as if originally named as a party to
this Agreement; and provided further that each Rating Agency acknowledges that
its rating of the Certificates in effect immediately prior to such assignment
and delegation will not be qualified or reduced as a result of such assignment
and delegation. No appointment of a successor to the Master Servicer hereunder
shall be effective until (i) the Trustee shall have consented thereto, (ii)
written notice of such proposed appointment shall have been provided by the
Trustee to each Certificateholder and (iii) at least 15 calendar days prior to
the effective date of such appointment, (x) the Trustee shall provide written
notice to the Depositor of such successor pursuant to this Section 7.02 and
(y) such successor Master Servicer shall provide to the Depositor in writing
and in form and substance reasonably satisfactory to the Depositor, all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
master servicer. The Trustee shall not resign as servicer until a successor
servicer has been appointed and has accepted such appointment. Pending
appointment of a successor to the Master Servicer hereunder, the Trustee,
unless the Trustee is prohibited by law from so acting, shall, subject to
Section 3.04 hereof, act in such capacity as herein above provided. In
connection with such appointment and assumption, the Trustee may make such
arrangements for the compensation of such successor out of payments on
Mortgage Loans as it and such successor shall agree; provided that no such
compensation shall be in excess of that permitted the Master Servicer
hereunder. The Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession.
Neither the Trustee nor any other successor 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

                                     143
<PAGE>

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.

          Any successor to the Master Servicer as servicer shall give notice
to the NIM Insurer and the Mortgagors of such change of servicer and shall,
during the term of its service as servicer maintain in force the policy or
policies that the Master Servicer is required to maintain pursuant to Section
6.05.

          In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the
successor Master Servicer in causing MERS to execute and deliver an assignment
of Mortgage in recordable form to transfer the Mortgage from MERS to the
Trustee and to execute and deliver such other notices, documents and other
instruments as may be necessary or desirable to effect a transfer of such
Mortgage Loan or servicing of such Mortgage Loan on the MERS(R) System to the
successor Master Servicer. The predecessor Master Servicer shall file or cause
to be filed any such assignment in the appropriate recording office. The
successor Master Servicer shall cause such assignment to be delivered to the
Trustee promptly upon receipt of the original with evidence of recording
thereon or a copy certified by the public recording office in which such
assignment was recorded.

          Section 7.03 Notification to Certificateholders.

          (a) Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

          (b) Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived.

                                 ARTICLE VIII.
                   CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

          Section 8.01 Duties of Trustee.

          The Trustee, prior to the occurrence of an Event of Default and
after the curing of all Events of Default that may have occurred, shall
undertake to perform such duties and only such duties as are specifically set
forth in this Agreement. In case an Event of Default has occurred and remains
uncured, the Trustee shall exercise such of the rights and powers vested in it
by this Agreement, and use the same degree of care and skill in their exercise
as a prudent person would exercise or use under the circumstances in the
conduct of such person's own affairs.

                                     144
<PAGE>

          The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments
furnished to the Trustee (or the Co-Trustee, to the extent provided in this
Agreement) that 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, to the extent provided in this
Agreement. If any such instrument is found not to conform to the requirements
of this Agreement in a material manner, the Trustee shall take action as it
deems appropriate to have the instrument corrected.

          No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure
to perform its obligations in compliance with this Agreement, or any liability
that would be imposed by reason of its willful misfeasance or bad faith;
provided that:

               (1) prior to the occurrence of an Event of Default, and after
     the curing of all such Events of Default that may have occurred, the
     duties and obligations of the Trustee shall be determined solely by the
     express provisions of this Agreement, the Trustee shall not be liable,
     individually or as Trustee, except for the performance of such duties and
     obligations as are specifically set forth in this Agreement, no implied
     covenants or obligations shall be read into this Agreement against the
     Trustee and the Trustee may conclusively rely, as to the truth of the
     statements and the correctness of the opinions expressed therein, upon
     any certificates or opinions furnished to the Trustee and conforming to
     the requirements of this Agreement that it reasonably believed in good
     faith to be genuine and to have been duly executed by the proper
     authorities respecting any matters arising hereunder;

               (2) the Trustee shall not be liable, individually or as
     Trustee, for an error of judgment made in good faith by a Responsible
     Officer or Responsible Officers of the Trustee, unless the Trustee was
     grossly negligent or acted in bad faith or with willful misfeasance;

               (3) the Trustee shall not be liable, individually or as
     Trustee, with respect to any action taken, suffered or omitted to be
     taken by it in good faith in accordance with the direction of the Holders
     of each Class of Certificates evidencing not less than 25% of the Voting
     Rights of such Class relating to the time, method and place of conducting
     any proceeding for any remedy available to the Trustee, or exercising any
     trust or power conferred upon the Trustee under this Agreement; and

               (4) without in any way limiting the provisions of this Section
     8.01 or Section 8.02 hereof, the Trustee shall be entitled to rely
     conclusively on the information delivered to it by the Master Servicer in
     a Trustee Advance Notice in determining whether or not it is required to
     make an Advance under Section 4.01(d), shall have no responsibility to
     ascertain or confirm any information contained in any Trustee Advance
     Notice, and shall have no obligation to make any Advance under Section
     4.01(d) in the absence of a Trustee Advance Notice or actual knowledge by
     a Responsible Officer that (A) a required Advance was not made and (B)
     such required Advance was not a Nonrecoverable Advance.

                                     145
<PAGE>

          The Trustee hereby represents, warrants, covenants and agrees that,
except as permitted by Article IX hereof, it shall not cause the Trust Fund to
consolidate or amalgamate with, or merge with or into, or transfer all or
substantially all of the Trust Fund to, another Person.

          Section 8.02 Certain Matters Affecting the Trustee.

          (a) Except as otherwise provided in Section 8.01:

               (1) the Trustee may request and rely upon and shall be
     protected in acting or refraining from acting upon any resolution,
     Officer's Certificate, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine
     and to have been signed or presented by the proper party or parties;

               (2) the Trustee may consult with counsel and any Opinion of
     Counsel shall be full and complete authorization and protection in
     respect of any action taken or suffered or omitted by it hereunder in
     good faith and in accordance with such Opinion of Counsel;

               (3) the Trustee shall not be liable, individually or as
     Trustee, 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;

               (4) prior to the occurrence of an Event of Default hereunder
     and after the curing of all Events of Default that may have occurred, the
     Trustee shall not be bound to make any investigation into the facts or
     matters stated in any resolution, certificate, statement, instrument,
     opinion, report, notice, request, consent, order, approval, bond or other
     paper or document, unless requested in writing so to do by the NIM
     Insurer or the Holders of each Class of Certificates evidencing not less
     than 25% of the Voting Rights of such Class; provided, however, that if
     the payment within a reasonable time to the Trustee of the costs,
     expenses or liabilities likely to be incurred by it in the making of such
     investigation is, in the opinion of the Trustee not reasonably assured to
     the Trustee by the NIM Insurer or such Certificateholders, the Trustee
     may require reasonable indemnity against such expense, or liability from
     the NIM Insurer or such Certificateholders as a condition to taking any
     such action;

               (5) the Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or
     through agents, accountants or attorneys;

               (6) the Trustee shall not be required to expend its own funds
     or otherwise incur any financial liability in the performance of any of
     its duties hereunder if it shall have reasonable grounds for believing
     that repayment of such funds or adequate indemnity against such liability
     is not assured to it;

                                     146
<PAGE>

               (7) the Trustee shall not be liable, individually or as
     Trustee, for any loss on any investment of funds pursuant to this
     Agreement (other than as issuer of the investment security);

               (8) the Trustee shall not be deemed to have knowledge of an
     Event of Default until a Responsible Officer of the Trustee shall have
     received written notice thereof; and

               (9) the Trustee shall be under no obligation to exercise any of
     the trusts or powers vested in it by this Agreement or to make any
     investigation of matters arising hereunder or to institute, conduct or
     defend any litigation hereunder or in relation hereto at the request,
     order or direction of the NIM Insurer or any of the Certificateholders,
     pursuant to the provisions of this Agreement, unless the NIM Insurer or
     such Certificateholders, as applicable, shall have offered to the Trustee
     reasonable security or indemnity against the costs, expenses and
     liabilities that may be incurred therein or thereby.

          (b) All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee
without the possession of any of the Certificates, or the production thereof
at the trial or other proceeding relating thereto, and any such suit, action
or proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement.

          The Depositor hereby directs the Trustee to execute, deliver and
perform its obligations under the Swap Contract Administration Agreement (in
its capacity as Swap Trustee). The Sellers, the Depositor, the Master Servicer
and the Holders of the Interest-Bearing Certificates by their acceptance of
such Certificates acknowledge and agree that the Trustee shall execute,
deliver and perform its obligations under the Swap Contract Administration
Agreement and shall do so solely in its capacity as Swap Trustee, as the case
may be, and not in its individual capacity. Every provision of this Agreement
relating to the conduct or affecting the liability of or affording protection
to the Trustee shall apply to the Trustee's execution of the Swap Contract
Administration Agreement in its capacity as Swap Trustee, and the performance
of its duties and satisfaction of its obligations thereunder.

          Section 8.03 Trustee Not Liable for Mortgage Loans.

          The recitals contained herein shall be taken as the statements of
the Depositor or the Master Servicer, as the case may be, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Agreement or of any
Mortgage Loan or related document or of MERS or the MERS(R) System other than
with respect to the Trustee's execution and authentication of the
Certificates. The Trustee shall not be accountable for the use or application
by the Depositor or the Master Servicer of any funds paid to the Depositor or
the Master Servicer in respect of the Mortgage Loans or deposited in or
withdrawn from the Certificate Account by the Depositor or the Master
Servicer.

                                     147
<PAGE>

          Section 8.04 Trustee May Own Certificates.

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

          Section 8.05 Master Servicer to Pay Trustee's Fees and Expenses.

          The Master Servicer covenants and agrees to pay or reimburse the
Trustee, upon its request, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee on behalf of the Trust Fund in
accordance with any of the provisions of this Agreement (including, without
limitation: (A) the reasonable compensation and the expenses and disbursements
of its counsel, but only for representation of the Trustee acting in its
capacity as Trustee hereunder and (B) to the extent that the Trustee must
engage persons not regularly in its employ to perform acts or services on
behalf of the Trust Fund, which acts or services are not in the ordinary
course of the duties of a trustee, paying agent or certificate registrar, in
the absence of a breach or default by any party hereto, the reasonable
compensation, expenses and disbursements of such persons, except any such
expense, disbursement or advance as may arise from its negligence, bad faith
or willful misconduct). The Trustee and any director, officer, employee or
agent of the Trustee shall be indemnified by the Master Servicer and held
harmless against any loss, liability or expense (i) incurred in connection
with any legal action relating to this Agreement or the Certificates, or in
connection with the performance of any of the Trustee's duties hereunder,
other than any loss, liability or expense incurred by reason of willful
misfeasance, bad faith or negligence in the performance of any of the
Trustee's duties hereunder or by reason of reckless disregard of the Trustee's
obligations and duties hereunder or (ii) resulting from any error in any tax
or information return prepared by the Master Servicer. Such indemnity shall
survive the termination of this Agreement or the resignation or removal of the
Trustee hereunder.

          Section 8.06 Eligibility Requirements for Trustee.

          The Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on
the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The corporation
or national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the Sellers and the Master Servicer
and their respective affiliates; provided that such corporation cannot be an

                                     148
<PAGE>

affiliate of the Master Servicer other than the Trustee in its role as
successor to the Master Servicer.

          Section 8.07 Resignation and Removal of Trustee.

          The Trustee may at any time resign and be discharged from the trusts
hereby created by (1) giving written notice of resignation to the Depositor
and the Master Servicer and by mailing notice of resignation by first class
mail, postage prepaid, to the Certificateholders at their addresses appearing
on the Certificate Register and each Rating Agency, not less than 60 days
before the date specified in such notice when, subject to Section 8.08, such
resignation is to take effect, and (2) acceptance of appointment by a
successor trustee in accordance with Section 8.08 and meeting the
qualifications set forth in Section 8.06. If no successor trustee shall have
been so appointed and have accepted appointment within 30 days after the
giving of such notice or resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee.

          As a condition to the effectiveness of any such resignation, at
least 15 calendar days prior to the effective date of such resignation, the
Trustee shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K with respect to the resignation of the Trustee.

          If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 hereof and shall fail to resign
after written request thereto by the NIM Insurer or the Depositor, (ii) the
Trustee shall become incapable of acting, or shall be adjudged as bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, (iii)(A) a tax is imposed with respect to the Trust Fund by any
state in which the Trustee or the Trust Fund is located, (B) the imposition of
such tax would be avoided by the appointment of a different trustee and (C)
the Trustee fails to indemnify the Trust Fund against such tax, or (iv) during
the period which the Depositor is required to file Exchange Act Reports with
respect to the Trust Fund, the Trustee fails to comply with its obligations
under the last sentence of Section 7.01, the preceding paragraph, Section 8.09
or Article XI and such failure is not remedied within the lesser of 10
calendar days or such period in which the applicable Exchange Act Report can
be filed timely (without taking into account any extensions), then, in the
case of clauses (i) through (iii), the Depositor, the NIM Insurer or the
Master Servicer, or in the case of clause (iv), the Depositor, may remove the
Trustee and appoint a successor trustee, reasonably acceptable to the NIM
Insurer, by written instrument, in triplicate, one copy of which instrument
shall be delivered to the Trustee, one copy of which shall be delivered to the
Master Servicer and one copy of which shall be delivered to the successor
trustee.

          The Holders evidencing at least 51% of the Voting Rights of each
Class of Certificates may at any time remove the Trustee and appoint a
successor trustee by written instrument or instruments, in triplicate, signed
by such Holders or their attorneys-in-fact duly authorized, one complete set
of which instruments shall be delivered by the successor Trustee to

                                     149
<PAGE>

the Master Servicer one complete set to the Trustee so removed, one complete
set to the successor so appointed and one complete set to the Depositor,
together with a written description of the basis for such removal. Notice of
any removal of the Trustee shall be given to each Rating Agency by the
successor Trustee.

          Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

          Section 8.08 Successor Trustee.

          Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor, its predecessor
trustee and the Master Servicer an instrument accepting such appointment
hereunder and thereupon the resignation or removal of the predecessor trustee
shall become effective and such successor trustee, without any further act,
deed or conveyance, shall become fully vested with all the rights, powers,
duties and obligations of its predecessor hereunder, with the like effect as
if originally named as trustee herein. In addition, if the Swap Contract is
still outstanding, the Person appointed as successor trustee shall execute,
acknowledge and deliver to the predecessor trustee, CHL and the Master
Servicer an instrument accepting the appointment as successor Swap Contract
Administrator under the Swap Contract Administration Agreement.

          No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee
shall be eligible under the provisions of Section 8.06 hereof, is reasonably
acceptable to the NIM Insurer, its appointment shall not adversely affect the
then-current ratings of the Certificates and has provided to the Depositor in
writing and in form and substance reasonably satisfactory to the Depositor,
all information reasonably requested by the Depositor in order to comply with
its reporting obligation under Item 6.02 of Form 8-K with respect to a
replacement Trustee. Upon acceptance of appointment by a successor trustee as
provided in this Section 8.08, the Depositor shall mail notice of the
succession of such trustee hereunder to the NIM Insurer and all Holders of
Certificates. If the Depositor fails to mail such notice within ten days after
acceptance of appointment by the successor trustee, the successor trustee
shall cause such notice to be mailed at the expense of the Depositor.

          Section 8.09 Merger or Consolidation of Trustee.

          Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any corporation succeeding to substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be eligible under the provisions of
Section 8.06 hereof without the execution or filing of any paper or further
act on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

          As a condition to the effectiveness of any merger or consolidation,
at least 15 calendar days prior to the effective date of any merger or
consolidation of the Trustee, the

                                     150
<PAGE>

Trustee shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K with respect to a replacement Trustee.

          Section 8.10 Appointment of Co-Trustee or Separate Trustee.

          Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee and reasonably acceptable to the NIM Insurer
to act as co-trustee or co-trustees jointly with the Trustee, or separate
trustee or separate trustees, of all or any part of the Trust Fund, and to
vest in such Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust Fund or any part thereof,
whichever is applicable, and, subject to the other provisions of this Section
8.10, such powers, duties, obligations, rights and trusts as the Master
Servicer and the Trustee may consider necessary or desirable. If the Master
Servicer shall not have joined in such appointment, or the NIM Insurer shall
not have approved such appointment, within 15 days after receipt by it of a
request to do so, or in the case an Event of Default shall have occurred and
be continuing, the Trustee shall have the power to make such appointment. No
co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor trustee under Section 8.06 and no notice to
Certificateholders of the appointment of any co-trustee or separate trustee
shall be required under Section 8.08.

          Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and
conditions:

               (1) All rights, powers, duties and obligations conferred or
     imposed upon the Trustee, except for the obligation of the Trustee under
     this Agreement to advance funds on behalf of the Master Servicer, shall
     be conferred or imposed upon and exercised or performed by the Trustee
     and such separate trustee or co-trustee jointly (it being understood that
     such separate trustee or co-trustee is not authorized to act separately
     without the Trustee joining in such act), except to the extent that under
     any law of any jurisdiction in which any particular act or acts are to be
     performed (whether as Trustee hereunder or as successor to the Master
     Servicer hereunder), the Trustee shall be incompetent or unqualified to
     perform such act or acts, in which event such rights, powers, duties and
     obligations (including the holding of title to the Trust Fund or any
     portion thereof in any such jurisdiction) shall be exercised and
     performed singly by such separate trustee or co-trustee, but solely at
     the direction of the Trustee;

               (2) No trustee hereunder shall be held personally liable by
     reason of any act or omission of any other trustee hereunder; and

               (3) The Trustee may at any time accept the resignation of or
     remove any separate trustee or co-trustee.

                                     151
<PAGE>

          Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement
and the conditions of this Article VIII. Each separate trustee and co-trustee
upon its acceptance of the trusts conferred, shall be vested with the estates
or property specified in its instrument of appointment, either jointly with
the Trustee or separately, as may be provided therein, subject to all the
provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording
protection to, the Trustee. Every such instrument shall be filed with the
Trustee and a copy thereof given to the Master Servicer and the Depositor.

          Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be
exercised by the Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

          Section 8.11 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 created
pursuant to the Preliminary Statement qualifies as, a "real estate mortgage
investment conduit" as defined in and in accordance with the REMIC Provisions.
In furtherance of such intention, the Trustee covenants and agrees that it
shall act as agent (and the Trustee is hereby appointed to act as agent) on
behalf of the Trust Fund and that in such capacity it shall: (a) prepare and
file, or cause to be prepared and filed, in a timely manner, a U.S. Real
Estate Mortgage Investment Conduit Income Tax 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 REMIC created hereunder containing
such information and at the times and in the manner as may be required by the
Code or state or local tax laws, regulations, or rules, and furnish or cause
to be furnished to Certificateholders the schedules, statements or information
at such times and in such manner as may be required thereby; (b) within thirty
days of the Closing Date, furnish or cause to be furnished to the Internal
Revenue Service, on Forms 8811 or as otherwise may be required by the Code,
the name, title, address, and telephone number of the person that the Holders
of the Certificates may contact for tax information relating thereto, together
with such additional information as may be required by such Form, and update
such information at the time or times in the manner required by the Code for
the Trust Fund; (c) make or cause to be made elections, on behalf of each
REMIC created hereunder to be treated as a REMIC on the federal tax return of
each such REMIC for its first taxable year (and, if necessary, under
applicable state law); (d) prepare and forward, or cause to be prepared and
forwarded, to the Certificateholders and to the Internal Revenue Service and,
if necessary, state tax authorities, all information returns and reports as
and when required to be provided to them in accordance with the REMIC
Provisions, including without limitation, the calculation of any original
issue discount using the Prepayment Assumption; (e) provide information
necessary for the computation of tax imposed on the transfer of a Class A-R
Certificate to a Person that is not a Permitted Transferee, or an agent

                                     152
<PAGE>

(including a broker, nominee or other middleman) of a Non-Permitted
Transferee, or a pass-through entity in which a Non-Permitted Transferee is
the record holder of an interest (the reasonable cost of computing and
furnishing such information may be charged to the Person liable for such tax);
(f) to the extent that they are under its control conduct the affairs of the
Trust Fund at all times that any Certificates are outstanding so as to
maintain the status of each REMIC created hereunder as a REMIC under the REMIC
Provisions; (g) not knowingly or intentionally take any action or omit to take
any action that would cause the termination of the REMIC status of any REMIC
created hereunder; (h) pay, from the sources specified in the third paragraph
of this Section 8.11, the amount of any federal, state and local taxes,
including prohibited transaction taxes as described below, imposed on any
REMIC created hereunder prior to the termination of the Trust Fund when and as
the same shall be due and payable (but such obligation shall not prevent the
Trustee or any other appropriate Person from contesting any such tax in
appropriate proceedings and shall not prevent the Trustee from withholding
payment of such tax, if permitted by law, pending the outcome of such
proceedings); (i) sign or cause to be signed federal, state or local income
tax or information returns; (j) maintain records relating to each REMIC
created hereunder, including but not limited to the income, expenses, assets
and liabilities of each such REMIC, and the fair market value 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; and (k) as and when necessary and
appropriate, 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 created 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 any REMIC created
hereunder in relation to any tax matter involving any such REMIC.

          In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten days after the Closing Date all information or data that the
Trustee requests in writing and determines to be relevant for tax purposes to
the valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows
of the Certificates and the Mortgage Loans (and, to the extent not part of the
aforementioned, the information referred to in paragraphs (1), (2), (3)and (4)
of Section 4.05(d)). Thereafter, the Depositor shall provide to the Trustee
promptly upon written request therefor, any such additional information or
data that the Trustee may, from time to time, request in order to enable the
Trustee to perform its duties as set forth herein. The Depositor hereby
indemnifies the Trustee for any losses, liabilities, damages, claims or
expenses of the Trustee arising from any errors or miscalculations of the
Trustee that result from any failure of the Depositor to provide, or to cause
to be provided, accurate information or data to the Trustee on a timely basis.

          In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund 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 the Trust Fund 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 the Trust Fund pursuant to sections 23153 and 24872 of the
California Revenue and Taxation Code if not paid as otherwise provided for
herein, such tax shall be paid by (i) the Trustee, if any such

                                     153
<PAGE>

other tax arises out of or results from a breach by the Trustee of any of its
obligations under this Agreement, (ii) (x) the Master Servicer, in the case of
any such minimum tax, and (y) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or (iii) in all other
cases, or in the event that any liable party here 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 A-R
Certificateholders, and second with amounts otherwise to be distributed to all
other Certificateholders in the same manner as if such tax were a Realized
Loss that occurred ratably within each Loan Group. Notwithstanding anything to
the contrary contained herein, to the extent that such tax is payable by the
Class A-R Certificates, the Trustee is hereby authorized to retain on any
Distribution Date, from the Holders of the Class A-R Certificates (and, if
necessary, second, from the Holders of all other Certificates in the priority
specified in the preceding sentence), funds otherwise distributable to such
Holders in an amount sufficient to pay such tax. The Trustee agrees to
promptly notify in writing the party liable for any such tax of the amount
thereof and the due date for the payment thereof.

          The Trustee shall treat the Carryover Reserve Fund and the Swap
Trust, including the Swap Account, as outside reserve funds within the meaning
of Treasury Regulation 1.860G-2(h), neither of which is an asset of any REMIC
created hereunder. The Carryover Reserve Fund shall be treated as owned by the
Class C Certificateholders and the Swap Trust, including the Swap Account,
shall be treated as owned by the Class C Certificateholders. The rights of the
Holders of each Class of Certificates (other than the Class P and Class A-R
Certificates) to receive payments from, and the deemed obligations of such
Holders to make payments to, the Carryover Reserve Fund or the Swap Trust,
including the Swap Account, shall be treated as rights and obligations with
respect to notional principal contracts written by the Holders of the Class C
Certificates in respect of any Net Rate Carryover distributed pursuant to
Sections 4.04(c)(4), and (ii) the Swap Counterparty in respect of any Net Rate
Carryover funded by the Swap Contract and in respect of any residual payments
from such Swap Contract received by the Class C Certificates. Thus, the
Certificates (other than the Class P and Class A-R Certificates), shall be
treated as representing ownership of Master REMIC regular interests coupled
with contractual rights and obligations within the meaning of Treasury
Regulation 1.860G-2(i). For purposes of determining the issue price of the
various Master REMIC regular interests, the Trustee shall assume that the Swap
Contract has a value of $2,435,000. Any differences in the distributions to a
Certificateholder (positive or negative) that would result from the
application of the Strip REMIC Cap rather than the applicable Net Rate Cap
shall be treated by the Trustee as reconciled among the Certificates by swap
payments made pursuant to notional principal contracts entered into among the
Certificateholders.

          The Trustee shall treat the entitlement to Credit Comeback Excess
Amounts as owned by the Holders of the Class C Certificates and not as an
asset of, or interest in, any REMIC created hereunder. Further, the Trustee
shall treat any payments of Credit Comeback Excess Amounts to Persons other
than the Holders of the Class C Certificates as payments made by the Holders
of the Class C Certificates pursuant to a credit enhancement contract under
Treasury Regulation 1.860G-2(c). The Trustee shall also treat any amount
payable to a Class C Certificate with respect to the STR-C-OC Interest as
deposited into the Carryover Reserve Fund. To the extent the amount payable
with respect to the Swap Contract exceeds the amount payable with respect to
the Class C Certificates, the Trustee, for federal income tax purposes, shall
treat

                                     154
<PAGE>

such excess as Realized Losses from Mortgage Loans and to the extent such
Realized Losses (if they had occurred) would be allocated to a
Certificateholder, the Trustee shall treat such amount as first payable to the
Certificateholder as principal and as then payable by the Certificateholder
with respect to a notional principal contract.

          The Trustee shall treat the Final Maturity Reserve Fund as an
outside reserve fund within the meaning of Treasury Regulation 1.860G-2(h)
that is owned by the Holders of the Class C Certificates, and that is not an
asset of any REMIC created hereunder. Beginning on the Distribution Date in
January 2017, the Trustee shall treat any monies payable to the Class C
Certificateholders with respect to their interest in the STR-C-40 Year IO, as
first paid to the Class C Certificates and then deposited in the Final
Maturity Reserve Fund. Any monies payable on the STR-C-40 Year IO in excess of
the Final Maturity Required Deposit shall be the "Excess Deposit." For income
tax purposes, to the extent the amount of any Excess Deposit is payable to
Holders of Certificates other than the Class C Certificates, such amount shall
be treated as payable to such Holders as Net Rate Carryover and any remaining
amount of Excess Deposit shall be treated as payable to the Holders of the
Class C Certificates. Any other monies received by the Holders of the
Interest-Bearing Certificates from the Final Maturity Reserve Fund will be
treated as monies paid by the Holders of the Class C Certificates to acquire
the Interest-Bearing Certificates receiving such monies. Thus, with respect to
such other monies, the Interest-Bearing Certificates and the Class C
Certificates shall be treated as representing ownership of not only a Master
REMIC regular interest, but also ownership of an interest in a forward
purchase contract and the Trustee shall treat the rights of the holders of the
Interest-Bearing Certificates to receive such other monies from the Final
Maturity Reserve Fund as rights in forward purchase contracts entered into
with the Holders of the Class C Certificates.

          Section 8.12 Co-Trustee.

          (a) The Co-Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments
furnished to the Co-Trustee that 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, to the extent
required by this Agreement. If any such instrument is found not to conform to
the requirements of this Agreement in a material manner, the Co-Trustee shall
take action as it deems appropriate to have the instrument corrected. In
addition, the Co-Trustee shall act as the insured under each Mortgage
Insurance Policy and hereby directs the Master Servicer, on behalf of the
Co-Trustee, to take all actions appropriate or required of the Co-Trustee
under each Mortgage Insurance Policy, other than the payment of each Mortgage
Insurance Premium and obtaining the approval of each Mortgage Insurer with
respect to the appointment of a successor servicer.

          (b) No provision of this Agreement shall be construed to relieve the
Co-Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure
to perform its obligations in compliance with this Agreement, or any liability
that would be imposed by reason of its willful misfeasance or bad faith;
provided that:

               (1) the duties and obligations of the Co-Trustee shall be
     determined solely by the express provisions of this Agreement with the
     exception of Section 8.10, the

                                     155
<PAGE>

     Co-Trustee shall not be liable, individually or as Co-Trustee, except for
     the performance of such duties and obligations as are specifically set
     forth in this Agreement, no implied covenants or obligations shall be
     read into this Agreement against the Co-Trustee and the Co-Trustee may
     conclusively rely, as to the truth of the statements and the correctness
     of the opinions expressed therein, upon any certificates or opinions
     furnished to the Co-Trustee and conforming to the requirements of this
     Agreement that it reasonably believed in good faith to be genuine and to
     have been duly executed by the proper authorities respecting any matters
     arising hereunder; and

               (2) the Co-Trustee shall not be liable, individually or as
     Co-Trustee, for an error of judgment made in good faith by a Responsible
     Officer or Responsible Officers of the Co-Trustee, unless the Co-Trustee
     was grossly negligent or acted in bad faith or with willful misfeasance.

          (c) Except as otherwise provided in paragraph (b) above:

               (1) the Co-Trustee may request and rely upon and shall be
     protected in acting or refraining from acting upon any resolution,
     Officer's Certificate, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine
     and to have been signed or presented by the proper party or parties;

               (2) the Co-Trustee may consult with counsel and any Opinion of
     Counsel shall be full and complete authorization and protection in
     respect of any action taken or suffered or omitted by it hereunder in
     good faith and in accordance with such Opinion of Counsel;

               (3) the Co-Trustee shall not be liable, individually or as
     Co-Trustee, 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;

               (4) the Co-Trustee shall not be bound to make any investigation
     into the facts or matters stated in any resolution, certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     approval, bond or other paper or document;

               (5) the Co-Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or
     through agents, accountants or attorneys; and

               (6) the Co-Trustee shall not be required to expend its own
     funds or otherwise incur any financial liability in the performance of
     any of its duties hereunder if it shall have reasonable grounds for
     believing that repayment of such funds or adequate indemnity against such
     liability is not assured to it.

          (d) The recitals contained herein shall be taken as the statements
of the Depositor or the Master Servicer, as the case may be, and the
Co-Trustee assumes no responsibility for their correctness. The Co-Trustee
makes no representations as to the validity

                                     156
<PAGE>

or sufficiency of this Agreement or of any Mortgage Loan or related document
or of MERS or the MERS(R) System. The Co-Trustee shall not be accountable for
the use or application by the Depositor or the Master Servicer of any funds
paid to the Depositor or the Master Servicer in respect of the Mortgage Loans
or deposited in or withdrawn from the Certificate Account by the Depositor or
the Master Servicer.

          (e) The Co-Trustee in its individual or any other capacity may
become the owner or pledgee of Certificates with the same rights as it would
have if it were not the Co-Trustee.

          (f) The Master Servicer covenants and agrees (i) to pay to the
Co-Trustee from time to time, and the Co-Trustee shall be entitled to, such
compensation as shall be agreed in writing by the Master Servicer and the
Co-Trustee (which shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust) for all services rendered
by it in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Co-Trustee and
(ii) to pay or reimburse the Co-Trustee, upon its request, for all reasonable
expenses, disbursements and advances incurred or made by the Co-Trustee on
behalf of the Trust Fund in accordance with any of the provisions of this
Agreement (including, without limitation: (A) the reasonable compensation and
the expenses and disbursements of its counsel, but only for representation of
the Co-Trustee acting in its capacity as Co-Trustee hereunder and (B) to the
extent that the Co-Trustee must engage persons not regularly in its employ to
perform acts or services on behalf of the Trust Fund, which acts or services
are not in the ordinary course of the duties of a trustee, paying agent or
certificate registrar, in the absence of a breach or default by any party
hereto, the reasonable compensation, expenses and disbursements of such
persons, except any such expense, disbursement or advance as may arise from
its negligence, bad faith or willful misconduct). The Co-Trustee and any
director, officer, employee or agent of the Co-Trustee shall be indemnified by
the Master Servicer and held harmless against any loss, liability or expense
(i) incurred in connection with any legal action relating to this Agreement or
the Certificates, or in connection with the performance of any of the
Co-Trustee's duties hereunder, other than any loss, liability or expense
incurred by reason of willful misfeasance, bad faith or negligence in the
performance of any of the Co-Trustee's duties hereunder or by reason of
reckless disregard of the Co-Trustee's obligations and duties hereunder and
(ii) resulting from any error in any tax or information return prepared by the
Master Servicer. Such indemnity shall survive the termination of this
Agreement or the resignation or removal of the Co-Trustee hereunder.

          (g) The Co-Trustee hereunder shall, at all times, be a corporation
or association organized and doing business under the laws of a state or the
United States of America, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least $50,000,000,
subject to supervision or examination by federal or state authority and with a
credit rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on
the Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.12 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition

                                     157
<PAGE>

so published. In case at any time the Co-Trustee shall cease to be eligible in
accordance with the provisions of this Section 8.12, the Co-Trustee shall
resign immediately in the manner and with the effect specified in paragraph
(h) below. The corporation or national banking association serving as
Co-Trustee may have normal banking and trust relationships with the Depositor,
the Sellers and the Master Servicer and their respective affiliates; provided
that such corporation cannot be an affiliate of the Master Servicer other than
the Trustee in its role as successor to the Master Servicer.

          (h) The Co-Trustee may at any time resign and be discharged from the
trusts hereby created by giving 30 days prior written notice of resignation to
the Trustee, the Depositor and the Master Servicer. Upon such resignation the
Trustee (x) may appoint a successor Co-Trustee meeting the requirements in
paragraph (g) above and acceptable to the Master Servicer and the NIM Insurer
(in their sole discretion), so long as such Co-Trustee executes and delivers
to the other parties hereto an instrument agreeing to be bound by the
provisions of this Agreement or (y) may if permitted by the Master Servicer
(in its sole discretion) assume the rights and duties of the resigning
Co-Trustee so long as the Trustee executes and delivers an instrument to that
effect.

          Section 8.13 Access to Records of the Trustee.

          The Trustee and the Co-Trustee shall afford the Sellers, the
Depositor, the Master Servicer, the NIM Insurer and each Certificate Owner
upon reasonable notice during normal business hours access to all records
maintained by the Trustee or the Co-Trustee in respect of its duties under
this Agreement and access to officers of the Trustee and the Co-Trustee
responsible for performing its duties. Upon request, the Trustee or the
Co-Trustee shall furnish the Depositor, the Master Servicer, the NIM Insurer
and any requesting Certificate Owner with its most recent financial
statements. The Trustee and the Co-Trustee shall cooperate fully with the
Sellers, the Master Servicer, the Depositor, the NIM Insurer and the
Certificate Owner for review and copying any books, documents, or records
requested with respect to the Trustee's and the Co-Trustee's respective duties
under this Agreement. The Sellers, the Depositor, the Master Servicer and the
Certificate Owner shall not have any responsibility or liability for any
action for failure to act by the Trustee or the Co-Trustee and are not
obligated to supervise the performance of the Trustee or the Co-Trustee under
this Agreement or otherwise.

          Section 8.14 Suits for Enforcement.

          If an Event of Default or other material default by the Master
Servicer or the Depositor under this Agreement occurs and is continuing, at
the direction of the Certificateholders holding not less than 51% of the
Voting Rights or the NIM Insurer, the Trustee shall proceed to protect and
enforce its rights and the rights of the Certificateholders or the NIM Insurer
under this Agreement by a suit, action, or proceeding in equity or at law or
otherwise, whether for the specific performance of any covenant or agreement
contained in this Agreement or in aid of the execution of any power granted in
this Agreement or for the enforcement of any other legal, equitable, or other
remedy, as the Trustee, being advised by counsel, and subject to the
foregoing, shall deem most effectual to protect and enforce any of the rights
of the Trustee, the NIM Insurer and the Certificateholders.

                                     158
<PAGE>

                                  ARTICLE IX.
                                  TERMINATION

          Section 9.01 Termination upon Liquidation or Repurchase of all
                       Mortgage Loans.

          Subject to Section 9.03 and Section 9.04, the Trust Fund shall
terminate and the obligations and responsibilities of the Depositor, the
Master Servicer, the Sellers, the Trustee and the Co-Trustee created hereby
with respect to the Trust Fund shall terminate upon the earliest of (a) the
purchase by the Master Servicer or NIM Insurer (the party exercising such
purchase option, the "Terminator") of all of the Mortgage Loans (and REO
Properties) at a price (the "Termination Price") equal to the sum of (i) 100%
of the Stated Principal Balance of each Mortgage Loan (other than in respect
of an REO Property), (ii) accrued interest thereon at the applicable Mortgage
Rate (or, if such repurchase is effected by the Master Servicer, at the
applicable Net Mortgage Rate), (iii) the appraised value of any 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
Terminator and the Trustee, (iv) any remaining unpaid costs and damages
incurred by the Trust Fund that arises out of an actual violation of any
predatory or abusive lending law or regulation and (v) if the Terminator is
the NIM Insurer, any unreimbursed Servicing Advances, and the principal
portion of any unreimbursed Advances, made on the Mortgage Loans prior to the
exercise of such repurchase, (b) the purchase by the Winning Bidder of all of
the Mortgage Loans (and REO Properties) after a Successful Auction is
conducted pursuant to Section 9.04 and the related auction proceeds are
distributed pursuant to Section 9.02(c) and (c) 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 the Certificateholders of all amounts
required to be distributed to them pursuant to this Agreement, as applicable.
In no event shall the trusts created hereby continue beyond the earlier of (i)
the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James's, living on the date hereof and (ii) the Latest
Possible Maturity Date.

          Notwithstanding anything set forth herein to the contrary
(including, without limitation, in Section 9.04), the right to purchase all
Mortgage Loans and REO Properties by the Terminator or the Winning Bidder
pursuant to clause (a) or clause (b) of the immediately preceding paragraph,
as the case may be, shall be conditioned upon (1) the Stated Principal Balance
of the Mortgage Loans, at the time of any such repurchase, aggregating ten
percent (10%) or less of the sum of the aggregate Cut-off Date Principal
Balance of the Initial Mortgage Loans and the Pre-Funded Amount, (2) unless
the NIM Insurer otherwise consents, the purchase price for such Mortgage Loans
and REO Properties shall result in a final distribution on any NIM Insurer
guaranteed notes that is sufficient (x) to pay such notes in full and (y) to
pay any amounts due and payable to the NIM Insurer pursuant to the indenture
related to such notes and (3) only in case of a purchase by the Master
Servicer pursuant to clause (a) of the immediately preceding paragraph, the
absence of a request for an auction, or the absence of a Successful Auction,
of the Mortgage Loans and REO Properties pursuant to Section 9.04.

          The NIM Insurer's right to purchase all Mortgage Loans and REO
Properties shall be further conditioned upon the written consent of the Master
Servicer.

                                     159
<PAGE>

          The Swap Trust shall terminate on the earliest of (i) the Swap
Contract Termination Date, (ii) the reduction of the aggregate Certificate
Principal Balance of the Interest-Bearing Certificates to zero and (iii) the
termination of this Agreement.

          Section 9.02 Final Distribution on the Certificates.

          (a) Timing of Notice of Final Distribution, Auction or Optional
Termination.

               (1) If on any Determination Date, the Master Servicer
     determines that there are no Outstanding Mortgage Loans and no other
     funds or assets in the Trust Fund other than the funds in the Certificate
     Account, then the Master Servicer shall direct the Trustee promptly to
     send a final distribution notice to each Certificateholder in accordance
     with Section 9.02(b). In the event such notice is given, the Master
     Servicer shall cause all funds in the Certificate Account to be remitted
     to the Trustee for deposit in the Distribution Account on or before the
     Business Day prior to the applicable Distribution Date, net of any
     amounts permitted to be withdrawn pursuant to Section 3.08(a). Upon such
     final deposit with respect to the Trust Fund and the receipt by the
     Trustee of a Request for File Release therefor, the Co-Trustee shall
     promptly release to the Master Servicer the Mortgage Files for the
     Mortgage Loans.

               (2) If the Directing Certificateholder chooses to exercise its
     right to cause an auction pursuant to Section 9.04, then the Directing
     Certificateholder shall provide written notice to the Master Servicer no
     later than the first day of the calendar month in which such auction is
     to be conducted. If a Successful Auction is held pursuant to the
     requirements of Section 9.04, then the Trustee shall distribute the
     proceeds of the Successful Auction that have been remitted to the
     Distribution Account to the Certificateholders pursuant to Sections 4.04
     and 9.04 hereof on the Distribution Date in the calendar month
     immediately following the calendar month in which the Successful Auction
     occurs.

               (3) If the Directing Certificateholder does not exercise its
     right to cause an auction pursuant to Section 9.04 and the Terminator
     (after prior written notice to the Master Servicer if the Terminator is
     the NIM Insurer) elects to terminate the Trust Fund pursuant to Section
     9.01, then at least 20 days prior to the date notice is to be mailed to
     Certificateholders in accordance with Section 9.02(b), the Terminator
     shall notify the Depositor and the Trustee of (a) its election to
     terminate the Trust Fund, (b) the Distribution Date on which it intends
     to terminate the Trust Fund pursuant to Section 9.01 and (c) the
     applicable purchase price of the Mortgage Loans and REO Properties. In
     the event such notice is given, the Terminator shall remit to the Master
     Servicer, on or before the Business Day prior to the final Distribution
     Date, for deposit into the Certificate Account, the Termination Price.
     The Master Servicer shall cause all funds in the Certificate Account,
     including the Termination Price, net of any amounts permitted to be
     withdrawn pursuant to Section 3.08(a), to be remitted to the Trustee for
     deposit in the Distribution Account on or before the Business Day prior
     to the applicable Distribution Date. Upon such final deposit with respect
     to the Trust Fund and the receipt by the Trustee of a Request for File
     Release therefor, the Co-Trustee shall promptly release to the Master
     Servicer the Mortgage Files for the Mortgage Loans.

                                     160
<PAGE>

          (b) Timing of Notice to Certificateholders of Termination. Notice of
any termination of the Trust Fund (whether because of a Successful Auction,
Optional Termination or otherwise), specifying the Distribution Date on which
Certificateholders may surrender their Certificates for payment of the final
distribution and cancellation, shall be given promptly by the Trustee by
letter to Certificateholders mailed not earlier than the 10th day and no later
than the 15th day of the month immediately preceding the month of such final
distribution. Any such notice shall specify (i) the Distribution Date upon
which final distribution on the Certificates will be made upon presentation
and surrender of such Certificates at the office therein designated, (ii) the
amount of such final distribution, (iii) the location of the office or agency
at which such presentation and surrender must be made, and (iv) that the
Record Date otherwise applicable to such Distribution Date is not applicable,
distributions being made only upon presentation and surrender of such
Certificates at the office therein specified. The Master Servicer will give
such notice to each Rating Agency and the Swap Counterparty at the time such
notice is given to Certificateholders.

          (c) Upon presentation and surrender of the Certificates, the Trustee
shall cause to be distributed to the Certificateholders of each Class, in each
case on the final Distribution Date and in the order and priority set forth in
Section 4.04 (and with respect to the Class C Certificates after a Successful
Auction, Sections 9.04(g) and (k)) hereof and in proportion to their
respective Percentage Interests from the Distribution Account (and, if
applicable, the Carryover Reserve Fund) an amount equal to (i) as to each
Class of Regular Certificates, the Certificate Principal Balance thereof plus
accrued interest thereon (or on its Notional Amount, if applicable) in the
case of an interest-bearing Certificate and (ii) as to the Class A-R
Certificates, the amount, if any, which remains on deposit in the Distribution
Account (other than the amounts retained to meet claims) after application
pursuant to clause (i) above. Notwithstanding the reduction of the Certificate
Principal Balance of any Class of Certificates to zero, such Class will be
outstanding hereunder (solely for the purpose of receiving distributions (if
any) to which it may be entitled pursuant to the terms of this Agreement and
not for any other purpose) until the termination of the respective obligations
and responsibilities of the Depositor, each Seller, the Master Servicer and
the Trustee hereunder in accordance with Article IX.

          (d) In the event that any affected Certificateholders shall not
surrender their respective Certificates for cancellation within six months
after the date specified in the above mentioned written notice, the Trustee
shall give a second written notice to the remaining Certificateholders to
surrender their Certificates for cancellation and receive the final
distribution with respect thereto. If within six months after the second
notice all the applicable Certificates shall not have been surrendered for
cancellation, the Trustee may take appropriate steps, or may appoint an agent
to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Certificates, and the cost thereof shall be paid
out of the funds and other assets that remain a part of the Trust Fund. If
within one year after the second notice all Certificates shall not have been
surrendered for cancellation, the Class A-R Certificates shall be entitled to
all unclaimed funds and other assets of the Trust Fund that remain subject to
this Agreement.

          Section 9.03 Additional Termination Requirements.

          (a) In the event the Terminator exercises its purchase option as
provided in Section 9.01 or there is a Successful Auction pursuant to Section
9.04, the Trust Fund shall be

                                     161
<PAGE>

terminated in accordance with the following additional requirements, unless
the Trustee has been supplied with an Opinion of Counsel, at the expense of
the Terminator (or the Directing Certificateholder, in the case of a
Successful Auction), to the effect that the failure of the Trust Fund to
comply with the requirements of this Section 9.03 will not (i) result in the
imposition of taxes on "prohibited transactions" on any REMIC as defined in
Section 860F of the Code, or (ii) cause any REMIC created hereunder to fail to
qualify as a REMIC at any time that any Certificates are outstanding:

               (1) The Master Servicer shall establish a 90-day liquidation
     period and notify the Trustee thereof, which shall in turn specify the
     first day of such period in a statement attached to the Trust Fund's
     final Tax Return pursuant to Treasury Regulation Section 1.860F-1. The
     Master Servicer shall prepare a plan of complete liquidation and shall
     otherwise 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 delivered to the Trustee and the Depositor obtained
     at the expense of the Terminator (or the Directing Certificateholder, in
     the case of a Successful Auction); and

               (2) Within 90 days after the time of adoption of such a plan of
     complete liquidation, the Trustee shall sell all of the assets of the
     Trust Fund to the Terminator (or the Winning Bidder in the case of a
     Successful Auction) for cash in accordance with Section 9.01 and, if
     applicable, Section 9.04.

          (b) By their acceptance of the Certificates, the Holders thereof
hereby authorize the Master Servicer to prepare and the Trustee to adopt and
sign a plan of complete liquidation which authorization shall be binding upon
all successor Certificateholders. The Trustee shall attach a statement to the
final federal income tax return for each of any REMIC created hereunder
stating that pursuant to Treasury Regulation Section 1.860F-1, the first day
of the 90-day liquidation period for each the REMIC was the date on which the
Trustee sold the assets of the Trust Fund to the Terminator.

          (c) The Trustee, as agent for any REMIC created hereunder, hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Master Servicer, and the receipt of the Opinion of Counsel
referred to in Section 9.03(a)(1) and to take such other action in connection
therewith as may be reasonably requested by the Terminator or the Directing
Certificateholder, as applicable.

          Section 9.04 Auction of the Mortgage Loans and REO Properties.

          (a) On or after the Optional Termination Date, the Holder of the
largest Percentage Interest of the Class C Certificates (the "Directing
Certificateholder"), at its option, may by written instruction direct the
Master Servicer to direct the Trustee to solicit bids in a commercially
reasonable manner from Qualified Bidders for the purchase of the Mortgage
Loans and any REO Properties owned by the Trust Fund. The Directing
Certificateholder shall provide written notice to the Master Servicer as
provided in Section 9.02(a)(2). Any such direction by the Directing
Certificateholder shall (i) be made in writing and (ii) include contact
information for the Directing Certificateholder. Upon receipt of any direction
from the Directing Certificateholder meeting the requirements of the
immediately preceding sentence, the Trustee

                                     162
<PAGE>

shall commence the auction process described in this Section 9.04. The Trustee
may engage a financial advisor, which financial advisor may be CHL or one of
its affiliates, in order to perform any of the duties of the Trustee specified
in Section 9.04. To effectuate such sale, the Trustee (or such financial
advisor) shall follow the procedures specified in Section 9.04(b) below. The
Trustee shall facilitate the sale of the assets in the Trust Fund to the
Winning Bidder so long as the Trustee (or any financial advisor on its behalf)
has received at least three bids from Qualified Bidders and at least one such
bid is at least equal to the Acceptable Bid Amount. In the event the auction
is not a Successful Auction, the Trustee may repeat this process periodically
thereafter as directed by the Directing Certificateholder until a Successful
Auction is conducted or the Terminator purchases all of the Mortgage Loans and
REO Properties pursuant to Section 9.01. The Trustee shall be reimbursed for
its reasonable costs, including expenses associated with engaging any
financial advisor, from the Directing Certificateholder if the auction is not
a Successful Auction, and, if the auction is a Successful Auction, from the
proceeds of the auction before the proceeds are distributed to
Certificateholders.

          The Trustee, upon inquiry from the Master Servicer, agrees to
provide the Master Servicer with the Percentage Interest of Class C
Certificates held by the Directing Certificateholder.

          If CHL or any of its affiliates is the Directing Certificateholder,
such Directing Certificateholder shall not have the right to direct the
Trustee to solicit bids for the purchase of the Mortgage Loans and any REO
Properties owned by the Trust Fund.

          (b) The Trustee (or any financial advisor on its behalf) shall
solicit bids for the purchase of assets owned by the Trust Fund as provided in
Section 9.04(a) not later than two Business Days following receipt of the
Directing Certificateholder's written instruction by contacting by telephone
or in writing at least three Qualified Bidders and requesting that each
Qualified Bidder bid on the Mortgage Loans and REO Properties owned by the
Trust Fund (on a non-recourse basis with no representations or warranties of
any nature whatsoever made by the Trustee (or such financial advisor)) and
providing to the Qualified Bidder any information relating to the Mortgage
Loans and REO Properties owned by the Trust Fund reasonably requested by such
Qualified Bidder, subject to the Qualified Bidder's written agreement not to
use such information in the purchase or sale of Certificates (it being
understood no Qualified Bidder shall be obligated to submit a bid or take any
other action in connection with any auction). The Master Servicer shall
cooperate with the Trustee (and any financial advisor on its behalf) during
the auction process. At 1:00 p.m. New York time on the second Business Day
after the date on which bids are last solicited (such second day, the "Bid
Determination Date"), the Trustee (or any financial advisor on its behalf)
shall determine the highest bid based on the bids received by the Trustee (or
any financial advisor on its behalf) on or before such time.

          (c) If the highest of the bids that are submitted by Qualified
Bidders are less than the Minimum Auction Amount, then the Trustee shall
promptly inform the Directing Certificateholder of the amount of the shortfall
and indicate that the Directing Certificateholder must notify the Trustee
within 24 hours whether it will contribute the amount of such difference (such
difference being the "Auction Supplement Amount") so that the auction will be
a Successful Auction. If the highest of the bids that are submitted by
Qualified Bidders is equal to or greater than the Minimum Auction Amount, or
if the Directing Certificateholder notifies the

                                     163
<PAGE>

Trustee within 24 hours of its receipt of notice as described in the previous
sentence that it will contribute the Auction Supplement Amount, then the
Trustee (or any financial advisor on its behalf) shall notify promptly (but in
any event no later than 3:00 p.m. New York time on the Business Day following
the Bid Determination Date) the Winning Bidder that its bid was the highest
bid and shall provide wiring instructions for payment of the bid amount into
the Certificate Account by 12:00 p.m. New York time on the second Business Day
following the Bid Determination Date and, if applicable, provide the Directing
Certificateholder with wiring instructions for payment of the Auction
Supplement Amount into the Certificate Account by such time.

          (d) If such Winning Bidder does not wire the bid amount so that it
is received in the Certificate Account in immediately available funds by 12:00
p.m. New York time on the second Business Day following the Bid Determination
Date, the Trustee shall repeat the process specified in the preceding
paragraph with respect to the second highest bid, but only if such bid is at
least the Minimum Auction Amount or the Directing Certificateholder agrees to
pay the new Auction Supplement Amount. If no other bids are available to be
accepted pursuant to the preceding sentence, or if the amount remitted by the
Winning Bidder plus any Auction Supplement Amount remitted by the Directing
Certificateholder is less than the Minimum Auction Amount, then the auction
shall be considered to have failed for all purposes.

          (e) The Trustee shall not be liable with regard to the selection or
engagement of, or for any act or omission of, a financial advisor pursuant to
this Section 9.04 if the Trustee engages CHL to be such financial advisor.

          (f) In the event of a Successful Auction and so long as the Winning
Bidder has wired its bid amount (and the Directing Certificateholder has wired
any Auction Supplement Amount, if applicable) to the Certificate Account as
provided above, then the Trustee shall promptly convey to the Winning Bidder
the Mortgage Loans and REO Properties owned by the Trust Fund. The Master
Servicer shall take all reasonable actions requested by the Trustee to effect
such conveyance, including remitting to the Distribution Account from the
Certificate Account, on the Business Day prior to the Distribution Date on
which final distribution on the Certificates is required to be paid under this
Agreement, all amounts on deposit in the Certificate Account, net of any
amounts permitted to be withdrawn pursuant to Section 3.08(a) and amounts
owing to the Trustee in reimbursement of its reasonable costs, including
expenses associated with engaging any financial advisor, incurred in
connection with the auction process. Such amounts owed to the Trustee shall be
withdrawn from the Certificate Account by the Master Servicer and paid to the
Trustee.

          (g) Any amount paid by the Winning Bidder in excess of the Minimum
Auction Amount shall be distributed by the Trustee pro rata to the Class C
Certificates on the Distribution Date on which the final distribution on the
Certificates is made.

          (h) In the event of a Successful Auction and to the extent the Swap
Contract is still outstanding, the Directing Certificateholder shall either:

                                     164
<PAGE>

          (1) if any Swap Termination Payment would be payable by the Swap
     Contract Administrator to the Swap Counterparty were the Swap Contract to
     be terminated following final distribution on the Certificates, either:

               (A) pay to the Swap Contract Administrator any such Swap
          Termination Payment; or

               (B) accept assignment of the Swap Contract to the extent that
          the Directing Certificateholder is an acceptable counterparty for
          the Swap Counterparty;

          (2) if any Swap Termination Payment would be payable by the Swap
     Counterparty to the Swap Contract Administrator were the Swap Contract to
     be terminated following final distribution on the Certificates, either

               (A) (i) if the Directing Certificateholder does not own 100% of
          the Class C Certificates, accept assignment of the Swap Contract to
          the extent that the Directing Certificateholder is an acceptable
          counterparty for the Swap Counterparty and pay to the Swap Contract
          Administrator the Swap Termination Payment that would be owed to the
          Swap Contact Administrator by the Swap Counterparty if the Swap
          Contract were terminated by the Swap Contract Administrator
          following distribution on the Certificates or (ii) if the Directing
          Certificateholder owns 100% of the Class C Certificates, accept
          assignment of the Swap Contract to the extent that the Directing
          Certificateholder is an acceptable counterparty for the Swap
          Counterparty; or

               (B) instruct the Swap Contract Administrator to accept from the
          Swap Counterparty any Swap Termination Payment that would be owed to
          the Swap Contract Administrator.

          (i) Any amounts paid to the Swap Contract Administrator pursuant to
subsection (h)(2) above shall be distributed to the Class C Certificates, pro
rata, based on entitlement, by the Swap Contract Administrator.

          (j) The Master Servicer may purchase the Mortgage Loans and REO
Properties owned by the Trust Fund for its own account pursuant to Section
9.01 or consent to the NIM Insurer's purchase of the Mortgage Loans and REO
Properties owned by the Trust Fund pursuant to Section 9.01 only if (1) the
Directing Certificateholder chooses not to request an auction as described
above or if the immediately preceding auction is unsuccessful or (2) the
Master Servicer notifies the Directing Certificateholder no later than 30 days
prior to the date on which the Master Servicer or the NIM Insurer, as
applicable, intends to effect the purchase of the Mortgage Loans and REO
Properties owned by the Trust Fund and the Directing Certificateholder does
not direct the Trustee to conduct an auction prior to the end of that 30-day
period.

          (k) If the Directing Certificateholder pays any Auction Supplement
Amount pursuant to Section 9.04(c) or any Swap Termination Payment pursuant to
Section 9.04(h)(1)(A), on the final Distribution Date any amounts to be
distributed to the Class C Certificates pursuant

                                     165
<PAGE>

to Section 4.02 will be distributed as follows, first to the Directing
Certificateholder, in an amount up to the sum of such Auction Supplement
Amount and such Swap Termination Payment and second to the Class C
Certificates, pro rata. For federal income tax purposes, such Auction
Supplement Amount and such Swap Termination Payment so distributed shall be
deemed paid pro rata to the Class C Certificates, and the portion of such
amounts deemed distributed to holders of the Class C Certificates other than
the Directing Certificateholder shall be deemed paid from such other holders
to the Directing Certificateholder.

                                  ARTICLE X.

                           MISCELLANEOUS PROVISIONS

          Section 10.01 Amendment.

          This Agreement may be amended from time to time by the Depositor,
the Master Servicer, the Sellers, the Trustee and the Co-Trustee with the
consent of the NIM Insurer, without the consent of any of the
Certificateholders (i) to cure any ambiguity, (ii) to correct or supplement
any provisions herein, (iii) to conform this Agreement to the Prospectus
Supplement or the Prospectus, (iv) to modify, alter, amend, add to or rescind
any of the terms or provisions contained in this Agreement to comply with any
rules or regulations promulgated by the Securities and Exchange Commission
from time to time, or (v) 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; 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, it being
understood and agreed that any such letter in and of itself will not represent
a determination as to the materiality of any such amendment and will represent
a determination only as to the credit issues affecting any such rating. Any
amendment described above made solely to conform this Agreement to the
Prospectus or the Prospectus Supplement shall be deemed not to adversely
affect in any material respect the interests of the Certificateholders.
Notwithstanding the foregoing, no amendment that significantly changes the
permitted activities of the trust created by this Agreement may be made
without the consent of Certificateholders representing not less than 51% of
the Voting Rights of each Class of Certificates affected by such amendment.
Each party to this Agreement hereby agrees that it will cooperate with each
other party in amending this Agreement pursuant to clause (iv) above.

          The Trustee, the Co-Trustee, the Depositor, the Master Servicer and
the Sellers with the consent of the NIM Insurer may also at any time and from
time to time amend this Agreement, without the consent of the
Certificateholders, to modify, eliminate or add to any of its provisions to
such extent as shall be necessary or appropriate to maintain the qualification
of the Trust Fund as a REMIC under the Code or to avoid or minimize the risk
of the imposition of any tax on the Trust Fund pursuant to the Code that would
be a claim against the Trust Fund at any time prior to the final redemption of
the Certificates, provided that the Trustee has been provided an Opinion of
Counsel, which opinion shall be an expense of the party requesting such

                                     166
<PAGE>

opinion but in any case shall not be an expense of the Trustee, to the effect
that such action is necessary or appropriate to maintain such qualification or
to avoid or minimize the risk of the imposition of such a tax.

          This Agreement may also be amended from time to time by the
Depositor, the Master Servicer, the Sellers, the Trustee and the Co-Trustee
with the consent of the NIM Insurer and the Holders of each Class of
Certificates affected thereby evidencing not less than 51% of the Voting
Rights of such Class for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or of
modifying in any manner the rights of the Holders of Certificates; provided
that no such amendment shall (i) reduce in any manner the amount of, or delay
the timing of, payments required to be distributed on any Certificate without
the consent of the Holder of such Certificate, (ii) adversely affect in any
material respect the interests of the Holders of any Class of Certificates in
a manner other than as described in (i), without the consent of the Holders of
Certificates of such Class evidencing 66% or more of the Voting Rights of such
Class, or (iii) reduce the aforesaid percentages of Certificates the Holders
of which are required to consent to any such amendment without the consent of
the Holders of all such Certificates then outstanding.

          Notwithstanding any contrary provision of this Agreement, no
amendment shall adversely affect in any material respect the Swap Counterparty
without at least ten Business Days' prior notice to the Swap Counterparty and
without the prior written consent of the Swap Counterparty, which consent
shall not be unreasonably withheld. CHL shall provide the Swap Counterparty
with prior written notice of any proposed material amendment of this
Agreement.

          Notwithstanding any contrary provision of this Agreement, the
Trustee and the NIM Insurer shall not consent to any amendment to this
Agreement unless each shall have first received an Opinion of Counsel
satisfactory to the Trustee and the NIM Insurer, which opinion shall be an
expense of the party requesting such amendment but in any case shall not be an
expense of the Trustee or the NIM Insurer, to the effect that such amendment
will not cause the imposition of any tax on the Trust Fund or the
Certificateholders or cause any REMIC formed hereunder to fail to qualify as a
REMIC at any time that any Certificates are outstanding.

          Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance of such amendment
to the Swap Counterparty, to each Certificateholder (if the consent of
Certificateholders is required) and each Rating Agency.

          It shall not be necessary for the consent of Certificateholders
under this Section to approve the particular form of any proposed amendment,
but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization of the execution thereof by Certificateholders shall be subject
to such reasonable regulations as the Trustee may prescribe.

          Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel, reasonably satisfactory to
the Trustee and the NIM Insurer that (i) such amendment is permitted and is
not prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the

                                     167
<PAGE>

amendment does not adversely affect in any material respect the interests of
any Certificateholder or (B) the conclusion set forth in the immediately
preceding clause (A) is not required to be reached pursuant to this Section
10.01.

          Section 10.02 Recordation of Agreement; Counterparts.

          This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages
are situated, and in any other appropriate public recording office or
elsewhere, such recordation to be effected by the Master Servicer at its
expense.

          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 10.03 Governing Law.

          THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

          Section 10.04 Intention of Parties.

          (a) 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 Depositor to the Trustee be, and be construed as, an absolute
sale thereof to the Trustee. It is, further, not the intention of the parties
that such conveyance be deemed a pledge thereof by the Depositor to the
Trustee. However, in the event that, notwithstanding the intent of the
parties, such assets are held to be the property of the Depositor, or if for
any other reason this Agreement or any Subsequent Transfer 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) with respect to all such
assets and security interests and (ii) the conveyance provided for in this
Agreement and any Subsequent Transfer Agreement shall be deemed to be an
assignment and a grant pursuant to the terms of this Agreement by the
Depositor to the Trustee, for the benefit of the Certificateholders and the
Swap Counterparty, 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, the NIM
Insurer and the Swap Counterparty 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

                                     168
<PAGE>

of the Agreement. The Depositor shall arrange for filing any Uniform
Commercial Code continuation statements in connection with any security
interest granted or assigned to the Trustee for the benefit of the
Certificateholders and the Swap Counterparty.

          (b) The Depositor hereby represents that:

               (i) This Agreement creates a valid and continuing security
          interest (as defined in the Uniform Commercial Code as enacted in
          the State of New York (the "NY UCC")) in the Mortgage Notes in favor
          of the Trustee, which security interest is prior to all other liens,
          and is enforceable as such as against creditors of and purchasers
          from the Depositor.

               (ii) The Mortgage Notes constitute "instruments" within the
          meaning of the NY UCC.

               (iii) Immediately prior to the assignment of each Mortgage Loan
          to the Trustee, the Depositor owns and has good and marketable title
          to such Mortgage Loan free and clear of any lien, claim or
          encumbrance of any Person.

               (iv) The Depositor has received all consents and approvals
          required by the terms of the Mortgage Loans to the sale of the
          Mortgage Loans hereunder to the Trustee.

               (v) All original executed copies of each Mortgage Note that are
          required to be delivered to the Co-Trustee pursuant to Section 2.01
          have been delivered to the Co-Trustee.

               (vi) Other than the security interest granted to the Trustee
          pursuant to this Agreement, the Depositor has not pledged, assigned,
          sold, granted a security interest in, or otherwise conveyed any of
          the Mortgage Loans. The Depositor has not authorized the filing of
          and is not aware of any financing statements against the Depositor
          that include a description of collateral covering the Mortgage Loans
          other than any financing statement relating to the security interest
          granted to the Trustee hereunder or that has been terminated. The
          Depositor is not aware of any judgment or tax lien filings against
          the Depositor.

          (c) The Master Servicer shall take such action as is reasonably
necessary to maintain the perfection and priority of the security interest of
the Trustee in the Mortgage Loans; provided, however, that the obligation to
deliver the Mortgage File to the Co-Trustee pursuant to Section 2.01 shall be
solely the Depositor's obligation and the Master Servicer shall not be
responsible for the safekeeping of the Mortgage Files by the Co-Trustee.

          (d) It is understood and agreed that the representations and
warranties set forth in subsection (b) above shall survive delivery of the
Mortgage Files to the Co-Trustee. Upon discovery by the Depositor or the
Trustee of a breach of any of the foregoing representations and warranties set
forth in subsection (b) above, which breach materially and adversely affects
the interest of the Certificateholders, the party discovering such breach
shall give prompt written notice to the others and to each Rating Agency.

                                     169
<PAGE>

          Section 10.05 Notices.

          (a) The Trustee shall use its best efforts to promptly provide
notice to each Rating Agency and the Swap Counterparty with respect to each of
the following of which it has actual knowledge:

               (1) Any material change or amendment to this Agreement;

               (2) The occurrence of any Event of Default that has not been
     cured;

               (3) The resignation or termination of the Master Servicer or
     the Trustee and the appointment of any successor;

               (4) The repurchase or substitution of Mortgage Loans pursuant
     to Sections 2.02, 2.03, 2.04 and 3.12; and

               (5) The final payment to Certificateholders.

          (b) In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following:

               (1) Each report to Certificateholders described in Section
     4.05;

               (2) Each annual statement as to compliance described in Section
     3.17; and

               (3) Each annual independent public accountants' servicing
     report described in Section 11.07.

          (c) All directions, demands and notices hereunder shall be in
writing and shall be deemed to have been duly given when sent by facsimile
transmission, first class mail or delivered to (i) in the case of the
Depositor, CWABS, Inc., 4500 Park Granada, Calabasas, California 91302,
facsimile number: (818) 225-4016, Attention: Josh Adler, or such other address
as may be hereafter furnished to the Sellers, the Master Servicer and the
Trustee by the Depositor in writing; (ii) in the case of CHL, Countrywide Home
Loans, Inc., 4500 Park Granada, Calabasas, California 91302, facsimile number
(818) 225-4016, Attention: Josh Adler, or such other address as may be
hereafter furnished to the Depositor, the Master Servicer and the Trustee by
the Sellers in writing; (iii) in the case of Park Monaco, Park Monaco Inc.,
4500 Park Granada, Calabasas, California 91302, facsimile number (818)
225-4028, Attention: Paul Liu, or such other address as may be hereafter
furnished to the Depositor, the Master Servicer and the Trustee by the Sellers
in writing; (iv) in the case of Park Sienna, Park Sienna LLC, 4500 Park
Granada, Calabasas, California 91302, facsimile number (818) 225-4028,
Attention: Paul Liu, or such other address as may be hereafter furnished to
the Depositor, the Master Servicer and the Trustee by the Sellers in writing;
(v) in the case of the Master Servicer, Countrywide Home Loans Servicing LP,
7105 Corporate Drive, Plano, Texas 75024, facsimile number (805) 520-5623,
Attention: Mark Wong or such other address as may be hereafter furnished to
the Depositor, the Sellers and the Trustee by the Master Servicer in writing;
(vi) in the case of the Trustee, The Bank of New York, 101 Barclay Street, New
York, New York 10286, Attention:

                                     170
<PAGE>

Corporate Trust MBS Administration, CWABS, Series 2006-25, or such other
address as the Trustee may hereafter furnish to the parties hereto; (vii) in
the case of the Co-Trustee, The Bank of New York Trust Company, N.A., 5730
Katella Avenue, Cypress, California 90630, Attention: MBS Support Services, or
such other address as the Co-Trustee may hereafter furnish to the Depositor,
the Master Servicer and the Trustee; (viii) in the case of the Rating
Agencies, (x) Moody's Investors Service, Inc., Attention: ABS Monitoring
Department, 99 Church Street, Sixth Floor, New York, New York 10007, and (y)
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Attention: Mortgage Surveillance Group, 55 Water Street, 41st Floor, New York,
New York 10041; and (viii) in the case of the Swap Counterparty, Barclays Bank
PLC, 5 The North Colonnade, Canary Wharf, London E14 4BB, England, Attention:
Swaps Documentation, facsimile number [0207-773-6857/6858], or such other
address as may be hereafter furnished by the Swap Counterparty. Notices to
Certificateholders shall be deemed given when mailed, first postage prepaid,
to their respective addresses appearing in the Certificate Register.

          Section 10.06 Severability of Provisions.

          If any one or more of the covenants, agreements, provisions or terms
of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions
of this Agreement or of the Certificates or the rights of the Holders thereof.

          Section 10.07 Assignment.

          Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Master Servicer without the prior written consent of the Trustee and the
Depositor.

          Section 10.08 Limitation on Rights of Certificateholders.

          The death or incapacity of any Certificateholder shall not operate
to terminate this Agreement or the Trust 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

                                     171
<PAGE>

Trustee a written notice of an Event of Default and of the continuance
thereof, as hereinbefore provided, the Holders of Certificates evidencing not
less than 25% of the Voting Rights shall also have made written request to the
Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses, and liabilities to be
incurred therein or thereby, and the Trustee, for 60 days after its receipt of
such notice, request and offer of indemnity shall have neglected or refused to
institute any such action, suit or proceeding; it being understood and
intended, and being expressly covenanted by each Certificateholder with every
other Certificateholder and the Trustee, that no one or more Holders of
Certificates shall have any right in any manner whatever by virtue or by
availing itself or themselves of any provisions of this Agreement to affect,
disturb or prejudice the rights of the Holders of any other of the
Certificates, or to obtain or seek to obtain priority over or preference to
any other such Holder or to enforce any right under this Agreement, except in
the manner herein provided and for the common benefit of all
Certificateholders. For the protection and enforcement of the provisions of
this Section 10.08, each and every Certificateholder and the Trustee shall be
entitled to such relief as can be given either at law or in equity.

          Section 10.09 Inspection and Audit Rights.

          The Master Servicer agrees that, on reasonable prior notice, it will
permit any representative of the Depositor, any Seller, the NIM Insurer or the
Trustee during the Master Servicer's normal business hours, to examine all the
books of account, records, reports and other papers of the Master Servicer
relating to the Mortgage Loans, to make copies and extracts therefrom, to
cause such books to be audited by independent certified public accountants
selected by the Depositor, a Seller, the NIM Insurer or the Trustee and to
discuss its affairs, finances and accounts relating to the Mortgage Loans with
its officers, employees and independent public accountants (and by this
provision the Master Servicer hereby authorizes such accountants to discuss
with such representative such affairs, finances and accounts), all at such
reasonable times and as often as may be reasonably requested. Any
out-of-pocket expense incident to the exercise by the Depositor, any Seller,
the NIM Insurer or the Trustee of any right under this Section 10.09 shall be
borne by the party requesting such inspection; all other such expenses shall
be borne by the Master Servicer.

          Section 10.10 Certificates Nonassessable and Fully Paid.

          It is the intention of the Depositor that Certificateholders shall
not be personally liable for obligations of the Trust Fund, that the interests
in the Trust Fund represented by the Certificates shall be nonassessable for
any reason whatsoever, and that the Certificates, upon due authentication
thereof by the Trustee pursuant to this Agreement, are and shall be deemed
fully paid.

          Section 10.11 Rights of NIM Insurer.

          (a) The rights of the NIM Insurer under this Agreement shall exist
only so long as either:

                                     172
<PAGE>

               (1) the notes certain payments on which are guaranteed by the
     NIM Insurer remain outstanding or

               (2) the NIM Insurer is owed amounts paid by it with respect to
     that guaranty.

          (b) The rights of the NIM Insurer under this Agreement are
exercisable by the NIM Insurer only so long as no default by the NIM Insurer
under its guaranty of certain payments under notes backed or secured by the
Class C or Class P Certificates has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so
long as:

               (1) the obligations of the NIM Insurer under its guaranty of
     notes backed or secured by the Class C or Class P Certificates have not
     been disavowed and

               (2) CHL and the Trustee have received reasonable assurances
     that the NIM Insurer will be able to satisfy its obligations under its
     guaranty of notes backed or secured by the Class C or Class P
     Certificates.

          (c) The NIM Insurer is a third party beneficiary of this Agreement
to the same extent as if it were a party to this Agreement and may enforce any
of those rights under this Agreement.

          (d) A copy of any documents of any nature required by this Agreement
to be delivered by the Trustee, or to the Trustee or the Rating Agencies,
shall in each case at the same time also be delivered to the NIM Insurer. Any
notices required to be given by the Trustee, or to the Trustee or the Rating
Agencies, shall in each case at the same time also be given to the NIM
Insurer. If the Trustee receives a notice or document that is required
hereunder to be delivered to the NIM Insurer, and if such notice or document
does not indicate that a copy thereof has been previously sent to the NIM
Insurer, the Trustee shall send the NIM Insurer a copy of such notice or
document. If such document is an Opinion of Counsel, the NIM Insurer shall be
an addressee thereof or such Opinion of Counsel shall contain language
permitting the NIM Insurer to rely thereon as if the NIM Insurer were an
addressee thereof.

          (e) Anything in this Agreement that is conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned to the
Certificates by the Rating Agencies shall also be conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned by the Rating
Agencies to the notes backed or secured by the Class C or Class P Certificates
(without giving effect to any policy or guaranty provided by the NIM Insurer).

                                     173
<PAGE>

                                  ARTICLE XI.
                            EXCHANGE ACT REPORTING

          Section 11.01 Filing Obligations.

          The Master Servicer, the Trustee and each Seller shall reasonably
cooperate with the Depositor in connection with the satisfaction of the
Depositor's reporting requirements under the Exchange Act with respect to the
Trust Fund. In addition to the information specified below, if so requested by
the Depositor for the purpose of satisfying its reporting obligation under the
Exchange Act, the Master Servicer, the Trustee and each Seller shall (and the
Master Servicer shall cause each Subservicer to) provide the Depositor with
(a) such information which is available to such Person without unreasonable
effort or expense and within such timeframe as may be reasonably requested by
the Depositor to comply with the Depositor's reporting obligations under the
Exchange Act and (b) to the extent such Person is a party (and the Depositor
is not a party) to any agreement or amendment required to be filed, copies of
such agreement or amendment in EDGAR-compatible form.

          Section 11.02 Form 10-D Filings.

          (a) In accordance with the Exchange Act, the Trustee shall prepare
for filing and file within 15 days after each Distribution Date (subject to
permitted extensions under the Exchange Act) with the Commission with respect
to the Trust Fund, a Form 10-D with copies of the Monthly Statement and, to
the extent delivered to the Trustee, no later than 10 days following the
Distribution Date, such other information identified by the Depositor or the
Master Servicer, in writing, to be filed with the Commission (such other
information, the "Additional Designated Information"). If the Depositor or
Master Servicer directs that any Additional Designated Information is to be
filed with any Form 10-D, the Depositor or Master Servicer, as the case may
be, shall specify the Item on Form 10-D to which such information is
responsive and, with respect to any Exhibit to be filed on Form 10-D, the
Exhibit number. Any information to be filed on Form 10-D shall be delivered to
the Trustee in EDGAR-compatible form or as otherwise agreed upon by the
Trustee and the Depositor or the Master Servicer, as the case may be, at the
Depositor's expense, and any necessary conversion to EDGAR-compatible format
will be at the Depositor's expense. At the reasonable request of, and in
accordance with the reasonable directions of, the Depositor or the Master
Servicer, subject to the two preceding sentences, the Trustee shall prepare
for filing and file an amendment to any Form 10-D previously filed with the
Commission with respect to the Trust Fund. The Master Servicer shall sign the
Form 10-D filed on behalf of the Trust Fund.

          (b) No later than each Distribution Date, each of the Master
Servicer and the Trustee shall notify (and the Master Servicer shall cause any
Subservicer to notify) the Depositor and the Master Servicer of any Form 10-D
Disclosure Item, together with a description of any such Form 10-D Disclosure
Item in form and substance reasonably acceptable to the Depositor. In addition
to such information as the Master Servicer and the Trustee are obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Depositor, each of the Master Servicer and the Trustee shall provide such
information which is available to the Master Servicer and the Trustee, as
applicable, without unreasonable effort or expense regarding the performance
or servicing of the Mortgage Loans (in the case of the Trustee, based on the

                                     174
<PAGE>

information provided by the Master Servicer) as is reasonably required to
facilitate preparation of distribution reports in accordance with Item 1121 of
Regulation AB. Such information shall be provided concurrently with the
Remittance Reports in the case of the Master Servicer and the Monthly
Statement in the case of the Trustee, commencing with the first such report
due not less than five Business Days following such request.

          (c) The Trustee shall not have any responsibility to file any items
(other than those generated by it) that have not been received in a format
suitable (or readily convertible into a format suitable) for electronic filing
via the EDGAR system and shall not have any responsibility to convert any such
items to such format (other than those items generated by it or that are
readily convertible to such format). The Trustee shall have no liability to
the Certificateholders, the Trust Fund, the Master Servicer, the Depositor or
the NIM Insurer with respect to any failure to properly prepare or file any of
Form 10-D to the extent that such failure is not the result of any negligence,
bad faith or willful misconduct on its part.

          Section 11.03 Form 8-K Filings.

          The Master Servicer shall prepare and file on behalf of the Trust
Fund any Form 8-K required by the Exchange Act. Each Form 8-K must be signed
by the Master Servicer. Each of the Master Servicer (and the Master Servicer
shall cause any Subservicer to promptly notify) and the Trustee shall promptly
notify the Depositor and the Master Servicer (if the notifying party is not
the Master Servicer), but in no event later than one (1) Business Day after
its occurrence, of any Reportable Event of which it has actual knowledge. Each
Person shall be deemed to have actual knowledge of any such event to the
extent that it relates to such Person or any action or failure to act by such
Person. Concurrently with any Subsequent Transfer, CHL shall notify the
Depositor and the Master Servicer, if any material pool characteristic of the
actual asset pool at the time of issuance of the Certificates differs by 5% or
more (other than as a result of the pool assets converting into cash in
accordance with their terms) from the description of the asset pool in the
Prospectus Supplement.

          Section 11.04 Form 10-K Filings.

          Prior to March 30th of each year, commencing in 2007 (or such
earlier date as may be required by the Exchange Act), the Depositor shall
prepare and file on behalf of the Trust Fund a Form 10-K, in form and
substance as required by the Exchange Act. A senior officer in charge of the
servicing function of the Master Servicer shall sign each Form 10-K filed on
behalf of the Trust Fund. Such Form 10-K shall include as exhibits each (i)
annual compliance statement described under Section 3.17, (ii) annual report
on assessments of compliance with servicing criteria described under Section
11.07 and (iii) accountant's report described under Section 11.07. Each Form
10-K shall also include any Sarbanes-Oxley Certification required to be
included therewith, as described in Section 11.05.

          If the Item 1119 Parties listed on Exhibit Z have changed since the
Closing Date, no later than March 1 of each year, the Master Servicer shall
provide each of the Master Servicer (and the Master Servicer shall provide any
Subservicer) and the Trustee with an updated Exhibit Z setting forth the Item
1119 Parties. No later than March 15 of each year, commencing in 2007, the
Master Servicer and the Trustee shall notify (and the Master Servicer shall
cause any

                                     175
<PAGE>

Subservicer to notify) the Depositor and the Master Servicer of any Form 10-K
Disclosure Item, together with a description of any such Form 10-K Disclosure
Item in form and substance reasonably acceptable to the Depositor.
Additionally, each of the Master Servicer and the Trustee shall provide, and
shall cause each Reporting Subcontractor retained by the Master Servicer or
the Trustee, as applicable, and in the case of the Master Servicer shall cause
each Subservicer, to provide, the following information no later than March 15
of each year in which a Form 10-K is required to be filed on behalf of the
Trust Fund: (i) if such Person's report on assessment of compliance with
servicing criteria described under Section 11.07 or related registered public
accounting firm attestation report described under Section 11.07 identifies
any material instance of noncompliance, notification of such instance of
noncompliance and (ii) if any such Person's report on assessment of compliance
with servicing criteria or related registered public accounting firm
attestation report is not provided to be filed as an exhibit to such Form
10-K, information detailing the explanation why such report is not included.

          Section 11.05 Sarbanes-Oxley Certification.

          Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange
Act (pursuant to Section 302 of 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)). No later than March 15 of
each year, beginning in 2007, the Master Servicer and the Trustee shall
(unless such person is the Certifying Person), and the Master Servicer shall
cause each Subservicer and each Reporting Subcontractor and the Trustee shall
cause each Reporting Subcontractor to, provide to the Person who signs the
Sarbanes-Oxley Certification (the "Certifying Person") a certification (each,
a "Performance Certification"), in the form attached hereto as Exhibit X-1 (in
the case of a Subservicer or any Reporting Subcontractor of the Master
Servicer or a Subservicer) and Exhibit X-2 (in the case of the Trustee or any
Reporting Subcontractor of the Trustee), on 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 in charge of
the servicing function of the Master Servicer shall serve as the Certifying
Person on behalf of the Trust Fund. Neither the Master Servicer nor the
Depositor will request delivery of a certification under this clause unless
the Depositor is required under the Exchange Act to file an annual report on
Form 10-K with respect to the Trust Fund. In the event that prior to the
filing date of the Form 10-K in March of each year, the Trustee or the
Depositor has actual knowledge of information material to the Sarbanes-Oxley
Certification, the Trustee or the Depositor, as the case may be, shall
promptly notify the Master Servicer and the Depositor. The respective parties
hereto agree to cooperate with all reasonable requests made by any Certifying
Person or Certification Party in connection with such Person's attempt to
conduct any due diligence that such Person reasonably believes to be
appropriate in order to allow it to deliver any Sarbanes-Oxley Certification
or portion thereof with respect to the Trust Fund.

          Section 11.06 Form 15 Filing.

          Prior to January 30 of the first year in which the Depositor is able
to do so under applicable law, the Depositor shall file a Form 15 relating to
the automatic suspension of reporting in respect of the Trust Fund under the
Exchange Act.

                                     176
<PAGE>

          Section 11.07 Report on Assessment of Compliance and Attestation.

          (a) On or before March 15 of each calendar year, commencing in 2007:

               (1) Each of the Master Servicer and the Trustee shall deliver
     to the Depositor and the Master Servicer a report (in form and substance
     reasonably satisfactory to the Depositor) regarding the Master Servicer's
     or the Trustee's, as applicable, assessment of compliance with the
     Servicing Criteria during the immediately preceding calendar year, as
     required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122
     of Regulation AB. Such report shall be signed by an authorized officer of
     such Person and shall address each of the Servicing Criteria specified on
     a certification substantially in the form of Exhibit Y hereto delivered
     to the Depositor concurrently with the execution of this Agreement. To
     the extent any of the Servicing Criteria are not applicable to such
     Person, with respect to asset-backed securities transactions taken as a
     whole involving such Person and that are backed by the same asset type
     backing the Certificates, such report shall include such a statement to
     that effect. The Depositor and the Master Servicer, and each of their
     respective officers and directors shall be entitled to rely on upon each
     such servicing criteria assessment.

               (2) Each of the Master Servicer and the Trustee shall deliver
     to the Depositor and the Master Servicer a report of a registered public
     accounting firm reasonably acceptable to the Depositor that attests to,
     and reports on, the assessment of compliance made by Master Servicer or
     the Trustee, as applicable, and delivered pursuant to the preceding
     paragraphs. Such attestation shall be in accordance with Rules
     1-02(a)(3)and 2-02(g) of Regulation S-X under the Securities Act and the
     Exchange Act, including, without limitation that 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. To the extent any of the Servicing Criteria are
     not applicable to such Person, with respect to asset-backed securities
     transactions taken as a whole involving such Person and that are backed
     by the same asset type backing the Certificates, such report shall
     include such a statement that that effect.

               (3) The Master Servicer shall cause each Subservicer and each
     Reporting Subcontractor to deliver to the Depositor an assessment of
     compliance and accountant's attestation as and when provided in
     paragraphs (a) and (b) of this Section 11.07.

               (4) The Trustee shall cause each Reporting Subcontractor to
     deliver to the Depositor and the Master Servicer an assessment of
     compliance and accountant's attestation as and when provided in
     paragraphs (a) and (b) of this Section.

               (5) The Master Servicer and the Trustee shall execute (and the
     Master Servicer shall cause each Subservicer to execute, and the Master
     Servicer and the Trustee shall cause each Reporting Subcontractor to
     execute) a reliance certificate to enable the Certification Parties to
     rely upon each (i) annual compliance statement provided pursuant to
     Section 3.17, (ii) annual report on assessments of compliance with
     servicing criteria

                                     177
<PAGE>

     provided pursuant to this Section 11.07 and (iii) accountant's report
     provided pursuant to this Section 11.07 and shall include a
     certification that each such annual compliance statement or report
     discloses any deficiencies or defaults described to the registered
     public accountants of such Person to enable such accountants to render
     the certificates provided for in this Section 11.07.

          (b) In the event the Master Servicer, any Subservicer, the Trustee
or Reporting Subcontractor is terminated or resigns during the term of this
Agreement, such Person shall provide documents and information required by
this Section 11.07 with respect to the period of time it was subject to this
Agreement or provided services with respect to the Trust Fund, the
Certificates or the Mortgage Loans.

          (c) Each assessment of compliance provided by a Subservicer pursuant
to Section 11.07(a)(3)shall address each of the Servicing Criteria specified
on a certification substantially in the form of Exhibit Y hereto delivered to
the Depositor concurrently with the execution of this Agreement or, in the
case of a Subservicer subsequently appointed as such, on or prior to the date
of such appointment. An assessment of compliance provided by a Subcontractor
pursuant to Section 11.07(a)(3)or (4) need not address any elements of the
Servicing Criteria other than those specified by the Master Servicer or the
Trustee, as applicable, pursuant to Section 11.07(a)(1).

          Section 11.08 Use of Subservicers and Subcontractors.

          (a) The Master Servicer shall cause any Subservicer used by the
Master Servicer (or by any Subservicer) for the benefit of the Depositor to
comply with the provisions of Section 3.17 and this Article XI to the same
extent as if such Subservicer were the Master Servicer (except with respect to
the Master Servicer's duties with respect to preparing and filing any Exchange
Act Reports or as the Certifying Person). The Master Servicer shall be
responsible for obtaining from each Subservicer and delivering to the
Depositor any servicer compliance statement required to be delivered by such
Subservicer under Section 3.17, any assessment of compliance and attestation
required to be delivered by such Subservicer under Section 11.07 and any
certification required to be delivered to the Certifying Person under Section
11.05 as and when required to be delivered. As a condition to the succession
to any Subservicer as subservicer under this Agreement by any Person (i) into
which such Subservicer may be merged or consolidated, or (ii) which may be
appointed as a successor to any Subservicer, the Master Servicer shall provide
to the Depositor, at least 15 calendar days prior to the effective date of
such succession or appointment, (x) written notice to the Depositor of such
succession or appointment and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K.

          (b) It shall not be necessary for the Master Servicer, any
Subservicer or the Trustee to seek the consent of the Depositor or any other
party hereto prior to the utilization of any Subcontractor. The Master
Servicer or the Trustee, as applicable, shall promptly upon request provide to
the Depositor (or any designee of the Depositor, such as the Master Servicer
or administrator) a written description (in form and substance satisfactory to
the Depositor) of the role and function of each Subcontractor utilized by such
Person (or in the case of the Master

                                     178
<PAGE>

Servicer, any Subservicer), specifying (i) the identity of each such
Subcontractor, (ii) which (if any) of such Subcontractors 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 Subcontractor identified pursuant
to clause (ii) of this paragraph.

          As a condition to the utilization of any Subcontractor determined to
be a Reporting Subcontractor, the Master Servicer or the Trustee, as
applicable, shall cause any such Subcontractor used by such Person (or in the
case of the Master Servicer, any Subservicer) for the benefit of the Depositor
to comply with the provisions of Sections 11.07 and 11.09 of this Agreement to
the same extent as if such Subcontractor were the Master Servicer (except with
respect to the Master Servicer's duties with respect to preparing and filing
any Exchange Act Reports or as the Certifying Person) or the Trustee, as
applicable. The Master Servicer or the Trustee, as applicable, shall be
responsible for obtaining from each Subcontractor and delivering to the
Depositor and the Master Servicer, any assessment of compliance and
attestation required to be delivered by such Subcontractor under Section 11.05
and Section 11.07, in each case as and when required to be delivered.

          Section 11.09 Amendments.

          In the event the parties to this Agreement desire to further clarify
or amend any provision of this Article XI, this Agreement shall be amended to
reflect the new agreement between the parties covering matters in this Article
XI pursuant to Section 10.01, which amendment shall not require any Opinion of
Counsel or Rating Agency confirmations or the consent of any Certificateholder
or the NIM Insurer.

          If, during the period that the Depositor is required to file
Exchange Act Reports with respect to the Trust Fund, the Master Servicer is no
longer an Affiliate of the Depositor, the Depositor shall assume the
obligations and responsibilities of the Master Servicer in this Article XI
with respect to the preparation and filing of the Exchange Act Reports and/or
acting as the Certifying Person, if the Depositor has received indemnity from
such successor Master Servicer satisfactory to the Depositor, and such Master
Servicer has agreed to provide a Sarbanes-Oxley Certification to the Depositor
substantially in the form of Exhibit AA and the certifications referred to in
Section 11.07.

          Section 11.10 Reconciliation of Accounts.

          Any reconciliation of Accounts performed by any party hereto, or any
Subservicer or Subcontractor shall be prepared no later than 45 calendar days
after the bank statement cut-off date.

                                     179
<PAGE>

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

                                    CWABS, INC.,
                                       as Depositor

                                    By: /s/ Darren Bigby
                                        ----------------
                                        Name:  Darren Bigby
                                        Title: Vice President

                                    COUNTRYWIDE HOME LOANS, INC.,
                                       as a Seller

                                    By: /s/ Darren Bigby
                                        ----------------
                                        Name:  Darren Bigby
                                        Title: Executive Vice President

                                    PARK MONACO INC.,
                                       as a Seller

                                    By: /s/ Darren Bigby
                                        ----------------
                                        Name:  Darren Bigby
                                        Title: Vice President

                                    PARK SIENNA LLC,
                                       as a Seller

                                    By: /s/ Darren Bigby
                                        ----------------
                                        Name:  Darren Bigby
                                        Title: Assistant Vice President

<PAGE>

                                    COUNTRYWIDE HOME LOANS SERVICING LP,
                                    as Master Servicer

                                    By: COUNTRYWIDE GP, INC.

                                    By: /s/ Darren Bigby
                                        ----------------
                                        Name:  Darren Bigby
                                        Title: Senior Vice President

                                    THE BANK OF NEW YORK,
                                    as Trustee

                                    By: /s/ Michelle Penson
                                        -------------------
                                        Name:  Michelle Penson
                                        Title: Vice President

                                    THE BANK OF NEW YORK
                                    (solely with respect to its obligations
                                    under Section 4.01(d))

                                    By: /s/ Paul Connolly
                                        -----------------
                                        Name:  Paul Connolly
                                        Title: Vice President

<PAGE>

                                    THE BANK OF NEW YORK TRUST COMPANY, N.A.
                                    as Co-Trustee

                                    By: /s/ Ernest Ulate Jr.
                                        --------------------
                                        Name:  Ernest Ulate Jr.
                                        Title: Vice President

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Darren Bigby, personally known to me on the basis
of satisfactory evidence to be an Executive Vice President of Countrywide Home
Loans, Inc., one of the corporations that executed the within instrument, and
also known to me to be the person who executed it on behalf of such
corporation and acknowledged to me that such corporation executed the within
instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Darren Bigby, personally known to me on the basis
of satisfactory evidence to be a Senior Vice President of Countrywide GP,
Inc., the parent company of Countrywide Home Loans Servicing LP, one of the
organizations that executed the within instrument, and also known to me to be
the person who executed it on behalf of such limited partnership and
acknowledged to me that such limited partnership 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.

                                        /s/ Glenda Daniel
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Darren Bigby, personally known to me on the basis
of satisfactory evidence to be a Vice President of CWABS, Inc., one of the
corporations that executed the within instrument, and also known to me to be
the person who executed it on behalf of such corporation and acknowledged to
me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Darren Bigby, personally known to me on the basis
of satisfactory evidence to be a Vice President of Park Monaco Inc., one of
the corporations that executed the within instrument, and also known to me to
be the person who executed it on behalf of such corporation and acknowledged
to me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Darren Bigby, personally known to me on the basis
of satisfactory evidence to be an Assistant Vice President of Park Sienna LLC,
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 entity and acknowledged to
me that such entity executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK              )
                               )    ss.:
COUNTY OF NEW YORK             )

          On this 29th day of December, 2006 before me, a notary public in and
for said State, appeared Michelle Penson, personally known to me on the basis
of satisfactory evidence to be a Vice President of The Bank of New York, a New
York banking corporation 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.

                                        /s/ Joanna Ferreri
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK              )
                               )    ss.:
COUNTY OF NEW YORK             )

          On this 29th day of December, 2006 before me, a notary public in and
for said State, appeared Paul Connolly, personally known to me on the basis of
satisfactory evidence to be a Vice President of The Bank of New York, a New
York banking corporation 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.

                                        /s/ Joanna Ferreri
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA            )
                               )    ss.:
COUNTY OF LOS ANGELES          )

          On this 29th day of December, 2006, before me, a notary public in
and for said State, appeared Ernest Ulate Jr., personally known to me on the
basis of satisfactory evidence to be a Vice President of The Bank of New York
Trust Company, N.A., one of the corporations that executed the within
instrument, and also known to me to be the person who executed it on behalf of
such corporation and acknowledged to me that such corporation executed the
within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                       /s/ Nathan Harvey Reddicks Jr.
                                    -----------------------------------
                                                Notary Public

[Notarial Seal]

<PAGE>

                                                                  Exhibits A-1
                                                                  through A-15

                        [Exhibits A-1 through A-15 are
                photocopies of such Certificates as delivered.]

               [See appropriate documents delivered at closing.]

                                     A-1
<PAGE>

                                                                     Exhibit B

                           Exhibit B is a photocopy
                          of the Class P Certificates
                                 as delivered.

               [See appropriate document delivered at closing.]

                                     B-1
<PAGE>

                                                                     Exhibit C

                           Exhibit C is a photocopy
                          of the Class C Certificates
                                 as delivered.

               [See appropriate document delivered at closing.]

                                     C-1
<PAGE>

                                                                     Exhibit D

                           Exhibit D is a photocopy
                         of the Class A-R Certificate
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     D-1
<PAGE>

                                                                     Exhibit E

                           Exhibit E is a photocopy
                     of the Tax Matters Person Certificate
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     E-1
<PAGE>

                                                           Exhibit F-1 and F-2

            [Exhibits F-1 and F-2 are schedules of Mortgage Loans]

        [Delivered to Trustee at closing and on file with the Trustee.]

                                     F-1
<PAGE>

                                  EXHIBIT G-1

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

              Re:  CWABS Asset-Backed Certificates, Series 2006-25
                   -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of December 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned, as
Trustee, hereby certifies that, as to each Mortgage Loan listed in the
Mortgage Loan Schedule (other than any Mortgage Loan paid in full or listed in
the attached list of exceptions) the Co-Trustee has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of ______________,
without recourse", or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note; and

          (ii) a duly executed assignment of the Mortgage or a copy of such
assignment, in either case in the form permitted by Section 2.01 of the
Pooling and Servicing Agreement.

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule or (ii) the collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                    G-1-1
<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By: _________________________________
                                        Name:
                                        Title:

                                    G-1-2
<PAGE>

                                  EXHIBIT G-2

                   FORM OF INTERIM CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

              Re:  CWABS Asset-Backed Certificates, Series 2006-25
                   -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of December 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned hereby
certifies that [, with respect to the Subsequent Mortgage Loans delivered in
connection with the Subsequent Transfer Agreement, dated as of __________ (the
"Subsequent Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller, and The Bank of New York, as Trustee], except as listed in the
following paragraph, as to each [Initial Mortgage Loan][Subsequent Mortgage
Loan] listed in the [Mortgage Loan Schedule][Loan Number and Borrower
Identification Mortgage Loan Schedule] (other than any [Mortgage Loan][Loan
Number and Borrower Identification Mortgage Loan Schedule] paid in full or
listed on the attached list of exceptions) the Co-Trustee has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (ii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a
copy of such Mortgage, with recording information, and in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage
Loan, the original Mortgage or a copy of such Mortgage, with recording
information, noting thereon the presence of the MIN of the [Initial

                                     G-2-1
<PAGE>

Mortgage Loan][Subsequent Mortgage Loan] and language indicating that the
[Initial Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan if the
[Initial Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan, with evidence
of recording indicated thereon, or a copy of the Mortgage certified by the
public recording office in which such Mortgage has been recorded;

          (iii) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, a duly executed assignment of
the Mortgage to "Asset-Backed Certificates, Series 2006-25, CWABS, Inc., by
The Bank of New York, a New York banking corporation, as trustee under the
Pooling and Servicing Agreement dated as of December 1, 2006, without
recourse" or a copy of such assignment, with recording information, or, in the
case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] with respect to
property located in the State of California that is not a MERS Mortgage Loan,
a duly executed assignment of the Mortgage in blank (each such assignment,
when duly and validly completed, to be in recordable form and sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or, in the event such original title policy has not been
received from the insurer, any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company, with the original policy of title insurance to
be delivered within one year of the Closing Date.

          In the event that in connection with any [Initial Mortgage
Loan][Subsequent Mortgage Loan] that is not a MERS Mortgage Loan the
applicable Seller cannot deliver the original recorded Mortgage or all interim
recorded assignments of the Mortgage satisfying the requirements of clause
(ii), (iii) or (iv), as applicable, the Trustee has received, in lieu thereof,
a true and complete copy of such Mortgage and/or such assignment or
assignments of the Mortgage, as applicable, each certified by the applicable
Seller, the applicable title company, escrow agent or attorney, or the
originator of such [Initial Mortgage Loan][Subsequent Mortgage Loan], as the
case may be, to be a true and complete copy of the original Mortgage or
assignment of Mortgage submitted for recording.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
[Initial Mortgage Loan][Subsequent Mortgage Loan], and (ii) the information
set forth in items (i), (iv), (v), (vi), (viii), (ix) and (xv) of the
definition of the "Mortgage Loan Schedule" in Section 1.01 of the Pooling and
Servicing Agreement accurately reflects information set forth in the Mortgage
File.

                                    G-2-2
<PAGE>

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such Mortgage Loan.

                                    G-2-3
<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By: _________________________________
                                        Name:
                                        Title:

                                     G-2-4
<PAGE>

                                  EXHIBIT G-3

                     FORM OF DELAY DELIVERY CERTIFICATION

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

              Re:  CWABS Asset-Backed Certificates, Series 2006-25
                   -----------------------------------------------

Gentlemen:

          [Reference is made to the Initial Certification of Trustee relating
to the above-referenced series, with the schedule of exceptions attached
thereto, delivered by the undersigned, as Trustee, on the Closing Date in
accordance with Section 2.02 of the Pooling and Servicing Agreement dated as
of December 1, 2006 (the "Pooling and Servicing Agreement") among CWABS, Inc.,
as Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as
a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP,
as Master Servicer, the undersigned, as Trustee, and The Bank of New York
Trust Company, N.A., as Co-Trustee.] The undersigned hereby certifies that [,
with respect to the Subsequent Mortgage Loans delivered in connection with the
Subsequent Transfer Agreement, dated as of __________ (the "Subsequent
Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, and The Bank of New York, as Trustee,] as to each Delay Delivery
Mortgage Loan listed on the Schedule A attached hereto (other than any
[Initial Mortgage Loan][Subsequent Mortgage Loan] paid in full or listed on
Schedule B attached hereto) it has received:

          (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (2) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-25, CWABS, Inc., by The
Bank of New York, a New York banking corporation, as trustee under the Pooling
and Servicing Agreement dated as of December 1, 2006, without recourse" or a
copy of such assignment, with recording information,

                                    G-3-1
<PAGE>

or, in the case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] with
respect to property located in the State of California that is not a MERS
Mortgage Loan, a duly executed assignment of the Mortgage in blank (each such
assignment, when duly and validly completed, to be in recordable form and
sufficient to effect the assignment of and transfer to the assignee thereof,
under the Mortgage to which such assignment relates).

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By: _________________________________
                                        Name:
                                        Title:

                                     G-3-2
<PAGE>

                                  EXHIBIT G-4

                   FORM OF INITIAL CERTIFICATION OF TRUSTEE
                          (SUBSEQUENT MORTGAGE LOANS)

                                    [Date]

[Depositor]

[Sellers]

[Master Servicer]

              Re:  CWABS Asset-Backed Certificates, Series 2006-25
                   -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of December 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned hereby
certifies that, as to each Subsequent Mortgage Loan listed in the Loan Number
and Borrower Identification Mortgage Loan Schedule (other than any Subsequent
Mortgage Loan paid in full or listed in the attached list of exceptions) the
Trustee has received:

          (1) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete
chain of endorsement from the originator to the Person endorsing the Mortgage
Note (each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and
to that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements; and

          (2) a duly executed assignment of the Mortgage or a copy of such
assignment with recording information, in either case in the form permitted by
Section 2.01 of the Pooling and Servicing Agreement.

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of

                                    G-4-1
<PAGE>

the Subsequent Mortgage Loans identified on the Loan Number and Borrower
Identification Mortgage Loan Schedule or (ii) the collectibility,
insurability, effectiveness or suitability of any such Subsequent Mortgage
Loan.

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By: _________________________________
                                        Name:
                                        Title:

                                     G-4-2
<PAGE>

                                   EXHIBIT H

                    FORM OF FINAL CERTIFICATION OF TRUSTEE

                                    [Date]

[Depositor]

[Master Servicer]

[Sellers]

              Re:  CWABS Asset-Backed Certificates, Series 2006-25
                   -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing
Agreement dated as of December 1, 2006 (the "Pooling and Servicing Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller,
Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home
Loans Servicing LP, as Master Servicer, the undersigned, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee, the undersigned hereby
certifies that[, with respect to the Subsequent Mortgage Loans delivered in
connection with the Subsequent Transfer Agreement, dated as of __________ (the
"Subsequent Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller and The Bank of New York, as Trustee,] as to each [Initial
Mortgage Loan][Subsequent Mortgage Loan] listed in the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule]
(other than any [Initial Mortgage Loan][Subsequent Mortgage Loan] paid in full
or listed on the attached Document Exception Report) it has received:

          (i) the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of
_________________ without recourse", with all intervening endorsements that
show a complete chain of endorsement from the originator to the Person
endorsing the Mortgage Note (each such endorsement being sufficient to
transfer all right, title and interest of the party so endorsing, as
noteholder or assignee thereof, in and to that Mortgage Note), or, if the
original Mortgage Note has been lost or destroyed and not replaced, an
original lost note affidavit, stating that the original Mortgage Note was lost
or destroyed, together with a copy of the related Mortgage Note and all such
intervening endorsements;

          (ii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a
copy of such Mortgage, with recording information, and in the case of each
[Initial Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage
Loan, the original Mortgage or a copy of such Mortgage, with recording
information, noting the presence of the MIN of the [Initial Mortgage
Loan][Subsequent Mortgage Loan] and language indicating that the [Initial
Mortgage Loan][Subsequent Mortgage Loan] is a MOM Loan if the [Initial
Mortgage Loan][Subsequent

                                     H-1
<PAGE>

Mortgage Loan] is a MOM Loan, with evidence of recording indicated thereon, or
a copy of the Mortgage certified by the public recording office in which such
Mortgage has been recorded];

          (iii) in the case of each [Initial Mortgage Loan][Subsequent
Mortgage Loan] that is not a MERS Mortgage Loan, a duly executed assignment of
the Mortgage to "Asset-Backed Certificates, Series 2006-25, CWABS, Inc., by
The Bank of New York, a New York banking corporation, as trustee under the
Pooling and Servicing Agreement dated as of December 1, 2006, without
recourse" or a copy of such assignment, with recording information, or, in the
case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] with respect to
property located in the State of California that is not a MERS Mortgage Loan,
a duly executed assignment of the Mortgage in blank (each such assignment,
when duly and validly completed, to be in recordable form and sufficient to
effect the assignment of and transfer to the assignee thereof, under the
Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and
all riders thereto or any one of an original title binder, an original
preliminary title report or an original title commitment, or a copy thereof
certified by the title company.

          If the public recording office in which a Mortgage or assignment
thereof is recorded has retained the original of such Mortgage or assignment,
the Trustee has received, in lieu thereof, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be
true and complete by such recording office.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v),
(vi), (viii), (ix) and (xv) of the definition of the "Mortgage Loan Schedule"
in Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of the [Initial
Mortgage Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any
such [Initial Mortgage Loan][Subsequent Mortgage Loan].

                                     H-2
<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                    The Bank of New York,
                                         as Trustee

                                    By: _________________________________
                                        Name:
                                        Title:

                                      H-3
<PAGE>

                                   EXHIBIT I

               TRANSFER AFFIDAVIT FOR THE CLASS A-R CERTIFICATES

STATE OF                  )
                          )       ss.:
COUNTY OF                 )

          The undersigned, being first duly sworn, deposes and says as
follows:

          1. The undersigned is an officer of _______________, the proposed
Transferee of an Ownership Interest in a Class A-R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated
as of December 1, 2006 (the "Agreement"), by and among CWABS, Inc., as
depositor (the "Depositor"), Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, The Bank of New York, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee. Capitalized terms used,
but not defined herein or in Exhibit 1 hereto, shall have the meanings
ascribed to such terms in the Agreement. The Transferee has authorized the
undersigned to make this affidavit on behalf of the Transferee.

          2. The Transferee is not an employee benefit plan that is subject to
Title I of ERISA or to section 4975 of the Internal Revenue Code of 1986, nor
is it acting on behalf of or with plan assets of any such plan. The Transferee
is, as of the date hereof, and will be, as of the date of the Transfer, a
Permitted Transferee. The Transferee will endeavor to remain a Permitted
Transferee for so long as it retains its Ownership Interest in the
Certificate. The Transferee is acquiring its Ownership Interest in the
Certificate for its own account.

          3. The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability
for the tax if the subsequent Transferee furnished to such Person an affidavit
that such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

          4. The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the
pass-through entity does not have actual knowledge that such affidavit is
false. (For this purpose, a "pass-through entity" includes a regulated
investment company, a real estate investment trust or common trust fund, a
partnership, trust or estate, and certain cooperatives and, except as may be
provided in Treasury Regulations, persons holding interests in pass-through
entities as a nominee for another Person.)

                                     I-1
<PAGE>

          5. The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by
and to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

          6. The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in
the Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J-1 to the Agreement (a "Transferor Certificate") to
the effect that such Transferee has no actual knowledge that the Person to
which the Transfer is to be made is not a Permitted Transferee.

          7. The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect
to the Class A-R Certificates.

          8. The Transferee's taxpayer identification number is _____.

          9. The Transferee is a U.S. Person as defined in Code section
7701(a)(30).

          10. The Transferee is aware that the Class A-R Certificates may be
"noneconomic residual interests" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable for any taxes due with
respect to the income on such residual interest, unless no significant purpose
of the transfer was to impede the assessment or collection of tax. In
addition, as the holder of a noneconomic residual interest, the Transferee may
incur tax liabilities in excess of any cash flows generated by the interest
and the Transferee hereby represents that it intends to pay taxes associated
with holding the residual interest as they become due.

          11. The Transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of the Transferee to pay such taxes.

                               *      *      *

                                     I-2
<PAGE>

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by
its duly authorized officer and its corporate seal to be hereunto affixed,
duly attested, this ____ day of _____________, 20__.

                                    [NAME OF TRANSFEREE]

                                    By: _________________________________
                                        Name:
                                        Title:

[Corporate Seal]

ATTEST:

__________________________
[Assistant] Secretary

          Personally appeared before me the above-named _____________, known
or proved to me to be the same person who executed the foregoing instrument
and to be the ____________ of the Transferee, and acknowledged that he
executed the same as his free act and deed and the free act and deed of the
Transferee.

          Subscribed and sworn before me this ____ day of _______, 20__.

                                    _____________________________________
                                                NOTARY PUBLIC
                                    My Commission expires the ___ day of
                                                     , 20__.

                                      I-3
<PAGE>

                              Certain Definitions

          "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.

          "Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality
of any of the foregoing, (ii) a foreign government, International Organization
or any agency or instrumentality of either of the foregoing, (iii) an
organization (except certain farmers' cooperatives described in section 521 of
the Code) that is exempt from tax imposed by Chapter 1 of the Code (including
the tax imposed by section 511 of the Code on unrelated business taxable
income) on any excess inclusions (as defined in section 860E(c)(1) of the
Code) with respect to any Class A-R Certificate, (iv) rural electric and
telephone cooperatives described in section 1381(a)(2)(C) of the Code, (v) an
"electing large partnership" as defined in section 775 of the Code, (vi) a
Person that is not a citizen or resident of the United States, a corporation,
partnership, 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, or 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
unless such Person has furnished the transferor and the Trustee with a duly
completed Internal Revenue Service Form W-8ECI, and (vii) any other Person so
designated by the Trustee based upon an Opinion of Counsel that the Transfer
of an Ownership Interest in a Class A-R Certificate to such Person may cause
any REMIC formed hereunder 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 the Federal Home Loan Mortgage Corporation, a majority
of its board of directors is not selected by such government unit.

          "Person": Any individual, corporation, limited liability company,
partnership, joint venture, bank, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency
or political subdivision thereof.

          "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

          "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

                                     I-4
<PAGE>

                       Section 5.02(c) of the Agreement

          (c) Each Person who has or who acquires any Ownership Interest in a
Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

          (1) Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall be a Permitted Transferee and shall promptly
     notify the Trustee of any change or impending change in its status as a
     Permitted Transferee.

          (2) Except in connection with (i) the registration of the Tax
     Matters Person Certificate in the name of the Trustee or (ii) any
     registration in the name of, or transfer of a Class A-R Certificate to,
     an affiliate of the Depositor (either directly or through a nominee) in
     connection with the initial issuance of the Certificates, no Ownership
     Interest in a Class A-R Certificate may be registered on the Closing Date
     or thereafter transferred, and the Trustee shall not register the
     Transfer of any Class A-R Certificate, unless the Trustee shall have been
     furnished with an affidavit (a "Transfer Affidavit") of the initial owner
     or the proposed transferee in the form attached hereto as Exhibit I.

          (3) Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class A-R Certificate, (B) to obtain a Transfer Affidavit
     from any Person for whom such Person is acting as nominee, trustee or
     agent in connection with any Transfer of a Class A-R Certificate and (C)
     not to Transfer its Ownership Interest in a Class A-R Certificate, or to
     cause the Transfer of an Ownership Interest in a Class A-R Certificate to
     any other Person, if it has actual knowledge that such Person is not a
     Permitted Transferee.

          (4) Any attempted or purported Transfer of any Ownership Interest in
     a Class A-R Certificate in violation of the provisions of this Section
     5.02(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder
     of a Class A-R Certificate in violation of the provisions of this Section
     5.02(c), then the last preceding Permitted Transferee shall be restored
     to all rights as Holder thereof retroactive to the date of registration
     of Transfer of such Class A-R Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Class A-R
     Certificate that is in fact not permitted by Section 5.02(b) and this
     Section 5.02(c) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder
     under the provisions of this Agreement so long as the Transfer was
     registered after receipt of the related Transfer Affidavit and Transferor
     Certificate. The Trustee shall be entitled but not obligated to recover
     from any Holder of a Class A-R Certificate that was in fact not a
     Permitted Transferee at the time it became a Holder or, at such
     subsequent time as it became other than a Permitted Transferee, all
     payments made on such Class A-R Certificate at and after either such
     time. Any such payments so recovered by the Trustee shall be paid and
     delivered by the Trustee to the last preceding Permitted Transferee of
     such Certificate.

                                     I-5
<PAGE>

          (5) The Master Servicer shall use its best efforts to make
     available, upon receipt of written request from the Trustee, all
     information necessary to compute any tax imposed under section 860E(e) of
     the Code as a result of a Transfer of an Ownership Interest in a Class
     A-R Certificate to any Holder who is not a Permitted Transferee.

          The restrictions on Transfers of a Class A-R Certificate set forth
in this Section 5.02(c) shall cease to apply (and the applicable portions of
the legend on a Class A-R Certificate may be deleted) with respect to
Transfers occurring after delivery to the Trustee of an Opinion of Counsel,
which Opinion of Counsel shall not be an expense of the Trustee, the Sellers
or the Master Servicer to the effect that the elimination of such restrictions
will not cause any constituent REMIC of any REMIC formed hereunder to fail to
qualify as a REMIC at any time that the Certificates are outstanding or result
in the imposition of any tax on the Trust Fund, a Certificateholder or another
Person. Each Person holding or acquiring any ownership Interest in a Class A-R
Certificate hereby consents to any amendment of this Agreement that, based on
an Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class
A-R Certificate is not transferred, directly or indirectly, to a Person that
is not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Class A-R Certificate that is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

                                      I-6
<PAGE>

                                  EXHIBIT J-1

           FORM OF TRANSFEROR CERTIFICATE FOR CLASS A-R CERTIFICATES

                                     Date:

CWABS, Inc.
as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York
as Trustee
101 Barclay Street
New York, New York 10286

             Re:  CWABS, Inc. Asset Backed
                  Certificates, Series 2006-25
                  ----------------------------

Ladies and Gentlemen:

          In connection with our disposition of the Class A-R Certificates, we
certify that we have no knowledge that the Transferee is not a Permitted
Transferee. All capitalized terms used herein but not defined herein shall
have the meanings assigned to them in the Pooling and Servicing Agreement
dated as of December 1, 2006, among CWABS, Inc., as Depositor, Countrywide
Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC,
as a Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank
of New York, as Trustee, and The Bank of New York Trust Company, N.A., as
Co-Trustee.

                                    Very truly yours,

                                    _____________________________________
                                    Name of Transferor

                                    By: _________________________________
                                    Name:
                                    Title:

                                    J-1-1
<PAGE>

                                  EXHIBIT J-2

                      FORM OF TRANSFEROR CERTIFICATE FOR
                             PRIVATE CERTIFICATES

                                     Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

             Re:   CWABS, Inc. Asset-Backed Certificates,
                   Series 2006-25, Class [   ]
                   --------------------------------------

Ladies and Gentlemen:

          In connection with our disposition of the above-captioned
Certificates we certify that (a) we understand that the Certificates have not
been registered under the Securities Act of 1933, as amended (the "Act"), and
are being disposed by us in a transaction that is exempt from the registration
requirements of the Act, (b) we have not offered or sold any Certificates to,
or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner
that would be deemed, or taken any other action which would result in, a
violation of Section 5 of the Act. All capitalized terms used herein but not
defined herein shall have the meanings assigned to them in the Pooling and
Servicing Agreement dated as of December 1, 2006, among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP, as
Master Servicer, The Bank of New York, as Trustee, and The Bank of New York
Trust Company, N.A., as Co-Trustee.

                                    Very truly yours,

                                    _____________________________________
                                    Name of Transferor

                                    By: _________________________________
                                    Name:
                                    Title:

                                     J-2-1
<PAGE>

                                   EXHIBIT K

                   FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                    Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay St., 8W
New York, New York 10286

                Re:  CWABS, Inc. Asset-Backed Certificates,
                     Series 2006-25, Class [   ]
                     --------------------------------------

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned
Certificates we certify that (a) we understand that the Certificates are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such
laws, (b) we are an "accredited investor," as defined in Regulation D under
the Act, and have such knowledge and experience in financial and business
matters that we are capable of evaluating the merits and risks of investments
in the Certificates, (c) we have had the opportunity to ask questions of and
receive answers from the Depositor concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed
necessary to our decision to purchase the Certificates, (d) (I) either (i) we
are not an employee benefit plan that is subject to the Employee Retirement
Income Security Act of 1974, as amended, or a plan or arrangement that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor
are we acting on behalf of any such plan or arrangement, or using the assets
of any such plan or arrangement to effect such acquisition or (ii) (A) (if the
above-captioned Certificates are ERISA-Restricted Certificates) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
an insurance company which is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined
in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, or (B) (if the above-captioned Certificates
are not ERISA-Restricted Certificates) it is an "accredited investor" as
defined in Rule 501(a)(1) under the Act, and (II) we will obtain from our
transferee such a representation and agreement described in this clause (d),
(e) we are acquiring the Certificates for investment for our own account and
not with a view to any distribution of such Certificates (but without
prejudice to our right at all times to sell or otherwise dispose of the
Certificates in

                                     K-1
<PAGE>

accordance with clause (g) below), (f) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person,
or otherwise approached or negotiated with any person with respect thereto, or
taken any other action which would result in a violation of Section 5 of the
Act, and (g) we will not sell, transfer or otherwise dispose of any
Certificates unless (1) such sale, transfer or other disposition is made
pursuant to an effective registration statement under the Act or is exempt
from such registration requirements, and if requested, we will at our expense
provide an opinion of counsel satisfactory to the addressees of this
Certificate that such sale, transfer or other disposition may be made pursuant
to an exemption from the Act, (2) the purchaser or transferee of such
Certificate has executed and delivered to you a certificate to substantially
the same effect as this certificate, and (3)the purchaser or transferee has
otherwise complied with any conditions for transfer set forth in the Pooling
and Servicing Agreement.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as
of December 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of
New York, as Trustee, and The Bank of New York Trust Company, N.A., as
Co-Trustee.

                                    Very truly yours,

                                    _____________________________________
                                    Name of Transferee

                                    By: _________________________________
                                        Authorized Officer

                                      K-2
<PAGE>

                                   EXHIBIT L

                           FORM OF RULE 144A LETTER

                                     Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York 10286

              Re:  CWABS, Inc. Asset-Backed Certificates,
                   Series 2006-25, Class [   ]
                   --------------------------------------

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned
Certificates we certify that (a) we understand that the Certificates are not
being registered under the Securities Act of 1933, as amended (the "Act"), or
any state securities laws and are being transferred to us in a transaction
that is exempt from the registration requirements of the Act and any such
laws, (b) we have such knowledge and experience in financial and business
matters that we are capable of evaluating the merits and risks of investments
in the Certificates, (c) we have had the opportunity to ask questions of and
receive answers from the Depositor concerning the purchase of the Certificates
and all matters relating thereto or any additional information deemed
necessary to our decision to purchase the Certificates, (d) (I) either (i) we
are not an employee benefit plan that is subject to the Employee Retirement
Income Security Act of 1974, as amended, or a plan or arrangement that is
subject to Section 4975 of the Internal Revenue Code of 1986, as amended, nor
are we acting on behalf of any such plan or arrangement, or using the assets
of any such plan or arrangement to effect such acquisition or (ii) (A) (if the
above-captioned Certificates are ERISA-Restricted Certificates) if the
Certificates have been the subject of an ERISA-Qualifying Underwriting, we are
an insurance company which is purchasing such Certificates with funds
contained in an "insurance company general account" (as such term is defined
in Section V(e) of Prohibited Transaction Class Exemption 95-60 ("PTCE
95-60")) and the purchase and holding of such Certificates are covered under
Sections I and III of PTCE 95-60, or (B) (if the above-captioned Certificates
are not ERISA-Restricted Certificates) it is an "accredited investor" as
defined in Rule 501(a)(1) under the Act, and (II) we will obtain from our
transferee such a representation and agreement described in this clause (d),
(e) we have not, nor has anyone acting on our behalf offered, transferred,
pledged, sold or otherwise disposed of the Certificates, any interest in the
Certificates or any other similar security to, or solicited any offer to buy
or accept a transfer, pledge or other disposition of the Certificates, any
interest in the Certificates or any other similar security from, or otherwise
approached or negotiated with

                                     L-1
<PAGE>

respect to the Certificates, any interest in the Certificates or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates
under the Securities Act or that would render the disposition of the
Certificates a violation of Section 5 of the Securities Act or require
registration pursuant thereto, nor will act, nor has authorized or will
authorize any person to act, in such manner with respect to the Certificates,
(f) 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
another exemption from registration under the Securities Act.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as
of December 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a
Seller, Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of
New York, as Trustee, and The Bank of New York Trust Company, N.A., as
Co-Trustee.

                                    Very truly yours,

                                    _____________________________________
                                    Name of Transferee

                                    By: _________________________________
                                        Authorized Officer

                                      L-2
<PAGE>

                             ANNEX 1 TO EXHIBIT L

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

         [For Transferees Other Than Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

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

            In connection with purchases by the Buyer, the Buyer is a
               "qualified institutional buyer" as that term is defined in Rule
               144A under the Securities Act of 1933, as amended ("Rule 144A")
               because (i) the Buyer owned and/or invested on a discretionary
               basis either at least $100,000,000 in securities or, if Buyer
               is a dealer, Buyer must own and/or invest on a discretionary
               basis at least $10,000,000 in securities (except for the
               excluded securities referred to below) as of the end of the
               Buyer's most recent fiscal year (such amount being calculated
               in accordance with Rule 144A and (ii) the Buyer satisfies the
               criteria in the category marked below.

               ___  Corporation, etc. The Buyer is a corporation (other than a
                    bank, savings and loan association or similar
                    institution), Massachusetts or similar business trust,
                    partnership, or charitable organization described in
                    Section 501(c)(3)of the Internal Revenue Code of 1986, as
                    amended.

               ___  Bank. The Buyer (a) is a national bank or banking
                    institution organized under the laws of any State,
                    territory or the District of Columbia, the business of
                    which is substantially confined to banking and is
                    supervised by the State or territorial banking commission
                    or similar official or is a foreign bank or equivalent
                    institution, and (b) has an audited net worth of at least
                    $25,000,000 as demonstrated in its latest annual financial
                    statements, a copy of which is attached hereto.

               ___  Savings and Loan. The Buyer (a) is a savings and loan
                    association, building and loan association, cooperative
                    bank, homestead association or similar institution, which
                    is supervised and examined by a State or Federal authority
                    having supervision over any such institutions or is a
                    foreign savings and loan association or equivalent
                    institution and (b) has an audited net worth of at least
                    $25,000,000 as demonstrated in its latest annual financial
                    statements, a copy of which is attached hereto.

               ___  Broker-dealer. The Buyer is a dealer registered pursuant
                    to Section 15 of the Securities Exchange Act of 1934.

               ___  Insurance Company. The Buyer is an insurance company whose
                    primary and predominant business activity is the writing
                    of insurance or the reinsuring of

                                     L-3
<PAGE>

                    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.

            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.

            For purposes of determining the aggregate amount of securities
               owned and/or invested on a discretionary basis by the Buyer,
               the Buyer used the cost of such securities to the Buyer and did
               not include any of the securities referred to in the preceding
               paragraph, except (i) where the Buyer reports its securities
               holdings in its financial statements on the basis of their
               market value, and (ii) no current information with respect to
               the cost of those securities has been published. If clause (ii)
               in the preceding sentence applies, the securities may be valued
               at market. Further, in determining such aggregate amount, the
               Buyer may have included securities owned by subsidiaries of the
               Buyer, but only if such subsidiaries are consolidated with the
               Buyer in its financial statements prepared in accordance with
               generally accepted accounting principles and if the investments
               of such subsidiaries are managed under the Buyer's direction.
               However, such securities were not included if the Buyer is a
               majority-owned, consolidated subsidiary of another enterprise
               and the Buyer is not itself a reporting company under the
               Securities Exchange Act of 1934, as amended.

            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.

                                     L-4
<PAGE>

            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:_______________________________

                                     L-5
<PAGE>

                                                          ANNEX 2 TO EXHIBIT L
                                                          --------------------

           QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
           --------------------------------------------------------

          [For Transferees That are Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties
listed in the Rule 144A Transferee Certificate to which this certification
relates with respect to the Certificates described therein:

           1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

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

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

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

       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).

       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

                                     L-6
<PAGE>

          agreements, (vi) securities owned but subject to a repurchase
          agreement and (vii) currency, interest rate and commodity swaps.

       The Buyer is familiar with Rule 144A and under-stands that the
          parties listed in the Rule 144A Transferee Certificate to which this
          certification relates are relying and will continue to rely on the
          statements made herein because one or more sales to the Buyer will
          be in reliance on Rule 144A. In addition, the Buyer will only
          purchase for the Buyer's own account.

       Until the date of purchase of the Certificates, the undersigned will
          notify the parties listed in the Rule 144A Transferee Certificate to
          which this certification relates of any changes in the information
          and conclusions herein. Until such notice is given, the Buyer's
          purchase of the Certificates will constitute a reaffirmation of this
          certification by the undersigned as of the date of such purchase.

                                    ____________________________________
                                       Print Name of Buyer or Adviser

                                    By:_________________________________
                                    Name:
                                    Title:

                                    IF AN ADVISER:

                                    ____________________________________
                                             Print Name of Buyer

                                    Date:_______________________________

                                      L-7
<PAGE>

                                   EXHIBIT M

                     FORM OF REQUEST FOR DOCUMENT RELEASE

Loan Information

      Name of Mortgagor:               _________________________________

      Master Servicer
      Loan No.:                        _________________________________

Trustee

      Name:                            _________________________________

      Address:                         _________________________________

                                       _________________________________

      Trustee
      Mortgage File No.:               _________________________________

     The undersigned Master Servicer hereby acknowledges that it has received
from _______________________________________, as Trustee for the Holders of
Asset-Backed Certificates, Series 2006-25, the documents referred to below
(the "Documents"). All capitalized terms not otherwise defined in this Request
for Document Release shall have the meanings given them in the Pooling and
Servicing Agreement dated as of December 1, 2006 (the "Pooling and Servicing
Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as
a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller,
Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of New York,
as Trustee, and The Bank of New York Trust Company, N.A., as Co-Trustee.

( )   Mortgage Note dated ___________, ____, in the original principal sum of
      $________, made by __________________, payable to, or endorsed to the
      order of, the Trustee.

( )   Mortgage recorded on _________________ as instrument no.
      ________________ in the County Recorder's Office of the County of
      ________________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

( )   Deed of Trust recorded on _________________ as instrument no.
      ________________ in the County Recorder's Office of the County of
      ________________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

( )   Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
      _________________ as instrument no. __________ in the County Recorder's
      Office of

                                     M-1
<PAGE>

      the County of __________, State of _______________ in book/reel/docket
      _______________ of official records at page/image _____________.

( )   Other documents, including any amendments, assignments or other
      assumptions of the Mortgage Note or Mortgage.

( )   _________________________________________________

( )   _________________________________________________

( )   _________________________________________________

( )   _________________________________________________

     The undersigned Master Servicer hereby acknowledges and agrees as
follows:

          (1) The Master Servicer shall hold and retain possession of the
     Documents in trust for the benefit of the Trust Fund, solely for the
     purposes provided in the Pooling and Servicing Agreement.

          (2) The Master Servicer shall not cause or knowingly permit the
     Documents to become subject to, or encumbered by, any claim, liens,
     security interest, charges, writs of attachment or other impositions nor
     shall the Master Servicer assert or seek to assert any claims or rights
     of setoff to or against the Documents or any proceeds thereof.

          (3) The Master Servicer shall return each and every Document
     previously requested from the Mortgage File to the Trustee when the need
     therefor no longer exists, unless the Mortgage Loan relating to the
     Documents has been liquidated and the proceeds thereof have been remitted
     to the Certificate Account and except as expressly provided in the
     Pooling and Servicing Agreement.

          (4) The Documents and any proceeds thereof, including any proceeds
     of proceeds, coming into the possession or control of the Master Servicer
     shall at all times be earmarked for the account of the Trust Fund, and
     the Master Servicer shall keep the Documents and any proceeds separate
     and distinct from all other property in the Master Servicer's possession,
     custody or control.

                                    [Master Servicer]

                                    By  _____________________________________

                                    Its _____________________________________

                                    Date: _________________, ____

                                     M-2
<PAGE>

                                   EXHIBIT N

                       FORM OF REQUEST FOR FILE RELEASE

                    OFFICER'S CERTIFICATE AND TRUST RECEIPT
                          ASSET-BACKED CERTIFICATES,
                                Series 2006-25

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN
OFFICER OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER
SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND
SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.] [THE PURCHASE PRICE
FOR SUCH MORTGAGE LOANS HAS BEEN PAID.] [THE MORTGAGE LOANS HAVE BEEN
LIQUIDATED AND THE RELATED [INSURANCE PROCEEDS] [LIQUIDATION PROCEEDS] HAVE
BEEN DEPOSITED PURSUANT TO SECTION 3.13 OF THE POOLING AND SERVICING
AGREEMENT.] [A REPLACEMENT MORTGAGE LOAN HAS BEEN DELIVERED TO THE TRUSTEE IN
THE MANNER AND OTHERWISE IN ACCORDANCE WITH THE CONDITIONS SET FORTH IN
SECTIONS 2.02 AND 2.03 OF THE POOLING AND SERVICING AGREEMENT.]

LOAN NUMBER:_______________                 BORROWER'S NAME:_____________

COUNTY:____________________

[For Substitution or Repurchase Only: The Master Servicer certifies that [an]
[no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,
THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO
SECTION 3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE
CREDITED.

____________                                 _____________________
                                             DATED:____________

/ /                                          VICE PRESIDENT
/ /                                          ASSISTANT VICE PRESIDENT

                                     N-1
<PAGE>

                                                                     Exhibit O

                           Exhibit O is a photocopy
                          of the Depository Agreement
                                 as delivered.

               [See appropriate documents delivered at closing.]

                                     O-1
<PAGE>

                                   EXHIBIT P

                     FORM OF SUBSEQUENT TRANSFER AGREEMENT

          SUBSEQUENT TRANSFER AGREEMENT, dated as of ____________, 200[_]
(this "Subsequent Transfer Agreement"), among CWABS, INC., a Delaware
corporation, as depositor (the "Depositor"), COUNTRYWIDE HOME LOANS, INC., a
New York corporation, in its capacity as a seller under the Pooling and
Servicing Agreement referred to below ("CHL"), PARK MONACO INC., a Delaware
corporation, in its capacity as a seller under the Pooling and Servicing
Agreement ("Park Monaco"), PARK SIENNA LLC, a Delaware limited liability
company, in its capacity as a seller under the Pooling and Servicing Agreement
("Park Sienna" and, together with CHL and Park Monaco, the "Sellers") and The
Bank of New York, a New York banking corporation, as trustee (the "Trustee");

          WHEREAS, the Depositor, CHL, Park Monaco, Park Sienna, the Trustee,
Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank of New
York Trust Company N.A., as Co-Trustee, have entered in the Pooling and
Servicing Agreement, dated as of December 1, 2006 (the "Pooling and Servicing
Agreement"), relating to the CWABS, Inc. Asset-Backed Certificates, Series
2006-25 (capitalized terms not otherwise defined herein are used as defined in
the Pooling and Servicing Agreement);

          WHEREAS, Section 2.01(b) of the Pooling and Servicing Agreement
provides for the parties hereto to enter into this Subsequent Transfer
Agreement in accordance with the terms and conditions of the Pooling and
Servicing Agreement;

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged the parties hereto agree as follows:

          (a) The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ________ __, 200[_].

          (b) The "Subsequent Transfer Date Purchase Amount" with respect to
this Subsequent Transfer Agreement shall be $_______________.

          (c) The Subsequent Mortgage Loans conveyed on the Subsequent
Transfer Date shall be subject to the terms and conditions of the Pooling and
Servicing Agreement.

          (d) Annex I hereto sets forth a list of the Mortgage Loans which are
Delay Delivery Mortgage Loans.

          (e) In case any provision of this Subsequent Transfer Agreement
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions or obligations shall not in any way
be affected or impaired thereby.

          (f) In the event of any conflict between the provisions of this
Subsequent Transfer Agreement and the Pooling and Servicing Agreement, the
provisions of the Pooling and Servicing Agreement shall prevail.

                                     P-1
<PAGE>

          (g) This Subsequent Transfer Agreement shall be governed by, and
shall be construed and enforced in accordance with the laws of the State of
New York.

          (h) The Subsequent Transfer Agreement may be executed in one or more
counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                     P-2
<PAGE>

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

                                    CWABS, INC.,
                                     as Depositor

                                    By: __________________________________
                                        Name:
                                        Title:

                                    COUNTRYWIDE HOME LOANS, INC.,
                                     as a Seller

                                    By: __________________________________
                                        Name:
                                        Title:

                                    PARK MONACO INC.,
                                     as a Seller

                                    By: __________________________________
                                        Name:
                                        Title:

                                    PARK SIENNA LLC,
                                     as a Seller

                                    By: __________________________________
                                        Name:
                                        Title:

                                     P-3
<PAGE>

                                    THE BANK OF NEW YORK,
                                     not in its individual capacity,
                                      but solely as Trustee

                                    By: __________________________________
                                        Name:
                                        Title:

                                     P-4
<PAGE>

                                                                       Annex I

        Mortgage Loans for which All or a Portion of a Related Mortgage
               File is not Delivered to the Trustee on or prior
                        to the Subsequent Transfer Date

                                     P-5
<PAGE>

                                   EXHIBIT Q

                                  [RESERVED]

                                     Q-1
<PAGE>

                                   EXHIBIT R

                                  [RESERVED]

                                     Q-1
<PAGE>

                                  EXHIBIT S-1

                                  [RESERVED]

                                      R-1
<PAGE>

                                  EXHIBIT S-2

                                  [RESERVED]

                                     S-1-1
<PAGE>

                                   EXHIBIT T

               OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                          ASSET-BACKED CERTIFICATES,
                                Series 2006-25

                                    [Date]

Via Facsimile

The Bank of New York,
      as Trustee
101 Barclay Street
New York, New York 10286

Dear Sir or Madam:

          Reference is made to the Pooling and Servicing Agreement, dated as
of December 1, 2006, (the "Pooling and Servicing Agreement") among CWABS,
Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco
Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, The Bank of New York, as Trustee, and The
Bank of New York Trust Company, N.A., as Co-Trustee. Capitalized terms used
herein shall have the meanings ascribed to such terms in the Pooling and
Servicing Agreement.

          __________________ hereby certifies that he/she is a Servicing
Officer, holding the office set forth beneath his/her name and hereby further
certifies as follows:

          With respect to the Distribution Date in _________ 20[ ] and each
Mortgage Loan set forth in the attached schedule:

          1. A Principal Prepayment in full or in part was received during the
related Prepayment Period;

          2. Any Prepayment Charge due under the terms of the Mortgage Note
with respect to such Principal Prepayment was or was not, as indicated on the
attached schedule using "Yes" or "No", received from the Mortgagor and
deposited in the Certificate Account;

          3. As to each Mortgage Loan set forth on the attached schedule for
which all or part of the Prepayment Charge required in connection with the
Principal Prepayment was waived by the Master Servicer, such waiver was, as
indicated on the attached schedule, based upon:

                    (i) the Master Servicer's determination that such waiver
     would maximize recovery of Liquidation Proceeds for such Mortgage Loan,
     taking into account the value of such Prepayment Charge, or

                                     T-1
<PAGE>

                    (ii)(A) the enforceability thereof is limited (1) by
     bankruptcy, insolvency, moratorium, receivership, or other similar law
     relating to creditors' rights generally or (2) due to acceleration in
     connection with a foreclosure or other involuntary payment, or (B) the
     enforceability is otherwise limited or prohibited by applicable law; and

          4. We certify that all amounts due in connection with the waiver of
a Prepayment Charge inconsistent with clause 3 above which are required to be
deposited by the Master Servicer pursuant to Section 3.20 of the Pooling and
Servicing Agreement, have been or will be so deposited.

                                    COUNTRYWIDE HOME LOANS, INC.,
                                     as Master Servicer

                                    By:___________________________________
                                       Name:
                                       Title:

                                     T-2
<PAGE>

        SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED
                     DURING THE RELATED PREPAYMENT PERIOD

<TABLE>
<CAPTION>

---------------------------------------- -------------------------------------- --------------------------------------
Loan Number                              Clause 2:  Yes/No                      Clause 3:  (i) or (ii)
---------------------------------------- -------------------------------------- --------------------------------------
<S>                                      <C>                                    <C>

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

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

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

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

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

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

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

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

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

</TABLE>

                                     T-3
<PAGE>

                                   EXHIBIT U

                             FORM OF SWAP CONTRACT

                     [See document delivered at closing.]

                                     U-1
<PAGE>

                                  EXHIBIT V-1

                  FORM OF SWAP CONTRACT ASSIGNMENT AGREEMENT

                     [See document delivered at closing.]

                                    V-1-1
<PAGE>

                                  EXHIBIT V-2

                FORM OF SWAP CONTRACT ADMINISTRATION AGREEMENT

                     [See document delivered at closing.]

                                    V-2-1
<PAGE>

                                   EXHIBIT W

                           FORM OF MONTHLY STATEMENT

                          [On file with the Trustee.]

                                     W-1
<PAGE>

                                  EXHIBIT X-1

                       FORM OF PERFORMANCE CERTIFICATION
                                 (Subservicer)

       Re:  The Pooling and Servicing Agreement dated as of December
            1, 2006 (the "Pooling and Servicing Agreement") among
            CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
            as a Seller, Park Monaco Inc., as a Seller, Park Sienna
            LLC, as a Seller, Countrywide Home Loans Servicing LP, as
            Master Servicer, The Bank of New York, as Trustee, and The
            Bank of New York Trust Company, N.A., as Co-Trustee, and
            [Subservicing Agreement] dated as of [ ] (the "Agreement")
            ----------------------------------------------------------

     I, ________________________________, the _______________________ of [NAME
OF COMPANY] (the "Company"), certify to the Depositor and the Master Servicer,
and their officers, with the knowledge and intent that they will rely upon
this certification, that:

          (1) I have reviewed the servicer compliance statement of the Company
     provided in accordance with Item 1123 of Regulation AB (the "Compliance
     Statement"), the report on assessment of the Company'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"), all
     servicing reports, officer's certificates and other information relating
     to the servicing of the Mortgage Loans by the Company during 200[ ] that
     were delivered by the Company to the Depositor, the Master Servicer and
     the Trustee pursuant to the Agreement (collectively, the "Company
     Servicing Information");

          (2) Based on my knowledge, the Company 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 Company
     Servicing Information;

          (3) Based on my knowledge, all of the Company Servicing Information
     required to be provided by the Company under the Agreement has been
     provided to the [Depositor] [Master Servicer];

          (4) I am responsible for reviewing the activities performed by the
     Company as a 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 Company has fulfilled its obligations
     under the Agreement; and

                                    X-1-1
<PAGE>

          (5) The Compliance Statement required to be delivered by the Company
     pursuant to the Agreement, and the Servicing Assessment and Attestation
     Report required to be provided by the Company 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.

                                    Date: ______________________________

                                    By: ________________________________
                                    Name:
                                    Title:

                                    X-1-2
<PAGE>

                                  EXHIBIT X-2

                       FORM OF PERFORMANCE CERTIFICATION
                                   (Trustee)

       Re:  The Pooling and Servicing Agreement dated as of December
            1, 2006 (the "Pooling and Servicing Agreement") among
            CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
            as a Seller, Park Monaco Inc., as a Seller, Park Sienna
            LLC, as a Seller, Countrywide Home Loans Servicing LP, as
            Master Servicer, The Bank of New York, as Trustee, and The
            Bank of New York Trust Company, N.A., as Co-Trustee

     I, ________________________________, the _______________________ of [NAME
OF COMPANY] (the "Company"), certify to the Depositor and the Master Servicer,
and their officers, with the knowledge and intent that they will rely upon
this certification, that:

          (1) I have reviewed the report on assessment of the Company'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"), [all
     reports on Form 10-D containing statements to certificateholders filed in
     respect of the period included in the year covered by the annual report
     of the Trust Fund] (collectively, the "Distribution Date Statements");

          (2) Assuming the accuracy and completeness of the information
     delivered to the Company by the Master Servicer as provided in the
     Pooling and Servicing Agreement and subject to paragraph (4) below, the
     distribution information determined by the Company and set forth in the
     Distribution Date Statements contained in all Form 10-D's included in the
     year covered by the annual report of such Trust on Form 10-K for the
     calendar year 200[ ], is complete and does not contain any material
     misstatement of fact as of the last day of the period covered by such
     annual report;

          (3) Based solely on the information delivered to the Company by the
     Master Servicer as provided in the Pooling and Servicing Agreement, (i)
     the distribution information required under the Pooling and Servicing
     Agreement to be contained in the Trust Fund's Distribution Date
     Statements and (ii) the servicing information required to be provided by
     the Master Servicer to the trustee for inclusion in the Trust Fund's
     Distribution Date Statements, to the extent received by the Trustee from
     the Master Servicer in accordance with the Pooling and Servicing
     Agreement, is included in such Distribution Date Statements;

          (4) The Company is not certifying as to the accuracy, completeness
     or correctness of the information which it received from the Master
     Servicer and did not

                                    X-2-1
<PAGE>

     independently verify or confirm the accuracy, completeness or correctness
     of the information provided by the Master Servicer;

          (5) I am responsible for reviewing the activities performed by the
     Company as a person "performing a servicing function" under the Pooling
     and Servicing Agreement, and based on my knowledge and the compliance
     review conducted in preparing the Servicing Assessment and except as
     disclosed in the Servicing Assessment or the Attestation Report, the
     Company has fulfilled its obligations under the Pooling and Servicing
     Agreement; and

          (6) The Servicing Assessment and Attestation Report required to be
     provided by the Company and by Subcontractor pursuant to the Pooling and
     Servicing Agreement, have been provided to the Master Servicer and the
     Depositor. Any material instances of noncompliance described in such
     reports have been disclosed to the Master Servicer and the Depositor. Any
     material instance of noncompliance with the Servicing Criteria has been
     disclosed in such reports.

                                    Date: ______________________________

                                    By: ________________________________
                                    Name:
                                    Title:

                                     X-2-2
<PAGE>

                                   EXHIBIT Y

                                    FORM OF
                     SERVICING CRITERIA TO BE ADDRESSED IN
                      ASSESSMENT OF COMPLIANCE STATEMENT

          The assessment of compliance to be delivered by [the Master
Servicer] [Trustee] [Name of Subservicer] shall address, at a minimum, the
criteria identified as below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>

------------------------------------------------------------------------------------------ ----------------------
                                                                                                Applicable
                                    Servicing Criteria                                       Servicing Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                                       General Servicing Considerations
--------------------                                                                       ----------------------
<S>                  <C>                                                                   <C>
                     Policies and procedures are instituted to monitor any
                     performance or other triggers and events of default in
1122(d)(1)(i)        accordance with the transaction agreements.
--------------------                                                                       ----------------------
                     If any material servicing activities are outsourced to
                     third parties, policies and procedures are instituted to
                     monitor the third party's performance and compliance with
1122(d)(1)(ii)       such servicing activities.
--------------------                                                                       ----------------------
                     Any requirements in the transaction agreements to
                     maintain a back-up servicer for the mortgage loans are
1122(d)(1)(iii)      maintained.
--------------------                                                                       ----------------------
                     A fidelity bond and errors and omissions policy is in
                     effect on the party participating in the servicing
                     function throughout the reporting period in the amount of
                     coverage required by and otherwise in accordance with the
1122(d)(1)(iv)       terms of the transaction agreements.
--------------------                                                                       ----------------------
                                      Cash Collection and Administration
--------------------                                                                       ----------------------
                     Payments on mortgage loans are deposited into the
                     appropriate custodial bank accounts and related bank
                     clearing accounts no more than two business days
                     following receipt, or such other number of days specified
1122(d)(2)(i)        in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made via wire transfer on behalf of an
                     obligor or to an investor are made only by authorized
1122(d)(2)(ii)       personnel.
--------------------                                                                       ----------------------
                     Advances of funds or guarantees regarding collections,
                     cash flows or distributions, and any interest or other
                     fees charged for such advances, are made, reviewed and
1122(d)(2)(iii)      approved as specified in the transaction agreements.
--------------------                                                                       ----------------------
                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
                     overcollateralization, are separately maintained (e.g.,
                     with respect to commingling of cash) as set forth in the
1122(d)(2)(iv)       transaction agreements.
--------------------                                                                       ----------------------
                     Each custodial account is maintained at a federally
                     insured depository institution as set forth in the
                     transaction agreements. For purposes of this criterion,
                     "federally insured depository institution" with respect
                     to a foreign financial institution means a foreign
                     financial institution that meets the requirements of Rule
1122(d)(2)(v)        13k-1(b)(1) of the Securities Exchange Act.
--------------------                                                                       ----------------------
                     Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)       unauthorized access.
--------------------                                                                       ----------------------

                                                        Y-1
<PAGE>

------------------------------------------------------------------------------------------ ----------------------
                                                                                                Applicable
                                    Servicing Criteria                                       Servicing Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     Reconciliations are prepared on a monthly basis for all
                     asset-backed securities related bank accounts, including
                     custodial accounts and related bank clearing accounts.
                     These reconciliations are (A) mathematically accurate;
                     (B) prepared within 30 calendar days after the bank
                     statement cutoff date, or such other number of days
                     specified in the transaction agreements; (C) reviewed and
                     approved by someone other than the person who prepared
                     the reconciliation; and (D) contain explanations for
                     reconciling items. These reconciling items are resolved
                     within 90 calendar days of their original identification,
                     or such other number of days specified in the transaction
1122(d)(2)(vii)      agreements.
--------------------                                                                       ----------------------
                                      Investor Remittances and Reporting
--------------------                                                                       ----------------------
                     Reports to investors, including those to be filed with the
                     Commission, are maintained in accordance with the transaction
                     agreements and applicable Commission requirements. Specifically,
                     such reports (A) are prepared in accordance with timeframes and
                     other terms set forth in the transaction agreements; (B) provide
                     information calculated in accordance with the terms specified in
                     the transaction agreements; (C) are filed with the Commission as
                     required by its rules and regulations; and (D) agree with
                     investors' or the trustee's records as to the total unpaid
                     principal balance and number of mortgage loans serviced by the
1122(d)(3)(i)        Servicer.
--------------------                                                                       ----------------------
                     Amounts due to investors are allocated and remitted in
                     accordance with timeframes, distribution priority and
1122(d)(3)(ii)       other terms set forth in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made to an investor are posted within two
                     business days to the Servicer's investor records, or such
                     other number of days specified in the transaction
1122(d)(3)(iii)      agreements.
--------------------                                                                       ----------------------
                     Amounts remitted to investors per the investor reports
                     agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)       custodial bank statements.
--------------------                                                                       ----------------------
                                          Pool Asset Administration
--------------------                                                                       ----------------------
                     Collateral or security on mortgage loans is maintained as
                     required by the transaction agreements or related
1122(d)(4)(i)        mortgage loan documents.
--------------------                                                                       ----------------------
                     Mortgage loan and related documents are safeguarded as required
1122(d)(4)(ii)       by the transaction agreements
--------------------                                                                       ----------------------
                     Any additions, removals or substitutions to the asset
                     pool are made, reviewed and approved in accordance with
                     any conditions or requirements in the transaction
1122(d)(4)(iii)      agreements.
--------------------                                                                       ----------------------
                     Payments on mortgage loans, including any payoffs, made
                     in accordance with the related mortgage loan documents
                     are posted to the Servicer's obligor records maintained
                     no more than two business days after receipt, or such
                     other number of days specified in the transaction
                     agreements, and allocated to principal, interest or other
                     items (e.g., escrow) in accordance with the related
1122(d)(4)(iv)       mortgage loan documents.
--------------------                                                                       ----------------------
                     The Servicer's records regarding the mortgage loans agree
                     with the Servicer's records with respect to an obligor's
1122(d)(4)(v)        unpaid principal balance.
--------------------                                                                       ----------------------
                     Changes with respect to the terms or status of an
                     obligor's mortgage loans (e.g., loan modifications or
                     re-agings) are made, reviewed and approved by authorized
                     personnel in accordance with the transaction agreements
1122(d)(4)(vi)       and related pool asset documents.
--------------------                                                                       ----------------------
                     Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
                     foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
1122(d)(4)(vii)      transaction agreements.
--------------------                                                                       ----------------------

                                                       Y-2
<PAGE>

------------------------------------------------------------------------------------------ ----------------------
                                                                                                Applicable
                                    Servicing Criteria                                       Servicing Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     Records documenting collection efforts are maintained during the
                     period a mortgage loan is delinquent in accordance with the
                     transaction agreements. Such records are maintained on at least a
                     monthly basis, or such other period specified in the transaction
                     agreements, and describe the entity's activities in monitoring
                     delinquent mortgage loans including, for example, phone calls,
                     letters and payment rescheduling plans in cases where delinquency
1122(d)(4)(viii)     is deemed temporary (e.g., illness or unemployment).
--------------------                                                                       ----------------------
                     Adjustments to interest rates or rates of return for
                     mortgage loans with variable rates are computed based on
1122(d)(4)(ix)       the related mortgage loan documents.
--------------------                                                                       ----------------------
                     Regarding any funds held in trust for an obligor (such as
                     escrow accounts): (A) such funds are analyzed, in
                     accordance with the obligor's mortgage loan documents, on
                     at least an annual basis, or such other period specified
                     in the transaction agreements; (B) interest on such funds
                     is paid, or credited, to obligors in accordance with
                     applicable mortgage loan documents and state laws; and
                     (C) such funds are returned to the obligor within 30
                     calendar days of full repayment of the related mortgage
                     loans, or such other number of days specified in the
1122(d)(4)(x)        transaction agreements.
--------------------                                                                       ----------------------
                     Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such
                     other number of days specified in the transaction
1122(d)(4)(xi)       agreements.
--------------------                                                                       ----------------------
                     Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
                     servicer's funds and not charged to the obligor, unless
                     the late payment was due to the obligor's error or
1122(d)(4)(xii)      omission.
--------------------                                                                       ----------------------
                     Disbursements made on behalf of an obligor are posted
                     within two business days to the obligor's records
                     maintained by the servicer, or such other number of days
1122(d)(4)(xiii)     specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the
1122(d)(4)(xiv)      transaction agreements.
--------------------                                                                       ----------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3)or Item 1115 of Regulation AB,
                     is maintained as set forth in the transaction
1122(d)(4)(xv)       agreements.
-------------------- --------------------------------------------------------------------- ----------------------

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

</TABLE>

                                    [NAME OF MASTER SERVICER] [NAME
                                     OF TRUSTEE] [NAME OF SUBSERVICER]

                                    Date: ______________________________

                                    By: ________________________________
                                    Name:
                                    Title:

                                                       Y-3
<PAGE>

                                   EXHIBIT Z

                      [FORM OF] LIST OF ITEM 1119 PARTIES

                          ASSET BACKED CERTIFICATES,
                                Series 200_-__

                                    [Date]

<TABLE>
<CAPTION>

---------------------------------------- -----------------------------------------------------------------------------
Party                                    Contact Information
---------------------------------------- -----------------------------------------------------------------------------
<S>                                      <C>

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

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

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

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

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

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

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

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

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

</TABLE>

                                     Z-1
<PAGE>

                                  EXHIBIT AA

                                    FORM OF
                         SARBANES-OXLEY CERTIFICATION
                         (Replacement Master Servicer)

                            (On file with Trustee)

                                     AA-1
<PAGE>

                                  SCHEDULE I

           PREPAYMENT CHARGE SCHEDULE AND PREPAYMENT CHARGE SUMMARY

        [Delivered to Trustee at closing and on file with the Trustee.]

                                    S-I-1
<PAGE>

                                  SCHEDULE II

                              COLLATERAL SCHEDULE

<TABLE>
<CAPTION>

----------------------------------------------------------------- ----------------- ---------------- -----------------
                                                                     Applicable
Characteristic                                                        Section        Loan Group 1      Loan Group 2
----------------------------------------------------------------- ----------------- ---------------- -----------------
<S>                                                                 <C>                <C>              <C>
Single-Family Detached Dwellings                                    2.03(b)(32)         77.11%            69.30%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Two- to Four-Family Dwellings                                       2.03(b)(32)          4.82%            3.43%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Low-Rise Condominium Units                                          2.03(b)(32)          4.46%            7.24%
----------------------------------------------------------------- ----------------- ---------------- -----------------
High-Rise Condominium Units                                         2.03(b)(32)          0.18%            0.72%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Manufactured Housing                                                2.03(b)(32)          0.00%            0.15%
----------------------------------------------------------------- ----------------- ---------------- -----------------
PUDs                                                                2.03(b)(32)         13.43%            19.15%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Earliest Origination Date                                           2.03(b)(33)        9/29/2006        10/25/2005
----------------------------------------------------------------- ----------------- ---------------- -----------------
Prepayment Penalty                                                  2.03(b)(35)         62.54%            74.00%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Investor Properties                                                 2.03(b)(36)          4.08%            3.98%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Primary Residences                                                  2.03(b)(36)         95.05%            94.94%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Lowest Current Mortgage Rate                                        2.03(b)(48)         5.000%            4.000%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Highest Current Mortgage Rate                                       2.03(b)(48)         14.000%          13.500%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Weighted Average Current Mortgage Rate                              2.03(b)(48)         8.314%            8.053%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Lowest Gross Margin                                                 2.03(b)(50)         2.375%            2.250%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Highest Gross Margin                                                2.03(b)(50)         7.990%           14.125%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Weighted Average Gross Margin                                       2.03(b)(50)         6.531%            6.252%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Date on or before which each Initial Mortgage Loan has a
Due Date                                                            2.03(b)(51)        2/1/2007          2/1/2007
----------------------------------------------------------------- ----------------- ---------------- -----------------

</TABLE>

<TABLE>
<CAPTION>

------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------
                                            Adjustable Rate
                                         Mortgage Loans (other        Two-Year         Three-Year        Five-Year
                                         than Two-Year, Three-         Hybrid            Hybrid          Hybrid
    Adjustment         Applicable         Year and Five-Year          Mortgage          Mortgage        Mortgage
       Date             Section          Hybrid Mortgage Loans)         Loans             Loans           Loans
------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------
<S>                   <C>                      <C>                    <C>               <C>              <C>
   Latest Next
 Adjustment Date      2.03(b)(34)              11/1/2016              1/1/2009          1/1/2010         1/1/2012
------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------

</TABLE>

                                    S-II-1
<PAGE>

                                 SCHEDULE III

                            40-YEAR TARGET SCHEDULE

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                        January 2017           54,840,549.25
                       February 2017           54,081,264.16
                          March 2017           53,332,306.31
                          April 2017           52,593,536.12
                            May 2017           51,864,815.84
                           June 2017           51,146,009.65
                           July 2017           50,436,983.51
                         August 2017           49,737,605.21
                      September 2017           49,047,744.32
                        October 2017           48,367,272.16
                       November 2017           47,696,061.80
                       December 2017           47,033,988.00
                        January 2018           46,380,927.23
                       February 2018           45,736,757.60
                          March 2018           45,101,358.90
                          April 2018           44,474,612.53
                            May 2018           43,856,401.47
                           June 2018           43,246,610.28
                           July 2018           42,645,125.10
                         August 2018           42,051,833.58
                      September 2018           41,466,624.92
                        October 2018           40,889,389.76
                       November 2018           40,320,020.28
                       December 2018           39,758,410.06
                        January 2019           39,204,454.15
                       February 2019           38,658,048.99
                          March 2019           38,119,092.42
                          April 2019           37,587,483.69
                            May 2019           37,063,123.39
                           June 2019           36,545,913.42
                           July 2019           36,035,757.03
                         August 2019           35,532,558.81
                      September 2019           35,036,224.56
                        October 2019           34,546,661.42
                       November 2019           34,063,777.74
                       December 2019           33,587,483.15
                        January 2020           33,117,688.44
                       February 2020           32,654,305.65
                          March 2020           32,197,247.99
                          April 2020           31,746,429.84

                                   S-III-1
<PAGE>

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                            May 2020           31,301,766.74
                           June 2020           30,863,175.36
                           July 2020           30,430,573.51
                         August 2020           30,003,880.09
                      September 2020           29,583,015.12
                        October 2020           29,167,899.67
                       November 2020           28,758,455.90
                       December 2020           28,354,607.01
                        January 2021           27,956,277.23
                       February 2021           27,563,391.81
                          March 2021           27,175,877.02
                          April 2021           26,793,660.13
                            May 2021           26,416,669.39
                           June 2021           26,044,833.98
                           July 2021           25,678,084.12
                         August 2021           25,316,350.88
                      September 2021           24,959,566.29
                        October 2021           24,607,663.33
                       November 2021           24,260,575.85
                       December 2021           23,918,238.62
                        January 2022           23,580,587.26
                       February 2022           23,247,558.29
                          March 2022           22,919,089.05
                          April 2022           22,595,117.74
                            May 2022           22,275,583.44
                           June 2022           21,960,425.97
                           July 2022           21,649,586.04
                         August 2022           21,343,005.09
                      September 2022           21,040,625.42
                        October 2022           20,742,390.05
                       November 2022           20,448,242.82
                       December 2022           20,158,128.27
                        January 2023           19,871,991.75
                       February 2023           19,589,779.32
                          March 2023           19,311,437.74
                          April 2023           19,036,914.53
                            May 2023           18,766,157.92
                           June 2023           18,499,116.80
                           July 2023           18,235,740.80
                         August 2023           17,975,980.19
                      September 2023           17,719,785.93
                        October 2023           17,467,109.63
                       November 2023           17,217,903.56
                       December 2023           16,972,120.65

                                   S-III-2
<PAGE>

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                        January 2024           16,729,714.47
                       February 2024           16,490,639.16
                          March 2024           16,254,849.52
                          April 2024           16,022,301.00
                            May 2024           15,792,949.56
                           June 2024           15,566,751.85
                           July 2024           15,343,665.04
                         August 2024           15,123,646.89
                      September 2024           14,906,655.77
                        October 2024           14,692,650.56
                       November 2024           14,481,590.71
                       December 2024           14,273,436.26
                        January 2025           14,068,147.73
                       February 2025           13,865,686.21
                          March 2025           13,666,013.29
                          April 2025           13,469,091.12
                            May 2025           13,274,882.31
                           June 2025           13,083,350.02
                           July 2025           12,894,457.89
                         August 2025           12,708,170.02
                      September 2025           12,524,451.05
                        October 2025           12,343,266.09
                       November 2025           12,164,580.65
                       December 2025           11,988,360.83
                        January 2026           11,814,573.06
                       February 2026           11,643,184.31
                          March 2026           11,474,161.97
                          April 2026           11,307,473.86
                            May 2026           11,143,088.24
                           June 2026           10,980,973.82
                           July 2026           10,821,099.71
                         August 2026           10,663,435.46
                      September 2026           10,507,950.98
                        October 2026           10,354,616.65
                       November 2026           10,203,403.21
                       December 2026           10,054,281.82
                        January 2027           9,907,224.01
                       February 2027           9,762,201.70
                          March 2027           9,619,187.22
                          April 2027           9,478,153.20
                            May 2027           9,339,072.73
                           June 2027           9,201,919.20
                           July 2027           9,066,666.40
                         August 2027           8,933,288.43

                                   S-III-3
<PAGE>

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                      September 2027           8,801,759.79
                        October 2027           8,672,055.29
                       November 2027           8,544,150.09
                       December 2027           8,418,019.69
                        January 2028           8,293,639.91
                       February 2028           8,170,986.93
                          March 2028           8,050,037.21
                          April 2028           7,930,767.54
                            May 2028           7,813,155.06
                           June 2028           7,697,177.17
                           July 2028           7,582,811.58
                         August 2028           7,470,036.36
                      September 2028           7,358,829.79
                        October 2028           7,249,170.51
                       November 2028           7,141,037.43
                       December 2028           7,034,409.73
                        January 2029           6,929,266.89
                       February 2029           6,825,588.68
                          March 2029           6,723,355.10
                          April 2029           6,622,546.45
                            May 2029           6,523,143.31
                           June 2029           6,425,126.49
                           July 2029           6,328,477.07
                         August 2029           6,233,176.42
                      September 2029           6,139,206.11
                        October 2029           6,046,547.99
                       November 2029           5,955,184.16
                       December 2029           5,865,096.93
                        January 2030           5,776,268.89
                       February 2030           5,688,682.83
                          March 2030           5,602,321.81
                          April 2030           5,517,169.08
                            May 2030           5,433,208.17
                           June 2030           5,350,422.75
                           July 2030           5,268,796.79
                         August 2030           5,188,314.45
                      September 2030           5,108,960.10
                        October 2030           5,030,718.31
                       November 2030           4,953,573.87
                       December 2030           4,877,511.81
                        January 2031           4,802,517.31
                       February 2031           4,728,575.77
                          March 2031           4,655,672.81
                          April 2031           4,583,794.20

                                   S-III-4
<PAGE>

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                            May 2031           4,512,925.94
                           June 2031           4,443,054.21
                           July 2031           4,374,165.37
                         August 2031           4,306,245.98
                      September 2031           4,239,282.77
                        October 2031           4,173,262.62
                       November 2031           4,108,172.66
                       December 2031           4,044,000.14
                        January 2032           3,980,732.49
                       February 2032           3,918,357.35
                          March 2032           3,856,862.45
                          April 2032           3,796,235.76
                            May 2032           3,736,465.37
                           June 2032           3,677,539.56
                           July 2032           3,619,446.74
                         August 2032           3,562,175.51
                      September 2032           3,505,714.58
                        October 2032           3,450,052.87
                       November 2032           3,395,179.40
                       December 2032           3,341,083.38
                        January 2033           3,287,754.11
                       February 2033           3,235,181.10
                          March 2033           3,183,353.98
                          April 2033           3,132,262.48
                            May 2033           3,081,896.53
                           June 2033           3,032,246.15
                           July 2033           2,983,301.55
                         August 2033           2,935,052.99
                      September 2033           2,887,490.95
                        October 2033           2,840,605.97
                       November 2033           2,794,388.79
                       December 2033           2,748,830.17
                        January 2034           2,703,921.12
                       February 2034           2,659,652.69
                          March 2034           2,616,016.06
                          April 2034           2,573,002.55
                            May 2034           2,530,603.59
                           June 2034           2,488,810.72
                           July 2034           2,447,615.63
                         August 2034           2,407,010.04
                      September 2034           2,366,985.90
                        October 2034           2,327,535.16
                       November 2034           2,288,649.96
                       December 2034           2,250,322.47

                                   S-III-5
<PAGE>

                         Month of                 40-Year
                     Distribution Date           Target ($)
                    -------------------       ---------------
                        January 2035           2,212,545.05
                       February 2035           2,175,310.11
                          March 2035           2,138,610.16
                          April 2035           2,102,437.85
                            May 2035           2,066,785.87
                           June 2035           2,031,647.11
                           July 2035           1,997,014.43
                         August 2035           1,962,880.88
                      September 2035           1,929,239.57
                        October 2035           1,896,083.73
                       November 2035           1,863,406.61
                       December 2035           1,831,201.65
                        January 2036           1,799,462.32
                       February 2036           1,768,182.18
                          March 2036           1,737,354.88
                          April 2036           1,706,974.19
                            May 2036           1,677,033.92
                           June 2036           1,647,528.00
                           July 2036           1,618,450.41
                         August 2036           1,589,795.24
                      September 2036           1,561,556.63
                        October 2036           1,533,728.83
                       November 2036           1,506,306.16
                       December 2036           1,479,283.02

                                    S-III-6EXHIBIT 4.1

================================================================================

                                  CWABS, INC.,
                                    Depositor

                          COUNTRYWIDE HOME LOANS, INC.,
                                     Seller

                                PARK MONACO INC.,
                                     Seller

                                PARK SIENNA LLC,
                                     Seller

                      COUNTRYWIDE HOME LOANS SERVICING LP,
                                 Master Servicer

                              THE BANK OF NEW YORK,
                                     Trustee

                                       and

                    THE BANK OF NEW YORK TRUST COMPANY, N.A.,
                                   Co-Trustee

                         _______________________________

                         POOLING AND SERVICING AGREEMENT

                          Dated as of December 1, 2006
                         _______________________________

                    ASSET-BACKED CERTIFICATES, SERIES 2006-26

<PAGE>

                                Table of Contents
                                -----------------

                                                                            Page
                                                                            ----

                                   ARTICLE I.
                                   DEFINITIONS

Section 1.01    Defined Terms.................................................10
Section 1.02    Certain Interpretive Provisions...............................56

                                   ARTICLE II.
          CONVEYANCE OF MORTGAGE LOANS; REPRESENTATIONS AND WARRANTIES

Section 2.01    Conveyance of Mortgage Loans..................................56
Section 2.02    Acceptance by Trustee of the Mortgage Loans...................64
Section 2.03    Representations, Warranties and Covenants of the
                Master Servicer and the Sellers...............................69
Section 2.04    Representations and Warranties of the Depositor...............88
Section 2.05    Delivery of Opinion of Counsel in Connection with
                Substitutions and Repurchases.................................90
Section 2.06    Authentication and Delivery of Certificates...................91
Section 2.07    Covenants of the Master Servicer..............................91

                                ARTICLE III.
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

Section 3.01    Master Servicer to Service Mortgage Loans.....................91
Section 3.02    Subservicing; Enforcement of the Obligations of
                Master Servicer...............................................93
Section 3.03    Rights of the Depositor, the Sellers, the Certificateholders,
                the NIM Insurer and the Trustee in Respect of
                the Master Servicer...........................................94
Section 3.04    Trustee to Act as Master Servicer.............................95
Section 3.05    Collection of Mortgage Loan Payments; Certificate Account;
                Distribution Account; Pre-Funding Account;
                Seller Shortfall Interest Requirement.........................95
Section 3.06    Collection of Taxes, Assessments and Similar Items;
                Escrow Accounts...............................................99
Section 3.07    Access to Certain Documentation and Information Regarding
                the Mortgage Loans............................................99
Section 3.08    Permitted Withdrawals from the Certificate Account,
                Distribution Account, Carryover Reserve Fund and the
                Principal Reserve Fund.......................................100
Section 3.09    [Reserved]...................................................103
Section 3.10    Maintenance of Hazard Insurance..............................103
Section 3.11    Enforcement of Due-On-Sale Clauses; Assumption Agreements....103
Section 3.12    Realization Upon Defaulted Mortgage Loans; Determination of
                Excess Proceeds and Realized Losses; Repurchase
                of Certain Mortgage Loans....................................105
Section 3.13    Co-Trustee to Cooperate; Release of Mortgage Files...........108
Section 3.14    Documents, Records and Funds in Possession of Master
                Servicer to be Held for the Trustee..........................109
Section 3.15    Servicing Compensation.......................................110

                                       i
<PAGE>

Section 3.16    Access to Certain Documentation..............................110
Section 3.17    Annual Statement as to Compliance............................110
Section 3.18    [Reserved]...................................................111
Section 3.19    [Reserved]...................................................111
Section 3.20    Prepayment Charges...........................................111
Section 3.21    Swap Contract................................................112

                                   ARTICLE IV.
                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

Section 4.01    Advances; Remittance Reports.................................114
Section 4.02    Reduction of Servicing Compensation in Connection with
                Prepayment Interest Shortfalls...............................116
Section 4.03    [Reserved]...................................................116
Section 4.04    Distributions................................................116
Section 4.05    Monthly Statements to Certificateholders.....................124
Section 4.06    Termination of a Mortgage Insurance Policy...................125
Section 4.07    Carryover Reserve Fund.......................................126
Section 4.08    Credit Comeback Excess Account...............................126
Section 4.09    Swap Trust and Swap Account..................................127
Section 4.10    Final Maturity Reserve Trust and Final Maturity Reserve
                Fund.........................................................128

                                 ARTICLE V.
                              THE CERTIFICATES

Section 5.01    The Certificates.............................................129
Section 5.02    Certificate Register; Registration of Transfer and
                Exchange of Certificates.....................................130
Section 5.03    Mutilated, Destroyed, Lost or Stolen Certificates............135
Section 5.04    Persons Deemed Owners........................................135
Section 5.05    Access to List of Certificateholders' Names and Addresses....135
Section 5.06    Book-Entry Certificates......................................136
Section 5.07    Notices to Depository........................................137
Section 5.08    Definitive Certificates......................................137
Section 5.09    Maintenance of Office or Agency..............................137

                                   ARTICLE VI.
               THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

Section 6.01    Respective Liabilities of the Depositor, the
                Master Servicer and the Sellers..............................138
Section 6.02    Merger or Consolidation of the Depositor, the
                Master Servicer or the Sellers...............................138
Section 6.03    Limitation on Liability of the Depositor, the Sellers,
                the Master Servicer, the NIM Insurer and Others..............139
Section 6.04    Limitation on Resignation of Master Servicer.................139
Section 6.05    Errors and Omissions Insurance; Fidelity Bonds...............140

                                       ii
<PAGE>

                                ARTICLE VII.
                   DEFAULT; TERMINATION OF MASTER SERVICER

Section 7.01    Events of Default............................................140
Section 7.02    Trustee to Act; Appointment of Successor.....................142
Section 7.03    Notification to Certificateholders...........................144

                                ARTICLE VIII.
                  CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

Section 8.01    Duties of Trustee............................................144
Section 8.02    Certain Matters Affecting the Trustee........................146
Section 8.03    Trustee Not Liable for Mortgage Loans........................147
Section 8.04    Trustee May Own Certificates.................................148
Section 8.05    Master Servicer to Pay Trustee's Fees and Expenses...........148
Section 8.06    Eligibility Requirements for Trustee.........................148
Section 8.07    Resignation and Removal of Trustee...........................149
Section 8.08    Successor Trustee............................................150
Section 8.09    Merger or Consolidation of Trustee...........................150
Section 8.10    Appointment of Co-Trustee or Separate Trustee................151
Section 8.11    Tax Matters..................................................152
Section 8.12    Co-Trustee...................................................155
Section 8.13    Access to Records of the Trustee.............................158
Section 8.14    Suits for Enforcement........................................158

                                 ARTICLE IX.
                                 TERMINATION

Section 9.01    Termination upon Liquidation or Repurchase of all
                Mortgage Loans...............................................159
Section 9.02    Final Distribution on the Certificates.......................160
Section 9.03    Additional Termination Requirements..........................162
Section 9.04    Auction of the Mortgage Loans and REO Properties.............162

                                 ARTICLE X.
                          MISCELLANEOUS PROVISIONS

Section 10.01   Amendment....................................................166
Section 10.02   Recordation of Agreement; Counterparts.......................168
Section 10.03   Governing Law................................................168
Section 10.04   Intention of Parties.........................................168
Section 10.05   Notices......................................................170
Section 10.06   Severability of Provisions...................................171
Section 10.07   Assignment...................................................171
Section 10.08   Limitation on Rights of Certificateholders...................171
Section 10.09   Inspection and Audit Rights..................................172
Section 10.10   Certificates Nonassessable and Fully Paid....................173
Section 10.11   Rights of NIM Insurer........................................173

                                      iii
<PAGE>

                                 ARTICLE XI.
                           EXCHANGE ACT REPORTING

Section 11.01   Filing Obligations...........................................175
Section 11.02   Form 10-D Filings............................................175
Section 11.03   Form 8-K Filings.............................................176
Section 11.04   Form 10-K Filings............................................176
Section 11.05   Sarbanes-Oxley Certification.................................177
Section 11.06   Form 15 Filing...............................................177
Section 11.07   Report on Assessment of Compliance and Attestation...........178
Section 11.08   Use of Subservicers and Subcontractors.......................179
Section 11.09   Amendments...................................................180
Section 11.10   Reconciliation of Accounts...................................180

Exhibits
--------

EXHIBIT A           Forms of Certificates
  EXHIBIT A-1       Form of Class 1-A Certificate
  EXHIBIT A-2       Form of Class 2-A-1 Certificate
  EXHIBIT A-3       Form of Class 2-A-2 Certificate
  EXHIBIT A-4       Form of Class 2-A-3 Certificate
  EXHIBIT A-5       Form of Class 2-A-4 Certificate
  EXHIBIT A-6       Form of Class M-1 Certificate
  EXHIBIT A-7       Form of Class M-2 Certificate
  EXHIBIT A-8       Form of Class M-3 Certificate
  EXHIBIT A-9       Form of Class M-4 Certificate
  EXHIBIT A-10      Form of Class M-5 Certificate
  EXHIBIT A-11      Form of Class M-6 Certificate
  EXHIBIT A-12      Form of Class M-7 Certificate
  EXHIBIT A-13      Form of Class M-8 Certificate
  EXHIBIT A-14      Form of Class M-9 Certificate
  EXHIBIT A-15      Form of Class B Certificate
  EXHIBIT B         Form of Class P Certificate
  EXHIBIT C         Form of Class C Certificate
  EXHIBIT D         Form of Class A-R Certificate
  EXHIBIT E         Form of Tax Matters Person Certificate
  EXHIBIT F         Mortgage Loan Schedule
  EXHIBIT F-1       List of Mortgage Loans
  EXHIBIT F-2       Mortgage Loans for which All or a Portion of a Related
                        Mortgage File is not Delivered to the Trustee on or
                        prior to the Closing Date
  EXHIBIT G         Forms of Certification of Trustee
  EXHIBIT G-1       Form of Initial Certification of Trustee
                        (Initial Mortgage Loans)
  EXHIBIT G-2       Form of Interim Certification of Trustee
  EXHIBIT G-3       Form of Delay Delivery Certification
  EXHIBIT G-4       Form of Initial Certification of Trustee
                        (Subsequent Mortgage Loans)

                                       iv

<PAGE>

  EXHIBIT H         Form of Final Certification of Trustee
  EXHIBIT I         Transfer Affidavit for Class A-R Certificates
  EXHIBIT J-1       Form of Transferor Certificate for Class A-R Certificates
  EXHIBIT J-2       Form of Transferor Certificate for Private Certificates
  EXHIBIT K         Form of Investment Letter (Non-Rule 144A)
  EXHIBIT L         Form of Rule 144A Letter
  EXHIBIT M         Form of Request for Document Release
  EXHIBIT N         Form of Request for File Release
  EXHIBIT O         Copy of Depository Agreement
  EXHIBIT P         Form of Subsequent Transfer Agreement
  EXHIBIT Q         [Reserved]
EXHIBIT R           [Reserved]
EXHIBIT S-1         [Reserved]
EXHIBIT S-2         [Reserved]
EXHIBIT T           Officer's Certificate with respect to Prepayments
EXHIBIT U           Form of Swap Contract
EXHIBIT V-1         Form of Swap Contract Assignment Agreement
EXHIBIT V-2         Form of Swap Contract Administration Agreement
EXHIBIT V-3         Form of Swap Guarantee
EXHIBIT W           Form of Monthly Statement
EXHIBIT X-1         Form of Performance Certification (Subservicer)
EXHIBIT X-2         Form of Performance Certification (Trustee)
EXHIBIT Y           Form of Servicing Criteria to be Addressed in Assessment of
                        Compliance Statement
EXHIBIT Z           List of Item 1119 Parties
EXHIBIT AA          Form of Sarbanes-Oxley Certification
                        (Replacement Master Servicer)
SCHEDULE I          Prepayment Charge Schedule and Prepayment Charge Summary
SCHEDULE II         Collateral Schedule
SCHEDULE III        40-Year Target Schedule

                                       v

<PAGE>

          POOLING AND SERVICING AGREEMENT, dated as of December 1, 2006, by and
among CWABS, INC., a Delaware corporation, as depositor (the "Depositor"),
COUNTRYWIDE HOME LOANS, INC., a New York corporation, as seller ("CHL" or a
"Seller"), PARK MONACO INC., a Delaware corporation, as a seller ("Park Monaco"
or a "Seller"), PARK SIENNA LLC, a Delaware limited liability company, as a
seller ("Park Sienna" or a "Seller", and together with CHL and Park Monaco, the
"Sellers"), COUNTRYWIDE HOME LOANS SERVICING LP, a Texas limited partnership, as
master servicer (the "Master Servicer"), THE BANK OF NEW YORK, a New York
banking corporation, as trustee (the "Trustee"), and THE BANK OF NEW YORK TRUST
COMPANY, N.A., a national banking association, as co-trustee (the "Co-Trustee").

                              PRELIMINARY STATEMENT

          The Depositor is the owner of the Trust Fund that is hereby conveyed
to the Trustee in return for the Certificates. The Trust Fund (excluding the
Credit Comeback Excess Account, the Carryover Reserve Fund and the assets held
in the Pre-Funding Account) for federal income tax purposes will consist of
three REMICs (the "Swap-IO REMIC," the "Strip REMIC" and the "Master REMIC").
Each Certificate, other than the Class A-R Certificate, will represent ownership
of one or more regular interests in the Master REMIC for purposes of the REMIC
Provisions. The Class A-R Certificate represents ownership of the sole class of
residual interest in the Swap-IO REMIC, the Strip REMIC and the Master REMIC.
The Master REMIC will hold as assets the several classes of uncertificated Strip
REMIC Interests (other than the STR-A-R Interest). Each Strip REMIC Interest
(other than the STR-A-R Interest) is hereby designated as a regular interest in
the Strip REMIC. The Strip REMIC will hold as assets the several classes of
uncertificated Swap-IO REMIC Interests (other than the SWR-A-R Interest). Each
Swap-IO REMIC Interest (other than the SWR-A-R Interest) is hereby designated as
a regular interest in the Swap-IO REMIC. The Swap-IO REMIC will hold as assets
all property of the Trust Fund (excluding the Credit Comeback Excess Account,
the Carryover Reserve Fund and the assets held in the Pre-Funding Account). The
latest possible maturity date of all REMIC regular interests created in this
Agreement shall be the Latest Possible Maturity Date.

          None of the REMICs described herein shall hold any interest in the
Swap Trust, Swap Contract, Swap Account or Final Maturity Reserve Trust.

     SWAP-IO REMIC:

          The Swap-IO REMIC Interests will have the principal balances and
pass-through rates as set forth below.

Swap-IO REMIC Interest         Initial Principal Balance(1)    Pass-Through Rate
----------------------         -------------------------       -----------------
        SWR-1A                    $          3,238,373.50            (2)
        SWR-1B                    $          3,238,373.50            (3)
        SWR-2A                    $          3,879,705.50            (2)
        SWR-2B                    $          3,879,705.50            (3)
        SWR-3A                    $          4,570,006.50            (2)
        SWR-3B                    $          4,570,006.50            (3)
        SWR-4A                    $          5,256,625.50            (2)

                                       1
<PAGE>

Swap-IO REMIC Interest         Initial Principal Balance(1)    Pass-Through Rate
----------------------         -------------------------       -----------------
        SWR-4B                    $          5,256,625.50            (3)
        SWR-5A                    $          5,937,076.50            (2)
        SWR-5B                    $          5,937,076.50            (3)
        SWR-6A                    $          6,566,279.50            (2)
        SWR-6B                    $          6,566,279.50            (3)
        SWR-7A                    $          7,016,649.50            (2)
        SWR-7B                    $          7,016,649.50            (3)
        SWR-8A                    $          7,612,956.00            (2)
        SWR-8B                    $          7,612,956.00            (3)
        SWR-9A                    $          8,190,508.00            (2)
        SWR-9B                    $          8,190,508.00            (3)
        SWR-10A                   $          8,757,072.50            (2)
        SWR-10B                   $          8,757,072.50            (3)
        SWR-11A                   $          8,843,872.50            (2)
        SWR-11B                   $          8,843,872.50            (3)
        SWR-12A                   $        112,492,489.00            (2)
        SWR-12B                   $        112,492,489.00            (3)
        SWR-13A                   $          7,920,545.50            (2)
        SWR-13B                   $          7,920,545.50            (3)
        SWR-14A                   $          8,107,885.00            (2)
        SWR-14B                   $          8,107,885.00            (3)
        SWR-15A                   $          8,279,323.50            (2)
        SWR-15B                   $          8,279,323.50            (3)
        SWR-16A                   $          8,442,135.00            (2)
        SWR-16B                   $          8,442,135.00            (3)
        SWR-17A                   $          8,590,887.00            (2)
        SWR-17B                   $          8,590,887.00            (3)
        SWR-18A                   $         12,404,044.50            (2)
        SWR-18B                   $         12,404,044.50            (3)
        SWR-19A                   $          8,214,511.00            (2)
        SWR-19B                   $          8,214,511.00            (3)
        SWR-20A                   $          8,056,701.00            (2)
        SWR-20B                   $          8,056,701.00            (3)
        SWR-21A                   $          7,903,857.50            (2)
        SWR-21B                   $          7,903,857.50            (3)
        SWR-22A                   $          7,756,127.00            (2)
        SWR-22B                   $          7,756,127.00            (3)
        SWR-23A                   $          7,620,859.50            (2)
        SWR-23B                   $          7,620,859.50            (3)
        SWR-24A                   $         48,073,384.00            (2)
        SWR-24B                   $         48,073,384.00            (3)
        SWR-25A                   $          6,257,819.50            (2)
        SWR-25B                   $          6,257,819.50            (3)
        SWR-26A                   $          6,101,676.50            (2)
        SWR-26B                   $          6,101,676.50            (3)

                                       2
<PAGE>

Swap-IO REMIC Interest         Initial Principal Balance(1)    Pass-Through Rate
----------------------         -------------------------       -----------------
        SWR-27A                   $          5,952,980.50            (2)
        SWR-27B                   $          5,952,980.50            (3)
        SWR-28A                   $          5,807,827.00            (2)
        SWR-28B                   $          5,807,827.00            (3)
        SWR-29A                   $          5,666,688.00            (2)
        SWR-29B                   $          5,666,688.00            (3)
        SWR-30A                   $         12,769,966.00            (2)
        SWR-30B                   $         12,769,966.00            (3)
        SWR-31A                   $          5,260,930.00            (2)
        SWR-31B                   $          5,260,930.00            (3)
        SWR-32A                   $          5,136,714.50            (2)
        SWR-32B                   $          5,136,714.50            (3)
        SWR-33A                   $          5,016,658.50            (2)
        SWR-33B                   $          5,016,658.50            (3)
        SWR-34A                   $          4,899,721.00            (2)
        SWR-34B                   $          4,899,721.00            (3)
        SWR-35A                   $          4,786,442.00            (2)
        SWR-35B                   $          4,786,442.00            (3)
        SWR-36A                   $         96,917,754.00            (2)
        SWR-36B                   $         96,917,754.00            (3)
        SWR-37A                   $          1,384,738.00            (2)
        SWR-37B                   $          1,384,738.00            (3)
        SWR-38A                   $          1,321,266.50            (2)
        SWR-38B                   $          1,321,266.50            (3)
        SWR-39A                   $          1,521.917.00            (2)
        SWR-39B                   $          1,521.917.00            (3)
        SWR-40A                   $          1,415,830.50            (2)
        SWR-40B                   $          1,415,830.50            (3)
        SWR-41A                   $          1,387,450.50            (2)
        SWR-41B                   $          1,387,450.50            (3)
        SWR-42A                   $          1,333,270.00            (2)
        SWR-42B                   $          1,333,270.00            (3)
        SWR-43A                   $          1,340,936.00            (2)
        SWR-43B                   $          1,340,936.00            (3)
        SWR-44A                   $          1,288,746.00            (2)
        SWR-44B                   $          1,288,746.00            (3)
        SWR-45A                   $          1,182,192.50            (2)
        SWR-45B                   $          1,182,192.50            (3)
        SWR-46A                   $          1,253,607.00            (2)
        SWR-46B                   $          1,253,607.00            (3)
        SWR-47A                   $          1,154,767.00            (2)
        SWR-47B                   $          1,154,767.00            (3)
        SWR-48A                   $          1,233,058.00            (2)
        SWR-48B                   $          1,233,058.00            (3)
        SWR-49A                   $            994,904.50            (2)

                                       3
<PAGE>

Swap-IO REMIC Interest         Initial Principal Balance(1)    Pass-Through Rate
----------------------         -------------------------       -----------------
        SWR-49B                   $            994,904.50            (3)
        SWR-50A                   $            970,831.50            (2)
        SWR-50B                   $            970,831.50            (3)
        SWR-51A                   $          1,140,732.50            (2)
        SWR-51B                   $          1,140,732.50            (3)
        SWR-52A                   $          1,084,351.00            (2)
        SWR-52B                   $          1,084,351.00            (3)
        SWR-53A                   $          1,078,381.00            (2)
        SWR-53B                   $          1,078,381.00            (3)
        SWR-54A                   $          1,024,839.00            (2)
        SWR-54B                   $          1,024,839.00            (3)
        SWR-55A                   $          1,013,661.50            (2)
        SWR-55B                   $          1,013,661.50            (3)
        SWR-56A                   $            957,488.50            (2)
        SWR-56B                   $            957,488.50            (3)
        SWR-57A                   $            863,875.00            (2)
        SWR-57B                   $            863,875.00            (3)
        SWR-58A                   $            895,329.50            (2)
        SWR-58B                   $            895,329.50            (3)
        SWR-59A                   $            892,466.00            (2)
        SWR-59B                   $            892,466.00            (3)
        SWR-60A                   $          1,495,637.00            (2)
        SWR-60B                   $          1,495,637.00            (3)
        SWR-61A                   $          1,097,671.00            (2)
        SWR-61B                   $          1,097,671.00            (3)
        SWR-62A                   $            992,329.00            (2)
        SWR-62B                   $            992,329.00            (3)
        SWR-63A                   $          1,074,027.50            (2)
        SWR-63B                   $          1,074,027.50            (3)
        SWR-64A                   $            936,114.00            (2)
        SWR-64B                   $            936,114.00            (3)
        SWR-65A                   $          1,052,823.00            (2)
        SWR-65B                   $          1,052,823.00            (3)
        SWR-66A                   $            948,184.00            (2)
        SWR-66B                   $            948,184.00            (3)
        SWR-67A                   $            894,125.00            (2)
        SWR-67B                   $            894,125.00            (3)
        SWR-68A                   $            861,869.50            (2)
        SWR-68B                   $            861,869.50            (3)
        SWR-69A                   $            793,947.00            (2)
        SWR-69B                   $            793,947.00            (3)
        SWR-70A                   $            838,749.00            (2)
        SWR-70B                   $            838,749.00            (3)
        SWR-71A                   $            772,715.00            (2)
        SWR-71B                   $            772,715.00            (3)

                                       4
<PAGE>

Swap-IO REMIC Interest         Initial Principal Balance(1)    Pass-Through Rate
----------------------         -------------------------       -----------------
        SWR-72A                   $         53,400,117.50            (2)
        SWR-72B                   $         53,400,117.50            (3)
        SWR-Support                                   (4)            (5)
        SWR-P                     $                100.00            (6)
        SWR-40 Year Reserve                           (7)            (7)
        SW-A-R                                        (8)            (8)

______________
(1)  Scheduled principal, prepayments and Realized Losses will be allocated
     first, to the SWR-Support Interest and second, to the numbered classes
     sequentially (from lowest to highest). Amounts so allocated to a numbered
     class shall be further allocated among the "A" and "B" components of such
     numbered class pro-rata until the entire class is reduced to zero.

(2)  Prior to the 73rd Distribution Date, a rate equal to twice the Pool Tax Cap
     less 10.24% per annum. On and after the 73rd Distribution Date a rate equal
     to the Pool Tax Cap. The "Pool Tax Cap" means the weighted average of the
     Adjusted Net Mortgage Rates of all the Mortgage Loans. For this purpose,
     beginning on the Distribution Date in January 2017 and ending on the
     Distribution Date in December 2036 (the "Last Scheduled Distribution
     Date"), the Adjusted Net Mortgage Rate shall be determined by first
     reducing the interest payable on each 40-Year Mortgage Loan by the 40-Year
     Reserve Rate.

(3)  Prior to the 73rd Distribution Date, a rate equal to the lesser of (i)
     10.24% per annum and (ii) twice the Pool Tax Cap. On and after the 73rd
     Distribution Date, a rate equal to the Pool Tax Cap.

(4)  On the Closing Date and on each Distribution Date, following the allocation
     of Principal Amounts and Realized Losses, the principal balance in respect
     of the SWR-Support Interest will equal the excess of (a) the sum of (i) the
     principal balance of the Mortgage Loans (as of the end of the related Due
     Period, reduced by principal prepayments received after such Due Period
     that are to be distributed on such Distribution Date) and (ii) the amount,
     if any, on deposit in the Pre-Funding Account in respect of the Mortgage
     Loans over (b) the principal balance in respect of the remaining Swap-IO
     REMIC Interests other than the SWR-P and the SWR-A-R Interests.

(5)  A rate equal to the Pool Tax Cap.

(6)  On each Distribution Date the SWR-P Interest is entitled to all Prepayment
     Charges collected with respect to the Mortgage Loans. It pays no interest.

(7)  Beginning on the Distribution Date in January 2017 and ending on the Last
     Scheduled Distribution Date, the SW-40 Year Reserve Interest shall be
     entitled to a specific portion of the interest payable on each 40-Year
     Mortgage Loan. Specifically, the SW-40 Year Reserve Interest shall be
     entitled to a specific portion of the interest payable on the Stated
     Principal Balance of each 40-Year Mortgage Loan as of the Due Date in the
     month preceding the month of that Distribution Date (after giving effect to
     principal prepayments in the Prepayment Period related to that prior Due
     Date) at a per annum rate equal to 0.80% (the "40-Year Reserve Rate").

(8)  The SW-A-R Interest is the sole class of residual interest in the Swap-IO
     REMIC. It has no principal and pays no principal or interest.

                                       5
<PAGE>

     On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the Mortgage Loans shall be payable
with respect to the Swap-IO REMIC Interests in the following manner:

     (1) Interest. Interest is to be distributed with respect to each Swap-IO
REMIC Interest at the rate, or according to the formulas, described above.

     (2) Principal. Principal Distribution Amounts shall be allocated among the
Swap-IO REMIC Interests as described above.

     (3) Prepayment Penalties. All Prepayment Charges are allocated to the SWR-P
Interest.

     STRIP REMIC:

The Strip REMIC Regular Interests will have the principal balances, pass-through
rates and Corresponding Classes of Certificates as set forth in the following
table:

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                                                    Pass-Through            Corresponding Class of
     Strip REMIC Interest        Initial Principal Balance               Rate                    Certificates
------------------------------- ---------------------------- ---------------------------- ----------------------------
<S>                              <C>                                <C>                     <C>
STR-1-A.......................              (1)                          (2)                          1-A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-1.....................              (1)                          (2)                         2-A-1
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-2.....................              (1)                          (2)                         2-A-2
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-3.....................              (1)                          (2)                         2-A-3
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-2-A-4.....................              (1)                          (2)                         2-A-4
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-1.......................              (1)                          (2)                          M-1
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-2.......................              (1)                          (2)                          M-2
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-3.......................              (1)                          (2)                          M-3
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-4.......................              (1)                          (2)                          M-4
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-5.......................              (1)                          (2)                          M-5
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-6.......................              (1)                          (2)                          M-6
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-7.......................              (1)                          (2)                          M-7
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-8.......................              (1)                          (2)                          M-8
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-M-9.......................              (1)                          (2)                          M-9
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-B.........................              (1)                          (2)                           B
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-$100......................             $100                          (3)                          A-R
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-OC......................              (4)                          (2)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-Swap-IO                               (5)                          (5)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-C-40 Year IO                             (6)                         (6)                          N/A
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-P.........................             $100                          (7)                           P
------------------------------- ---------------------------- ---------------------------- ----------------------------
STR-A-R.......................              (8)                          (8)                          N/A
----------------------------------------------------------------------------------------------------------------------
</TABLE>

(1) This Strip REMIC Interest has a principal balance that is initially equal to
100% of its Corresponding Certificate Class issued by the Master REMIC.
Principal payments, both scheduled and prepaid, Realized Losses and Subsequent
Recoveries attributable to the Swap-IO REMIC Interests held by the Strip REMIC
will be allocated to this class to maintain its size relative to its
Corresponding Certificate Class.

                                       6
<PAGE>

(2) On each Distribution Date, the pass-through rate for this Strip REMIC
Interest will be the "Strip REMIC Cap," which will equal the weighted average of
the pass-through rates of the Swap-IO REMIC Interests (other than the SWR-P,
SWR-40 Year Reserve and SWR-A-R Interests) treating each "B" Interest the
cardinal number of which (for example, SW-1B, SW-2B, SW-3B, etc.) is not less
than the ordinal number of the Distribution Date (first Distribution Date,
second Distribution Date, third Distribution Date, etc.) as capped at a rate
equal to the product of (i) 2 and (ii) LIBOR.

(3) This Strip REMIC Interest pays no interest.

(4) This Strip REMIC Interest has a principal balance that is initially equal to
100% of the Overcollateralized Amount. Principal payments, both scheduled and
prepaid, Realized Losses and Subsequent Recoveries attributable to the Swap-IO
REMIC Interests held by the Strip REMIC will be allocated to this class to
maintain its size relative to the Overcollateralized Amount.

(5) For each Distribution Date, the STR-C-Swap-IO Interest is entitled to
receive from each Swap REMIC "B" Interest the cardinal number of which (for
example, SW-1B, SW-2B, SW-3B, etc.) is not less than the ordinal number of the
Distribution Date (first Distribution Date, second Distribution Date, third
Distribution Date, etc. ) the interest accruing on such interest in excess of a
per annum rate equal to the product of (i) 2 and (ii) LIBOR.

(6) The STR-C-40 Year IO is entitled to all amounts payable with respect to the
SWR-40 Year Reserve Interest.

(7) The STR-P Interest is entitled to all amounts payable with respect to the
SWR-P Interest. It pays no interest.

(8) The STR-A-R Interest is the sole class of residual interest in the Strip
REMIC. It has no principal balance and pays no principal or interest.

     On each Distribution Date, the Interest Funds and the Principal
Distribution Amount payable with respect to the Swap-IO Interests shall be
payable with respect to the Strip REMIC Interests in the following manner:

     (1) Interest. Interest is to be distributed with respect to each Strip
REMIC Interest at the rate, or according to the formulas, described above.

     (2) Principal. Principal Distribution Amounts shall be allocated among the
Strip REMIC Interests as described above.

     (3) Prepayment Penalties. All Prepayment Charges are allocated to the STR-P
Interest.

     MASTER REMIC:

        The following table specifies the class designation, interest rate, and
principal amount for each class of Master REMIC Interest:

                                       7
<PAGE>

                                         Original Certificate     Pass-Through
Class                                     Principal Balance           Rate
-------------------------------------- ------------------------ ----------------
Class 1-A............................        $449,571,000              (1)
Class 2-A-1..........................        $218,331,000              (1)
Class 2-A-2..........................         $76,956,000              (1)
Class 2-A-3..........................        $164,548,000              (1)
Class 2-A-4..........................         $64,394,000              (1)
Class M-1............................         $49,200,000              (1)
Class M-2............................         $48,600,000              (1)
Class M-3............................         $14,400,000              (1)
Class M-4............................         $19,200,000              (1)
Class M-5............................         $15,600,000              (1)
Class M-6............................         $12,000,000              (1)
Class M-7............................         $15,000,000              (1)
Class M-8............................          $7,800,000              (1)
Class M-9............................         $12,000,000              (1)
Class B..............................         $11,400,000              (1)
Class C..............................            (2)                   (3)
Class P..............................                $100              (4)
Class A-R............................                $100              (5)

(1)  The Certificates will accrue interest at the related Pass-Through Rates
     identified in this Agreement. For federal income tax purposes, including
     the computation of the Class C Distributable Amount and entitlement to Net
     Rate Carryover the pass-through rate in respect of each Class 1-A
     Certificate, Class 2-A Certificate, Class M Certificate and Class B
     Certificate will be subject to a cap equal to the Strip REMIC Cap rather
     than its applicable Net Rate Cap.
(2)  For federal income tax purposes, the Class C Certificates will be treated
     as having a Certificate Principal Balance equal to the Overcollateralized
     Amount.
(3)  For each Interest Accrual Period the Class C Certificates are entitled to
     an amount (the "Class C Distributable Amount") equal to the sum of (a) the
     interest payable on the STR-C-Swap-IO Interest, (b) the interest payable on
     the STR-C-OC Interest, (c) the interest payable on the STR-C-40 Year IO
     Interest and (d) a specified portion of the interest payable on the Strip
     REMIC Regular Interests (other than the STR-$100, STR-C-OC, STR-C-Swap-IO,
     STR-C-40 Year IO and STR-P Interests) equal to the excess of the Strip
     REMIC Cap over the weighted average interest rate of the Strip REMIC
     Regular Interests (other than the STR-$100, STR-C-OC, STR-C-Swap-IO,
     STR-C-40 Year IO and STR-P Interests) with each such Class subject to a cap
     equal to the Pass-Through Rate of the Corresponding Master REMIC Class. The
     Pass-Through Rate of the Class C Certificates shall be a rate sufficient to
     entitle it to an amount equal to all interest accrued on the Mortgage Loans
     less the interest accrued on the other interests issued by the Master
     REMIC. The Class C Distributable Amount for any Distribution Date is
     payable from current interest on the Mortgage Loans and any related
     Overcollateralization Reduction Amount for that Distribution Date.
(4)  For each Distribution Date the Class P Certificates are entitled to all
     Prepayment Charges distributed with respect to the STR-P Interest.

                                       8
<PAGE>

(5)  The Class A-R Certificates represent the sole class of residual interest in
     each REMIC created hereunder. The Class A-R Certificates are not entitled
     to distributions of interest.

          The foregoing REMIC structure is intended to cause all of the cash
from the Mortgage Loans to flow through to the Master REMIC as cash flow on
REMIC regular interests, without creating any shortfall--actual or potential
(other than for credit losses)-- to any REMIC regular interest. It is not
intended that the Class A-R Certificates be entitled to any cash flows pursuant
to this Agreement except as provided in Section 3.08(a) hereunder.

                                       9
<PAGE>

                                   ARTICLE I.
                                   DEFINITIONS

          Section 1.01  Defined Terms.

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

          40-Year Target Schedule: Schedule III hereto.

          40-Year Mortgage Loan: A Mortgage Loan with an original term to
maturity of 40 years.

          40-Year Reserve Rate: As defined in the Preliminary Statement.

          Acceptable Bid Amount: Either (i) a bid equal to or greater than the
Minimum Auction Amount or (ii) the highest bid submitted by a Qualified Bidder
in an auction if the Directing Certificateholder agrees to pay the related
Auction Supplement Amount.

          Account: Any Escrow Account, the Carryover Reserve Fund, the
Certificate Account, the Credit Comeback Excess Account, the Distribution
Account, the Pre-Funding Account, the Principal Reserve Fund, the Swap Account,
the Final Maturity Reserve Fund or any other account related to the Trust Fund
or the Mortgage Loans.

          Accrual Period: With respect to any Distribution Date and each Class
of Interest-Bearing Certificates, the period commencing on the immediately
preceding Distribution Date (or, in the case of the first Distribution Date, the
Closing Date) and ending on the day immediately preceding such Distribution
Date. With respect to any Distribution Date and the Class C Certificates, the
calendar month preceding the month in which such Distribution Date occurs. All
calculations of interest on the Interest-Bearing Certificates will be made on
the basis of the actual number of days elapsed in the related Accrual Period and
on a 360-day year. All calculations of interest on the Class C Certificates will
be made on the basis of a 360-day year consisting of twelve 30-day months.

          Additional Designated Information: As defined in Section 11.02.

          Adjustable Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is adjustable in
accordance with the terms of the related Mortgage Note.

          Adjusted Net Mortgage Rate: As to each Mortgage Loan, the Mortgage
Rate less the related Expense Fee Rate.

          Adjusted Replacement Upfront Amount: As defined in Section 3.21.

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

                                       10
<PAGE>

          Advance: The aggregate of the advances required to be made by the
Master Servicer with respect to any Distribution Date pursuant to Section 4.01,
the amount of any such advances being equal to the aggregate of payments of
principal of, and interest on the Stated Principal Balance of, the Mortgage
Loans (net of the Servicing Fees) that were due on the related Due Date and not
received by the Master Servicer as of the close of business on the related
Determination Date including an amount equivalent to interest on the Stated
Principal Balance of each Mortgage Loan as to which the related Mortgaged
Property is an REO Property or as to which the related Mortgaged Property has
been liquidated but such Mortgage Loan has not yet become a Liquidated Mortgage
Loan; provided, however, that the net monthly rental income (if any) from such
REO Property deposited in the Certificate Account for such Distribution Date
pursuant to Section 3.12 may be used to offset such Advance for the related REO
Property; provided, further, that for the avoidance of doubt, no Advances shall
be required to be made in respect of any Liquidated Mortgage Loan.

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

          Amount Held for Future Distribution: As to any Distribution Date, the
aggregate amount held in the Certificate 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 Mortgage Loans due after
the related Due Date, (ii) Principal Prepayments received in respect of such
Mortgage Loans after the last day of the related Prepayment Period and (iii)
Liquidation Proceeds and Subsequent Recoveries received in respect of such
Mortgage Loans after the last day of the related Due Period.

          Applied Realized Loss Amount: With respect to any Distribution Date
and any Loan Group or Loan Groups, the amount, if any, by which, the aggregate
Certificate Principal Balance of the Class(es) of Certificates listed opposite
such Loan Group(s) in the following table (after all distributions of principal
on such Distribution Date) exceeds the sum of (x) the aggregate Stated Principal
Balance of the Mortgage Loans in such Loan Group(s) for such Distribution Date
and (y) the amount on deposit in the Pre-Funding Account in respect of such Loan
Group(s); provided, however, that an Applied Realized Loss Amount will not exist
for a Class of Class A Certificates unless the Certificate Principal Balances of
the Subordinate Certificates have been reduced to zero.

                 Loan Group(s)        Class(es) of Certificates

                    1 and 2                Interest-Bearing
                       1                         1-A
                       2                         2-A

          Appraised Value: The appraised value of the Mortgaged Property based
upon the appraisal made for the originator of the related Mortgage Loan by an
independent fee appraiser at the time of the origination of the related Mortgage
Loan, or the sales price of the Mortgaged Property at the time of such
origination, whichever is less, or 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.

                                       11
<PAGE>

          Auction Supplement Amount: As defined in Section 9.04(c).

          Bankruptcy Code: Title 11 of the United States Code.

          Bid Determination Date: As defined in Section 9.04(b).

          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 5.06). As of the Closing
Date, each Class of Interest-Bearing Certificates (other than the Class B
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 or California or the
city in which the Corporate Trust Office of the Trustee is located are
authorized or obligated by law or executive order to be closed.

          Carryover Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.07 in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26". Funds in the Carryover Reserve Fund shall be held
in trust for the Certificateholders for the uses and purposes set forth in this
Agreement.

          Certificate: Any one of the certificates of any Class executed and
authenticated by the Trustee in substantially the forms attached hereto as
Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and Exhibit E.

          Certificate Account: The separate Eligible Account created and
initially maintained by the Master Servicer pursuant to Section 3.05(b) with a
depository institution in the name of the Master Servicer for the benefit of the
Trustee on behalf of the Certificateholders and designated "Countrywide Home
Loans Servicing LP in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26". Funds in the Certificate Account shall be held in
trust for the Certificateholders for the uses and purposes set forth in this
Agreement.

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

          Certificate Principal Balance: As to any Certificate (other than the
Class C Certificates) and as of any Distribution Date, the Initial Certificate
Principal Balance of such Certificate (A) less the sum of (i) all amounts
distributed with respect to such Certificate in reduction of the Certificate
Principal Balance thereof on previous Distribution Dates pursuant to Section
4.04(b) and (ii) any Applied Realized Loss Amounts allocated to such Certificate
on previous Distribution Dates pursuant to Section 4.04(g), and (B) increased by
any Subsequent Recoveries allocated to such Certificate pursuant to Section
4.04(h) on such Distribution Date. References herein to the Certificate
Principal Balance of a Class of Certificates shall mean the

                                       12
<PAGE>

Certificate Principal Balances of all Certificates in such Class. The Class C
Certificates do not have a Certificate Principal Balance. With respect to any
Certificate (other than the Class C Certificates) of a Class and any
Distribution Date, the portion of the Certificate Principal Balance of such
Class represented by such Certificate equal to the product of the Percentage
Interest evidenced by such Certificate and the Certificate Principal Balance of
such Class.

          Certificate Register: The register maintained pursuant to Section 5.02
hereof.

          Certificateholder or Holder: The person in whose name a Certificate is
registered in the Certificate Register (initially, Cede & Co., as nominee for
the Depository, in the case of any Class of Book-Entry Certificates), except
that solely for the purpose of giving any consent pursuant to this Agreement,
any Certificate registered in the name of the Depositor or any affiliate of the
Depositor shall be deemed not to be Outstanding and the Voting Interest
evidenced thereby shall not be taken into account in determining whether the
requisite amount of Voting Interests necessary to effect such consent has been
obtained; provided that if any such Person (including the Depositor) owns 100%
of the Voting Interests evidenced by a Class of Certificates, such Certificates
shall be deemed to be Outstanding for purposes of any provision hereof (other
than the second sentence of Section 10.01 hereof) that requires the consent of
the Holders of Certificates of a particular Class as a condition to the taking
of any action hereunder. The Trustee is entitled to rely conclusively on a
certification of the Depositor or any affiliate of the Depositor in determining
which Certificates are registered in the name of an affiliate of the Depositor.

          Certification Party: As defined in Section 11.05.

          Certifying Person: As defined in Section 11.05.

          CHL: Countrywide Home Loans, Inc., a New York corporation, and its
successors and assigns.

          CHL Mortgage Loans: The Mortgage Loans identified as such on the
Mortgage Loan Schedule for which CHL is the applicable Seller.

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

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

          Class 1-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period), adjusted to an effective rate reflecting the calculation of interest on
the basis of the actual number of days elapsed during the related Accrual Period
and a 360-day year, minus a fraction, expressed as a percentage, the numerator
of which is (a) the product of (x) the sum of (1) the sum of the Net Swap
Payment payable to the Swap Counterparty with respect to such Distribution Date
and the Final Maturity Reserve Deposit for

                                       13
<PAGE>

such Distribution Date times a fraction, the numerator of which is equal to 360
and the denominator of which is equal to the actual number of days in the
related Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date (other than a Swap Termination Payment
due to a Swap Counterparty Trigger Event) and (y) a fraction, the numerator of
which is the Interest Funds for Loan Group 1 for such Distribution Date, and the
denominator of which is the Interest Funds for Loan Group 1 and Loan Group 2 for
such Distribution Date, and the denominator of which is (b) the sum of the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 1 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period) plus any amounts on deposit in the Pre-Funding Account in respect of
Loan Group 1 as of the first day of that Due Period.

          Class 1-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution Target
Amount and (y) a fraction, the numerator of which is the Class 1-A Principal
Distribution Target Amount and the denominator of which is the sum of the Class
1-A Principal Distribution Target Amount and the Class 2-A Principal
Distribution Target Amount.

          Class 1-A Principal Distribution Target Amount: With respect to any
Distribution Date, the excess of (1) the Certificate Principal Balance of the
Class 1-A Certificates immediately prior to such Distribution Date, over (2) the
lesser of (x) 62.30% of the aggregate Stated Principal Balance of the Mortgage
Loans in Loan Group 1 for such Distribution Date and (y) the aggregate Stated
Principal Balance of the Mortgage Loans in Loan Group 1 for such Distribution
Date minus 0.50% of the sum of the aggregate Cut-off Date Principal Balance of
the Initial Mortgage Loans in Loan Group 1 and the original Group 1 Pre-Funded
Amount.

          Class 2-A-1 Certificate: Any Certificate designated as a "Class 2-A-1
Certificate" on the face thereof, in the form of Exhibit A-2 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-2 Certificate: Any Certificate designated as a "Class 2-A-2
Certificate" on the face thereof, in the form of Exhibit A-3 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-3 Certificate: Any Certificate designated as a "Class 2-A-3
Certificate" on the face thereof, in the form of Exhibit A-4 hereto,
representing the right to distributions as set forth herein.

          Class 2-A-4 Certificate: Any Certificate designated as a "Class 2-A-4
Certificate" on the face thereof, in the form of Exhibit A-5 hereto,
representing the right to distributions as set forth herein.

          Class 2-A Certificate: Any Class 2-A-1, Class 2-A-2, Class 2-A-3 or
Class 2-A-4 Certificate.

          Class 2-A Net Rate Cap: For any Distribution Date, the weighted
average Adjusted Net Mortgage Rate of the Mortgage Loans in Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment

                                       14
<PAGE>

Period that ends during such Due Period), adjusted to an effective rate
reflecting the calculation of interest on the basis of the actual number of days
elapsed during the related Accrual Period and a 360-day year, minus a fraction,
expressed as a percentage, the numerator of which is (a) the product of (x) the
sum of (1) the sum of the Net Swap Payment payable to the Swap Counterparty with
respect to such Distribution Date and the Final Maturity Reserve Deposit for
such Distribution Date times a fraction, the numerator of which is equal to 360
and the denominator of which is equal to the actual number of days in the
related Accrual Period and (2) any Swap Termination Payment payable to the Swap
Counterparty for such Distribution Date (other than a Swap Termination Payment
due to a Swap Counterparty Trigger Event) and (y) a fraction, the numerator of
which is the Interest Funds for Loan Group 2 for such Distribution Date, and the
denominator of which is the Interest Funds for Loan Group 1 and Loan Group 2 for
such Distribution Date, and the denominator of which is (b) the sum of the
aggregate Stated Principal Balance of the Mortgage Loans in Loan Group 2 as of
the first day of the related Due Period (after giving effect to Principal
Prepayments received during the Prepayment Period that ends during such Due
Period) plus any amounts on deposit in the Pre-Funding Account in respect of
Loan Group 2 as of the first day of that Due Period.

          Class 2-A Principal Distribution Amount: With respect to any
Distribution Date, the product of (x) the Class A Principal Distribution Target
Amount and (y) a fraction, the numerator of which is the Class 2-A Principal
Distribution Target Amount and the denominator of which is the sum of the Class
1-A Principal Distribution Target Amount and the Class 2-A Principal
Distribution Target Amount.

          Class 2-A Principal Distribution Target Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal Balance
of the Class 2-A Certificates immediately prior to such Distribution Date, over
(2) the lesser of (i) 62.30% of the aggregate Stated Principal Balance of the
Mortgage Loans in Loan Group 2 for such Distribution Date and (ii) the aggregate
Stated Principal Balance of the Mortgage Loans in Loan Group 2 for such
Distribution Date minus 0.50% of the sum of the aggregate Cut-off Date Principal
Balance of the Initial Mortgage Loans in Loan Group 2 and the original Group 2
Pre-Funded Amount.

          Class A-R Certificate: Any Certificate designated as a "Class A-R
Certificate" on the face thereof, in the form of Exhibit D hereto or, in the
case of the Tax Matters Person Certificate, Exhibit E hereto, in either case
representing the right to distributions as set forth herein.

          Class A Certificate: Any Class 1-A or Class 2-A Certificate.

          Class A Principal Distribution Allocation Amount: With respect to any
Distribution Date (a) in the case of the Class 1-A Certificates, the Class 1-A
Principal Distribution Amount and (b) in the case of the Class 2-A Certificates,
the Class 2-A Principal Distribution Amount.

          Class A Principal Distribution Target Amount: With respect to any
Distribution Date, the excess of (1) the aggregate Certificate Principal Balance
of the Class A Certificates immediately prior to such Distribution Date, over
(2) the lesser of (x) 62.30% of the aggregate

                                       15
<PAGE>

Stated Principal Balance of the Mortgage Loans for such Distribution Date and
(y) the aggregate Stated Principal Balance of the Mortgage Loans for such
Distribution Date minus the OC Floor.

          Class B Certificate: Any Certificate designated as a "Class B
Certificate" on the face thereof, in the form of Exhibit A-15 hereto,
representing the right to distributions as set forth herein.

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

          Class C Distributable Amount: As defined in the Preliminary Statement.

          Class M-1 Certificate: Any Certificate designated as a "Class M-1
Certificate" on the face thereof, in the form of Exhibit A-6 hereto,
representing the right to distributions as set forth herein.

          Class M-2 Certificate: Any Certificate designated as a "Class M-2
Certificate" on the face thereof, in the form of Exhibit A-7 hereto,
representing the right to distributions as set forth herein.

          Class M-3 Certificate: Any Certificate designated as a "Class M-3
Certificate" on the face thereof, in the form of Exhibit A-8 hereto,
representing the right to distributions as set forth herein.

          Class M-4 Certificate: Any Certificate designated as a "Class M-4
Certificate" on the face thereof, in the form of Exhibit A-9 hereto,
representing the right to distributions as set forth herein.

          Class M-5 Certificate: Any Certificate designated as a "Class M-5
Certificate" on the face thereof, in the form of Exhibit A-10 hereto,
representing the right to distributions as set forth herein.

          Class M-6 Certificate: Any Certificate designated as a "Class M-6
Certificate" on the face thereof, in the form of Exhibit A-11 hereto,
representing the right to distributions as set forth herein.

          Class M-7 Certificate: Any Certificate designated as a "Class M-7
Certificate" on the face thereof, in the form of Exhibit A-12 hereto,
representing the right to distributions as set forth herein.

          Class M-8 Certificate: Any Certificate designated as a "Class M-8
Certificate" on the face thereof, in the form of Exhibit A-13 hereto,
representing the right to distributions as set forth herein.

          Class M-9 Certificate: Any Certificate designated as a "Class M-9
Certificate" on the face thereof, in the form of Exhibit A-14 hereto,
representing the right to distributions as set forth herein.

                                       16
<PAGE>

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

          Class P Principal Distribution Date: The first Distribution Date that
occurs after the end of the latest Prepayment Charge Period for all Mortgage
Loans that have a Prepayment Charge Period.

          Closing Date: December 29, 2006.

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

          Collateral Schedule: Schedule II hereto.

          Combined Class M-1, M-2 and M-3 Principal Distribution Amount: With
respect to any Distribution Date, the excess of (1) the sum of (a) the aggregate
Certificate Principal Balance of the Class A Certificates (after taking into
account distribution of the Class 1-A Principal Distribution Amount and Class
2-A Principal Distribution Amount for such Distribution Date) and (b) the
aggregate Certificate Principal Balance of the Class M-1, Class M-2 and Class
M-3 Certificates immediately prior to the Distribution Date over (2) the lesser
of (a) 81.00% of the aggregate Stated Principal Balance of the Mortgage Loans
for the Distribution Date and (b) the aggregate Stated Principal Balance of the
Mortgage Loans for the Distribution Date minus the OC Floor; provided, however,
that if the Class M-1, Class M-2 and/or Class M-3 Certificates are the only
Classes of Subordinate Certificates outstanding on such Distribution Date, those
Classes will be entitled to receive the entire remaining Principal Distribution
Amount for Loan Group 1 and Loan Group 2 until the Certificate Principal
Balances thereof are reduced to zero.

          Commission: The U.S. Securities and Exchange Commission.

          Compensating Interest: With respect to each Loan Group and any
Distribution Date, an amount equal to, in that Loan Group, the lesser of (x)
one-half of the Servicing Fee for the related Due Period and (y) the aggregate
Prepayment Interest Shortfalls for the Mortgage Loans in that Loan Group for
such Distribution Date.

          Confirmation: The confirmation, Global Deal ID 2799624, with a trade
date of December 19, 2006 evidencing a transaction between the Swap Counterparty
and CHL relating to the Swap Contract.

          Corporate Trust Office: The designated office of the Trustee in the
State of New York where at any particular time its corporate trust business with
respect to this Agreement shall be administered, which office at the date of the
execution of this Agreement is located at 101 Barclay Street, New York, New York
10286 (Attention: Corporate Trust MBS Administration), telephone: (212)
815-3236, facsimile: (212) 815-3986.

          Co-Trustee: The Bank of New York Trust Company, N.A., a national
banking association, not in its individual capacity, but solely in its capacity
as co-trustee for the benefit of

                                       17
<PAGE>

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.

          Covered Mortgage Loan: A Mortgage Loan listed on the Mortgage Loan
Schedule as being covered by a Mortgage Insurance Policy.

          Credit Bureau Risk Score: A statistical credit score obtained by CHL
in connection with the origination of a Mortgage Loan.

          Credit Comeback Excess Account: The separate Eligible Account created
and initially maintained by the Trustee pursuant to Section 4.08 in the name of
the Trustee for the benefit of the Certificateholders and designated "The Bank
of New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26". Funds in the Credit Comeback Excess Account shall
be held in trust for the Certificateholders for the uses and purposes set forth
in this Agreement.

          Credit Comeback Excess Amount: With respect to the Credit Comeback
Loans in any Loan Group and any Master Servicer Advance Date, the portion of the
sum of the following (without duplication) attributable to the excess, if any,
of the actual mortgage rate on each Credit Comeback Loan in such Loan Group and
the Mortgage Rate on such Credit Comeback Loan: (i) all scheduled interest
collected during the related Due Period with respect to the Credit Comeback
Loans in such Loan Group, (ii) all interest on prepayments received during the
related Prepayment Period with respect to the Credit Comeback Loans in such Loan
Group, other than Prepayment Interest Excess, (iii) all Advances relating to
interest with respect to the Credit Comeback Loans in such Loan Group, (iv) all
Compensating Interest with respect to the Credit Comeback Loans in such Loan
Group and (v) Liquidation Proceeds with respect to the Credit Comeback Loans in
such Loan Group collected during the related Due Period (to the extent such
Liquidation Proceeds relate to interest), less all Nonrecoverable Advances for
such Loan Group relating to interest reimbursed during the related Due Period.

          Credit Comeback Excess Cashflow: With respect to any Distribution
Date, any amounts in the Credit Comeback Excess Account available for such
Distribution Date.

          Credit Comeback Loan: Any Fixed Rate Mortgage Loan for which the
related Mortgage Rate is subject to reduction (not exceeding 0.375% per annum)
for good payment history of Scheduled Payments by the related Mortgagor.

          Cumulative Loss Trigger Event: With respect to a Distribution Date on
or after the Stepdown Date, a Cumulative Loss Trigger Event will be in effect if
(x) the aggregate amount of Realized Losses on the Mortgage Loans from the
Cut-off Date for each such Mortgage Loan to (and including) the last day of the
related Due Period (reduced by the aggregate amount of any Subsequent Recoveries
received through the last day of that Due Period) exceeds (y) the applicable
percentage, for such Distribution Date, of the sum of the aggregate Cut-off Date
Principal Balance of the Initial Mortgage Loans and the Pre-Funded Amount, as
set forth below:

                                       18
<PAGE>

Distribution Date                       Percentage
-----------------                       ----------

January 2009 -- December 2009.......... 1.10% with respect to January 2009, plus
                                        an additional 1/12th of 1.45% for each
                                        month thereafter through December 2009

January 2010 -- December 2010.......... 2.55% with respect to January 2010, plus
                                        an additional 1/12th of 1.50% for each
                                        month thereafter through December 2010

January 2011 -- December 2011.......... 4.05% with respect to January 2011, plus
                                        an additional 1/12th of 1.20% for each
                                        month thereafter through December 2011

January 2012 -- December 2012.......... 5.25% with respect to January 2012, plus
                                        an additional 1/12th of 0.75% for each
                                        month thereafter through December 2012

January 2013 -- December 2013.......... 6.00% with respect to January 2013, plus
                                        an additional 1/12th of 0.05% for each
                                        month thereafter through December 2013

January 2014 and thereafter............ 6.05%

          Current Interest: With respect to each Class of Interest-Bearing
Certificates and each Distribution Date, the interest accrued at the applicable
Pass-Through Rate for the applicable Accrual Period on the Certificate Principal
Balance of such Class immediately prior to such Distribution Date.

          Cut-off Date: When used with respect to any Mortgage Loan the "Cut-off
Date" shall mean the Initial Cut-off Date or the related Subsequent Cut-off
Date, as the case may be.

          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 payments of principal due on or prior to the Cut-off Date,
whether or not received, and all Principal Prepayments received on or prior to
the Cut-off Date, but without giving effect to any installments of principal
received in respect of Due Dates after the Cut-off Date.

          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.

                                       19
<PAGE>

          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 5.06.

          Delay Delivery Mortgage Loans: (i) The Initial Mortgage Loans
identified on the schedule of Mortgage Loans hereto set forth on Exhibit F-2
hereof for which all or a portion of a related Mortgage File is not delivered to
the Co-Trustee on or prior to the Closing Date, and (ii) the Subsequent Mortgage
Loans identified on the schedule of Subsequent Mortgage Loans set forth in Annex
A to each related Subsequent Transfer Agreement for which all or a portion of
the related Mortgage File is not delivered to the Co-Trustee on or prior to the
related Subsequent Transfer Date. The Depositor shall deliver (or cause delivery
of) the Mortgage Files to the Co-Trustee: (A) with respect to at least 50% of
the Initial Mortgage Loans in each Loan Group, not later than the Closing Date
and with respect to at least 10% of the Subsequent Mortgage Loans in each Loan
Group conveyed on a Subsequent Transfer Date, not later than such Subsequent
Transfer Date, (B) with respect to at least an additional 40% of the Initial
Mortgage Loans in each Loan Group, not later than 20 days after the Closing
Date, and not later than 20 days after the relevant Subsequent Transfer Date
with respect to the remaining Subsequent Mortgage Loans conveyed on such
Subsequent Transfer Date, and (C) with respect to the remaining Initial Mortgage
Loans, not later than thirty days after the Closing Date. To the extent that
Countrywide Home Loans, Inc. shall be in possession of any Mortgage Files with
respect to any Delay Delivery Mortgage Loan, until delivery of such Mortgage
File to the Co-Trustee as provided in Section 2.01, Countrywide Home Loans, Inc.
shall hold such files as agent and in trust for the Co-Trustee.

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

          Delinquency Trigger Event: With respect to any Distribution Date on or
after the Stepdown Date, a Delinquency Trigger Event will be in effect if the
Rolling Sixty-Day Delinquency Rate for Outstanding Mortgage Loans equals or
exceeds the product of (x) the Senior Enhancement Percentage for such
Distribution Date and (y) the applicable percentage listed below for the most
senior Class of Interest-Bearing Certificates:

                                       20
<PAGE>

                            Class                              Percentage

                   A.....................                         42.40%
                   M-1...................                         54.19%
                   M-2...................                         74.70%
                   M-3...................                         84.13%
                   M-4...................                        101.17%
                   M-5...................                        121.10%
                   M-6...................                        142.72%
                   M-7...................                        183.73%
                   M-8...................                        216.01%
                   M-9...................                        296.01%
                   B.....................                        456.71%

          Denomination: With respect to each Certificate, the amount set forth
on the face thereof as the "Initial Certificate Balance of this Certificate" or,
if not the foregoing, the Percentage Interest appearing on the face thereof, as
applicable.

          Depositor: CWABS, Inc., a Delaware corporation, or its successor in
interest.

          Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., or any other organization
registered as a "clearing agency" pursuant to Section 17A of the Securities
Exchange Act of 1934, as amended. The Depository shall initially be the
registered Holder of the Book-Entry Certificates. The Depository shall at all
times be a "clearing corporation" as defined in Section 8-102(a)(5) of the
Uniform Commercial Code of the State of New York.

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

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

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

          Directing Certificateholder: As defined in Section 9.04(a).

          Distribution Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05(c) in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New York,
in trust for registered Holders of CWABS, Inc., Asset-Backed Certificates,
Series 2006-26". Funds in the Distribution Account shall be held in trust for
the Certificateholders for the uses and purposes set forth in this Agreement.

                                       21
<PAGE>

          Distribution Account Deposit Date: As to any Distribution Date, 1:00
p.m. Pacific time on the Business Day immediately preceding such Distribution
Date.

          Distribution Date: The 25th day of each month, or if such day is not a
Business Day, on the first Business Day thereafter, commencing in January 2007.

          Due Date: With respect to any Mortgage Loan and Due Period, the due
date for Scheduled Payments of interest and/or principal on that Mortgage Loan
occurring in such Due Period as provided in the related Mortgage Note.

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

          EDGAR: The Commission's Electronic Data Gathering, Analysis and
Retrieval system.

          Eligible Account: Any of (i) an account or accounts maintained with a
federal or state chartered depository institution or trust company, the
long-term unsecured debt obligations and short-term unsecured debt obligations
of which (or, in the case of a depository institution or trust company that is
the principal subsidiary of a holding company, the debt obligations of such
holding company, if Moody's is not a Rating Agency) are rated by each Rating
Agency in one of its two highest long-term and its highest short-term rating
categories respectively, at the time any amounts are held on deposit therein, or
(ii) an account or accounts in a depository institution or trust company in
which such accounts are insured by the FDIC (to the limits established by the
FDIC) and the uninsured deposits in which accounts are otherwise secured such
that, as evidenced by an Opinion of Counsel delivered to the Trustee and to each
Rating Agency, the Certificateholders have a claim with respect to the funds in
such account or a perfected first priority security interest against any
collateral (which shall be limited to Permitted Investments) securing such funds
that is superior to claims of any other depositors or creditors of the
depository institution or trust company in which such account is maintained, or
(iii) a trust account or accounts maintained with the corporate trust department
of a federal or state chartered depository institution or trust company having
capital and surplus of not less than $50,000,000, acting in its fiduciary
capacity or (iv) any other account acceptable to the Rating Agencies without
reduction or withdrawal of their then-current ratings of the Certificates as
evidenced by a letter from each Rating Agency to the Trustee. Eligible Accounts
may bear interest, and may include, if otherwise qualified under this
definition, accounts maintained with the Trustee.

          Eligible Repurchase Month: As defined in Section 3.12(d) hereof.

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

          ERISA-Qualifying Underwriting: A best efforts or firm commitment
underwriting or private placement that meets the applicable requirements of the
Underwriter's Exemption.

                                       22
<PAGE>

          ERISA-Restricted Certificates: The Class A-R Certificates, Class P
Certificates, Class C Certificates, Class B Certificates and Certificates of any
Class that does not have or no longer has a rating of BBB- or its equivalent, or
better, from at least one Rating Agency.

          Escrow Account: As defined in Section 3.06 hereof.

          Event of Default: As defined in Section 7.01 hereof.

          Excess Cashflow: With respect to any Distribution Date the sum of (i)
the amount remaining after the distribution of interest to Certificateholders
for such Distribution Date pursuant to Section 4.04(a)(v)(b), (ii) the amount
remaining after the distribution of principal to Certificateholders for such
Distribution Date, pursuant to Section 4.04(b)(1)(B)(ii) or 4.04(b)(2)(D) and
(iii) the Overcollateralization Reduction Amount for such Distribution Date.

          Excess Deposit: As defined in Section 8.11 hereof.

          Excess Overcollateralization Amount: With respect to any Distribution
Date, the excess, if any, of the Overcollateralized Amount for such Distribution
Date over the Overcollateralization Target Amount for such Distribution Date.

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

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

          Exchange Act Reports: Any reports on Form 10-D, Form 8-K and Form 10-K
required to be filed by the Depositor with respect to the Trust Fund under the
Exchange Act.

          Expense Fee Rate: With respect to any Mortgage Loan, the sum of (i)
the Servicing Fee Rate, (ii) the Trustee Fee Rate, (iii) with respect to a
Covered Mortgage Loan, the applicable Mortgage Insurance Premium Rate and (iv)
with respect to any Mortgage Loan covered by a lender paid mortgage insurance
policy (other than a Mortgage Insurance Policy), the related mortgage insurance
premium rate.

          Extra Principal Distribution Amount: With respect to any Distribution
Date and each of Loan Group 1 and Loan Group 2, the lesser of (1) the
Overcollateralization Deficiency Amount and (2) the Excess Cashflow and Credit
Comeback Excess Cashflow available for payment thereof, to be allocated between
Loan Group 1 and Loan Group 2, pro rata, based on the Principal Remittance
Amount for each such Loan Group for such Distribution Date.

                                       23
<PAGE>

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

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

          Final Maturity Funding Cap: For any Distribution Date beginning with
the Distribution Date in January 2017, the least of (i) the aggregate
Certificate Principal Balance of the Interest-Bearing Certificates immediately
prior to that Distribution Date, (ii) the aggregate Stated Principal Balance of
all outstanding 40-Year Mortgage Loans as of the first day of the related Due
Period (after giving effect to Principal Prepayments received during the
Prepayment Period that ends during such Due Period) and (iii) $23,148,030.

          Final Maturity OC Trigger: With respect to any Distribution Date on or
after the Distribution Date in January 2027, the Final Maturity OC Trigger will
be in effect if and for so long as the sum of (x) the amount on deposit in the
Final Maturity Reserve Fund on that Distribution Date (including any Final
Maturity Reserve Deposit made on the Distribution Date) and (y) the
Overcollateralized Amount for that Distribution Date (calculated after giving
effect to all distributions to be made prior to the time of determination) is
less than the outstanding Stated Principal Balance of all 40-Year Mortgage Loans
as of the Due Date occurring in the month of that Distribution Date (after
giving effect to Principal Prepayments received during the Prepayment Period
ending in the same month as the Distribution Date).

          Final Maturity Required Deposit Trigger: With respect to any
Distribution Date on or after the Distribution Date in January 2017 up to and
including the Distribution Date in December 2036, the Final Maturity Required
Deposit Trigger shall be in effect with respect to such Distribution Date if the
aggregate Stated Principal Balance of the 40-Year Mortgage Loans as of the Due
Date occurring in the month preceding the month of that Distribution Date (after
giving effect to Principal Prepayments in the Prepayment Period related to that
prior Due Date) is greater than the "40-Year Target" specified on the 40-Year
Target Schedule for such Distribution Date.

          Final Maturity Reserve Deposit: For any Distribution Date on which the
Final Maturity Required Deposit Trigger is not in effect, $0. For any
Distribution Date on which the Final Maturity Required Deposit Trigger is in
effect, an amount equal to the lesser of (a) one-twelfth of the product of (i)
0.80% and (ii) the aggregate Stated Principal Balance of the 40-Year Mortgage
Loans as of the Due Date occurring in the month preceding the month of that
Distribution Date (after giving effect to Principal Prepayments in the
Prepayment Period related to that prior Due Date) and (b) the excess of (i) the
Final Maturity Funding Cap for such Distribution Date over (ii) the amount on
deposit in the Final Maturity Reserve Fund immediately prior to such
Distribution Date.

          Final Maturity Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 4.09 in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26". Funds in the Final Maturity Reserve

                                       24
<PAGE>

Fund shall be held in trust by the Final Maturity Reserve Trustee for the
Certificateholders for the uses and purposes set forth in this Agreement.

          Final Maturity Reserve Trust: The trust fund established by Section
4.10.

          Final Maturity Reserve Trustee: The Bank of New York, a New York
banking corporation, not in its individual capacity, but solely in its capacity
as trustee for the benefit of the Holders of the Certificates 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.

          Five-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 60 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

          Fixed Rate Mortgage Loans: The Mortgage Loans identified in the
Mortgage Loan Schedule as having a Mortgage Rate which is fixed for the life of
the related Mortgage and any Credit Comeback Loans, including in each case any
Mortgage Loans delivered in replacement thereof.

          Form 10-D Disclosure Item: With respect to any Person, any material
litigation or governmental proceedings pending against such Person, or against
any of the Trust Fund, the Depositor, the Trustee, any co-trustee, the Master
Servicer or any Subservicer, if such Person has actual knowledge thereof.

          Form 10-K Disclosure Item: With respect to any Person, (a) Form 10-D
Disclosure Item, and (b) any affiliations or relationships between such Person
and any Item 1119 Party.

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

          Funding Period: The period from the Closing Date to and including the
earlier to occur of (x) the date the amount in the Pre-Funding Account is less
than $175,000 and (y) February 12, 2007.

          Gross Margin: The percentage set forth in the related Mortgage Note to
be added to the Index for use in determining the Mortgage Rate for each
Adjustable Rate Mortgage Loan on each of its Adjustment Dates.

          Group 1 Mortgage Loans: The group of Mortgage Loans identified in the
related Mortgage Loan Schedule as "Group 1 Mortgage Loans", including in each
case any Mortgage Loans delivered in replacement thereof.

          Group 1 Overcollateralization Reduction Amount: With respect to any
Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date

                                       25
<PAGE>

multiplied by a fraction, the numerator of which is (x) the Principal Remittance
Amount for Loan Group 1 for such Distribution Date, and the denominator of which
is (y) the aggregate Principal Remittance Amount for Loan Group 1 and Loan Group
2 for such Distribution Date.

          Group 1 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 1 Mortgage Loans on
the Closing Date, which shall equal $72,738,839.80.

          Group 2 Mortgage Loans: The group of Mortgage Loans identified in the
related Mortgage Loan Schedule as "Group 2 Mortgage Loans", including in each
case any Mortgage Loans delivered in replacement thereof.

          Group 2 Overcollateralization Reduction Amount: With respect to any
Distribution Date, the Overcollateralization Reduction Amount for such
Distribution Date multiplied by a fraction, the numerator of which is the
Principal Remittance Amount for Loan Group 2 for such Distribution Date, and the
denominator of which is the aggregate Principal Remittance Amount for Loan Group
1 and Loan Group 2 for such Distribution Date.

          Group 2 Pre-Funded Amount: The portion of the Pre-Funded Amount
allocable for purchase of Subsequent Mortgage Loans as Group 2 Mortgage Loans on
the Closing Date, which shall equal $82,416,509.30.

          Index: As to any Adjustable Rate Mortgage Loan on any Adjustment Date
related thereto, the index for the adjustment of the Mortgage Rate set forth as
such in the related Mortgage Note, or, if the Index in the Mortgage Note ceases
to be published or becomes unavailable for any reason, then the Index shall be a
new index selected by the Master Servicer, based on comparable information and
in accordance with the Mortgage Note and applicable law.

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

          Initial Certificate Account Deposit: An amount equal to the aggregate
of all amounts in respect of (i) principal of the Initial Mortgage Loans due
after the Initial Cut-off Date and received by the Master Servicer before the
Closing Date and not applied in computing the Cut-off Date Principal Balance
thereof and (ii) interest on the Initial Mortgage Loans due after the Initial
Cut-off Date and received by the Master Servicer before the Closing Date.

          Initial Certificate Principal Balance: With respect to any Certificate
(other than the Class C Certificates) the Certificate Principal Balance of such
Certificate or any predecessor Certificate on the Closing Date.

          Initial Cut-off Date: In the case of any Initial Mortgage Loan, the
later of (x) December 1, 2006 and (y) the date of origination of such Mortgage
Loan.

          Initial Mortgage Loan: A Mortgage Loan conveyed to the Trustee on the
Closing Date pursuant to this Agreement as identified on the Mortgage Loan
Schedule delivered to the Trustee on the Closing Date.

                                       26
<PAGE>

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

          Initial Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that limits
the permissible increase or decrease in the Mortgage Rate on its initial
Adjustment Date.

          Institutional Accredited Investor or IAI: An "accredited investor" as
defined in any of paragraphs (1), (2), (3)and (7) of Rule 501(a) under the
Securities Act or any entity in which all of the equity owners come within such
paragraphs.

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

          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 Master Servicer 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 procedures that the Master Servicer would
follow in servicing mortgage loans held for its own account, in each case other
than any amount included in such Insurance Proceeds in respect of Insured
Expenses and received either prior to or in connection with such Mortgage Loan
becoming a Liquidated Mortgage Loan.

          Insured Expenses: Expenses covered by an Insurance Policy or any other
insurance policy with respect to the Mortgage Loans.

          Interest-Bearing Certificates: The Class A Certificates and the
Subordinate Certificates.

          Interest Carry Forward Amount: With respect to each Class of
Interest-Bearing Certificates and each Distribution Date, the excess of (i) the
Current Interest for such Class with respect to prior Distribution Dates over
(ii) the amount actually distributed to such Class with respect to interest on
such prior Distribution Dates.

          Interest Determination Date: With respect to the first Accrual Period
for the Interest-Bearing Certificates, December 27, 2006. With respect to any
Accrual Period for the Interest-Bearing Certificates thereafter, the second
LIBOR Business Day preceding the commencement of such Accrual Period.

          Interest Funds: With respect to any Distribution Date and Loan Group,
the Interest Remittance Amount for such Loan Group and Distribution Date, less
the portion of the Trustee Fee for such Distribution Date allocable to such Loan
Group, plus the Adjusted Replacement Upfront Amount, if any, allocable to that
Loan Group, less the Mortgage Insurance Premiums for the Covered Mortgage Loans
in that Loan Group for such Distribution Date.

                                       27
<PAGE>

          Interest Remittance Amount: With respect to the Mortgage Loans in each
Loan Group and any Distribution Date, (x) the sum, without duplication, of (i)
all scheduled interest collected during the related Due Period (for the
avoidance of doubt, other than Credit Comeback Excess Amounts) with respect to
the related Mortgage Loans less the related Servicing Fee, (ii) all interest on
prepayments received during the related Prepayment Period with respect to such
Mortgage Loans, other than Prepayment Interest Excess, (iii) all related
Advances relating to interest with respect to such Mortgage Loans, (iv) all
related Compensating Interest with respect to such Mortgage Loans, (v)
Liquidation Proceeds with respect to such Mortgage Loans collected during the
related Due Period (to the extent such Liquidation Proceeds relate to interest)
and (vi) the related Seller Shortfall Interest Requirement, less (y) all
reimbursements to the Master Servicer during the related Due Period for Advances
of interest previously made allocable to such Loan Group.

          Investment Letter: As defined in Section 5.02(b).

          ISDA Master Agreement: The 1992 ISDA Master Agreement (Multicurrency -
Cross Border), including the Schedule and Credit Support Annex thereto, dated
December 29, 2006, between the Swap Counterparty and the Swap Contract
Administrator.

          Item 1119 Party: The Depositor, any Seller, the Master Servicer, the
Trustee, any Subservicer, any originator identified in the Prospectus
Supplement, the Swap Counterparty and any other material transaction party, as
identified in Exhibit Z hereto, as updated pursuant to Section 11.04.

          Latest Possible Maturity Date: The Distribution Date following the
third anniversary of the scheduled maturity date of the Mortgage Loan having the
latest scheduled maturity date as of the Cut-off Date.

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

          Limited Exchange Act Reporting Obligations: The obligations of the
Master Servicer under Section 3.17(b), Section 6.02 and Section 6.04 with
respect to notice and information to be provided to the Depositor and Article XI
(except Section 11.07(a)(1) and (2)).

          Liquidated Mortgage Loan: With respect to any Distribution Date, a
defaulted Mortgage Loan that has been liquidated through deed-in-lieu of
foreclosure, foreclosure sale, trustee's sale or other realization as provided
by applicable law governing the real property subject to the related Mortgage
and any security agreements and as to which the Master Servicer has certified in
the related Prepayment Period that it has received all amounts it expects to
receive in connection with such liquidation.

          Liquidation Proceeds: Amounts, including Insurance Proceeds, received
in connection with the partial or complete liquidation of Mortgage Loans,
whether through trustee's sale, foreclosure sale or otherwise or amounts
received in connection with any condemnation or partial release of a Mortgaged
Property and any other proceeds received in connection with an REO Property
received in connection with or prior to such Mortgage Loan becoming a

                                       28
<PAGE>

Liquidated Mortgage Loan (other than the amount of such net proceeds
representing any profit realized by the Master Servicer in connection with the
disposition of any such properties), less the sum of related unreimbursed
Advances, Servicing Fees and Servicing Advances.

          Loan Group: Either of Loan Group 1 or Loan Group 2.

          Loan Group 1: The Group 1 Mortgage Loans.

          Loan Group 2: The Group 2 Mortgage Loans.

          Loan Number and Borrower Identification Mortgage Loan Schedule: With
respect to any Subsequent Transfer Date, the Loan Number and Borrower
Identification Mortgage Loan Schedule delivered in connection with such
Subsequent Transfer Date pursuant to Section 2.01(f). Each Loan Number and
Borrower Identification Mortgage Loan Schedule shall contain the information
specified in the definition of "Mortgage Loan Schedule" with respect to the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, and each
Loan Number and Borrower Identification Mortgage Loan Schedule shall be deemed
to be included in the Mortgage Loan Schedule.

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

          Majority Holder: The Holders of Certificates evidencing at least 51%
of the Voting Rights allocated to such Class of Certificates.

          Master REMIC: As defined in the Preliminary Statement.

          Master Servicer: Countrywide Home Loans Servicing LP, a Texas limited
partnership, and its successors and assigns, in its capacity as master servicer
hereunder.

          Master Servicer Advance Date: As to any Distribution Date, the
Business Day immediately preceding such Distribution Date.

          Master Servicer Prepayment Charge Payment Amount: The amounts (i)
payable by the Master Servicer in respect of any Prepayment Charges waived other
than in accordance with the standard set forth in the first sentence of Section
3.20(a), or (ii) collected from the Master Servicer in respect of a remedy for
the breach of the representation made by CHL set forth in Section 3.20(c).

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

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

          MERS Mortgage Loan: Any Mortgage Loan registered with MERS on the
MERS(R) System.

                                       29
<PAGE>

          MERS(R) System: The system of recording transfers of mortgages
electronically maintained by MERS.

          MIN: The Mortgage Identification Number for any MERS Mortgage Loan.

          Minimum Auction Amount: With respect to any auction of the Mortgage
Loans and any REO Properties pursuant to Section 9.04, the sum of (i) the
Termination Price that would be payable by the NIM Insurer if the Optional
Termination were exercised in the following calendar month pursuant to Section
9.01 and (ii) all reasonable fees and expenses incurred by the Trustee in
connection with any auction conducted pursuant to Section 9.04.

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

          Modified Mortgage Loan: As defined in Section 3.12(a).

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

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

          Moody's: Moody's Investors Service, Inc. and its successors.

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

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

          Mortgage Insurance Policy: Either of the Mortgage Insurance Policy
issued by United Guaranty Mortgage Indemnity Company or the Mortgage Insurance
Policy issued by Mortgage Guaranty Insurance Corporation with respect to certain
Mortgage Loans identified in the Mortgage Loan Schedule.

          Mortgage Insurance Premium: Either of the premium payable on the
Mortgage Insurance Policy issued by United Guaranty Mortgage Indemnity Company
or the premium payable on the Mortgage Insurance Policy issued by Mortgage
Guaranty Insurance Corporation, each on each Distribution Date and amounts due
for premium taxes with respect to West Virginia, Kentucky or other applicable
state taxes relating to such premium.

          Mortgage Insurance Premium Rate: With respect to a Covered Mortgage
Loan, the per annum rate set forth for such Covered Mortgage Loan on the
Mortgage Loan Schedule.

          Mortgage Insurer: Either of United Guaranty Mortgage Indemnity Company
or Mortgage Guaranty Insurance Corporation or any replacement Mortgage Insurer,
as applicable.

                                       30
<PAGE>

          Mortgage Loan Schedule: The list of Mortgage Loans (as from time to
time amended by the Master Servicer to reflect the deletion of Liquidated
Mortgage Loans and Deleted Mortgage Loans and the addition of (x) Replacement
Mortgage Loans pursuant to the provisions of this Agreement and (y) Subsequent
Mortgage Loans pursuant to the provisions of this Agreement and any Subsequent
Transfer Agreement) transferred to the Trustee as part of the Trust Fund and
from time to time subject to this Agreement, attached hereto as Exhibit F-1,
setting forth in the following information with respect to each Mortgage Loan:

                    (i)    the loan number;

                    (ii)   the Loan Group;

                    (iii)  the Appraised Value;

                    (iv)   the Initial Mortgage Rate;

                    (v)    the maturity date;

                    (vi)   the original principal balance;

                    (vii)  the Cut-off Date Principal Balance;

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

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

                    (x)    the Loan-to-Value Ratio at origination;

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

                    (xii)  a code indicating whether the residential dwelling is
                           either (a) a detached single-family dwelling, (b) a
                           two-family residential property, (c) a three-family
                           residential property, (d) a four-family residential
                           property, (e) planned unit development, (f) a
                           low-rise condominium unit, (g) a high-rise
                           condominium unit or (h) manufactured housing;

                    (xiii) a code indicating whether such Mortgage Loan is a
                           Credit Comeback Loan;

                    (xiv)  the purpose of the Mortgage Loan;

                    (xv)   with respect to each Adjustable Rate Mortgage Loan:

                           (a)  the frequency of each Adjustment Date;

                           (b)  the next Adjustment Date;

                                       31
<PAGE>

                           (c)  the Maximum Mortgage Rate;

                           (d)  the Minimum Mortgage Rate;

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

                           (f)  the related Initial Periodic Rate Cap and
                       Subsequent Periodic Rate Cap; and

                           (g)  the Gross Margin;

                    (xvi)  a code indicating whether the Mortgage Loan is a CHL
                           Mortgage Loan, a Park Monaco Mortgage Loan or a Park
                           Sienna Mortgage Loan;

                    (xvii) the premium rate for any lender-paid mortgage
                           insurance, if applicable;

                    (xviii) a code indicating whether the Mortgage Loan is a
                           Fixed Rate Mortgage Loan or an Adjustable Rate
                           Mortgage Loan;

                    (xix)  a code indicating if such Mortgage Loan is a Covered
                           Mortgage Loan, the applicable Mortgage Insurance
                           Policy and the applicable Mortgage Insurance Premium
                           Rate as set forth in such Mortgage Insurance Policy;
                           and

                    (xx)   the Servicing Fee Rate for the Mortgage Loan as of
                           the applicable Cut-off Date and, if the Servicing Fee
                           Rate is subject to increase following the initial
                           Adjustment Date for the Mortgage Loan, the Servicing
                           Fee Rate for the Mortgage Loan following the initial
                           Adjustment Date.

Such schedule shall also set forth the total of the amounts described under
(vii) above for all of the Mortgage Loans and for each Loan Group. The Mortgage
Loan Schedule shall be deemed to include each Loan Number and Borrower
Identification Mortgage Loan Schedule delivered pursuant to Section 2.01(f) and
all the related Subsequent Mortgage Loans and Subsequent Mortgage Loan
information included therein.

          Mortgage Loans: Such of the mortgage loans transferred and assigned to
the Trustee pursuant to the provisions hereof and any Subsequent Transfer
Agreement as from time to time are held as 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. Any mortgage loan that was intended by the parties
hereto to be transferred to the Trust Fund as indicated by such Mortgage Loan
Schedule which is in fact not so transferred for any reason, including a breach
of the representation contained in Section 2.02 hereof, shall continue to be a
Mortgage Loan hereunder until the Purchase Price with respect thereto has been
paid to the Trust Fund.

                                       32
<PAGE>

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

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

          Mortgage Rate: The annual rate of interest borne by a Mortgage Note
from time to time; provided, however, the Mortgage Rate for each Credit Comeback
Loan shall be treated for all purposes of payments on the Certificates,
including the calculation of the Pass-Through Rates and the applicable Net Rate
Cap, as reduced by 0.375% on the Due Date following the end of each of the first
four annual periods after the origination date, irrespective of whether the
Mortgagor qualifies for the reduction by having a good payment history.

          Mortgaged Property: The underlying property securing a Mortgage Loan.

          Mortgagor: The obligors on a Mortgage Note.

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

          Net Rate Cap: With respect to any Distribution Date and (i) the Class
1-A Certificates, the Class 1-A Net Rate Cap, (ii) each Class of Class 2-A
Certificates, the Class 2-A Net Rate Cap and (iii) each Class of Subordinate
Certificates, the Subordinate Net Rate Cap.

          Net Rate Carryover: With respect to any Class of Interest-Bearing
Certificates and any Distribution Date, the sum of (A) the excess of (i) the
amount of interest that such Class would otherwise have accrued for such
Distribution Date had the Pass-Through Rate for such Class and the related
Accrual Period not been determined based on the applicable Net Rate Cap, over
(ii) the amount of interest accrued on such Class at the applicable Net Rate Cap
for such Distribution Date and (B) the Net Rate Carryover for such Class for all
previous Distribution Dates not previously paid pursuant to Section 4.04,
together with interest thereon at the then-applicable Pass-Through Rate for such
Class, without giving effect to the applicable Net Rate Cap.

          Net Swap Payment: With respect to any Distribution Date and payment by
the Swap Contract Administrator to the Swap Counterparty, the excess, if any, of
the "Fixed Amount" (as defined in the Swap Contract) with respect to such
Distribution Date over the "Floating Amount" (as defined in the Swap Contract)
with respect to such Distribution Date. With respect to any Distribution Date
and payment by the Swap Counterparty to the Swap Contract Administrator, the
excess, if any, of the "Floating Amount" (as defined in the Swap Contract) with
respect to such Distribution Date over the "Fixed Amount" (as defined in the
Swap Contract) with respect to such Distribution Date

          NIM Insurer: Any insurer guarantying at the request of CHL certain
payments under notes backed or secured by the Class C or Class P Certificates.

          Nonrecoverable Advance: Any portion of an Advance previously made or
proposed to be made by the Master Servicer that, in the good faith judgment of
the Master

                                       33
<PAGE>

Servicer, will not or, in the case of a current delinquency, would not, be
ultimately recoverable by the Master Servicer from the related Mortgagor,
related Liquidation Proceeds or otherwise.

          Non-United States Person: A Person that is not a citizen or resident
of the United States, a corporation, partnership, 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.

          OC Floor: With respect to any Distribution Date, an amount equal to
0.50% of the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Pre-Funded Amount.

          Officer's Certificate: A certificate (i) in the case of the Depositor,
signed by the Chairman of the Board, the Vice Chairman of the Board, the
President, a Managing Director, a Vice President (however denominated), an
Assistant Vice President, the Treasurer, the Secretary, or one of the Assistant
Treasurers or Assistant Secretaries of the Depositor, (ii) in the case of the
Master Servicer, signed by the President, an Executive Vice President, a Vice
President, an Assistant Vice President, the Treasurer, or one of the Assistant
Treasurers or Assistant Secretaries of Countrywide GP, Inc., its general
partner, (iii) if provided for in this Agreement, signed by a Servicing Officer,
as the case may be, and delivered to the Depositor and the Trustee, as the case
may be, as required by this Agreement, or (iv) in the case of any other Person,
signed by an authorized officer of such Person.

          One-Month LIBOR: With respect to any Accrual Period for the
Interest-Bearing Certificates, the rate determined by the Trustee on the related
Interest Determination Date on the basis of the rate for U.S. dollar deposits
for one month as quoted on the Bloomberg Terminal on such Interest Determination
Date; provided that the parties hereto acknowledge that One-Month LIBOR
calculated for the first Accrual Period for the Interest-Bearing Certificates
shall equal 5.35000% per annum. If such rate is not quoted on the Bloomberg
Terminal (or if such service is no longer offered, such other service for
displaying One-Month LIBOR or comparable rates as may be reasonably selected by
the Trustee), One-Month LIBOR for the applicable Accrual Period for the
Interest-Bearing Certificates will be the Reference Bank Rate. If no such
quotations can be obtained by the Trustee and no Reference Bank Rate is
available, One-Month LIBOR will be One-Month LIBOR applicable to the preceding
Accrual Period for the Interest-Bearing Certificates.

          Opinion of Counsel: A written opinion of counsel, who may be counsel
for the Depositor or the Master Servicer, reasonably acceptable to each
addressee of such opinion; provided that with respect to Section 6.04 or 10.01,
or the interpretation or application of the REMIC Provisions, such counsel must
(i) in fact be independent of the Depositor and the Master Servicer, (ii) not
have any direct financial interest in the Depositor or the Master Servicer or in
any affiliate of either and (iii) not be connected with the Depositor or the
Master Servicer as an

                                       34
<PAGE>

officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

          Optional Termination: The termination of the Trust Fund pursuant to
clause (a) of the first sentence of Section 9.01.

          Optional Termination Date: The first Distribution Date on which the
aggregate Stated Principal Balance of the Mortgage Loans is less than or equal
to 10% of the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Pre-Funded Amount.

          Original Value: The value of the property underlying a Mortgage Loan
based, in the case of the purchase of the underlying Mortgaged Property, on the
lower of an appraisal satisfactory to the Master Servicer or the sales price of
such property or, in the case of a refinancing, on an appraisal satisfactory to
the Master Servicer.

          OTS: The Office of Thrift Supervision.

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

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

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

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

          Overcollateralization Deficiency Amount: With respect to any
Distribution Date, the amount, if any, by which the Overcollateralization Target
Amount exceeds the Overcollateralized Amount on such Distribution Date (after
giving effect to distribution of the Principal Distribution Amount (other than
the portion thereof consisting of the Extra Principal Distribution Amount) on
such Distribution Date).

          Overcollateralization Reduction Amount: With respect to any
Distribution Date, an amount equal to the lesser of (i) the Excess
Overcollateralization Amount for such Distribution Date and (ii) the aggregate
Principal Remittance Amount for Loan Group 1 and Loan Group 2 for such
Distribution Date.

          Overcollateralization Target Amount: With respect to any Distribution
Date (a) prior to the Stepdown Date, an amount equal to 1.75% of the sum of the
aggregate Cut-off Date Principal Balance of the Initial Mortgage Loans and the
Pre-Funded Amount and (b) on or after the Stepdown Date, the greater of (i) an
amount equal to 3.50% of the aggregate Stated Principal

                                       35
<PAGE>

Balance of the Mortgage Loans for the current Distribution Date and (ii) the OC
Floor; provided, however, that if a Trigger Event is in effect on any
Distribution Date, the Overcollateralization Target Amount will be the
Overcollateralization Target Amount as in effect for the prior Distribution
Date.

          Overcollateralized Amount: With respect to any Distribution Date, the
amount, if any, by which (x) the sum of the aggregate Stated Principal Balance
of the Mortgage Loans for such Distribution Date and any amount on deposit in
the Pre-Funding Account exceeds (y) the aggregate Certificate Principal Balance
of the Interest-Bearing Certificates as of such Distribution Date (after giving
effect to distribution of the Principal Remittance Amounts to be made on such
Distribution Date and, in the case of the Distribution Date immediately
following the end of the Funding Period, any amounts to be released from the
Pre-Funding Account).

          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.

          Park Monaco: Park Monaco Inc., a Delaware corporation, and its
successors and assigns.

          Park Monaco Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Monaco is the applicable Seller.

          Park Sienna: Park Sienna LLC, a Delaware limited liability company,
and its successors and assigns.

          Park Sienna Mortgage Loans: The Mortgage Loans identified as such on
the Mortgage Loan Schedule for which Park Sienna is the applicable Seller.

          Pass-Through Margin: With respect to any Accrual Period and Class of
Interest-Bearing Certificates, the per annum rate indicated in the following
table:

                                      36
<PAGE>

          ---------------------------------------- -------------- --------------
                                                    Pass-Through   Pass-Through
                             Class                   Margin (1)     Margin (2)
          ---------------------------------------- -------------- --------------
          Class 1-A...........................          0.140%        0.280%
          ---------------------------------------- -------------- --------------
          Class 2-A-1.........................          0.080%        0.160%
          ---------------------------------------- -------------- --------------
          Class 2-A-2.........................          0.130%        0.260%
          ---------------------------------------- -------------- --------------
          Class 2-A-3.........................          0.170%        0.340%
          ---------------------------------------- -------------- --------------
          Class 2-A-4.........................          0.220%        0.440%
          ---------------------------------------- -------------- --------------
          Class M-1...........................          0.250%        0.375%
          ---------------------------------------- -------------- --------------
          Class M-2...........................          0.280%        0.420%
          ---------------------------------------- -------------- --------------
          Class M-3...........................          0.330%        0.495%
          ---------------------------------------- -------------- --------------
          Class M-4...........................          0.390%        0.585%
          ---------------------------------------- -------------- --------------
          Class M-5...........................          0.410%        0.615%
          ---------------------------------------- -------------- --------------
          Class M-6...........................          0.470%        0.705%
          ---------------------------------------- -------------- --------------
          Class M-7...........................          0.900%        1.350%
          ---------------------------------------- -------------- --------------
          Class M-8...........................          1.700%        2.550%
          ---------------------------------------- -------------- --------------
          Class M-9...........................          1.750%        2.625%
          ---------------------------------------- -------------- --------------
          Class B.............................          1.750%        2.625%
          ---------------------------------------- -------------- --------------

(1)  For any Accrual Period relating to any Distribution Date occurring on or
     prior to the Optional Termination Date.
(2)  For any Accrual Period relating to any Distribution Date occurring after
     the Optional Termination Date.

          Pass-Through Rate: With respect to any Accrual Period and each Class
of Interest-Bearing Certificates the lesser of (x) One-Month LIBOR for such
Accrual Period plus the Pass-Through Margin for such Class and Accrual Period
and (y) the applicable Net Rate Cap for such Class and the related Distribution
Date.

          Percentage Interest: With respect to any Interest-Bearing Certificate,
a fraction, expressed as a percentage, the numerator of which is the Certificate
Principal Balance represented by such Certificate and the denominator of which
is the aggregate Certificate Principal Balance of the related Class. With
respect to the Class C, Class P and Class A-R Certificates, the portion of the
Class evidenced thereby, expressed as a percentage, as stated on the face of
such Certificate.

          Performance Certification: As defined in Section 11.05.

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

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

               (ii) general obligations of or obligations guaranteed by any
          state of the United States or the District of Columbia receiving the
          highest long-term debt rating of each Rating Agency, or such lower
          rating as each Rating Agency has

                                       37
<PAGE>

          confirmed in writing is sufficient for the ratings originally assigned
          to the Certificates by such Rating Agency;

               (iii) commercial or finance company paper which is then receiving
          the highest commercial or finance company paper rating of each Rating
          Agency, or such lower rating as each Rating Agency has confirmed in
          writing is sufficient for the ratings originally assigned to the
          Certificates by such 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, provided that the commercial paper
          and/or long term unsecured debt obligations of such depository
          institution or trust company (or in the case of the principal
          depository institution in a holding company system, the commercial
          paper or long-term unsecured debt obligations of such holding company,
          but only if Moody's is not a Rating Agency) are then rated one of the
          two highest long-term and the highest short-term ratings of each such
          Rating Agency for such securities, or such lower ratings as each
          Rating Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency;

               (v) 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;

               (vi) 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 (except (x) if the
          Rating Agency is Moody's, such rating shall be the highest commercial
          paper rating of S&P for any such securities) and (y), or such lower
          rating as each Rating Agency has confirmed in writing is sufficient
          for the ratings originally assigned to the Certificates by such Rating
          Agency;

               (vii) interests in any money market fund which at the date of
          acquisition of the interests in such fund and throughout the time such
          interests are held in such fund has the highest applicable long term
          rating by each Rating Agency or such lower rating as each Rating
          Agency has confirmed in writing is sufficient for the ratings
          originally assigned to the Certificates by such Rating Agency;

               (viii) short term investment funds sponsored by any trust company
          or national banking association incorporated under the laws of the
          United States or any state thereof which on the date of acquisition
          has been rated by each Rating Agency in their respective highest
          applicable rating category or such lower rating as each Rating Agency
          has confirmed in writing is sufficient for the ratings originally
          assigned to the Certificates by such Rating Agency; and

                                       38
<PAGE>

               (ix) such other relatively risk free 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, and reasonably acceptable to the NIM Insurer, as
          evidenced by a signed writing delivered by the NIM Insurer;

provided, that no such instrument shall be a Permitted Investment if such
instrument (i) evidences the right to receive interest only payments with
respect to the obligations underlying such instrument, (ii) is purchased at a
premium or (iii) is purchased at a deep discount; provided further that no such
instrument shall be a Permitted Investment (A) if such instrument evidences
principal and interest payments derived from obligations underlying such
instrument and the interest payments with respect to such instrument provide a
yield to maturity of greater than 120% of the yield to maturity at par of such
underlying obligations, or (B) if it may be redeemed at a price below the
purchase price (the foregoing clause (B) not to apply to investments in units of
money market funds pursuant to clause (vii) above); provided further that no
amount beneficially owned by any REMIC (including, without limitation, any
amounts collected by the Master Servicer but not yet deposited in the
Certificate Account) may be invested in investments (other than money market
funds) treated as equity interests for Federal income tax purposes, unless the
Master Servicer shall receive an Opinion of Counsel, at the expense of Master
Servicer, to the effect that such investment will not adversely affect the
status of any such REMIC as a REMIC under the Code or result in imposition of a
tax on any such REMIC. Permitted Investments that are subject to prepayment or
call may not be purchased at a price in excess of par.

          Permitted Transferee: Any Person other than (i) the United States, any
State or political subdivision thereof, 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
Class A-R Certificate, (iv) rural electric and telephone cooperatives described
in section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in section 775 of the Code, (vi) a Person that is not a citizen or
resident of the United States, a corporation, partnership, 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, or 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 unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI, and (vii) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause any REMIC formed hereunder 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

                                       39
<PAGE>

meanings set forth in section 7701 of the Code or successor provisions. A
corporation will not be treated as an instrumentality of the United States or of
any State or political subdivision thereof for these purposes if all of its
activities are subject to tax and, with the exception of the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

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

          Plan: An "employee benefit plan" as defined in section 3(3)of ERISA
that is subject to Title I of ERISA, a "plan" as defined in section 4975 of the
Code that is subject to section 4975 of the Code, or any Person investing on
behalf of or with plan assets (as defined in 29 CFR ss.2510.3-101 or otherwise
under ERISA) of such an employee benefit plan or plan.

          Pool Tax Cap: As defined in the Preliminary Statement.

          Pool Stated Principal Balance: The aggregate of the Stated Principal
Balances of the Mortgage Loans which were Outstanding Mortgage Loans.

          Pre-Funded Amount: The amount deposited in the Pre-Funding Account on
the Closing Date, which shall equal $155,155,349.10.

          Pre-Funding Account: The separate Eligible Account created and
maintained by the Trustee pursuant to Section 3.05 in the name of the Trustee
for the benefit of the Certificateholders and designated "The Bank of New York,
in trust for registered holders of CWABS, Inc., Asset-Backed Certificates,
Series 2006-26." Funds in the Pre-Funding Account shall be held in trust for the
Certificateholders for the uses and purposes set forth in this Agreement and
shall not be a part of any REMIC created hereunder, provided, however that any
investment income earned from Permitted Investments made with funds in the
Pre-Funding Account will be for the account of CHL.

          Prepayment Assumption: The applicable rate of prepayment, as described
in the Prospectus Supplement relating to the Certificates.

          Prepayment Charge: With respect to any Mortgage Loan, the charges or
premiums, if any, due in connection with a full or partial prepayment of such
Mortgage Loan within the related Prepayment Charge Period in accordance with the
terms thereof (other than any Master Servicer Prepayment Charge Payment Amount).

          Prepayment Charge Period: With respect to any Mortgage Loan, the
period of time during which a Prepayment Charge may be imposed.

                                       40
<PAGE>

          Prepayment Charge Schedule: As of the Initial Cut-off Date with
respect to each Initial Mortgage Loan and as of the Subsequent Cut-off Date with
respect to each Subsequent Mortgage Loan, a list attached hereto as Schedule I
(including the Prepayment Charge Summary attached thereto), setting 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 state of origination of the related Mortgage Loan;

               (iv) the date on which the first monthly payment was due on the
          related Mortgage Loan;

               (v) the term of the related Prepayment Charge; and

               (vi) the principal balance of the related Mortgage Loan as of the
          Cut-off Date.

          As of the Closing Date, the Prepayment Charge Schedule shall contain
the necessary information for each Initial Mortgage Loan. The Prepayment Charge
Schedule shall be amended by the Master Servicer upon the sale of any Subsequent
Mortgage Loans to the Trust Fund. In addition, the Prepayment Charge Schedule
shall be amended from time to time by the Master Servicer in accordance with the
provisions of this Agreement and a copy of each related amendment shall be
furnished by the Master Servicer to the Class P and Class C Certificateholders
and the NIM Insurer.

          Prepayment Interest Excess: With respect to any Distribution Date, for
each Mortgage Loan that was the subject of a Principal Prepayment during the
period from the related Due Date to the end of the related Prepayment Period,
any payment of interest received in connection therewith (net of any applicable
Servicing Fee) representing interest accrued for any portion of such month of
receipt.

          Prepayment Interest Shortfall: With respect to any Distribution Date,
for each Mortgage Loan that was the subject of a partial Principal Prepayment or
a Principal Prepayment in full during the period from the beginning of the
related Prepayment Period to the Due Date in such Prepayment Period (other than
a Principal Prepayment in full resulting from the purchase of a Mortgage Loan
pursuant to Section 2.02, 2.03, 2.04, 3.12 or 9.01 hereof) and for each Mortgage
Loan that became a Liquidated Mortgage Loan during the related Due Period, the
amount, if any, by which (i) one month's interest at the applicable Net Mortgage
Rate on the Stated Principal Balance of such Mortgage Loan immediately prior to
such prepayment (or liquidation) or in the case of a partial Principal
Prepayment on the amount of such prepayment (or Liquidation Proceeds) exceeds
(ii) the amount of interest paid or collected in connection with such Principal
Prepayment or such Liquidation Proceeds.

          Prepayment Period: As to any Distribution Date and related Due Date,
the period beginning with the opening of business on the sixteenth day of the
calendar month preceding the

                                       41
<PAGE>

month in which such Distribution Date occurs (or, with respect to the first
Distribution Date, the period beginning with the opening of business on December
2, 2006) and ending on the close of business on the fifteenth day of the month
in which such Distribution Date occurs.

          Prime Rate: The prime commercial lending rate of The Bank of New York,
as publicly announced to be in effect from time to time. The Prime Rate shall be
adjusted automatically, without notice, on the effective date of any change in
such prime commercial lending rate. The Prime Rate is not necessarily The Bank
of New York's lowest rate of interest.

          Principal Distribution Amount: With respect to each Distribution Date
and a Loan Group, the sum of (i) the Principal Remittance Amount for such Loan
Group for such Distribution Date less any portion of such amount used to cover
any payment due to the Swap Counterparty with respect to such Distribution Date
pursuant to Section 4.09, (ii) the Extra Principal Distribution Amount for such
Loan Group for such Distribution Date, and (iii) with respect to the
Distribution Date immediately following the end of the Funding Period, the
amount, if any, remaining in the Pre-Funding Account at the end of the Funding
Period (net of any investment income therefrom) allocable to such Loan Group,
minus (iv) (a) the amount of any Group 1 Overcollateralization Reduction Amount,
in the case of Loan Group 1 and (b) the amount of any Group 2
Overcollateralization Reduction Amount, in the case of Loan Group 2.

          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, 2.04, 3.12 and 9.01 hereof)
that is received in advance of its scheduled Due Date to the extent it is not
accompanied by an amount as to interest representing scheduled interest due on
any date or dates in any month or months subsequent to the month of prepayment.
Partial Principal Prepayments shall be applied by the Master Servicer in
accordance with the terms of the related Mortgage Note.

          Principal Remittance Amount: With respect to the Mortgage Loans in
each Loan Group and any Distribution Date, (a) the sum, without duplication, of:
(i) the scheduled principal collected with respect to the Mortgage Loans during
the related Due Period or advanced with respect to such Distribution Date, (ii)
Principal Prepayments collected in the related Prepayment Period, with respect
to the Mortgage Loans, (iii) the Stated Principal Balance of each Mortgage Loan
that was repurchased by a Seller or purchased by the Master Servicer with
respect to such Distribution Date, (iv) the amount, if any, by which the
aggregate unpaid principal balance of any Replacement Mortgage Loans delivered
by the Sellers in connection with a substitution of a Mortgage Loan is less than
the aggregate unpaid principal balance of any Deleted Mortgage Loans and (v) all
Liquidation Proceeds (to the extent such Liquidation Proceeds related to
principal) and Subsequent Recoveries collected during the related Due Period;
less (b) all Advances relating to principal and certain expenses reimbursable
pursuant to Section 6.03 and reimbursed during the related Due Period, in each
case with respect to such Loan Group.

          Principal Reserve Fund: The separate Eligible Account created and
initially maintained by the Trustee pursuant to Section 3.08 in the name of the
Trustee for the benefit of the Certificateholders and designated "The Bank of
New York in trust for registered Holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26". Funds in the Principal Reserve Fund

                                       42
<PAGE>

shall be held in trust for the Certificateholders for the uses and purposes set
forth in this Agreement.

          Private Certificates: The Class B, Class C and Class P Certificates.

          Prospectus: The prospectus dated November 27, 2006, relating to
asset-backed securities to be sold by the Depositor.

          Prospectus Supplement: The prospectus supplement dated December 28,
2006, relating to the public offering of the certain Classes of Certificates
offered thereby.

          PTCE 95-60: As defined in Section 5.02(b).

          PUD: A Planned Unit Development.

          Purchase Price: With respect to any Mortgage Loan (x) required to be
(1) repurchased by a Seller or purchased by the Master Servicer, as applicable,
pursuant to Section 2.02, 2.03 or 3.12 hereof or (2) repurchased by the
Depositor pursuant to Section 2.04 hereof, or (y) that the Master Servicer has a
right to purchase pursuant to Section 3.12 hereof, an amount equal to the sum of
(i) 100% of the unpaid principal balance (or, if such purchase or repurchase, as
the case may be, is effected by the Master Servicer, the Stated Principal
Balance) of the Mortgage Loan as of the date of such purchase, (ii) accrued
interest thereon at the applicable Mortgage Rate (or, if such purchase is
effected by the Master Servicer, at the Net Mortgage Rate) from (a) the date
through which interest was last paid by the Mortgagor (or, if such purchase is
effected by the Master Servicer, the date through which interest was last
advanced and not reimbursed by the Master Servicer) to (b) the Due Date in the
month in which the Purchase Price is to be distributed to Certificateholders and
(iii) any costs, expenses and damages incurred by the Trust Fund resulting from
any violation of any predatory or abusive lending law in connection with such
Mortgage Loan.

          Qualified Bidder: With respect to any auction pursuant to Section
9.04, any institution that is a regular purchaser and/or seller in the secondary
market of residential mortgage loans as determined by the Trustee (or any
advisor on its behalf), in its sole discretion, and any holder of an interest in
the Class C Certificates; provided, however, that neither CHL nor any of its
affiliates shall constitute a Qualified Bidder.

          Qualified Institutional Buyer or QIB: A "qualified institutional
buyer" within the meaning of Rule 144A.

          Rating Agency: Each of Moody's and S&P. If any such organization or
its successor is no longer in existence, "Rating Agency" shall be a nationally
recognized statistical rating organization, or other comparable Person,
identified as a "Rating Agency" in the Underwriter's Exemption and 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 Liquidated Mortgage Loan, an
amount (not less than zero or more than the Stated Principal Balance of the
Mortgage Loan) as of the date of

                                       43
<PAGE>

such liquidation, equal to (i) the Stated Principal Balance of such Liquidated
Mortgage Loan as of the date of such liquidation, minus (ii) the Liquidation
Proceeds, if any, received in connection with such liquidation during the month
in which such liquidation occurs, to the extent applied as recoveries of
principal of the Liquidated Mortgage Loan. With respect to each Mortgage Loan
that has become the subject of a Deficient Valuation, (i) if the value of the
related Mortgaged Property was reduced below the principal balance of the
related Mortgage Note, the amount by which the value of the Mortgaged Property
was reduced below the principal balance of the related Mortgage Note, and (ii)
if the principal amount due under the related Mortgage Note has been reduced,
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.

          Record Date: With respect to any Distribution Date and the
Interest-Bearing Certificates, the Business Day immediately preceding such
Distribution Date, or if any such Certificates are no longer Book-Entry
Certificates, the Record Date with respect to such Certificates shall be the
last Business Day of the month preceding the month of such Distribution Date.
With respect to any Distribution Date and the Class A-R, Class C and Class P
Certificates and the first Distribution Date, the Closing Date, and with respect
to any other Distribution Date, the last Business Day of the month preceding the
month of such Distribution Date.

          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 amounts approximately equal to the
outstanding aggregate Certificate Principal Balance of the Interest-Bearing
Certificates on such Interest Determination Date, provided that at least two
such Reference Banks provide such rate. If fewer than two offered rates appear,
the Reference Bank Rate will be the arithmetic mean (rounded upwards, if
necessary, to the nearest whole multiple of 0.03125%) of the rates quoted by one
or more major banks in New York City, selected by the Trustee, as of 11:00 a.m.,
New York City time, on such date for loans in U.S. dollars to leading European
banks for a period of one month in amounts approximately equal to the aggregate
Certificate Principal Balance of the Interest-Bearing Certificates on such
Interest Determination Date.

          Reference Banks: Barclays Bank PLC, Deutsche Bank and NatWest, N.A.,
provided that if any of the foregoing banks are not suitable to serve as a
Reference Bank, then any leading banks selected by the Trustee which are engaged
in transactions in Eurodollar deposits in the international Eurocurrency market
(i) with an established place of business in London, England, (ii) not
controlling, under the control of or under common control with the Depositor,
CHL or the Master Servicer and (iii) which have been designated as such by the
Trustee.

          Refinancing Mortgage Loan: Any Mortgage Loan originated in connection
with the refinancing of an existing mortgage loan.

          Regular Certificate: Any Certificate other than the Class A-R
Certificates.

                                       44
<PAGE>

          Regulation AB: Subpart 229.1100 - Asset Backed Securities (Regulation
AB), 17 C.F.R. ss.ss.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 and publicly available.

          Relief Act: The Servicemembers Civil Relief Act.

          REMIC Provisions: Provisions of the federal income tax law relating to
real estate mortgage investment conduits which appear at section 860A through
860G of Subchapter M of Chapter 1 of the Code, and related provisions, and
regulations and rulings promulgated thereunder, as the foregoing may be in
effect from time to time.

          Remittance Report: A report prepared by the Master Servicer and
delivered to the Trustee and the NIM Insurer in accordance with Section 4.04.

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

          Replacement Mortgage Loan: A Mortgage Loan substituted by a Seller for
a Deleted Mortgage Loan which must, on the date of such substitution, as
confirmed in a Request for File Release, (i) have a Stated Principal Balance,
after deduction of the principal portion of the Scheduled Payment due in the
month of substitution, not in excess of, and not less than 90% of the Stated
Principal Balance of the Deleted Mortgage Loan; (ii) with respect to any Fixed
Rate Mortgage Loan, have a Mortgage Rate not less than or no more than 1% per
annum higher than the Mortgage Rate of the Deleted Mortgage Loan and, with
respect to any Adjustable Rate Mortgage Loan: (a) have a Maximum Mortgage Rate
no more than 1% per annum higher or lower than the Maximum Mortgage Rate of the
Deleted Mortgage Loan; (b) have a Minimum Mortgage Rate no more than 1% per
annum higher or lower than the Minimum Mortgage Rate of the Deleted Mortgage
Loan; (c) have the same Index and intervals between Adjustment Dates as that of
the Deleted Mortgage Loan; (d) have a Gross Margin not more than 1% per annum
higher or lower than that of the Deleted Mortgage Loan; and (e) have an Initial
Periodic Rate Cap and a Subsequent Periodic Rate Cap each not more than 1% lower
than that of the Deleted Mortgage Loan; (iii) have the same or higher credit
quality characteristics than that of the Deleted Mortgage Loan; (iv) be accruing
interest at a rate not more than 1% per annum higher or lower than that of the
Deleted Mortgage Loan; (v) have a Loan-to-Value Ratio no higher than that of the
Deleted Mortgage Loan; (vi) have a remaining term to maturity not greater than
(and not more than one year less than) that of the Deleted Mortgage Loan; (vii)
not permit conversion of the Mortgage Rate from a fixed rate to a variable rate
or vice versa; (viii) provide for a Prepayment Charge on terms substantially
similar to those of the Prepayment Charge, if any, of the Deleted Mortgage Loan;
(ix) have the same occupancy type and lien priority as the Deleted Mortgage
Loan; (x) be covered by the applicable Mortgage Insurance Policy if the Deleted
Mortgage Loan was covered by such Mortgage Insurance Policy and (xi) comply with
each representation and warranty set forth in Section 2.03 as of the date of
substitution; provided, however, that notwithstanding the foregoing, to the
extent that compliance with clause (xi) of this definition would cause a
proposed Replacement Mortgage Loan to fail to comply with one

                                       45
<PAGE>

or more of clauses (i), (ii), (iv), (viii) and/or (ix) of this definition, then
such proposed Replacement Mortgage Loan must comply with clause (xi) and need
not comply with one or more of clauses (i), (ii), (iv), (viii) and/or (ix), to
the extent, and only to the extent, necessary to assure that the Replacement
Mortgage Loan otherwise complies with clause (xi).

          Reportable Event: Any event required to be reported on Form 8-K, and
in any event, the following:

          (a)  entry into a definitive agreement related to the Trust Fund, the
Certificates or the Mortgage Loans, or an amendment to a Transaction Document,
even if the Depositor is not a party to such agreement (e.g., a servicing
agreement with a servicer contemplated by Item 1108(a)(3)of Regulation AB);

          (b)  termination of a Transaction Document (other than by expiration
of the agreement on its stated termination date or as a result of all parties
completing their obligations under such agreement), even if the Depositor is not
a party to such agreement (e.g., a servicing agreement with a servicer
contemplated by Item 1108(a)(3)of Regulation AB);

          (c)  with respect to the Master Servicer only, if the Master Servicer
becomes aware of any bankruptcy or receivership with respect to CHL, the
Depositor, the Master Servicer, any Subservicer, the Trustee, the Swap
Counterparty, any enhancement or support provider contemplated by Items 1114(b)
or 1115 of Regulation AB, or any other material party contemplated by Item
1101(d)(1) of Regulation AB;

          (d)  with respect to the Trustee, the Master Servicer and the
Depositor only, the occurrence of an early amortization, performance trigger or
other event, including an Event of Default under this Agreement;

          (e)  any amendment to this Agreement;

          (f)  the resignation, removal, replacement, substitution of the Master
Servicer, any Subservicer, the Trustee or any co-trustee;

          (g)  with respect to the Master Servicer only, if the Master Servicer
becomes aware that (i) any material enhancement or support specified in Item
1114(a)(1) through (3)of Regulation AB or Item 1115 of Regulation AB that was
previously applicable regarding one or more classes of the Certificates has
terminated other than by expiration of the contract on its stated termination
date or as a result of all parties completing their obligations under such
agreement; (ii) any material enhancement specified in Item 1114(a)(1) through
(3)of Regulation AB or Item 1115 of Regulation AB has been added with respect to
one or more classes of the Certificates; or (iii) any existing material
enhancement or support specified in Item 1114(a)(1) through (3)of Regulation AB
or Item 1115 of Regulation AB with respect to one or more classes of the
Certificates has been materially amended or modified; and

          (h)  with respect to the Trustee, the Master Servicer and the
Depositor only, a required distribution to Holders of the Certificates is not
made as of the required Distribution Date under this Agreement.

                                       46
<PAGE>

          Reporting Subcontractor: With respect to the Master Servicer or the
Trustee, any Subcontractor determined by such Person pursuant to Section
11.08(b) to be "participating in the servicing function" within the meaning of
Item 1122 of Regulation AB. References to a Reporting Subcontractor shall refer
only to the Subcontractor of such Person and shall not refer to Subcontractors
generally.

          Representing Party: As defined in Section 2.03(e).

          Request for Document Release: A Request for Document Release submitted
by the Master Servicer to the Co-Trustee, substantially in the form of Exhibit
M.

          Request for File Release: A Request for File Release submitted by the
Master Servicer to the Co-Trustee, substantially in the form of Exhibit N.

          Required Carryover Reserve Fund Deposit: With respect to any
Distribution Date, an amount equal to the excess of (i) $1,000 over (ii) the
amount of funds on deposit in the Carryover Reserve Fund after all other
deposits and withdrawals from such account on such Distribution Date.

          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, including the applicable Mortgage Insurance Policy with respect to a
Covered Mortgage Loan.

          Responsible Officer: When used with respect to the Trustee, any Vice
President, any Assistant Vice President, the Secretary, any Assistant Secretary,
any Trust Officer or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also 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.

          Rolling Sixty-Day Delinquency Rate: With respect to any Distribution
Date on or after the Stepdown Date and any Loan Group or Loan Groups, the
average of the Sixty-Day Delinquency Rates for such Loan Group or Loan Groups
and such Distribution Date and the two immediately preceding Distribution Dates.

          Rule 144A: Rule 144A under the Securities Act.

          Rule 144A Letter: As defined in Section 5.02(b).

          S&P: Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. and its successors.

          Sarbanes-Oxley Certification: As defined in Section 11.05.

          Scheduled Payment: With respect to any Mortgage Loan, the scheduled
monthly payment of principal and/or interest due on any Due Date on such
Mortgage Loan which is payable by the related Mortgagor from time to time under
the related Mortgage Note, determined: (a) after giving effect to (i) any
Deficient Valuation and/or Debt Service Reduction

                                       47
<PAGE>

with respect to such Mortgage Loan and (ii) any reduction in the amount of
interest collectible from the related Mortgagor pursuant to the Relief Act or
any similar state or local law; (b) without giving effect to any extension
granted or agreed to by the Master Servicer pursuant to Section 3.05(a); and (c)
on the assumption that all other amounts, if any, due under such Mortgage Loan
are paid when due.

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

          Sellers: CHL, in its capacity as seller of the CHL Mortgage Loans to
the Depositor, Park Monaco, in its capacity as seller of the Park Monaco
Mortgage Loans to the Depositor and Park Sienna, in its capacity as seller of
the Park Sienna Mortgage Loans to the Depositor.

          Seller Shortfall Interest Requirement: With respect to the
Distribution Date in each of January 2007, February 2007 and March 2007, is the
sum of:

          (a)  the product of: (1) the excess of the aggregate Stated Principal
Balance for such Distribution Date of all the Mortgage Loans in the Mortgage
Pool (including the Subsequent Mortgage Loans, if any) owned by the Trust Fund
at the beginning of the related Due Period, over the aggregate Stated Principal
Balance for such Distribution Date of such Mortgage Loans (including such
Subsequent Mortgage Loans, if any) that have a scheduled payment of interest due
in the related Due Period, and (2) a fraction, the numerator of which is the
weighted average Net Mortgage Rate of all the Mortgage Loans in the Mortgage
Pool (including such Subsequent Mortgage Loans, if any) (weighted on the basis
of the Stated Principal Balances thereof for such Distribution Date) and the
denominator of which is 12; and

          (b)  the product of: (1) the amount on deposit in the Pre-Funding
Account at the beginning of the related Due Period, and (2) a fraction, the
numerator of which is the weighted average Net Mortgage Rate of the Mortgage
Loans (including Subsequent Mortgage Loans, if any) owned by the Trust Fund at
the beginning of the related Due Period (weighted on the basis of the Stated
Principal Balances thereof for such Distribution Date) and the denominator of
which is 12.

          Senior Certificates: The Class A and Class A-R Certificates.

          Senior Enhancement Percentage: With respect to a Distribution Date on
or after the Stepdown Date, the fraction (expressed as a percentage) (1) the
numerator of which is the excess of (a) the aggregate Stated Principal Balance
of the Mortgage Loans for the preceding Distribution Date over (b) (i) before
the Certificate Principal Balances of the Senior Certificates have been reduced
to zero, the sum of the Certificate Principal Balances of the Senior
Certificates, or (ii) after the Certificate Principal Balances of the Senior
Certificates have been reduced to zero, the Certificate Principal Balance of the
most senior Class of Subordinate Certificates outstanding, as of the related
Master Servicer Advance Date, and (2) the denominator of which is the aggregate
Stated Principal Balance of the Mortgage Loans for the preceding Distribution
Date.

          Servicing Advances: All customary, reasonable and necessary "out of
pocket" costs and expenses incurred in the performance by the Master Servicer of
its servicing

                                       48
<PAGE>

obligations hereunder, including, but not limited to, the cost of (i) the
preservation, restoration and protection of a Mortgaged Property, (ii) any
enforcement or judicial proceedings, including foreclosures, (iii) the
management and liquidation of any REO Property and (iv) compliance with the
obligations under Section 3.10.

          Servicing Criteria: The "servicing criteria" set forth in Item 1122(d)
of Regulation AB.

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

          Servicing Fee Rate: With respect to each Mortgage Loan, the per annum
rate set forth on the Mortgage Loan Schedule for such Mortgage Loan.

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

          Sixty-Day Delinquency Rate: With respect to any Distribution Date on
or after the Stepdown Date, a fraction, expressed as a percentage, the numerator
of which is the aggregate Stated Principal Balance for such Distribution Date of
all Mortgage Loans 60 or more days delinquent as of the close of business on the
last day of the calendar month preceding such Distribution Date (including
Mortgage Loans in foreclosure, bankruptcy and REO Properties) and the
denominator of which is the aggregate Stated Principal Balance for such
Distribution Date of all Mortgage Loans.

          Stated Principal Balance: With respect to any Mortgage Loan or related
REO Property (i) as of the Cut-off Date, the unpaid principal balance of the
Mortgage Loan as of such date (before any adjustment to the amortization
schedule for any moratorium or similar waiver or grace period), after giving
effect to any partial prepayments or Liquidation Proceeds received prior to such
date and to the payment of principal due on or prior to such date and
irrespective any delinquency in payment by the related Mortgagor, and (ii) as of
any other Distribution Date, the Stated Principal Balance of the Mortgage Loan
as of its Cut-off Date, minus the sum of (a) the principal portion of the
Scheduled Payments (x) due with respect to such Mortgage Loan during each Due
Period ending prior to such Distribution Date and (y) that were received by the
Master Servicer as of the close of business on the Determination Date related to
such Distribution Date or with respect to which Advances were made as of the
Master Servicer Advance Date related to such Distribution Date, (b) all
Principal Prepayments with respect to such Mortgage Loan received by the Master
Servicer during each Prepayment Period ending prior to such Distribution Date,
(c) all Liquidation Proceeds collected with respect to such Mortgage Loan during
each Due Period ending prior to such Distribution Date, to the extent applied by
the Master Servicer as recoveries of principal in accordance with Section 3.12
and (d)

                                       49
<PAGE>

any Realized Loss previously incurred in connection with a Deficient Valuation.
The Stated Principal Balance of any Mortgage Loan that becomes a Liquidated
Mortgage Loan will be zero on each date following the Due Period in which such
Mortgage Loan becomes a Liquidated Mortgage Loan. References herein to the
Stated Principal Balance of the Mortgage Loans at any time shall mean the
aggregate Stated Principal Balance of all Mortgage Loans in the Trust Fund as of
such time, and references herein to the Stated Principal Balance of a Loan Group
at any time shall mean the aggregate Stated Principal Balance of all Mortgage
Loans in such Loan Group at such time.

          Stepdown Date: The earlier to occur of (a) the Distribution Date
following the Distribution Date on which the aggregate Certificate Principal
Balance of the Senior Certificates is reduced to zero, and (b) the later to
occur of (x) the Distribution Date in January 2010 and (y) the first
Distribution Date on which the aggregate Certificate Principal Balance of the
Senior Certificates (after calculating anticipated distributions on such
Distribution Date) is less than or equal to 62.30% of the aggregate Stated
Principal Balance of the Mortgage Loans for such Distribution Date.

          Stepdown Target Subordination Percentage: For each Class of
Subordinate Certificates (other than the Class M-1, Class M-2 and Class M-3
Certificates), the respective percentage indicated in the following table:

                                                          Stepdown Target
                                                      Subordination Percentage
                                                    ----------------------------
          Class M-4.................................          15.80%
          Class M-5.................................          13.20%
          Class M-6.................................          11.20%
          Class M-7.................................           8.70%
          Class M-8.................................           7.40%
          Class M-9.................................           5.40%
          Class B...................................           3.50%

          Strip REMIC: As defined in the Preliminary Statement.

          Strip REMIC Cap: As defined in the Preliminary Statement.

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

          Subordinate 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, Class M-9 and Class B
Certificates.

                                       50
<PAGE>

          Subordinate Class Principal Distribution Amount: With respect to any
Distribution Date and any Class of Subordinate Certificates (other than the
Class M-1, Class M-2 and Class M-3 Certificates), the excess of (1) the sum of
(a) the aggregate Certificate Principal Balance of the Class A Certificates
(after taking into account distribution of the Class 1-A Principal Distribution
Amount and the Class 2-A Principal Distribution Amount for such Distribution
Date), (b) the aggregate Certificate Principal Balance of the Class M-1, Class
M-2 and Class M-3 Certificates (after taking into account distribution of the
Combined Class M-1, M-2 and M-3 Principal Distribution Amount for such
Distribution Date), (c) the aggregate Certificate Principal Balance of any
Classes of Subordinate Certificates (other than the Class M-1, Class M-2 and
Class M-3 Certificates) that are senior to the subject Class (in each case,
after taking into account distribution of the Subordinate Class Principal
Distribution Amount(s) for such senior Class(es) of Certificates for such
Distribution Date) and (d) the Certificate Principal Balance of the subject
Class of Subordinate Certificates immediately prior to such Distribution Date
over (2) the lesser of (a) the product of (x) 100% minus the Stepdown Target
Subordination Percentage for the subject Class of Certificates and (y) the
aggregate Stated Principal Balance of the Mortgage Loans for such Distribution
Date and (b) the aggregate Stated Principal Balance of the Mortgage Loans for
such Distribution Date minus the OC Floor; provided, however, that if such Class
of Subordinate Certificates is the only Class of Subordinate Certificates
outstanding on such Distribution Date, that Class will be entitled to receive
the entire remaining Principal Distribution Amount for Loan Group 1 and Loan
Group 2 until the Certificate Principal Balance thereof is reduced to zero.

          Subordinate Net Rate Cap: With respect to any Distribution Date and
each Class of Subordinate Certificates, the weighted average of the Class 1-A
Net Rate Cap and the Class 2-A Net Rate Cap, weighted on the basis of the excess
(if any) of the sum of the aggregate Stated Principal Balance of the Mortgage
Loans in the related Loan Group as of the first day of the related Due Period
(after giving effect to Principal Prepayments received during the Prepayment
Period that ends during such Due Period) and the amount on deposit in the
Pre-Funding Account in respect of that Loan Group as of the first day of such
Due Period over the Certificate Principal Balance of the related Senior
Certificates immediately prior to such Distribution Date.

          Subsequent Certificate Account Deposit: With respect to any Subsequent
Transfer Date, an amount equal to the aggregate of all amounts in respect of (i)
principal of the related Subsequent Mortgage Loans due after the related
Subsequent Cut-off Date and received by the Master Servicer on or before such
Subsequent Transfer Date and not applied in computing the Cut-off Date Principal
Balance thereof and (ii) interest on such Subsequent Mortgage Loans due after
such Subsequent Cut-off Date and received by the Master Servicer on or before
the Subsequent Transfer Date.

          Subsequent Cut-off Date: In the case of any Subsequent Mortgage Loan,
the later of (x) the first day of the month of the related Subsequent Transfer
Date and (y) the date of origination of such Subsequent Mortgage Loan.

          Subsequent Mortgage Loan: Any Mortgage Loan conveyed to the Trustee on
a Subsequent Transfer Date, and listed on the related Loan Number and Borrower
Identification Mortgage Loan Schedule delivered pursuant to Section 2.01(f).
When used with respect to a

                                       51
<PAGE>

single Subsequent Transfer Date, "Subsequent Mortgage Loan" shall mean a
Subsequent Mortgage Loan conveyed to the Trustee on such Subsequent Transfer
Date.

          Subsequent Periodic Rate Cap: With respect to each Adjustable Rate
Mortgage Loan, the percentage specified in the related Mortgage Note that limits
permissible increases and decreases in the Mortgage Rate on any Adjustment Date
(other than the initial Adjustment Date).

          Subsequent Recoveries: As to any Distribution Date, with respect to a
Liquidated Mortgage Loan that resulted in a Realized Loss in a prior calendar
month, unexpected amounts received by the Master Servicer (net of any related
expenses permitted to be reimbursed pursuant to Section 3.08 and 3.12)
specifically related to such Liquidated Mortgage Loan after the classification
of such Mortgage Loan as a Liquidated Mortgage Loan.

          Subsequent Transfer Agreement: A Subsequent Transfer Agreement
substantially in the form of Exhibit P hereto, executed and delivered by the
Sellers, the Depositor and the Trustee as provided in Section 2.01(d).

          Subsequent Transfer Date: For any Subsequent Transfer Agreement, the
"Subsequent Transfer Date" identified in such Subsequent Transfer Agreement;
provided, however, the Subsequent Transfer Date for any Subsequent Transfer
Agreement must be a Business Day and may not be a date earlier than the date on
which the Subsequent Transfer Agreement is executed and delivered by the parties
thereto pursuant to Section 2.01(d).

          Subsequent Transfer Date Purchase Amount: With respect to any
Subsequent Transfer Date, the "Subsequent Transfer Date Purchase Amount"
identified in the related Subsequent Transfer Agreement which shall be an
estimate of the aggregate Stated Principal Balances of the Subsequent Mortgage
Loans identified in such Subsequent Transfer Agreement.

          Subsequent Transfer Date Transfer Amount: With respect to any
Subsequent Transfer Date, an amount equal to the lesser of (i) the aggregate
Stated Principal Balances as of the related Subsequent Cut-off Dates of the
Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date, as listed
on the related Loan Number and Borrower Identification Mortgage Loan Schedule
delivered pursuant to Section 2.01(f) and (ii) the amount on deposit in the
Pre-Funding Account.

          Subservicer: As defined in Section 3.02(a).

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

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

          Substitution Amount: With respect to any Mortgage Loan substituted
pursuant to Section 2.03(e), the excess of (x) the principal balance of the
Mortgage Loan that is substituted for, over (y) the principal balance of the
related substitute Mortgage Loan, each balance being determined as of the date
of substitution.

                                       52
<PAGE>

          Successful Auction: An auction held pursuant to Section 9.04 at which
at least three Qualified Bidders submitted bids and at least one of those bids
was an Acceptable Bid Amount.

          Swap Account: The separate Eligible Account created and initially
maintained by the Swap Trustee pursuant to Section 4.09.

          Swap Contract: The transaction evidenced by the Confirmation (as
assigned to the Swap Contract Administrator pursuant to the Swap Contract
Assignment Agreement), a form of which is attached hereto as Exhibit U.

          Swap Contract Administration Agreement: The swap contract
administration agreement dated as of the Closing Date among CHL, the Trustee and
the Swap Contract Administrator, a form of which is attached hereto as Exhibit
V-2.

          Swap Contract Administrator: The Bank of New York, in its capacity as
swap contract administrator under the Swap Contract Administration Agreement and
its successors and assigns.

          Swap Contract Assignment Agreement: The Assignment Agreement dated as
of the Closing Date among CHL, the Swap Contract Administrator and the Swap
Counterparty, a form of which is attached hereto as Exhibit V-1.

          Swap Contract Termination Date: The Distribution Date in December
2012.

          Swap Counterparty: Lehman Brothers Special Financing Inc. and its
successors.

          Swap Counterparty Trigger Event: Either (i) an "Event of Default"
under the ISDA Master Agreement with respect to which the Swap Counterparty is
the sole "Defaulting Party" (as defined in the ISDA Master Agreement) or (ii) a
"Termination Event" (other than an Illegality or a Tax Event (as such terms are
defined in the ISDA Master Agreement)) or "Additional Termination Event" under
the ISDA Master Agreement with respect to which the Swap Counterparty is the
sole "Affected Party" (as defined in the ISDA Master Agreement).

          Swap Guarantee: The guaranty, dated as of December 29, 2006, by the
Swap Guarantor in favor of the Swap Contract Administrator, a form of which is
attached hereto as Exhibit V-3.

          Swap Guarantor: Lehman Brothers Holdings Inc.

          Swap-IO REMIC: As defined in the Preliminary Statement.

          Swap Termination Payment: The payment payable to either party under
the ISDA Master Agreement due to an early termination of the ISDA Master
Agreement.

          Swap Trust: The trust fund established by Section 4.09.

                                       53
<PAGE>

          Swap Trustee: The Bank of New York, a New York banking corporation,
not in its individual capacity, but solely in its capacity as trustee for the
benefit of the Holders of the Interest-Bearing Certificates 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.

          Tax Matters Person: The person designated as "tax matters person" in
the manner provided under Treasury regulation ss. 1.860F-4(d) and Treasury
regulation ss. 301.6231(a)(7)-1. Initially, this person shall be the Trustee.

          Tax Matters Person Certificate: With respect to the Master REMIC, the
Strip REMIC and the Swap-IO REMIC, the Class A-R Certificate with a Denomination
of $0.05 and in the form of Exhibit E hereto.

          Termination Price: As defined in Section 9.01.

          Terminator: As defined in Section 9.01.

          Three-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage
Rate that is fixed for 36 months after origination thereof before such Mortgage
Rate becomes subject to adjustment.

          Transaction Documents: This Agreement, the Swap Contract, the Swap
Contract Administration Agreement, each Mortgage Insurance Policy and any other
document or agreement entered into in connection with the Trust Fund, the
Certificates or the Mortgage Loans.

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

          Transfer Affidavit: As defined in Section 5.02(c).

          Transferor Certificate: As defined in Section 5.02(b).

          Trigger Event: With respect to any Distribution Date on or after the
Stepdown Date, either a Delinquency Trigger Event with respect to that
Distribution Date or a Cumulative Loss Trigger Event with respect to that
Distribution Date.

          Trust Fund: The corpus of the trust created hereunder consisting of
(i) the Mortgage Loans and all interest and principal received on or with
respect thereto after the Cut-off Date to the extent not applied in computing
the Cut-off Date Principal Balance thereof, exclusive of interest not required
to be deposited in the Certificate Account pursuant to Section 3.05(b)(2); (ii)
the Certificate Account, the Distribution Account, the Principal Reserve Fund,
the Carryover Reserve Fund, the Credit Comeback Excess Account, the Pre-Funding
Account and all amounts deposited therein pursuant to the applicable provisions
of this Agreement; (iii) property that secured a Mortgage Loan and has been
acquired by foreclosure, deed in lieu of foreclosure or otherwise; (iv) the
mortgagee's rights under the Insurance Policies with respect to

                                       54
<PAGE>

the Mortgage Loan; and (v) all proceeds of the conversion, voluntary or
involuntary, of any of the foregoing into cash or other liquid property.

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

          Trustee Advance Notice: As defined in Section 4.01(d).

          Trustee Advance Rate: With respect to any Advance made by the Trustee
pursuant to Section 4.01(d), a per annum rate of interest determined as of the
date of such Advance equal to the Prime Rate in effect on such date plus 5.00%.

          Trustee Fee: As to any Distribution Date, an amount equal to
one-twelfth of the Trustee Fee Rate multiplied by the sum of (i) the Pool Stated
Principal Balance and (ii) any amounts remaining in the Pre-Funding Account
(excluding any investment earnings thereon) with respect to such Distribution
Date.

          Trustee Fee Rate: With respect to each Mortgage Loan, the per annum
rate agreed upon in writing on or prior to the Closing Date by the Trustee and
the Depositor, which is 0.009% per annum.

          Two-Year Hybrid Mortgage Loan: A Mortgage Loan having a Mortgage Rate
that is fixed for 24 months after origination thereof before such Mortgage Rate
becomes subject to adjustment.

          Underwriter's Exemption: Prohibited Transaction Exemption 2002-41, 67
Fed. Reg. 54487 (2002), as amended (or any successor thereto), or any
substantially similar administrative exemption granted by the U.S. Department of
Labor.

          Underwriters: Countrywide Securities Corporation and Greenwich Capital
Markets, Inc.

          Unpaid Realized Loss Amount: For any Class of Certificates and any
Distribution Date, (x) the portion of the aggregate Applied Realized Loss Amount
previously allocated to that Class remaining unpaid from prior Distribution
Dates minus (y) any increase in the Certificate Principal Balance of that Class
due to the allocation of Subsequent Recoveries to the Certificate Principal
Balance of that Class pursuant to Section 4.04(h).

          Voting Rights: The voting rights of all the Certificates that are
allocated to any Certificates for purposes of the voting provisions hereunder.
Voting Rights allocated to each Class of Certificates shall be allocated 97% to
the Certificates other than the Class A-R, Class C and Class P Certificates
(with the allocation among the Certificates to be in proportion to the
Certificate Principal Balance of each Class relative to the Certificate
Principal Balance of all other such Classes), and 1% to each of the Class A-R,
Class C and Class P Certificates. Voting

                                       55
<PAGE>

Rights will be allocated among the Certificates of each such Class in accordance
with their respective Percentage Interests.

          Winning Bidder: With respect to a Successful Auction, the Qualified
Bidder that bids the highest price.

          Section 1.02  Certain Interpretive Provisions.

          All terms defined in this Agreement shall have the defined meanings
when used in any certificate, agreement or other document delivered pursuant
hereto unless otherwise defined therein. For purposes of this Agreement and all
such certificates and other documents, unless the context otherwise requires:
(a) accounting terms not otherwise defined in this Agreement, and accounting
terms partly defined in this Agreement to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles; (b) the words "hereof," "herein" and "hereunder" and words of
similar import refer to this Agreement (or the certificate, agreement or other
document in which they are used) as a whole and not to any particular provision
of this Agreement (or such certificate, agreement or document); (c) references
to any Section, Schedule or Exhibit are references to Sections, Schedules and
Exhibits in or to this Agreement, and references to any paragraph, subsection,
clause or other subdivision within any Section or definition refer to such
paragraph, subsection, clause or other subdivision of such Section or
definition; (d) the term "including" means "including without limitation"; (e)
references to any law or regulation refer to that law or regulation as amended
from time to time and include any successor law or regulation; (f) references to
any agreement refer to that agreement as amended from time to time; (g)
references to any Person include that Person's permitted successors and assigns;
and (h) a Mortgage Loan is "30 days delinquent" if a Scheduled Payment has not
been received by the close of business on the Due Date on which the next
Scheduled Payment is due. Similarly for "60 days delinquent," "90 days
delinquent" and so on.

                                  ARTICLE II.
                          CONVEYANCE OF MORTGAGE LOANS;
                         REPRESENTATIONS AND WARRANTIES

          Section 2.01  Conveyance of Mortgage Loans.

          (a)  Each Seller hereby sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, all the right, title and
interest of such Seller in and to the applicable Initial Mortgage Loans,
including all interest and principal received and receivable by such Seller on
or with respect to applicable Initial Mortgage Loans after the Initial Cut-off
Date (to the extent not applied in computing the Cut-off Date Principal Balance
thereof) or deposited into the Certificate Account by the Master Servicer on
behalf of such Seller as part of the Initial Certificate Account Deposit as
provided in this Agreement, other than principal due on the applicable Initial
Mortgage Loans on or prior to the Initial Cut-off Date and interest accruing
prior to the Initial Cut-off Date. The Master Servicer confirms that, on behalf
of the Sellers, concurrently with the transfer and assignment, it has deposited
into the Certificate Account the Initial Certificate Account Deposit.

                                       56
<PAGE>

          Immediately upon the conveyance of the Initial Mortgage Loans referred
to in the preceding paragraph, the Depositor sells, transfers, assigns, sets
over and otherwise conveys to the Trustee for benefit of the Certificateholders,
without recourse, all right, title and interest in and to the Initial Mortgage
Loans.

          CHL further agrees (x) to cause The Bank of New York to enter into the
Swap Contract Administration Agreement as Swap Contract Administrator and (y) to
assign all of its right, title and interest in and to the interest rate swap
transaction evidenced by the Confirmation, and to cause all of its obligations
in respect of such transaction to be assumed by, the Swap Contract
Administrator, on the terms and conditions set forth in the Swap Contract
Assignment Agreement.

          (b)  Subject to the execution and delivery of the related Subsequent
Transfer Agreement as provided by Section 2.01(d) and the terms and conditions
of this Agreement, each Seller sells, transfers, assigns, sets over and
otherwise conveys to the Depositor, without recourse, on each Subsequent
Transfer Date, all the right, title and interest of such Seller in and to the
related Subsequent Mortgage Loans, including all interest and principal received
and receivable by such Seller on or with respect to such Subsequent Mortgage
Loans after the related Subsequent Cut-off Date (to the extent not applied in
computing the Cut-off Date Principal Balance thereof) or deposited into the
Certificate Account by the Master Servicer on behalf of such Seller as part of
any related Subsequent Certificate Account Deposit as provided in this
Agreement, other than principal due on such Subsequent Mortgage Loans on or
prior to the related Subsequent Cut-off Date and interest accruing prior to the
related Subsequent Cut-off Date.

          Immediately upon the conveyance of the Subsequent Mortgage Loans
referred to in the preceding paragraph, the Depositor sells, transfers, assigns,
sets over and otherwise conveys to the Trustee for benefit of the
Certificateholders, without recourse, all right, title and interest in the
Subsequent Mortgage Loans.

          (c)  Each Seller 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 of this Agreement, hereby sells, transfers, assigns and otherwise
conveys to the Trustee for the use and benefit of the Certificateholders,
without recourse, all right, title and interest in the portion of the Trust Fund
not otherwise conveyed to the Trustee pursuant to Section 2.01(a) or (b).

          (d)  On any Business Day during the Funding Period designated by CHL
to the Trustee, the Sellers, the Depositor and the Trustee shall complete,
execute and deliver a Subsequent Transfer Agreement. After the execution and
delivery of such Subsequent Transfer Agreement, on the Subsequent Transfer Date,
the Trustee shall set aside in the Pre-Funding Account an amount equal to the
related Subsequent Transfer Date Purchase Amount.

          (e)  The transfer of Subsequent Mortgage Loans on the Subsequent
Transfer Date is subject to the satisfaction of each of the following
conditions:

                                       57
<PAGE>

               (1)  the Trustee and the Underwriters will be provided Opinions
     of Counsel addressed to the Rating Agencies as with respect to the sale of
     the Subsequent Mortgage Loans conveyed on such Subsequent Transfer Date
     (such opinions being substantially similar to the opinions delivered on the
     Closing Date to the Rating Agencies with respect to the sale of the Initial
     Mortgage Loans on the Closing Date), to be delivered as provided in Section
     2.01(f);

               (2)  the execution and delivery of such Subsequent Transfer
     Agreement or conveyance of the related Subsequent Mortgage Loans does not
     result in a reduction or withdrawal of any ratings assigned to the
     Certificates by the Rating Agencies;

               (3)  the Depositor shall deliver to the Trustee an Officer's
     Certificate confirming the satisfaction of each of the conditions set forth
     in this Section 2.01(e) required to be satisfied by such Subsequent
     Transfer Date;

               (4)  each Subsequent Mortgage Loan conveyed on such Subsequent
     Transfer Date satisfies the representations and warranties applicable to it
     under this Agreement, provided, however, that with respect to a breach of a
     representation and warranty with respect to a Subsequent Mortgage Loan set
     forth in this clause (4), the obligation under Section 2.03(e) of this
     Agreement of the applicable Seller, to cure, repurchase or replace such
     Subsequent Mortgage Loan shall constitute the sole remedy against such
     Seller respecting such breach available to Certificateholders, the
     Depositor or the Trustee;

               (5)  the Subsequent Mortgage Loans conveyed on such Subsequent
     Transfer Date were selected in a manner reasonably believed not to be
     adverse to the interests of the Certificateholders;

               (6)  no Subsequent Mortgage Loan conveyed on such Subsequent
     Transfer Date was 30 or more days delinquent as of the related Cut-off
     Date;

               (7)  following the conveyance of the Subsequent Mortgage Loans on
     such Subsequent Transfer Date, the characteristics of each Loan Group will
     not vary by more than the amount specified below (other than (i) the
     percentage of Mortgage Loans secured by Mortgaged Properties located in the
     State of California, which will not exceed 50% of the Mortgage Loans in
     each Loan Group and (ii) the percentage of Mortgage Loans in the Credit
     Grade Categories of "C" or below, which will not exceed 15% of the Mortgage
     Loans in each Loan Group) from the characteristics listed below; provided
     that for the purpose of making such calculations, the characteristics for
     any Initial Mortgage Loan made will be taken as of the Initial Cut-off Date
     and the characteristics for any Subsequent Mortgage Loans will be taken as
     of the Subsequent Cut-off Date:

     Loan Group 1                                                    Permitted
     Characteristic                                  Value            Variance
     ----------------------                       ------------      ------------
     Weighted Average Mortgage Rate............      8.263%           +/-0.10%

                                       58
<PAGE>

     Weighted Average Original
     Loan-to-Value Ratio.......................      80.25%           +/-3.00%
     Weighted Average Credit Bureau
     Risk Score................................    596 points        +/-5 points
     Percentage Originated under
     CHL's Full Documentation Program..........      67.21%           +/-3.00%
     Weighted Average Gross Margin of
     Adjustable Rate Mortgage Loans............      6.581%           +/-0.10%

     Loan Group 2                                                    Permitted
     Characteristic                                  Value            Variance
     ----------------------                       ------------      ------------
     Weighted Average Mortgage Rate............      8.018%           +/-0.10%
     Weighted Average Original
     Loan-to-Value Ratio.......................      79.58%           +/-3.00%
     Weighted Average Credit Bureau
     Risk Score................................    623 points        +/-5 points
     Percentage Originated under
     CHL's Full Documentation Program..........      51.37%           +/-3.00%
     Weighted Average Gross Margin of
     Adjustable Rate Mortgage Loans............      5.897%           +/-0.10%

               (8)  none of the Sellers or the Depositor is insolvent and
     neither of the Sellers nor the Depositor will be rendered insolvent by the
     conveyance of Subsequent Mortgage Loans on such Subsequent Transfer Date;
     and

               (9)  the Trustee and the Underwriters will be provided with an
     Opinion of Counsel, which Opinion of Counsel shall not be at the expense of
     either the Trustee or the Trust Fund, addressed to the Trustee, to the
     effect that such purchase of Subsequent Mortgage Loans will not (i) result
     in the imposition of the tax on "prohibited transactions" on the Trust Fund
     or contributions after the Startup Date, as defined in Sections 860F(a)(2)
     and 860G(d) of the Code, respectively or (ii) cause any REMIC formed
     hereunder to fail to qualify as a REMIC, such opinion to be delivered as
     provided in Section 2.01(f).

          The Trustee shall not be required to investigate or otherwise verify
compliance with these conditions, except for its own receipt of documents
specified above, and shall be entitled to rely on the required Officer's
Certificate.

          (f)  Within six Business Days after each Subsequent Transfer Date,
upon (1) delivery to the Trustee by the Depositor of the Opinions of Counsel
referred to in Section 2.01(e)(1) and (e)(9), (2) delivery to the Trustee by CHL
(on behalf of each Seller) of a Loan Number and Borrower Identification Mortgage
Loan Schedule reflecting the Subsequent Mortgage Loans conveyed on such
Subsequent Transfer Date and the Loan Group into which each Subsequent Mortgage
Loan was conveyed, (3)deposit in the Certificate Account by the Master Servicer
on behalf of the Sellers of the applicable Subsequent Certificate Account
Deposit, and (4) delivery to the Trustee by the Depositor of an Officer's
Certificate confirming the satisfaction of each of the conditions precedent set
forth in this Section 2.01(f), the Trustee shall pay the applicable Seller the
Subsequent Transfer Date Transfer Amount from such funds

                                       59
<PAGE>

that were set aside in the Pre-Funding Account pursuant to Section 2.01(d). The
positive difference, if any, between the Subsequent Transfer Date Transfer
Amount and the Subsequent Transfer Date Purchase Amount shall be re-invested by
the Trustee in the Pre-Funding Account.

          The Trustee shall not be required to investigate or otherwise verify
compliance with the conditions set forth in the preceding paragraph, except for
its own receipt of documents specified above, and shall be entitled to rely on
the required Officer's Certificate.

          Within thirty days after each Subsequent Transfer Date, the Depositor
shall deliver to the Trustee a letter of a nationally recognized firm of
independent public accountants stating whether or not the Subsequent Mortgage
Loans conveyed on such Subsequent Transfer Date conform to the characteristics
described in Section 2.01(e)(6) and (7).

          (g)  In connection with the transfer and assignment of each Mortgage
Loan, the Depositor has delivered to, and deposited with, the Co-Trustee (or, in
the case of the Delay Delivery Mortgage Loans, will deliver to, and deposit
with, the Co-Trustee within the time periods specified in the definition of
Delay Delivery Mortgage Loans) (except as provided in clause (vi) below) for the
benefit of the Certificateholders, the following documents or instruments with
respect to each such Mortgage Loan so assigned (with respect to each Mortgage
Loan, clause (i) through (vi) below, together, the "Mortgage File" for each such
Mortgage Loan):

                    (i) the original Mortgage Note, endorsed by manual or
               facsimile signature in blank in the following form: "Pay to the
               order of ________________ without recourse", with all intervening
               endorsements that show a complete chain of endorsement from the
               originator to the Person endorsing the Mortgage Note (each such
               endorsement being sufficient to transfer all right, title and
               interest of the party so endorsing, as noteholder or assignee
               thereof, in and to that Mortgage Note), or, if the original
               Mortgage Note has been lost or destroyed and not replaced, an
               original lost note affidavit, stating that the original Mortgage
               Note was lost or destroyed, together with a copy of the related
               Mortgage Note and all such intervening endorsements;

                    (ii) in the case of each Mortgage Loan that is not a MERS
               Mortgage Loan, the original recorded Mortgage or a copy of such
               Mortgage, with recording information, and in the case of each
               MERS Mortgage Loan, the original Mortgage or a copy of such
               Mortgage, with recording information, noting the presence of the
               MIN of the Mortgage Loan and language indicating that the
               Mortgage Loan is a MOM Loan if the Mortgage Loan is a MOM Loan,
               with evidence of recording indicated thereon, or a copy of the
               Mortgage certified by the public recording office in which such
               Mortgage has been recorded;

                    (iii) in the case of each Mortgage Loan that is not a MERS
               Mortgage Loan, a duly executed assignment of the Mortgage to
               "Asset-Backed Certificates, Series 2006-26, CWABS, Inc., by The
               Bank of New York, a New York banking corporation, as trustee
               under the Pooling and Servicing Agreement dated as of December 1,
               2006, without recourse" or a copy of such assignment, with
               recording information, (each such assignment, when duly and
               validly completed,

                                       60
<PAGE>

               to be in recordable form and sufficient to effect the assignment
               of and transfer to the assignee thereof, under the Mortgage to
               which such assignment relates);

                    (iv) the original recorded assignment or assignments of the
               Mortgage or a copy of such assignments, with recording
               information, together with all interim recorded assignments of
               such Mortgage or a copy of such assignments, with recording
               information (in each case noting the presence of a MIN in the
               case of each MERS Mortgage Loan);

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

                    (vi) the original or duplicate original lender's title
               policy or a copy of lender's title policy or a printout of the
               electronic equivalent and all riders thereto or, in the event
               such original title policy has not been received from the
               insurer, such original or duplicate original lender's title
               policy and all riders thereto shall be delivered within one year
               of the Closing Date.

          In addition, in connection with the assignment of any MERS Mortgage
Loan, each Seller agrees that it will cause, at such Seller's own expense, the
MERS(R) System to indicate (and provide evidence to the Trustee that it has done
so) that such Mortgage Loans have been assigned by such Seller 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 "[IDENTIFY
TRUSTEE SPECIFIC CODE]" in the field "[IDENTIFY THE FIELD NAME FOR TRUSTEE]"
which identifies the Trustee and (b) the code "[IDENTIFY SERIES SPECIFIC CODE
NUMBER]" in the field "Pool Field" which identifies the series of the
Certificates issued in connection with such Mortgage Loans. The Sellers further
agree that they will not, and will not permit the Master Servicer to, and the
Master Servicer agrees that it will not, alter the codes referenced in this
paragraph with respect to any Mortgage Loan during the term of this Agreement
unless and until such Mortgage Loan is repurchased in accordance with the terms
of this Agreement.

          In the event that in connection with any Mortgage Loan that is not a
MERS Mortgage Loan a Seller cannot deliver the original recorded Mortgage or all
interim recorded assignments of the Mortgage satisfying the requirements of
clause (ii), (iii) or (iv) concurrently with the execution and delivery hereof,
such Seller shall deliver or cause to be delivered to the Co-Trustee a true copy
of such Mortgage and of each such undelivered interim assignment of the Mortgage
each certified by such Seller, the applicable title company, escrow agent or
attorney, or the originator of such Mortgage, as the case may be, to be a true
and complete copy of the original Mortgage or assignment of Mortgage submitted
for recording. For any such Mortgage Loan that is not a MERS Mortgage Loan each
Seller shall promptly deliver or cause to be delivered to the Co-Trustee such
original Mortgage and such assignment or assignments with evidence of recording
indicated thereon upon receipt thereof from the public recording official, or a
copy thereof, certified, if appropriate, by the relevant recording office, but
in no event shall any such delivery be made later than 270 days following the
Closing Date; provided that in the event that by such date such Seller is unable
to deliver or cause to be delivered each such

                                       61
<PAGE>

Mortgage and each interim assignment by reason of the fact that any such
documents have not been returned by the appropriate recording office, or, in the
case of each interim assignment, because the related Mortgage has not been
returned by the appropriate recording office, such Seller shall deliver or cause
to be delivered such documents to the Co-Trustee as promptly as possible upon
receipt thereof. If the public recording office in which a Mortgage or interim
assignment thereof is recorded retains the original of such Mortgage or
assignment, a copy of the original Mortgage or assignment so retained, with
evidence of recording thereon, certified to be true and complete by such
recording office, shall satisfy a Seller's obligations in Section 2.01. If any
document submitted for recording pursuant to this Agreement is (x) lost prior to
recording or rejected by the applicable recording office, the applicable Seller
shall immediately prepare or cause to be prepared a substitute and submit it for
recording, and shall deliver copies and originals thereof in accordance with the
foregoing or (y) lost after recording, the applicable Seller shall deliver to
the Co-Trustee a copy of such document certified by the applicable public
recording office to be a true and complete copy of the original recorded
document. Each Seller shall promptly forward or cause to be forwarded to the
Co-Trustee (x) from time to time additional original documents evidencing an
assumption or modification of a Mortgage Loan and (y) any other documents
required to be delivered by the Depositor or the Master Servicer to the
Co-Trustee within the time periods specified in this Section 2.01.

          With respect to each Mortgage Loan other than a MERS Mortgage Loan as
to which the related Mortgaged Property and Mortgage File are located in any
jurisdiction under the laws of which the recordation of the assignment specified
in clause (iii) above is not necessary to protect the Trustee's and the
Certificateholders' interest in the related Mortgage Loan, as evidenced by an
Opinion of Counsel delivered by CHL to the Trustee within 90 days of the Closing
Date (which opinion may be in the form of a "survey" opinion and is not required
to be delivered by counsel admitted to practice law in the jurisdiction as to
which such opinion applies), in lieu of recording the assignment specified in
clause (iii) above, the applicable Seller may deliver an unrecorded assignment
in blank, in form otherwise suitable for recording to the Co-Trustee; provided
that if the related Mortgage has not been returned from the applicable public
recording office, such assignment, or any copy thereof, of the Mortgage may
exclude the information to be provided by the recording office. As to any
Mortgage Loan other than a MERS Mortgage Loan, the procedures of the preceding
sentence shall be applicable only so long as the related Mortgage File is
maintained in the possession of the Co-Trustee in the State or jurisdiction
described in such sentence. In the event that with respect to Mortgage Loans
other than MERS Mortgage Loans (I) any Seller, the Depositor, the Master
Servicer or the NIM Insurer gives written notice to the Trustee that recording
is required to protect the right, title and interest of the Trustee on behalf of
the Certificateholders in and to any Mortgage Loan, (II) a court recharacterizes
any sale of the Mortgage Loans as a financing, or (III) as a result of any
change in or amendment to the laws of the State or jurisdiction described in the
first sentence of this paragraph or any applicable political subdivision
thereof, or any change in official position regarding application or
interpretation of such laws, including a holding by a court of competent
jurisdiction, such recording is so required, the Co-Trustee shall complete the
assignment in the manner specified in clause (iii) above and CHL shall submit or
cause to be submitted for recording as specified above or, should CHL fail to
perform such obligations, the Trustee shall cause the Master Servicer, at the
Master Servicer's expense, to cause each such previously unrecorded assignment
to be submitted for recording as specified above. In the event a Mortgage File
is released to the Master Servicer as a result of the Master Servicer's having

                                       62
<PAGE>

completed a Request for Document Release, the Trustee shall complete the
assignment of the related Mortgage in the manner specified in clause (iii)
above.

          So long as the Co-Trustee or its agent maintains an office in the
State of California, the Co-Trustee or its agent shall maintain possession of
and not remove or attempt to remove from the State of California any of the
Mortgage Files as to which the related Mortgaged Property is located in such
State. In the event that a Seller fails to record an assignment of a Mortgage
Loan as herein provided within 90 days of notice of an event set forth in clause
(I), (II) or (III) of the preceding paragraph, the Master Servicer shall prepare
and, if required hereunder, file such assignments for recordation in the
appropriate real property or other records office. Each Seller hereby appoints
the Master Servicer (and any successor servicer hereunder) as its
attorney-in-fact with full power and authority acting in its stead for the
purpose of such preparation, execution and filing.

          In the case of Mortgage Loans that become the subject of a Principal
Prepayment between the Closing Date (in the case of Initial Mortgage Loans) or
related Subsequent Transfer Date (in the case of Subsequent Mortgage Loans) and
the Cut-off Date, CHL shall deposit or cause to be deposited in the Certificate
Account the amount required to be deposited therein with respect to such payment
pursuant to Section 3.05 hereof.

          Notwithstanding anything to the contrary in this Agreement, within
thirty days after the Closing Date (in the case of Initial Mortgage Loans) or
within twenty days after the related Subsequent Transfer Date (in the case of
Subsequent Mortgage Loans), CHL (on behalf of each Seller) shall either (i)
deliver to the Co-Trustee the Mortgage File as required pursuant to this Section
2.01 for each Delay Delivery Mortgage Loan or (ii) (A) repurchase the Delay
Delivery Mortgage Loan or (B) substitute the Delay Delivery Mortgage Loan for a
Replacement Mortgage Loan, which repurchase or substitution shall be
accomplished in the manner and subject to the conditions set forth in Section
2.03, provided that if CHL fails to deliver a Mortgage File for any Delay
Delivery Mortgage Loan within the period provided in the prior sentence, the
cure period provided for in Section 2.02 or in Section 2.03 shall not apply to
the initial delivery of the Mortgage File for such Delay Delivery Mortgage Loan,
but rather CHL shall have five (5) Business Days to cure such failure to
deliver. CHL shall promptly provide each Rating Agency with written notice of
any cure, repurchase or substitution made pursuant to the proviso of the
preceding sentence. On or before the thirtieth (30th) day (or if such thirtieth
day is not a Business Day, the succeeding Business Day) after the Closing Date
(in the case of Initial Mortgage Loans) or within twenty days after the related
Subsequent Transfer Date (in the case of Subsequent Mortgage Loans), the Trustee
shall, in accordance with the provisions of Section 2.02, send a Delay Delivery
Certification substantially in the form annexed hereto as Exhibit G-3 (with any
applicable exceptions noted thereon) for all Delay Delivery Mortgage Loans
delivered within thirty (30) days after such date. The Trustee will promptly
send a copy of such Delay Delivery Certification to each Rating Agency.

          Each Seller has entered into this Agreement in consideration for the
purchase of the Mortgage Loans sold by such Seller to the Depositor and has
agreed to take the actions specified herein. The Depositor, concurrently with
the execution and delivery of this Agreement, hereby sells, transfers, assigns
and otherwise conveys to the Trustee for the use and benefit of the

                                       63
<PAGE>

Certificateholders, without recourse, all right, title and interest in the
portion of the Trust Fund not otherwise conveyed to the Trustee pursuant to
Sections 2.01(a) or (b).

          Section 2.02  Acceptance by Trustee of the Mortgage Loans.

          (a)  The Co-Trustee acknowledges receipt, subject to the limitations
contained in and any exceptions noted in the Initial Certification in the form
annexed hereto as Exhibit G-1 and in the list of exceptions attached thereto, of
the documents referred to in clauses (i) and (iii) of Section 2.01(g) above with
respect to the Initial Mortgage Loans and all other assets included in the Trust
Fund and declares that it holds and will hold such documents and the other
documents delivered to it constituting the Mortgage Files, and that it holds or
will hold such other assets included in the Trust Fund, in trust for the
exclusive use and benefit of all present and future Certificateholders.

          The Trustee agrees to execute and deliver on the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Initial
Certification substantially in the form annexed hereto as Exhibit G-1 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification), the documents described in Section 2.01(g)(i) and, in the
case of each Initial Mortgage Loan that is not a MERS Mortgage Loan, the
documents described in Section 2.01(g)(iii) with respect to such Initial
Mortgage Loans as are in the Co-Trustee's possession and based on its review and
examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Initial Mortgage Loan. The Trustee
agrees to execute and deliver within 30 days after the Closing Date to the
Depositor, the Master Servicer and CHL (on behalf of each Seller) an Interim
Certification substantially in the form annexed hereto as Exhibit G-2 to the
effect that, as to each Initial Mortgage Loan listed in the Mortgage Loan
Schedule (other than any Initial Mortgage Loan paid in full or any Initial
Mortgage Loan specifically identified in such certification as not covered by
such certification) all documents required to be delivered to the Co-Trustee
pursuant to the Agreement with respect to such Initial Mortgage Loans are in its
possession (except those documents described in Section 2.01(g)(vi)) and based
on its review and examination and only as to the foregoing documents, (i) such
documents appear regular on their face and relate to such Initial Mortgage Loan,
and (ii) the information set forth in items (i), (iv), (v), (vi), (viii), (ix)
and (xv) of the definition of the "Mortgage Loan Schedule" accurately reflects
information set forth in the Mortgage File. On or before the thirtieth (30th)
day after the Closing Date (or if such thirtieth day is not a Business Day, the
succeeding Business Day), the Trustee shall deliver to the Depositor, the Master
Servicer and CHL (on behalf of each Seller) a Delay Delivery Certification with
respect to the Initial Mortgage Loans substantially in the form annexed hereto
as Exhibit G-3, with any applicable exceptions noted thereon. The Trustee or the
Co-Trustee, as applicable, shall be under no duty or obligation to inspect,
review or examine such documents, instruments, certificates or other papers to
determine that the same are genuine, enforceable or appropriate for the
represented purpose or that they have actually been recorded in the real estate
records or that they are other than what they purport to be on their face.

          Not later than 180 days after the Closing Date, the Trustee shall
deliver to the Depositor, the Master Servicer, CHL (on behalf of each Seller)
and any Certificateholder that so

                                       64
<PAGE>

requests, a Final Certification with respect to the Initial Mortgage Loans
substantially in the form annexed hereto as Exhibit H, with any applicable
exceptions noted thereon.

          In connection with the Trustee's completion and delivery of such Final
Certification, the Co-Trustee, at the direction of the Trustee, shall review
each Mortgage File with respect to the Initial Mortgage Loans to determine that
such Mortgage File contains the following documents:

               (i) the original Mortgage Note, endorsed by manual or facsimile
          signature in blank in the following form: "Pay to the order of
          ________________ without recourse", with all intervening endorsements
          that show a complete chain of endorsement from the originator to the
          Person endorsing the Mortgage Note (each such endorsement being
          sufficient to transfer all right, title and interest of the party so
          endorsing, as noteholder or assignee thereof, in and to that Mortgage
          Note), or, if the original Mortgage Note has been lost or destroyed
          and not replaced, an original lost note affidavit, stating that the
          original Mortgage Note was lost or destroyed, together with a copy of
          the related Mortgage Note and all such intervening endorsements;

               (ii) in the case of each Initial Mortgage Loan that is not a MERS
          Mortgage Loan, the original recorded Mortgage or a copy of such
          Mortgage, with recording information, and in the case of each Initial
          Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage or a
          copy of such Mortgage, with recording information, noting the presence
          of the MIN of the Initial Mortgage Loan and language indicating that
          the Mortgage Loan is a MOM Loan if the Initial Mortgage Loan is a MOM
          Loan, with evidence of recording indicated thereon, or a copy of the
          Mortgage certified by the public recording office in which Mortgage
          has been recorded;

               (iii) in the case of each Initial Mortgage Loan that is not a
          MERS Mortgage Loan, a duly executed assignment of the Mortgage or a
          copy thereof with recording information, in either case in the form
          permitted by Section 2.01;

               (iv) the original recorded assignment or assignments of the
          Mortgage or a copy of such assignments, with recording information,
          together with all interim recorded assignments of such Mortgage or a
          copy of such assignments, with recording information (in each case
          noting the presence of a MIN in the case of each MERS Mortgage Loan);

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

               (vi) the original or duplicate original lender's title policy or
          a copy of lender's title policy or a printout of the electronic
          equivalent and all riders thereto.

          If, in the course of such review, the Co-Trustee finds any document or
documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include such
exceptions in such Final Certification (and the Trustee

                                       65
<PAGE>

shall state in such Final Certification whether any Mortgage File does not then
include the original or duplicate original lender's title policy or a printout
of the electronic equivalent and all riders thereto). If the public recording
office in which a Mortgage or assignment thereof is recorded retains the
original of such Mortgage or assignment, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be true
and complete by such recording office, shall be deemed to satisfy the
requirements of clause (ii), (iii) or (iv) above, as applicable. CHL shall
promptly correct or cure such defect referred to above within 90 days from the
date it was so notified of such defect and, if CHL does not correct or cure such
defect within such period, CHL shall either (A) if the time to cure such defect
expires prior to the end of the second anniversary of the Closing Date,
substitute for the related Initial 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 (B) purchase such Initial Mortgage Loan
from the Trust Fund within 90 days from the date CHL was notified of such defect
in writing at the Purchase Price of such Initial Mortgage Loan; provided that
any such substitution pursuant to (A) above or repurchase pursuant to (B) above
shall not be effected prior to the delivery to the Trustee of the Opinion of
Counsel required by Section 2.05 hereof and any substitution pursuant to (A)
above shall not be effected prior to the additional delivery to the Co-Trustee
of a Request for File Release. No substitution will be made in any calendar
month after the Determination Date for such month. The Purchase Price for any
such Initial Mortgage Loan shall be deposited by CHL in the Certificate Account
and, upon receipt of such deposit and Request for File Release with respect
thereto, the Co-Trustee shall release the related Mortgage File to CHL and shall
execute and deliver at CHL's request such instruments of transfer or assignment
as CHL has prepared, in each case without recourse, as shall be necessary to
vest in CHL, or a designee, the Trustee's interest in any Initial Mortgage Loan
released pursuant hereto. If pursuant to the foregoing provisions CHL
repurchases an Initial Mortgage Loan that is a MERS Mortgage Loan, the Master
Servicer shall cause MERS to execute and deliver an assignment of the Mortgage
in recordable form to transfer the Mortgage from MERS to CHL and shall cause
such Mortgage to be removed from registration on the MERS(R) System in
accordance with MERS' rules and regulations.

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

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase any Mortgage Loan that does not meet the requirements of
Section 2.02(a) above shall constitute the sole remedy respecting such defect
available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against any Seller.

          It is understood and agreed that the obligation of CHL to substitute
for or to purchase, pursuant to Section 2.02(a), any Initial Mortgage Loan whose
Mortgage File contains any document or documents that does not meet the
requirements of clauses (i)-(iv) and (vi) above and which defect is not
corrected or cured by CHL within 90 days from the date it was notified of such
defect, shall constitute the sole remedy respecting such defect available to the
Trustee, the Co-Trustee, the Depositor and any Certificateholder against any
Seller.

                                       66
<PAGE>

          (b)  The Trustee agrees to execute and deliver on the Subsequent
Transfer Date to the Depositor, the Master Servicer and CHL (on behalf of each
Seller) an Initial Certification substantially in the form annexed hereto as
Exhibit G-4 to the effect that, as to each Subsequent Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Subsequent Mortgage Loan paid in full
or any Subsequent Mortgage Loan specifically identified in such certification as
not covered by such certification), the documents described in Section
2.01(g)(i) and, in the case of each Subsequent Mortgage Loan that is not a MERS
Mortgage Loan, the documents described in Section 2.01(g)(iii), with respect to
such Subsequent Mortgage Loan are in its possession, and based on its review and
examination and only as to the foregoing documents, such documents appear
regular on their face and relate to such Subsequent Mortgage Loan.

          The Trustee agrees to execute and deliver within 30 days after the
Subsequent Transfer Date to the Depositor, the Master Servicer and CHL (on
behalf of each Seller) an Interim Certification substantially in the form
annexed hereto as Exhibit G-2 to the effect that, as to each Subsequent Mortgage
Loan listed in the Mortgage Loan Schedule (other than any Subsequent Mortgage
Loan paid in full or any Subsequent Mortgage Loan specifically identified in
such certification as not covered by such certification), all documents required
to be delivered to it pursuant to this Agreement with respect to such Subsequent
Mortgage Loan are in its possession (except those described in Section
2.01(g)(vi)) and based on its review and examination and only as to the
foregoing documents, (i) such documents appear regular on their face and relate
to such Subsequent Mortgage Loan, and (ii) the information set forth in items
(i), (iv), (v), (vi), (viii), (ix) and (xv) of the definition of the "Mortgage
Loan Schedule" accurately reflects information set forth in the Mortgage File.
On or before the thirtieth (30th) day after the Subsequent Transfer Date (or if
such thirtieth day is not a Business Day, the succeeding Business Day), the
Trustee shall deliver to the Depositor, the Master Servicer and CHL (on behalf
of each Seller) a Delay Delivery Certification with respect to the Subsequent
Mortgage Loans substantially in the form annexed hereto as Exhibit G-3, with any
applicable exceptions noted thereon, together with a Subsequent Certification
substantially in the form annexed hereto as Exhibit G-4. The Trustee shall be
under no duty or obligation to inspect, review or examine such documents,
instruments, certificates or other papers to determine that the same are
genuine, enforceable or appropriate for the represented purpose or that they
have actually been recorded in the real estate records or that they are other
than what they purport to be on their face.

          Not later than 180 days after the Subsequent Transfer Date, the
Trustee shall deliver to the Depositor, the Master Servicer, CHL (on behalf of
each Seller) and to any Certificateholder that so requests a Final Certification
with respect to the Subsequent Mortgage Loans substantially in the form annexed
hereto as Exhibit H, with any applicable exceptions noted thereon.

          In connection with the Trustee's completion and delivery of such Final
Certification, the Co-Trustee shall review each Mortgage File with respect to
the Subsequent Mortgage Loans to determine that such Mortgage File contains the
following documents:

               (i)  the original Mortgage Note, endorsed by manual or facsimile
     signature in blank in the following form: "Pay to the order of
     ________________ without recourse", with all intervening endorsements that
     show a complete chain of

                                       67
<PAGE>

     endorsement from the originator to the Person endorsing the Mortgage Note
     (each such endorsement being sufficient to transfer all right, title and
     interest of the party so endorsing, as noteholder or assignee thereof, in
     and to that Mortgage Note), or, if the original Mortgage Note has been lost
     or destroyed and not replaced, an original lost note affidavit, stating
     that the original Mortgage Note was lost or destroyed, together with a copy
     of the related Mortgage Note and all such intervening endorsements;

               (ii) in the case of each Subsequent Mortgage Loan that is not a
     MERS Mortgage Loan, the original recorded Mortgage or a copy of such
     Mortgage, with recording information, and in the case of each Subsequent
     Mortgage Loan that is a MERS Mortgage Loan, the original Mortgage or a copy
     of such Mortgage, with recording information, noting the presence of the
     MIN of the Subsequent Mortgage Loan and language indicating that the
     Subsequent Mortgage Loan is a MOM Loan if the Subsequent Mortgage Loan is a
     MOM Loan, with evidence of recording indicated thereon, or a copy of the
     Mortgage certified by the public recording office in which Mortgage has
     been recorded;

               (iii) in the case of each Subsequent Mortgage Loan that is not a
     MERS Mortgage Loan, a duly executed assignment of the Mortgage or a copy
     thereof with recording information, in either case in the form permitted by
     Section 2.01;

               (iv) the original recorded assignment or assignments of the
     Mortgage or a copy of such assignments, with recording information,
     together with all interim recorded assignments of such Mortgage or a copy
     of such assignments, with recording information (in each case noting the
     presence of a MIN in the case of each MERS Mortgage Loan);

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

               (vi) the original or duplicate original lender's title policy or
     a copy of lender's title policy or a printout of the electronic equivalent
     and all riders thereto.

          If, in the course of such review, the Trustee finds any document or
documents constituting a part of such Mortgage File that do not meet the
requirements of clauses (i)-(iv) and (vi) above, the Trustee shall include such
exceptions in such Final Certification (and the Trustee shall state in such
Final Certification whether any Mortgage File does not then include the original
or duplicate original lender's title policy or a printout of the electronic
equivalent and all riders thereto). If the public recording office in which a
Mortgage or assignment thereof is recorded retains the original of such Mortgage
or assignment, a copy of the original Mortgage or assignment so retained, with
evidence of recording thereon, certified to be true and complete by such
recording office, shall be deemed to satisfy the requirements of clause (ii),
(iii) or (iv) above, as applicable. CHL shall promptly correct or cure such
defect referred to above within 90 days from the date it was so notified of such
defect and, if CHL does not correct or cure such defect within such period, CHL
shall either (A) if the time to cure such defect expires prior to the end of the
second anniversary of the Closing Date, substitute for the related Subsequent
Mortgage Loan a Replacement Mortgage Loan, which substitution shall be
accomplished in the

                                       68
<PAGE>

manner and subject to the conditions set forth in Section 2.03, or (B) purchase
such Subsequent Mortgage Loan from the Trust Fund within 90 days from the date
CHL was notified of such defect in writing at the Purchase Price of such
Subsequent Mortgage Loan; provided that any such substitution pursuant to (A)
above or repurchase pursuant to (B) above shall not be effected prior to the
delivery to the Trustee of the Opinion of Counsel required by Section 2.05
hereof and any substitution pursuant to (A) above shall not be effected prior to
the additional delivery to the Trustee of a Request for File Release. No
substitution will be made in any calendar month after the Determination Date for
such month. The Purchase Price for any such Subsequent Mortgage Loan shall be
deposited by CHL in the Certificate Account and, upon receipt of such deposit
and Request for File Release with respect thereto, the Trustee shall release the
related Mortgage File to CHL and shall execute and deliver at CHL's request such
instruments of transfer or assignment as CHL has prepared, in each case without
recourse, as shall be necessary to vest in CHL, or a designee, the Trustee's
interest in any Subsequent Mortgage Loan released pursuant hereto. If pursuant
to the foregoing provisions CHL repurchases a Subsequent Mortgage Loan that is a
MERS Mortgage Loan, the Master Servicer shall cause MERS to execute and deliver
an assignment of the Mortgage in recordable form to transfer the Mortgage from
MERS to CHL and shall cause such Mortgage to be removed from registration on the
MERS(R) System in accordance with MERS' rules and regulations.

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

          It is understood and agreed that the obligation of the Sellers to
substitute for or to purchase, pursuant to Section 2.02(b), any Subsequent
Mortgage Loan whose Mortgage File contains any document or documents that does
not meet the requirements of clauses (i)-(iv) and (vi) above and which defect is
not corrected or cured by such Seller within 90 days from the date it was
notified of such defect, shall constitute the sole remedy respecting such defect
available to the Trustee, the Co-Trustee, the Depositor and any
Certificateholder against the Sellers.

          Section 2.03  Representations, Warranties and Covenants of the Master
                        Servicer and the Sellers.

          (a)  The Master Servicer hereby represents and warrants to the
Depositor and the Trustee as follows, as of the date hereof with respect to the
Initial Mortgage Loans, and the related Subsequent Transfer Date with respect to
the Subsequent Mortgage Loans:

               (1)  The Master Servicer is duly organized as a Texas limited
     partnership and is validly existing and in good standing under the laws of
     the State of Texas and is duly authorized and qualified to transact any and
     all business contemplated by this Agreement to be conducted by the Master
     Servicer in any state in which a Mortgaged Property is located or is
     otherwise not required under applicable law to effect such qualification
     and, in any event, is in compliance with the doing business laws of any
     such state, to the extent necessary to ensure its ability to enforce each
     Mortgage Loan, to service the Mortgage Loans in accordance with the terms
     of this Agreement and to

                                       69
<PAGE>

     perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

               (2)  The Master Servicer has the full partnership power and
     authority to sell and 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 partnership
     action on the part of the Master Servicer the execution, delivery and
     performance of this Agreement; and this Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of the Master Servicer,
     enforceable against the Master Servicer in accordance with its terms,
     except that (a) the enforceability hereof may be limited by bankruptcy,
     insolvency, moratorium, receivership and other similar laws relating to
     creditors' rights generally and (b) the remedy of specific performance and
     injunctive and other forms of equitable relief may be subject to equitable
     defenses and to the discretion of the court before which any proceeding
     therefor may be brought.

               (3)  The execution and delivery of this Agreement by the Master
     Servicer, the servicing of the Mortgage Loans by the Master Servicer 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 Master
     Servicer and will not (A) result in a material breach of any term or
     provision of the certificate of limited partnership, partnership agreement
     or other organizational document of the Master Servicer or (B) materially
     conflict with, result in a material breach, violation or acceleration of,
     or result in a material default under, the terms of any other material
     agreement or instrument to which the Master Servicer is a party or by which
     it may be bound, or (C) constitute a material violation of any statute,
     order or regulation applicable to the Master Servicer of any court,
     regulatory body, administrative agency or governmental body having
     jurisdiction over the Master Servicer; and the Master Servicer is not in
     breach or violation of any material indenture or other material agreement
     or instrument, or in violation of any statute, order or regulation of any
     court, regulatory body, administrative agency or governmental body having
     jurisdiction over it which breach or violation may materially impair the
     Master Servicer's ability to perform or meet any of its obligations under
     this Agreement.

               (4) The Master Servicer is an approved servicer of conventional
     mortgage loans for Fannie Mae and 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.

               (5)  No litigation is pending or, to the best of the Master
     Servicer's knowledge, threatened, 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 service the
     Mortgage Loans or to perform any of its other obligations under this
     Agreement or any Subsequent Transfer Agreement in accordance with the terms
     hereof or thereof.

                                       70
<PAGE>

               (6)  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 of the transactions contemplated
     hereby, or if any such consent, approval, authorization or order is
     required, the Master Servicer has obtained the same.

               (7)  The Master 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 for as long as
     such Mortgage Loans are registered with MERS.

               (8)  The Master Servicer has fully furnished and will fully
     furnish, in accordance with the Fair Credit Reporting Act and its
     implementing regulations, accurate and complete information (i.e.,
     favorable and unfavorable) on its borrower credit files to Equifax,
     Experian, and Trans Union Credit Information Company (three of the credit
     repositories), on a monthly basis for the Mortgage Loans in Loan Group 1.

          (b)  CHL hereby represents and warrants to the Depositor and the
Trustee as follows, as of the Initial Cut-off Date in the case of the Initial
Mortgage Loans and as of the related Subsequent Cut-off Date in the case of the
Subsequent Mortgage Loans (unless otherwise indicated or the context otherwise
requires, percentages with respect to the Initial Mortgage Loans in the Trust
Fund or in a Loan Group or Loan Groups are measured by the Cut-off Date
Principal Balance of the Initial Mortgage Loans in the Trust Fund or of the
Initial Mortgage Loans in the related Loan Group or Loan Groups, as applicable):

               (1)  CHL is duly organized as a New York corporation and is
     validly existing and in good standing under the laws of the State of New
     York and is duly authorized and qualified to transact any and all business
     contemplated by this Agreement and each Subsequent Transfer Agreement to be
     conducted by CHL 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 CHL Mortgage Loans in accordance with the terms
     of this Agreement and each Subsequent Transfer Agreement and to perform any
     of its other obligations under this Agreement and each Subsequent Transfer
     Agreement in accordance with the terms hereof and thereof.

               (2)  CHL has the full corporate power and authority to sell each
     CHL Mortgage Loan, and to execute, deliver and perform, and to enter into
     and consummate the transactions contemplated by this Agreement and each
     Subsequent Transfer Agreement and has duly authorized by all necessary
     corporate action on the part of CHL the execution, delivery and performance
     of this Agreement and each Subsequent Transfer Agreement; and this
     Agreement and each Subsequent Transfer Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of CHL, enforceable
     against CHL 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

                                       71
<PAGE>

     generally and (b) the remedy of specific performance and injunctive and
     other forms of equitable relief may be subject to equitable defenses and to
     the discretion of the court before which any proceeding therefor may be
     brought.

               (3)  The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by CHL, the sale of the CHL Mortgage Loans by
     CHL under this Agreement and each Subsequent Transfer Agreement, the
     consummation of any other of the transactions contemplated by this
     Agreement and each Subsequent Transfer Agreement, and the fulfillment of or
     compliance with the terms hereof and thereof are in the ordinary course of
     business of CHL and will not (A) result in a material breach of any term or
     provision of the charter or by-laws of CHL 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 CHL is a party or by which it may be bound, or (C)
     constitute a material violation of any statute, order or regulation
     applicable to CHL of any court, regulatory body, administrative agency or
     governmental body having jurisdiction over CHL; and CHL 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 CHL's
     ability to perform or meet any of its obligations under this Agreement and
     each Subsequent Transfer Agreement.

               (4)  CHL is an approved seller of conventional mortgage loans for
     Fannie Mae and 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.

               (5)  No litigation is pending or, to the best of CHL's knowledge,
     threatened, against CHL that would materially and adversely affect the
     execution, delivery or enforceability of this Agreement or any Subsequent
     Transfer Agreement or the ability of CHL to sell the CHL Mortgage Loans or
     to perform any of its other obligations under this Agreement or any
     Subsequent Transfer Agreement in accordance with the terms hereof or
     thereof.

               (6)  No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by CHL of, or compliance by CHL with, this Agreement or any
     Subsequent Transfer Agreement or the consummation of the transactions
     contemplated hereby, or if any such consent, approval, authorization or
     order is required, CHL has obtained the same.

               (7)  The information set forth on Exhibit F-1 hereto with respect
     to each Initial Mortgage Loan is true and correct in all material respects
     as of the Closing Date.

               (8)  CHL will treat the transfer of the CHL Mortgage Loans to the
     Depositor as a sale of the CHL Mortgage Loans for all tax, accounting and
     regulatory purposes.

                                       72
<PAGE>

               (9)  None of the Mortgage Loans is 30 days or more delinquent.

               (10) No Mortgage Loan had a Loan-to-Value Ratio at origination in
     excess of 100.00%.

               (11) Each Mortgage Loan is secured by a valid and enforceable
     first lien on the related Mortgaged Property subject only to (1) the lien
     of non-delinquent current real property taxes and assessments, (2)
     covenants, conditions and restrictions, rights of way, easements and other
     matters of public record as of the date of recording of such Mortgage, such
     exceptions appearing of record being acceptable to mortgage lending
     institutions generally or specifically reflected in the appraisal made in
     connection with the origination of the related Mortgage Loan and (3)other
     matters to which like properties are commonly subject that do not
     materially interfere with the benefits of the security intended to be
     provided by such Mortgage.

               (12) Immediately prior to the assignment of each CHL Mortgage
     Loan to the Depositor, CHL had good title to, and was the sole owner of,
     such CHL Mortgage Loan free and clear of any pledge, lien, encumbrance or
     security interest and had full right and authority, subject to no interest
     or participation of, or agreement with, any other party, to sell and assign
     the same pursuant to this Agreement.

               (13) There is no delinquent tax or assessment lien against any
     Mortgaged Property.

               (14) There is no valid offset, claim, defense or counterclaim to
     any Mortgage Note or Mortgage, including the obligation of the Mortgagor to
     pay the unpaid principal of or interest on such Mortgage Note.

               (15) There are no mechanics' liens or claims for work, labor or
     material affecting any Mortgaged Property that are or may be a lien prior
     to, or equal with, the lien of such Mortgage, except those that are insured
     against by the title insurance policy referred to in item (18) below.

               (16) As of the Closing Date in the case of the Initial Mortgage
     Loans and as of the related Subsequent Transfer Date in the case of the
     Subsequent Mortgage Loans, to the best of CHL's knowledge, each Mortgaged
     Property is free of material damage and is in good repair.

               (17) As of the Closing Date in the case of the Initial Mortgage
     Loans and as of the related Subsequent Transfer Date in the case of the
     Subsequent Mortgage Loans, neither CHL nor any prior holder of any Mortgage
     has modified the Mortgage in any material respect (except that a Mortgage
     Loan may have been modified by a written instrument that has been recorded
     or submitted for recordation, if necessary, to protect the interests of the
     Certificateholders and the original or a copy of which has been delivered
     to the Trustee); satisfied, cancelled or subordinated such Mortgage in
     whole or in part; released the related Mortgaged Property in whole or in
     part from the lien of such Mortgage; or executed any instrument of release,
     cancellation, modification (except as expressly permitted above) or
     satisfaction with respect thereto.

                                       73
<PAGE>

               (18) A lender's policy of title insurance together with a
     condominium endorsement and extended coverage endorsement, if applicable,
     in an amount at least equal to the Cut-off Date Principal Balance of each
     such Mortgage Loan or a commitment (binder) to issue the same was effective
     on the date of the origination of each Mortgage Loan, each such policy is
     valid and remains in full force and effect, and each such policy was issued
     by a title insurer qualified to do business in the jurisdiction where the
     Mortgaged Property is located and acceptable to Fannie Mae and Freddie Mac
     and is in a form acceptable to Fannie Mae and Freddie Mac, which policy
     insures the Sellers and successor owners of indebtedness secured by the
     insured Mortgage, as to the first priority lien, of the Mortgage subject to
     the exceptions set forth in paragraph (11) above; to the best of CHL's
     knowledge, no claims have been made under such mortgage title insurance
     policy and no prior holder of the related Mortgage, including any Seller,
     has done, by act or omission, anything that would impair the coverage of
     such mortgage title insurance policy.

               (19) No Initial Mortgage Loan was the subject of a Principal
     Prepayment in full between the Initial Cut-off Date and the Closing Date.
     No Subsequent Mortgage Loan was the subject of a Principal Prepayment in
     full between the Subsequent Cut-off Date and the Subsequent Transfer Date.

               (20) To the best of CHL's knowledge, all of the improvements that
     were included for the purpose of determining the Appraised Value of the
     Mortgaged Property lie wholly within the boundaries and building
     restriction lines of such property, and no improvements on adjoining
     properties encroach upon the Mortgaged Property.

               (21) To the best of CHL's knowledge, no improvement located on or
     being part of the Mortgaged Property is in violation of any applicable
     zoning law or regulation. To the best of CHL's knowledge, all inspections,
     licenses and certificates required to be made or issued with respect to all
     occupied portions of the Mortgaged Property and, with respect to the use
     and occupancy of the same, including but not limited to certificates of
     occupancy and fire underwriting certificates, have been made or obtained
     from the appropriate authorities, unless the lack thereof would not have a
     material adverse effect on the value of such Mortgaged Property, and the
     Mortgaged Property is lawfully occupied under applicable law.

               (22) The Mortgage Note and the related Mortgage are genuine, and
     each is the legal, valid and binding obligation of the maker thereof,
     enforceable in accordance with its terms and under applicable law, except
     that (a) the enforceability thereof may be limited by bankruptcy,
     insolvency, moratorium, receivership and other similar laws relating to
     creditors' rights generally and (b) the remedy of specific performance and
     injunctive and other forms of equitable relief may be subject to equitable
     defenses and to the discretion of the court before which any proceeding
     therefor may be brought. To the best of CHL's knowledge, all parties to the
     Mortgage Note and the Mortgage had legal capacity to execute the Mortgage
     Note and the Mortgage and each Mortgage Note and Mortgage have been duly
     and properly executed by such parties.

                                       74
<PAGE>

               (23) The proceeds of the Mortgage Loan have been fully disbursed,
     there is no requirement for future advances thereunder, and any and all
     requirements as to completion of any on-site or off-site improvements and
     as to disbursements of any escrow funds therefor have been complied with.
     All costs, fees and expenses incurred in making, or closing or recording
     the Mortgage Loan were paid.

               (24) The related Mortgage contains customary and enforceable
     provisions that render the rights and remedies of the holder thereof
     adequate for the realization against the Mortgaged Property of the benefits
     of the security, including, (i) in the case of a Mortgage designated as a
     deed of trust, by trustee's sale, and (ii) otherwise by judicial
     foreclosure.

               (25) With respect to each Mortgage constituting a deed of trust,
     a trustee, duly qualified under applicable law to serve as such, has been
     properly designated and currently so serves and is named in such Mortgage,
     and no fees or expenses are or will become payable by the
     Certificateholders to the trustee under the deed of trust, except in
     connection with a trustee's sale after default by the Mortgagor.

               (26) Each Mortgage Note and each Mortgage is acceptable in form
     to Fannie Mae and Freddie Mac.

               (27) There exist no deficiencies with respect to escrow deposits
     and payments, if such are required, for which customary arrangements for
     repayment thereof have not been made, and no escrow deposits or payments of
     other charges or payments due the Sellers have been capitalized under the
     Mortgage or the related Mortgage Note.

               (28) The origination, underwriting, servicing and collection
     practices with respect to each Mortgage Loan have been in all respects
     legal, proper, prudent and customary in the mortgage lending and servicing
     business, as conducted by prudent lending institutions which service
     mortgage loans of the same type in the jurisdiction in which the Mortgaged
     Property is located.

               (29) There is no pledged account or other security other than
     real estate securing the Mortgagor's obligations.

               (30) No Mortgage Loan has a shared appreciation feature, or other
     contingent interest feature.

               (31) Each Mortgage Loan contains a customary "due on sale"
     clause.

               (32) No less than approximately the percentage specified in the
     Collateral Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan
     Group 2 are secured by single family detached dwellings. No more than
     approximately the percentage specified in the Collateral Schedule of the
     Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured by two-
     to four-family dwellings. No more than approximately the percentage
     specified in the Collateral Schedule of the Initial Mortgage Loans in Loan
     Group 1 and Loan Group 2 are secured by low-rise condominium units. No more
     than approximately the percentage specified in the Collateral Schedule of
     the

                                       75
<PAGE>

     Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured by
     high-rise condominium units. No more than approximately the percentage
     specified in the Collateral Schedule of the Initial Mortgage Loans in Loan
     Group 1 and Loan Group 2 are secured by manufactured housing. No more than
     approximately the percentage specified in the Collateral Schedule of the
     Initial Mortgage Loans in Loan Group 1 and Loan Group 2 are secured by
     PUDs.

               (33) Each Initial Mortgage Loan in Loan Group 1 and Loan Group 2
     was originated on or after the date specified in the Collateral Schedule.

               (34) Each Initial Mortgage Loan that is an Adjustable Rate
     Mortgage Loan, other than a Two-Year Hybrid Mortgage Loan, a Three-Year
     Hybrid Mortgage Loan or a Five-Year Hybrid Mortgage Loan, had an initial
     Adjustment Date no later than the applicable date specified on the
     Collateral Schedule; each Initial Mortgage Loan that is a Two-Year Hybrid
     Mortgage Loan had an initial Adjustment Date no later than the applicable
     date specified on the Collateral Schedule; each Initial Mortgage Loan that
     is a Three-Year Hybrid Mortgage Loan had an initial Adjustment Date no
     later than the applicable date specified on the Collateral Schedule; and
     each Initial Mortgage Loan that is a Five-Year Hybrid Mortgage Loan had an
     initial Adjustment Date no later than the applicable date specified on the
     Collateral Schedule.

               (35) Approximately the percentage specified in the Collateral
     Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan Group 2
     provide for a Prepayment Charge.

               (36) On the basis of representations made by the Mortgagors in
     their loan applications, no more than approximately the percentage
     specified in the Collateral Schedule of the Initial Mortgage Loans in Loan
     Group 1 and Loan Group 2, respectively, are secured by investor properties,
     and no less than approximately the percentage specified in the Collateral
     Schedule of the Initial Mortgage Loans in Loan Group 1 and Loan Group 2
     respectively, are secured by owner-occupied Mortgaged Properties that are
     primary residences.

               (37) At the Cut-off Date, the improvements upon each Mortgaged
     Property are covered by a valid and existing hazard insurance policy with a
     generally acceptable carrier that provides for fire and extended coverage
     and coverage for such other hazards as are customary in the area where the
     Mortgaged Property is located in an amount that is at least equal to the
     lesser of (i) the maximum insurable value of the improvements securing such
     Mortgage Loan or (ii) the greater of (a) the outstanding principal balance
     of the Mortgage Loan and (b) an amount such that the proceeds of such
     policy shall be sufficient to prevent the Mortgagor and/or the mortgagee
     from becoming a co-insurer. If the Mortgaged Property is a condominium
     unit, it is included under the coverage afforded by a blanket policy for
     the condominium unit. All such individual insurance policies and all flood
     policies referred to in item (38) below contain a standard mortgagee clause
     naming the applicable Seller or the original mortgagee, and its successors
     in interest, as mortgagee, and the applicable Seller has received no notice
     that any premiums due and payable thereon have not been paid; the Mortgage
     obligates the

                                       76
<PAGE>

     Mortgagor thereunder to maintain all such insurance, including flood
     insurance, at the Mortgagor's cost and expense, and upon the Mortgagor's
     failure to do so, authorizes the holder of the Mortgage to obtain and
     maintain such insurance at the Mortgagor's cost and expense and to seek
     reimbursement therefor from the Mortgagor.

               (38) If the Mortgaged Property is in an area identified in the
     Federal Register by the Federal Emergency Management Agency as having
     special flood hazards, a flood insurance policy in a form meeting the
     requirements of the current guidelines of the Flood Insurance
     Administration is in effect with respect to such Mortgaged Property with a
     generally acceptable carrier in an amount representing coverage not less
     than the least of (A) the original outstanding principal balance of the
     Mortgage Loan, (B) the minimum amount required to compensate for damage or
     loss on a replacement cost basis, or (C) the maximum amount of insurance
     that is available under the Flood Disaster Protection Act of 1973, as
     amended.

               (39) To the best of CHL's knowledge, there is no proceeding
     occurring, pending or threatened for the total or partial condemnation of
     the Mortgaged Property.

               (40) There is no material monetary default existing under any
     Mortgage or the related Mortgage Note and, to the best of CHL's knowledge,
     there is no material event that, with the passage of time or with notice
     and the expiration of any grace or cure period, would constitute a default,
     breach, violation or event of acceleration under the Mortgage or the
     related Mortgage Note; and no Seller has waived any default, breach,
     violation or event of acceleration.

               (41) Each Mortgaged Property is improved by a one- to four-family
     residential dwelling, including condominium units and dwelling units in
     PUDs. To the best of CHL's knowledge, no improvement to a Mortgaged
     Property includes a cooperative or a mobile home or constitutes other than
     real property under state law.

               (42) Each Mortgage Loan is being serviced by the Master Servicer.

               (43) Any future advances made prior to the Cut-off Date have been
     consolidated with the outstanding principal amount secured by the Mortgage,
     and the secured principal amount, as consolidated, bears a single interest
     rate and single repayment term reflected on the Mortgage Loan Schedule. The
     consolidated principal amount does not exceed the original principal amount
     of the Mortgage Loan. The Mortgage Note does not permit or obligate the
     Master Servicer to make future advances to the Mortgagor at the option of
     the Mortgagor.

               (44) All taxes, governmental assessments, insurance premiums,
     water, sewer and municipal charges, leasehold payments or ground rents that
     previously became due and owing have been paid, or an escrow of funds has
     been established in an amount sufficient to pay for every such item that
     remains unpaid and that has been assessed, but is not yet due and payable.
     Except for (A) payments in the nature of escrow payments, and (B) interest
     accruing from the date of the Mortgage Note or date of disbursement of the
     Mortgage proceeds, whichever is later, to the day that precedes by one
     month the Due

                                       77
<PAGE>

     Date of the first installment of principal and interest, including without
     limitation, taxes and insurance payments, the Master Servicer has not
     advanced funds, or induced, solicited or knowingly received any advance of
     funds by a party other than the Mortgagor, directly or indirectly, for the
     payment of any amount required by the Mortgage.

               (45) The Mortgage Loans originated by CHL were underwritten in
     all material respects in accordance with CHL's underwriting guidelines for
     credit blemished quality mortgage loans or, with respect to Mortgage Loans
     purchased by CHL were underwritten in all material respects in accordance
     with customary and prudent underwriting guidelines generally used by
     originators of credit blemished quality mortgage loans.

               (46) Prior to the approval of the Mortgage Loan application, an
     appraisal of the related Mortgaged Property was obtained from a qualified
     appraiser, duly appointed by the originator, who had no interest, direct or
     indirect, in the Mortgaged Property or in any loan made on the security
     thereof, and whose compensation is not affected by the approval or
     disapproval of the Mortgage Loan; such appraisal is in a form acceptable to
     Fannie Mae and Freddie Mac.

               (47) None of the Mortgage Loans is a graduated payment mortgage
     loan or a growing equity mortgage loan, and no Mortgage Loan is subject to
     a buydown or similar arrangement.

               (48) The Mortgage Rates borne by the Initial Mortgage Loans in
     Loan Group 1 and Loan Group 2 as of the Cut-off Date ranged between the
     approximate per annum percentages specified on the Collateral Schedule and
     the weighted average Mortgage Rate as of the Cut-off Date was approximately
     the per annum rate specified on the Collateral Schedule.

               (49) The Mortgage Loans were selected from among the outstanding
     one- to four-family mortgage loans in the applicable Seller's portfolio at
     the Closing Date as to which the representations and warranties made as to
     the Mortgage Loans set forth in this Section 2.03(b) and Sections 2.03(c)
     and 2.03(d) can be made. No selection was made in a manner that would
     adversely affect the interests of Certificateholders.

               (50) The Gross Margins on the Initial Mortgage Loans in Loan
     Group 1 and Loan Group 2 range between the approximate percentages
     specified on the Collateral Schedule, and the weighted average Gross Margin
     was approximately the percentage specified in the Collateral Schedule.

               (51) Each of the Initial Mortgage Loans in the Mortgage Pool has
     a Due Date on or before the date specified in the Collateral Schedule.

               (52) The Mortgage Loans, individually and in the aggregate,
     conform in all material respects to the descriptions thereof in the
     Prospectus Supplement.

                                       78
<PAGE>

               (53) There is no obligation on the part of any Seller under the
     terms of the Mortgage or related Mortgage Note to make payments in addition
     to those made by the Mortgagor.

               (54) Any leasehold estate securing a Mortgage Loan has a term of
     not less than five years in excess of the term of the related Mortgage
     Loan.

               (55) Each Mortgage Loan represents a "qualified mortgage" within
     the meaning of Section 860(a)(3)of the Code (but without regard to the rule
     in Treasury Regulation ss. 1.860G-2(f)(2) that treats a defective
     obligation as a qualified mortgage, or any substantially similar successor
     provision) and applicable Treasury regulations promulgated thereunder.

               (56) No Mortgage Loan was either a "consumer credit contract" or
     a "purchase money loan" as such terms are defined in 16 C.F.R. ss. 433 nor
     is any Mortgage Loan a "mortgage" as defined in 15 U.S.C. ss. 1602(aa).

               (57) To the extent required under applicable law, each originator
     and subsequent mortgagee or servicer of the Mortgage Loan complied with all
     licensing requirements and was authorized to transact and do business in
     the jurisdiction in which the related Mortgaged Property is located at all
     times when it held or serviced the Mortgage Loan. Any and all requirements
     of any federal, state or local laws or regulations, including, without
     limitation, usury, truth-in-lending, real estate settlement procedures,
     consumer credit protection, anti-predatory lending, fair credit reporting,
     unfair collection practice, equal credit opportunity, fair housing and
     disclosure laws and regulations, applicable to the solicitation,
     origination, collection and servicing of such Mortgage Loan have been
     complied with in all material respects; and any obligations of the holder
     of the Mortgage Note, Mortgage and other loan documents have been complied
     with in all material respects; servicing of each Mortgage Loan has been in
     accordance with prudent mortgage servicing standards, any applicable laws,
     rules and regulations and in accordance with the terms of the Mortgage
     Notes, Mortgage and other loan documents, whether such origination and
     servicing was done by the applicable Seller, its affiliates, or any third
     party which originated the Mortgage Loan on behalf of, or sold the Mortgage
     Loan to, any of them, or any servicing agent of any of the foregoing.

               (58) The methodology used in underwriting the extension of credit
     for the Mortgage Loan employs objective mathematical principles which
     relate the borrower's income, assets and liabilities to the proposed
     payment and such underwriting methodology does not rely on the extent of
     the borrower's equity in the collateral as the principal determining factor
     in approving such credit extension. Such underwriting methodology confirmed
     that at the time of origination (application/approval) the borrower had a
     reasonable ability to make timely payments on the Mortgage Loan.

               (59) No borrower was required to purchase any credit life,
     disability, accident or health insurance product as a condition of
     obtaining the extension of credit.

                                       79
<PAGE>

     No borrower obtained a prepaid single-premium credit life, disability,
     accident or health insurance policy in connection with the origination of
     the Mortgage Loan.

               (60) If the Mortgage Loan provides that the interest rate on the
     principal balance of the related Mortgage Loan may be adjusted, all of the
     terms of the related Mortgage pertaining to interest rate adjustments,
     payment adjustments and adjustments of the outstanding principal balance
     have been made in accordance with the terms of the related Mortgage Note
     and applicable law and are enforceable and such adjustments will not affect
     the priority of the Mortgage lien.

               (61) The Mortgaged Property complies with all applicable laws,
     rules and regulations relating to environmental matters, including but not
     limited to those relating to radon, asbestos and lead paint and no Seller
     nor, to the best of CHL's knowledge, the Mortgagor, has received any notice
     of any violation or potential violation of such law.

               (62) There is no action, suit or proceeding pending, or to the
     best of CHL's knowledge, threatened or likely to be asserted with respect
     to the Mortgage Loan against or affecting any Seller before or by any
     court, administrative agency, arbitrator or governmental body.

               (63) No action, inaction, or event has occurred and no state of
     fact exists or has existed that has resulted or will result in the
     exclusion from, denial of, or defense to coverage under any applicable
     hazard insurance policy, irrespective of the cause of such failure of
     coverage. In connection with the placement of any such insurance, no
     commission, fee, or other compensation has been or will be received by CHL
     or any designee of CHL or any corporation in which CHL or any officer,
     director, or employee had a financial interest at the time of placement of
     such insurance.

               (64) Each Mortgage Loan has a fully assignable life of loan tax
     service contract which may be assigned without the payment of any fee.

               (65) No Mortgagor has notified CHL or the Master Servicer on
     CHL's behalf, and CHL has no knowledge, of any relief requested or allowed
     to a Mortgagor under the Relief Act or any similar state or local law.

               (66) Each Mortgage Loan was originated by a savings and loan
     association, savings bank, commercial bank, credit union, insurance
     company, or mortgage banking company which is supervised and examined by a
     federal or state authority, or by a mortgagee approved by the Secretary of
     Housing and Urban Development pursuant to Sections 2.03 and 2.11 of the
     National Housing Act.

               (67) Each Mortgage Loan was (A) originated no earlier than six
     months prior to the time the applicable Seller purchased such Mortgage Loan
     pursuant to a mortgage loan purchase agreement or other similar agreement
     and (B) underwritten or reunderwritten by the applicable Seller in
     accordance with the applicable Seller's underwriting guidelines in effect
     at the time the loan was underwritten or reunderwritten, as applicable.

                                       80
<PAGE>

               (68) Each Mortgage Loan, at the time it was originated and as of
     the Closing Date or the related Subsequent Transfer Date, as applicable,
     complied in all material respects with applicable local, state and federal
     laws, including, but not limited to, all predatory and abusive lending
     laws.

               (69) None of the Mortgage Loans is a "high cost" mortgage loan as
     defined by applicable federal, state and local predatory and abusive
     lending laws.

               (70) Each Prepayment Charge is enforceable and was originated in
     compliance with all applicable federal, state and local laws.

               (71) None of the Mortgage Loans that are secured by property
     located in the State of Illinois are in violation of the provisions of the
     Illinois Interest Act; 815 Ill. Comp. Stat. 205/0.01 (2004).

               (72) There is no Mortgage Loan in the Trust Fund that was
     originated on or after March 7, 2003, which is a "high cost home loan" as
     defined under the Georgia Fair Lending Act.

               (73) No Mortgage Loan in the Trust Fund is a High Cost Loan or
     Covered Loan, as applicable (as such terms are defined in the then-current
     Standard & Poor's LEVELS(R) Glossary) and no Mortgage Loan originated on or
     after October 1, 2002 through March 6, 2003 is governed by the Georgia Fair
     Lending Act.

               (74) Each Mortgage Loan is secured by a "single family residence"
     within the meaning of Section 25(e)(10) of the Code. The fair market value
     of the manufactured home securing each Mortgage Loan was at least equal to
     80% of the adjusted issue price of the contract at either (i) the time the
     contract was originated (determined pursuant to the REMIC Provisions) or
     (ii) the time the contract is transferred to the purchaser.

               (75) No Mortgage Loan in the Trust Fund is a "high cost home,"
     "covered" (excluding home loans defined as "covered home loans" in the New
     Jersey Home Ownership Security Act of 2002 that were originated between
     November 26, 2003 and July 7, 2004), "high risk home" or "predatory" loan
     under any applicable state, federal or local law (or a similarly classified
     loan using different terminology under a law imposing heightened regulatory
     scrutiny or additional legal liability for residential mortgage loans
     having high interest rates, points and/or fees).

               (76) There is no Mortgage Loan in the Trust Fund that was
     originated on or after October 1, 2002 and before March 7, 2003, which is
     secured by property located in the State of Georgia.

               (77) Representations and Warranties relating to the Mortgage
     Loans in Loan Group 1:

               (i) No Mortgage Loan in Loan Group 1 is covered by the Home
          Ownership and Equity Protection Act of 1994 ("HOEPA");

                                       81
<PAGE>

               (ii) No borrower obtained a prepaid single-premium credit life,
          credit disability, credit unemployment or credit property insurance
          policy in connection with the origination of the Mortgage Loan;

               (iii) With respect to any Mortgage Loan in Loan Group 1 that
          contains a provision permitting imposition of a penalty upon a
          prepayment prior to maturity: (a) the Mortgage Loan provides some
          benefit to the borrower (e.g., a rate or fee reduction) in exchange
          for accepting such prepayment penalty; (b) prior to the Mortgage
          Loan's origination, the borrower was offered the option of obtaining a
          mortgage loan that did not require payment of such a penalty; (c) the
          prepayment penalty was adequately disclosed to the borrower pursuant
          to applicable state and federal law; (d) no such Mortgage Loan
          originated on or after October 1, 2002 will provide for prepayment
          penalties for a term in excess of three years, and any such Mortgage
          Loan originated prior to such date will not provide for prepayment
          penalties in excess of five years; in each case unless the loan was
          modified to reduce the prepayment period to no more than three years
          from the date of the note and the borrower was notified in writing of
          such reduction in prepayment period; and (e) such prepayment penalty
          shall not be imposed in any instance where the Mortgage Loan is
          accelerated or paid off in connection with the workout of a delinquent
          mortgage or due to the borrower's default, notwithstanding that the
          terms of the Mortgage Loan or state or federal law might permit the
          imposition of such penalty;

               (iv) With respect to each Mortgage Loan in Loan Group 1, the
          borrower was not encouraged or required to select a mortgage loan
          product offered by the 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 borrower's credit history, income, assets and
          liabilities;

               (v) The methodology used in underwriting the extension of credit
          for each Mortgage Loan in Loan Group 1 did not rely solely on the
          extent of the borrower's equity in the collateral as the principal
          determining factor in approving such extension of credit. The
          methodology employed objective criteria such as the borrower's income,
          assets and liabilities, to the proposed mortgage payment and, based on
          such methodology, the Mortgage Loan's originator made a reasonable
          determination that at the time of origination the borrower had the
          ability to make timely payments on the Mortgage Loan;

               (vi) No borrower under a Mortgage Loan in Loan Group 1 was
          charged "points and fees" in an amount greater than (a) $1,000 or (b)
          5% of the principal amount of such 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

                                       82
<PAGE>

          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;

               (vii) All points, fees and charges (including finance charges),
          whether or not financed, assessed, collected or to be collected in
          connection with the origination and servicing of each Mortgage Loan in
          Loan Group 1, have been disclosed in writing to the borrower in
          accordance with applicable state and federal law and regulation;

               (viii) With respect to any Mortgage Loan in Loan Group 1
          originated on or after August 1, 2004, neither the related mortgage
          nor the related mortgage note requires the borrower to submit to
          arbitration to resolve any dispute arising out of or relating in any
          way to the mortgage loan transaction; and

               (ix) Each Mortgage Loan in Loan Group 1 had an original principal
          balance that conforms to Freddie Mac guidelines concerning original
          principal balance limits at the time of the origination of such
          mortgage loan.

               (78) The representations in Section 2.03(c)(1)-(6) and
     2.03(d)(1)-(6) are true and correct.

          (c)  Park Monaco hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

               (1)  Park Monaco is duly organized as a Delaware corporation and
     is validly existing and in good standing under the laws of the State of
     Delaware and is duly authorized and qualified to transact any and all
     business contemplated by this Agreement and each Subsequent Transfer
     Agreement to be conducted by Park Monaco in any state in which a Mortgaged
     Property securing a Park Monaco Mortgage Loan is located or is otherwise
     not required under applicable law to effect such qualification and, in any
     event, is in compliance with the doing business laws of any such state, to
     the extent necessary to ensure its ability to enforce each Park Monaco
     Mortgage Loan, to sell the Park Monaco Mortgage Loans in accordance with
     the terms of this Agreement and each Subsequent Transfer Agreement and to
     perform any of its other obligations under this Agreement in accordance
     with the terms hereof.

               (2)  Park Monaco has the full company power and authority to sell
     each Park Monaco Mortgage Loan, and to execute, deliver and perform, and to
     enter into and consummate the transactions contemplated by this Agreement
     and each Subsequent Transfer Agreement and has duly authorized by all
     necessary corporate action on the part of Park Monaco the execution,
     delivery and performance of this Agreement and each Subsequent Transfer
     Agreement; and this Agreement and each Subsequent Transfer

                                       83
<PAGE>

     Agreement, assuming the due authorization, execution and delivery hereof by
     the other parties hereto, constitutes a legal, valid and binding obligation
     of Park Monaco, enforceable against Park Monaco 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.

               (3)  The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by Park Monaco, the sale of the Park Monaco
     Mortgage Loans by Park Monaco under this Agreement and each Subsequent
     Transfer Agreement, the consummation of any other of the transactions
     contemplated by this Agreement and each Subsequent Transfer Agreement, and
     the fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of Park Monaco and will not (A) result in a material
     breach of any term or provision of the certificate of incorporation or
     by-laws of Park Monaco 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 Park Monaco is a party or by which it may be bound, or (C) constitute
     a material violation of any statute, order or regulation applicable to Park
     Monaco of any court, regulatory body, administrative agency or governmental
     body having jurisdiction over Park Monaco; and Park Monaco 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 Park
     Monaco's ability to perform or meet any of its obligations under this
     Agreement.

               (4)  No litigation is pending or, to the best of Park Monaco's
     knowledge, threatened, against Park Monaco that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or any Subsequent Transfer Agreement or the ability of Park
     Monaco to sell the Park Monaco Mortgage Loans or to perform any of its
     other obligations under this Agreement or any Subsequent Transfer Agreement
     in accordance with the terms hereof or thereof.

               (5)  No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by Park Monaco of, or compliance by Park Monaco with, this
     Agreement or any Subsequent Transfer Agreement or the consummation of the
     transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, Park Monaco has obtained the same.

               (6)  Park Monaco will treat the transfer of the Park Monaco
     Mortgage Loans to the Depositor as a sale of the Park Monaco Mortgage Loans
     for all tax, accounting and regulatory purposes.

                                       84
<PAGE>

               (7)  Immediately prior to the assignment of each Park Monaco
     Mortgage Loan to the Depositor, Park Monaco had good title to, and was the
     sole owner of, such Park Monaco Mortgage Loan free and clear of any pledge,
     lien, encumbrance or security interest and had full right and authority,
     subject to no interest or participation of, or agreement with, any other
     party, to sell and assign the same pursuant to this Agreement.

          (d)  Park Sienna hereby represents and warrants to the Depositor and
the Trustee as follows, as of the Cut-off Date:

               (1)  Park Sienna is duly organized as a Delaware limited
     liability company and is validly existing and in good standing under the
     laws of the State of Delaware and is duly authorized and qualified to
     transact any and all business contemplated by this Agreement and each
     Subsequent Transfer Agreement to be conducted by Park Sienna in any state
     in which a Mortgaged Property securing a Park Sienna Mortgage Loan is
     located or is otherwise not required under applicable law to effect such
     qualification and, in any event, is in compliance with the doing business
     laws of any such state, to the extent necessary to ensure its ability to
     enforce each Park Sienna Mortgage Loan, to sell the Park Sienna Mortgage
     Loans in accordance with the terms of this Agreement and each Subsequent
     Transfer Agreement and to perform any of its other obligations under this
     Agreement in accordance with the terms hereof.

               (2)  Park Sienna has the full company power and authority to sell
     each Park Sienna Mortgage Loan, and to execute, deliver and perform, and to
     enter into and consummate the transactions contemplated by this Agreement
     and each Subsequent Transfer Agreement and has duly authorized by all
     necessary company action on the part of Park Sienna the execution, delivery
     and performance of this Agreement and each Subsequent Transfer Agreement;
     and this Agreement and each Subsequent Transfer Agreement, assuming the due
     authorization, execution and delivery hereof by the other parties hereto,
     constitutes a legal, valid and binding obligation of Park Sienna,
     enforceable against Park Sienna 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.

               (3)  The execution and delivery of this Agreement and each
     Subsequent Transfer Agreement by Park Sienna, the sale of the Park Sienna
     Mortgage Loans by Park Sienna under this Agreement and each Subsequent
     Transfer Agreement, the consummation of any other of the transactions
     contemplated by this Agreement and each Subsequent Transfer Agreement and
     the fulfillment of or compliance with the terms hereof are in the ordinary
     course of business of Park Sienna and will not (A) result in a material
     breach of any term or provision of the certificate of formation or limited
     liability company agreement of Park Sienna 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 Park Sienna is a party or by which it

                                       85
<PAGE>

     may be bound, or (C) constitute a material violation of any statute, order
     or regulation applicable to Park Sienna of any court, regulatory body,
     administrative agency or governmental body having jurisdiction over Park
     Sienna; and Park Sienna 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 Park Sienna's ability to perform or meet
     any of its obligations under this Agreement.

               (4)  No litigation is pending or, to the best of Park Sienna's
     knowledge, threatened, against Park Sienna that would materially and
     adversely affect the execution, delivery or enforceability of this
     Agreement or any Subsequent Transfer Agreement or the ability of Park
     Sienna to sell the Park Sienna Mortgage Loans or to perform any of its
     other obligations under this Agreement or any Subsequent Transfer Agreement
     in accordance with the terms hereof or thereof.

               (5)  No consent, approval, authorization or order of any court or
     governmental agency or body is required for the execution, delivery and
     performance by Park Sienna of, or compliance by Park Sienna with, this
     Agreement or any Subsequent Transfer Agreement or the consummation of the
     transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, Park Sienna has obtained the same.

               (6)  Park Sienna will treat the transfer of the Park Sienna
     Mortgage Loans to the Depositor as a sale of the Park Sienna Mortgage Loans
     for all tax, accounting and regulatory purposes.

               (7)  Immediately prior to the assignment of each Park Sienna
     Mortgage Loan to the Depositor, Park Sienna had good title to, and was the
     sole owner of, such the Park Sienna Mortgage Loan free and clear of any
     pledge, lien, encumbrance or security interest and had full right and
     authority, subject to no interest or participation of, or agreement with,
     any other party, to sell and assign the same pursuant to this Agreement.

          (e)  Upon discovery by any of the parties hereto of a breach of a
representation or warranty set forth in Section 2.03(a) through (d) that
materially and adversely affects the interests of the Certificateholders in any
Mortgage Loan, the party discovering such breach shall give prompt notice
thereof to the other parties and the NIM Insurer. Each of the Master Servicer
and the Sellers (each, a "Representing Party") hereby covenants with respect to
the representations and warranties set forth in Sections 2.03(a) through (d)
that within 90 days of the earlier of the discovery by such Representing Party
or receipt of written notice by such Representing Party from any party of a
breach of any representation or warranty set forth herein made 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, shall, (i) if such 90-day period expires prior to the second
anniversary of the Closing Date, remove such Mortgage Loan (a "Deleted Mortgage
Loan") from the Trust Fund and substitute in its place a Replacement Mortgage
Loan, in the manner and subject to the conditions set forth in this Section; or
(ii) repurchase the affected Mortgage Loan or Mortgage Loans from the Trustee at

                                       86
<PAGE>

the Purchase Price in the manner set forth below; provided that (a) 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 the Opinion of Counsel
required by Section 2.05 hereof, (b) any such substitution pursuant to (i) above
shall not be effected prior to the additional delivery to the Trustee of a
Request for File Release and (c) any such substitution pursuant to (i) above
shall include a payment by the applicable Representing Party of any amount as
calculated under item (iii) of the definition of "Purchase Price". Any
Representing Party liable for a breach under this Section 2.03 shall promptly
reimburse the Master Servicer or the Trustee for any expenses reasonably
incurred by the Master Servicer or the Trustee in respect of enforcing the
remedies for such breach. To enable the Master Servicer to amend the Mortgage
Loan Schedule, any Representing Party liable for a breach under this Section
2.03 shall, unless it cures such breach in a timely fashion pursuant to this
Section 2.03, promptly notify the Master Servicer whether such Representing
Party intends either to repurchase, or to substitute for, the Mortgage Loan
affected by such breach. With respect to the representations and warranties
described in this Section that are made to the best of the Representing Party's
knowledge, if it is discovered by any of the Depositor, the Master Servicer, the
Sellers 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 Representing Party's lack of
knowledge with respect to the substance of such representation or warranty, such
inaccuracy shall be deemed a breach of the applicable representation or
warranty. Any breach of a representation set forth in Section 2.03(a)(8),
(b)(72), (b)(75), (b)(76) or (b)(77) shall be deemed to materially and adversely
affect the Certificateholders.

          With respect to any Replacement Mortgage Loan or Loans, the applicable
Seller delivering such Replacement Mortgage Loan shall deliver to the Trustee
for the benefit of the Certificateholders the related Mortgage Note, Mortgage
and assignment of the Mortgage, and such other documents and agreements as are
required by Section 2.01, with the Mortgage Note endorsed and the Mortgage
assigned as required by Section 2.01. No substitution 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 applicable Seller delivering such
Replacement Mortgage Loan on such Distribution Date. 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 applicable Seller shall be entitled to retain all amounts
received in respect of such Deleted Mortgage Loan. The Master Servicer shall
amend the Mortgage Loan Schedule for the benefit of the Certificateholders to
reflect the removal of such Deleted Mortgage Loan and the substitution of the
Replacement Mortgage Loan or Loans and the Master Servicer shall deliver the
amended Mortgage Loan Schedule to the Trustee. Upon such substitution, the
Replacement Mortgage Loan or Loans shall be subject to the terms of this
Agreement in all respects, and the applicable Seller delivering such Replacement
Mortgage Loan 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 2.03(b), (c) or (d) with respect to such
Mortgage Loan. Upon any such substitution and the deposit to the Certificate
Account of the amount required to be deposited therein in connection with such
substitution as described in the following paragraph, the Co-Trustee shall
release to the Representing Party the Mortgage File relating to such Deleted
Mortgage Loan and held for the benefit of the Certificateholders and

                                       87
<PAGE>

shall execute and deliver at the Master Servicer's direction such instruments of
transfer or assignment as have been prepared by the Master Servicer, in each
case without recourse, as shall be necessary to vest in the applicable Seller,
or its respective designee, title to the Trustee's interest in any Deleted
Mortgage Loan substituted for pursuant to this Section 2.03.

          For any month in which any Seller substitutes one or more Replacement
Mortgage Loans for one or more Deleted Mortgage Loans, the Master Servicer will
determine the amount (if any) by which the aggregate principal balance of all
such 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 all such Deleted Mortgage
Loans. An amount equal to the aggregate of the deficiencies described in the
preceding sentence (such amount, the "Substitution Adjustment Amount") shall be
forwarded by the applicable Seller to the Master Servicer and deposited by the
Master Servicer into the Certificate Account not later than the Determination
Date for the Distribution Date relating to the Prepayment Period during which
the related Mortgage Loan became required to be purchased or replaced hereunder.

          In the event that a Seller shall have repurchased a Mortgage Loan, the
Purchase Price therefor shall be deposited in the Certificate Account pursuant
to Section 3.05 on the Determination Date for the Distribution Date in the month
following the month during which such Seller became obligated to repurchase or
replace such Mortgage Loan and upon such deposit of the Purchase Price, the
delivery of the Opinion of Counsel required by Section 2.05, if any, and the
receipt of a Request for File Release, the Co-Trustee shall release the related
Mortgage File held for the benefit of the Certificateholders to such Seller, and
the Trustee shall execute and deliver at such Person's direction the related
instruments of transfer or assignment prepared by such Seller, in each case
without recourse, as shall be necessary to transfer title from the Trustee for
the benefit of the Certificateholders and transfer the Trustee's interest to
such Seller to any Mortgage Loan purchased pursuant to this Section 2.03. It is
understood and agreed that the obligation under this Agreement of the Sellers to
cure, repurchase or replace any Mortgage Loan as to which a breach has occurred
and is continuing shall constitute the sole remedy against the Sellers
respecting such breach available to Certificateholders, the Depositor or the
Trustee.

          (f)  The representations and warranties set forth in this Section 2.03
shall survive delivery of the respective Mortgage Files to the Co-Trustee for
the benefit of the Certificateholders with respect to each Mortgage Loan.

          Section 2.04  Representations and Warranties of the Depositor.

          The Depositor hereby represents and warrants to the Master Servicer
and the Trustee as follows, as of the date hereof and as of each Subsequent
Transfer Date:

               (1)  The Depositor is duly organized and is validly existing as a
     corporation in good standing under the laws of the State of Delaware and
     has full power and authority (corporate and other) necessary to own or hold
     its properties and to conduct its business as now conducted by it and to
     enter into and perform its obligations under this Agreement and each
     Subsequent Transfer Agreement.

                                       88
<PAGE>

               (2)  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 each Subsequent Transfer
     Agreement and has duly authorized, by all necessary corporate action on its
     part, the execution, delivery and performance of this Agreement and each
     Subsequent Transfer Agreement; and this Agreement and each Subsequent
     Transfer Agreement, assuming the due authorization, execution and delivery
     hereof by the other parties hereto, constitutes a legal, valid and binding
     obligation of the Depositor, enforceable against the Depositor in
     accordance with its terms, subject, as to enforceability, to (i)
     bankruptcy, insolvency, reorganization, moratorium and other similar laws
     affecting creditors' rights generally and (ii) general principles of
     equity, regardless of whether enforcement is sought in a proceeding in
     equity or at law.

               (3)  The execution and delivery of this Agreement and each
     Subsequent Transfer 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.

               (4)  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 any Subsequent Transfer Agreement or the ability of the
     Depositor to perform its obligations under this Agreement or any Subsequent
     Transfer Agreement in accordance with the terms hereof or thereof.

               (5)  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 any Subsequent Transfer Agreement or the consummation of the
     transactions contemplated hereby, or if any such consent, approval,
     authorization or order is required, the Depositor has obtained the same.

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

                                       89
<PAGE>

          It is understood and agreed that the representations and warranties
set forth in the two immediately preceding paragraphs shall survive delivery of
the Mortgage Files to the Co-Trustee. Upon discovery by the Depositor or the
Trustee, of a breach of any of the foregoing representations and warranties set
forth in the immediately preceding paragraph (referred to herein as a "breach"),
which breach materially and adversely affects the interest of the
Certificateholders, the party discovering such breach shall give prompt written
notice to the others and to each Rating Agency and the NIM Insurer. The
Depositor hereby covenants with respect to the representations and warranties
made by it in this Section 2.04 that within 90 days of the earlier of the
discovery by it or receipt of written notice by it from any party of a breach of
any representation or warranty set forth herein made 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, shall repurchase or replace the affected Mortgage Loan or Loans in
accordance with the procedure set forth in Section 2.03(e).

          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, 2.03 or
2.04 shall be made unless the Representing Party making such repurchase or
substitution delivers to the Trustee an Opinion of Counsel (which such
Representing Party shall use reasonable efforts to obtain), 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 the Trust Fund or
contributions after the Closing Date, as defined in sections 860F(a)(2) and
860G(d) of the Code, respectively or (ii) cause any REMIC formed hereunder 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, 2.03 or 2.04) upon the earlier of (a)
the occurrence of a default or imminent default with respect to such 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, any Seller, the Master Servicer
or the Trustee that any Mortgage Loan does not constitute a "qualified mortgage"
within the meaning of section 860G(a)(3)of the Code, the party discovering such
fact shall promptly (and in any event within five Business Days of discovery)
give written notice thereof to the other parties and the NIM Insurer. In
connection therewith, the Trustee shall require CHL, at CHL's option, to either
(i) substitute, if the conditions in Section 2.03(e) with respect to
substitutions are satisfied, a Replacement Mortgage Loan for the affected
Mortgage Loan, or (ii) repurchase the affected Mortgage Loan within 90 days of
such discovery in the same manner as it would a Mortgage Loan for a breach of
representation or warranty contained in Section 2.03. The Trustee shall reconvey
to CHL 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.

                                       90
<PAGE>

          Section 2.06  Authentication and Delivery of Certificates.

          The Trustee acknowledges the transfer and assignment to it of the
Trust Fund and, concurrently with such transfer and assignment, has executed,
authenticated and delivered, to or upon the order of the Depositor, the
Certificates in authorized denominations evidencing the entire ownership of the
Trust Fund. The Trustee agrees to hold the Trust Fund and exercise the rights
referred to above for the benefit of all present and future Holders of the
Certificates and to perform the duties set forth in this Agreement.

          Section 2.07  Covenants of the Master Servicer.

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

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

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

                                  ARTICLE III.
                 ADMINISTRATION AND SERVICING OF MORTGAGE LOANS

          Section 3.01  Master Servicer to Service Mortgage Loans.

          For and on behalf of the Certificateholders, the Master Servicer shall
service and administer the Mortgage Loans in accordance with customary and usual
standards of practice of prudent mortgage loan lenders in the respective states
in which the Mortgaged Properties are located, including taking all required and
appropriate actions under each Required Insurance Policy and taking all required
and appropriate actions under each Mortgage Insurance Policy on behalf of the
Co-Trustee, other than the payment of each Mortgage Insurance Premium and
obtaining the approval of each Mortgage Insurer with respect to the appointment
of a successor servicer. In connection with such servicing and administration,
the Master Servicer shall have full power and authority, acting alone and/or
through subservicers as provided in Section 3.02 hereof, subject to the terms
hereof (i) to execute and deliver, on behalf of the Certificateholders and the
Trustee, customary consents or waivers and other instruments and documents, (ii)
to consent to transfers of any Mortgaged Property and assumptions of the
Mortgage Notes and related Mortgages (but only in the manner provided in this
Agreement), (iii) to collect any Insurance Proceeds, other Liquidation Proceeds
and Subsequent Recoveries, and (iv) subject to Section 3.12(b), to effectuate
foreclosure or other conversion of the ownership of the Mortgaged Property
securing any Mortgage Loan; provided that the Master Servicer shall take no
action that is inconsistent with or prejudices the interests of the Trustee or
the Certificateholders in any Mortgage Loan or the rights and interests of the
Depositor and the Trustee under this Agreement. The Master Servicer shall
represent and protect the interest of the Trustee in the same manner as

                                       91
<PAGE>

it currently protects its own interest in mortgage loans in its own portfolio in
any claim, proceeding or litigation regarding a Mortgage Loan and shall not make
or permit any modification, waiver or amendment of any term of any Mortgage Loan
which would (i) cause any REMIC formed hereunder to fail to qualify as a REMIC,
(ii) result in the imposition of any tax under section 860(a) or 860(d) of the
Code or (iii) cause any Covered Mortgage Loan to not be covered by the
applicable Mortgage Insurance Policy, but in any case the Master Servicer shall
not act in any manner that is a lesser standard than that provided in the first
sentence of this Section 3.01. Without limiting the generality of the foregoing,
the Master Servicer, in its own name or in the name of the Depositor and the
Trustee, is hereby authorized and empowered by the Depositor and the Trustee,
when the Master Servicer believes it appropriate in its reasonable judgment, to
execute and deliver, on behalf of the Trustee, the Depositor, the
Certificateholders or any of them, any and all instruments of satisfaction or
cancellation, or of partial or full release or discharge and all other
comparable instruments, with respect to the Mortgage Loans, and with respect to
the Mortgaged Properties held for the benefit of the Certificateholders. The
Master Servicer shall prepare and deliver to the Depositor and/or the Trustee
such documents requiring execution and delivery by any or all of them as are
necessary or appropriate to enable the Master Servicer to service and administer
the Mortgage Loans. Upon receipt of such documents, the Depositor and/or the
Trustee shall execute such documents and deliver them to the Master Servicer.
The Master Servicer further is authorized and empowered by the Trustee, on
behalf of the Certificateholders and the Trustee, in its own name or in the name
of the Subservicer, when the Master Servicer or the Subservicer, as the case may
be, believes it appropriate in its best judgment to register any Mortgage Loan
on the MERS(R) System, or cause the removal from the registration of any
Mortgage Loan on the MERS(R) System, to execute and deliver, on behalf of the
Trustee and the Certificateholders or any of them, any and all instruments of
assignment and other comparable instruments with respect to such assignment or
re-recording of a Mortgage in the name of MERS, solely as nominee for the
Trustee and its successors and assigns.

          In accordance with the standards of the preceding paragraph, the
Master Servicer shall advance or cause to be advanced funds as necessary for the
purpose of effecting the payment of taxes and assessments on the Mortgaged
Properties, which advances shall be reimbursable in the first instance from
related collections from the Mortgagors pursuant to Section 3.06, and further as
provided in Section 3.08. All costs incurred by the Master Servicer, if any, in
effecting the timely payments of taxes and assessments on the Mortgaged
Properties and related insurance premiums shall not, for the purpose of
calculating monthly distributions to the Certificateholders, be added to the
Stated Principal Balance under the related Mortgage Loans, notwithstanding that
the terms of such Mortgage Loans so permit.

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

          In addition, the Master Servicer shall administer each Mortgage
Insurance Policy on behalf of itself, the Sellers, the Depositor and the
Trustee for the benefit of the Certificateholders, when it is necessary to make
claims and receive payments under each Mortgage Insurance Policy. In connection
with its activities as Master Servicer of the Mortgage Loans, the Master
Servicer agrees to present, on behalf of itself, the Trustee and the
Certificateholders, claims to the insurer under any primary insurance policies
and, in this regard, to take any reasonable action necessary to permit recovery
under any primary insurance policies

                                       92
<PAGE>

 respecting defaulted Mortgage Loans. Any
amounts collected by the Master Servicer under any primary insurance policies
shall be deposited in the Certificate Account.

          The Master Servicer shall take whatever action is appropriate to
maximize the amounts payable under each Mortgage Insurance Policy and to service
the Covered Mortgage Loans in the manner required by the applicable Mortgage
Insurance Policy. The Master Servicer shall prepare and submit all claims
eligible for submission under each Mortgage Insurance Policy and shall, except
as otherwise specified in this Agreement, perform all of the obligations of the
insured under each Mortgage Insurance Policy. If either Mortgage Insurance
Policy is terminated for any reason other than the exhaustion of its coverage,
or if the financial strength rating of either Mortgage Insurer is reduced to
below investment grade, the Master Servicer will use its best efforts to obtain
a comparable policy from an insurer that is acceptable to the Rating Agencies.
The replacement policy, if available, shall provide coverage equal to the then
remaining coverage of the applicable Mortgage Insurance Policy. However, if the
premium cost of a replacement policy exceeds the premium cost of that Mortgage
Insurance Policy, the coverage amount of the replacement policy will be reduced
so that its premium cost will not exceed the premium cost of that Mortgage
Insurance Policy.

          In the event that a shortfall in any collection on or liability with
respect to any Mortgage Loan results from or is attributable to adjustments to
Mortgage Rates, Scheduled Payments or Stated Principal Balances that were made
by the Master Servicer in a manner not consistent with the terms of the related
Mortgage Note and this Agreement, the Master Servicer, upon discovery or receipt
of notice thereof, immediately shall deliver to the Trustee for deposit in the
Distribution Account from its own funds the amount of any such shortfall and
shall indemnify and hold harmless the Trust Fund, the Trustee, the Depositor and
any successor master servicer in respect of any such liability. Such indemnities
shall survive the termination or discharge of this Agreement. Notwithstanding
the foregoing, this Section 3.01 shall not limit the ability of the Master
Servicer to seek recovery of any such amounts from the related Mortgagor under
the terms of the related Mortgage Note, as permitted by law and shall not be an
expense of the Trust.

          Section 3.02  Subservicing; Enforcement of the Obligations of Master
                        Servicer.

          (a)  The Master Servicer may arrange for the subservicing of any
Mortgage Loan by a subservicer (each, a "Subservicer") pursuant to a
subservicing agreement (each, a "Subservicing Agreement"); provided that (i)
such subservicing arrangement and the terms of the related subservicing
agreement must provide for the servicing of such Mortgage Loans in a manner
consistent with the servicing arrangements contemplated hereunder, (ii) that
such subservicing agreements would not result in a withdrawal or a downgrading
by any Rating Agency of the ratings on any Class of Certificates, as evidenced
by a letter to that effect delivered by each Rating Agency to the Depositor and
the NIM Insurer and (iii) the NIM Insurer shall have consented to such
subservicing agreements (which consent shall not be unreasonably withheld) with
Subservicers, for the servicing and administration of the Mortgage Loans. The
Master Servicer shall deliver to the Trustee copies of all Sub-Servicing
Agreements, and any amendments or modifications thereof, promptly upon the
Master Servicer's execution and delivery of such instruments. The Master
Servicer, with the written consent of the NIM Insurer (which consent shall not
be unreasonably withheld), shall be entitled to terminate any

                                       93
<PAGE>

Subservicing Agreement and the rights and obligations of any Subservicer
pursuant to any Subservicing Agreement in accordance with the terms and
conditions of such Subservicing Agreement. Notwithstanding the provisions of any
subservicing agreement, any of the provisions of this Agreement relating to
agreements or arrangements between the Master Servicer or a subservicer or
reference to actions taken through a Master Servicer or otherwise, the Master
Servicer shall remain obligated and liable to the Depositor, the Trustee and the
Certificateholders for the servicing and administration of the Mortgage Loans in
accordance with the provisions of this Agreement without diminution of such
obligation or liability by virtue of such subservicing agreements or
arrangements or by virtue of indemnification from the subservicer and to the
same extent and under the same terms and conditions as if the Master Servicer
alone were servicing and administering the Mortgage Loans. Every subservicing
agreement entered into by the Master Servicer shall contain a provision giving
the successor Master Servicer the option to terminate such agreement without
cost in the event a successor Master Servicer is appointed. All actions of each
subservicer performed pursuant to the related subservicing agreement shall be
performed as an agent of the Master Servicer with the same force and effect as
if performed directly by the Master Servicer.

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

          Section 3.03  Rights of the Depositor, the Sellers, the
                        Certificateholders, the NIM Insurer and the Trustee in
                        Respect of the Master Servicer.

          None of the Trustee, the Sellers, the Certificateholders, the NIM
Insurer or the Depositor shall have any responsibility or liability for any
action or failure to act by the Master Servicer, and none of them is obligated
to supervise the performance of the Master Servicer hereunder or otherwise. The
Master Servicer shall afford (and any Subservicing Agreement shall provide that
each Subservicer shall afford) the Depositor, the NIM Insurer and the Trustee,
upon reasonable notice, during normal business hours, access to all records
maintained by the Master Servicer (and any such Subservicer) in respect of the
Master Servicer's rights and obligations hereunder and access to officers of the
Master Servicer (and those of any such Subservicer) responsible for such
obligations. Upon request, the Master Servicer shall furnish to the Depositor,
the NIM Insurer and the Trustee its (and any such Subservicer's) most recent
financial statements and such other information relating to the Master
Servicer's capacity to perform its obligations under this Agreement that it
possesses. To the extent such information is not otherwise available to the
public, the Depositor, the NIM Insurer and the Trustee shall not disseminate any
information obtained pursuant to the preceding two sentences without the Masters
Servicer's (or any such Subservicer's) written consent, except as required
pursuant to this Agreement or to the extent that it is necessary to do so (i) in
working with legal counsel, auditors, taxing authorities or other governmental
agencies, rating agencies or reinsurers or (ii) pursuant to any law, rule,
regulation, order, judgment, writ, injunction or decree of any court or
governmental authority having jurisdiction over the Depositor, the Trustee, the
NIM Insurer or the Trust Fund, and in either case, the Depositor, the NIM
Insurer or the Trustee, as the case may be, shall use its reasonable best
efforts to assure the confidentiality of any such disseminated non-public
information. The Depositor may, but is not obligated to, enforce the obligations
of

                                       94
<PAGE>

the Master 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 under this Agreement or exercise the rights of the Master Servicer
under this Agreement; provided by virtue of such performance by the Depositor of
its designee. The Depositor shall not have any responsibility or liability for
any action or failure to act by the Master Servicer and is not obligated to
supervise the performance of the Master Servicer under this Agreement or
otherwise.

          Section 3.04  Trustee to Act as Master Servicer.

          In the event that the Master Servicer shall for any reason no longer
be the Master Servicer hereunder (including by reason of an Event of Default or
termination by the Depositor), the Trustee or its designee shall thereupon
assume all of the rights and obligations of the Master Servicer hereunder
arising thereafter (except that the Trustee shall not be (i) liable for losses
of the Master Servicer pursuant to Section 3.10 hereof or any acts or omissions
of the predecessor Master Servicer hereunder, (ii) obligated to make Advances if
it is prohibited from doing so by applicable law, (iii) obligated to effectuate
repurchases or substitutions of Mortgage Loans hereunder, including pursuant to
Section 2.02 or 2.03 hereof, (iv) responsible for expenses of the Master
Servicer pursuant to Section 2.03 or (v) deemed to have made any representations
and warranties hereunder, including pursuant to Section 2.03 or the first
paragraph of Section 6.02 hereof). If the Master Servicer shall for any reason
no longer be the Master Servicer (including by reason of any Event of Default or
termination by the Depositor), the Trustee (or any other successor servicer)
may, at its option, succeed to any rights and obligations of the Master Servicer
under any subservicing agreement in accordance with the terms thereof; provided
that the Trustee (or any other successor servicer) shall not incur any liability
or have any obligations in its capacity as servicer under a subservicing
agreement arising prior to the date of such succession unless it expressly
elects to succeed to the rights and obligations of the Master Servicer
thereunder; and the Master Servicer shall not thereby be relieved of any
liability or obligations under the subservicing agreement arising prior to the
date of such succession.

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

          Section 3.05  Collection of Mortgage Loan Payments; Certificate
                        Account; Distribution Account; Pre-Funding Account;
                        Seller Shortfall Interest Requirement.

          (a)  The Master Servicer shall make reasonable efforts in accordance
with customary and usual standards of practice of prudent mortgage lenders in
the respective states in which the Mortgaged Properties are located to collect
all payments called for under the terms and provisions of the Mortgage Loans to
the extent such procedures shall be consistent with this Agreement and the terms
and provisions of any related Required Insurance Policy. Consistent with the
foregoing, the Master Servicer may in its discretion (i) waive any late payment
charge or, subject to Section 3.20, any Prepayment Charge or penalty interest in
connection with the prepayment of a Mortgage Loan and (ii) extend the due dates
for payments due on a Mortgage

                                       95
<PAGE>

Note for a period not greater than 270 days. In the event of any such
arrangement, the Master Servicer shall make Advances on the related Mortgage
Loan during the scheduled period in accordance with the amortization schedule of
such Mortgage Loan without modification thereof by reason of such arrangements.
In addition, the NIM Insurer's prior written consent shall be required for any
waiver of Prepayment Charges or for the extension of the due dates for payments
due on a Mortgage Note, if the aggregate number of outstanding Mortgage Loans
that have been granted such waivers or extensions exceeds 5% of the aggregate
number of Initial Mortgage Loans and Subsequent Mortgage Loans. The Master
Servicer shall not be required to institute or join in litigation with respect
to collection of any payment (whether under a Mortgage, Mortgage Note or
otherwise or against any public or governmental authority with respect to a
taking or condemnation) if it reasonably believes that enforcing the provision
of the Mortgage or other instrument pursuant to which such payment is required
is prohibited by applicable law.

          (b)  The Master Servicer shall establish and maintain a Certificate
Account into which the Master Servicer shall deposit or cause to be deposited on
a daily basis within two Business Days of receipt, except as otherwise
specifically provided herein, the following payments and collections remitted by
Subservicers or received by it in respect of 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:

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

               (2)  all payments on account of interest on the Mortgage Loans
     (net of the related Servicing Fee and Prepayment Interest Excess permitted
     under Section 3.15 hereof to the extent not previously paid to or withheld
     by the Master Servicer);

               (3)  all Insurance Proceeds;

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

               (5)  all Compensating Interest;

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

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

               (8)  the Purchase Price and any Substitution Adjustment Amount;

               (9)  all Advances made by the Master Servicer or the Trustee
     pursuant to Section 4.01 hereof;

                                       96
<PAGE>

               (10) all Prepayment Charges and Master Servicer Prepayment Charge
     Payment Amounts; and

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

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

          No later than 1:00 p.m. Pacific time on the Master Servicer Advance
Date in each of January 2007, February 2007 and March 2007, CHL shall remit to
the Master Servicer, and the Master Servicer shall deposit in the Certificate
Account, the Seller Shortfall Interest Requirement (if any) for such Master
Servicer Advance Date.

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

               (1)  the aggregate amount remitted by the Master Servicer
     pursuant to the second paragraph of Section 3.08(a); and

               (2)  any amount required to be deposited by the Master Servicer
     pursuant to Section 3.05(e) in connection with any losses on Permitted
     Investments.

          The foregoing requirements for remittance by the Master Servicer and
deposit by the Trustee into the Distribution Account shall be exclusive. In the
event that the Master Servicer shall remit any amount not required to be
remitted and not otherwise subject to withdrawal pursuant to Section 3.08
hereof, it may at any time direct the Trustee to withdraw such amount from the
Distribution Account, any provision herein to the contrary notwithstanding. Such
direction may be accomplished by delivering a written notice to the Trustee that
describes the amounts deposited in error in the Distribution Account. All funds
deposited in the Distribution Account shall be held by the Trustee in trust for
the Certificateholders until disbursed in accordance with this Agreement or
withdrawn in accordance with Section 3.08. In no event shall the Trustee incur
liability for withdrawals from the Distribution Account at the direction of the
Master Servicer.

          (d)  If the Pre-Funded Amount is greater than zero, the Trustee shall
establish and maintain, on behalf of the Certificateholders, the Pre-Funding
Account, and on the Closing

                                       97
<PAGE>

Date, CHL shall remit the Pre-Funded Amount to the Trustee for deposit in the
Pre-Funding Account.

          On the Business Day before the Distribution Date following the end of
the Funding Period, the Trustee shall (i) withdraw the amount on deposit in the
Pre-Funding Account (net of investment income), (ii) promptly deposit such
amount in the Distribution Account, and (iii) distribute each amount to the
Certificates on the Distribution Date pursuant to Section 4.04.

          (e)  Each institution that maintains the Certificate Account, the
Distribution Account or the Pre-Funding Account shall invest the funds in each
such account, as directed by the Master Servicer, in Permitted Investments,
which shall mature not later than (x) in the case of the Certificate Account,
the second Business Day next preceding the related Distribution Account Deposit
Date (except that if such Permitted Investment is an obligation of the
institution that maintains such Certificate Account, then such Permitted
Investment shall mature not later than the Business Day next preceding such
Distribution Account Deposit Date) and (y) in the case of the Distribution
Account and the Pre-Funding Account, the Business Day immediately preceding the
first Distribution Date that follows the date of such investment (except that if
such Permitted Investment is an obligation of the institution that maintains
such Distribution Account or Pre-Funding Account, then such Permitted Investment
shall mature not later than such Distribution Date), in each case, shall not be
sold or disposed of prior to its maturity. All such Permitted Investments shall
be made in the name of the Trustee, for the benefit of the Certificateholders.
In the case of (i) the Certificate Account and the Distribution Account, all
income and gain net of any losses realized from any such investment shall be for
the benefit of the Master Servicer as servicing compensation and shall be
remitted to it monthly as provided herein and (ii) the Pre-Funding Account, all
income and gain net of any losses realized from any such investment shall be for
the benefit of the Depositor and shall be remitted to the Depositor as provided
herein. The amount of any losses incurred in the Certificate Account or the
Distribution Account in respect of any such investments shall be deposited by
the Master Servicer in the Certificate Account or paid to the Trustee for
deposit into the Distribution Account out of the Master Servicer's own funds
immediately as realized. The amount of any losses incurred in the Pre-Funding
Account in respect of any such investments shall be paid by the Master Servicer
to the Trustee for deposit into the Pre-Funding Account out of the Master
Servicer's own funds immediately as realized. The Trustee shall not be liable
for the amount of any loss incurred in respect of any investment or lack of
investment of funds held in the Certificate Account, the Distribution Account or
the Pre-Funding Account and made in accordance with this Section 3.05.

          (f)  The Master Servicer shall give at least 30 days' advance notice
to the Trustee, each Seller, each Rating Agency and the Depositor of any
proposed change of location of the Certificate Account prior to any change
thereof. The Trustee shall give at least 30 days' advance notice to the Master
Servicer, each Seller, each Rating Agency and the Depositor of any proposed
change of the location of the Distribution Account, the Pre-Funding Account or
the Carryover Reserve Fund prior to any change thereof.

          (g)  Except as otherwise expressly provided in this Agreement, if any
default occurs under any Permitted Investment, the Trustee may and, subject to
Sections 8.01 and

                                       98
<PAGE>

8.02(a)(4), at the request of the Holders of Certificates representing more than
50% of the Voting Rights or the NIM Insurer, shall take any action appropriate
to enforce payment or performance, including the institution and prosecution of
appropriate proceedings.

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

          To the extent required by the related Mortgage Note, the Master
Servicer shall establish and maintain one or more accounts (each, an "Escrow
Account") and deposit and retain therein all collections from the Mortgagors (or
advances by the Master Servicer) for the payment of taxes, assessments, hazard
insurance premiums or comparable items for the account of the Mortgagors.
Nothing herein shall require the Master Servicer to compel a Mortgagor to
establish an Escrow Account in violation of applicable law.

          Withdrawals of amounts so collected from the Escrow Accounts may be
made only to effect timely payment of taxes, assessments, hazard insurance
premiums, condominium or PUD association dues, or comparable items, to reimburse
the Master Servicer out of related collections for any payments made pursuant to
Sections 3.01 hereof (with respect to taxes and assessments and insurance
premiums) and 3.10 hereof (with respect to hazard insurance), to refund to any
Mortgagors any sums as may be determined to be overages, to pay interest, if
required by law or the terms of the related Mortgage or Mortgage Note, to
Mortgagors on balances in the Escrow Account or to clear and terminate the
Escrow Account at the termination of this Agreement in accordance with Section
9.01 hereof. The Escrow Accounts shall not be a part of the Trust Fund.

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

          The Master Servicer shall afford the Depositor, the NIM Insurer and
the Trustee reasonable access to all records and documentation regarding the
Mortgage Loans and all accounts, insurance policies and other matters relating
to this Agreement, such access being afforded without charge, but only upon
reasonable request and during normal business hours at the offices of the Master
Servicer designated by it. Upon request, the Master Servicer shall furnish to
the Trustee and the NIM Insurer its most recent publicly available financial
statements and any other information relating to its capacity to perform its
obligations under this Agreement reasonably requested by the NIM Insurer.

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

                                       99
<PAGE>

          Section 3.08  Permitted Withdrawals from the Certificate Account,
                        Distribution Account, Carryover Reserve Fund and the
                        Principal Reserve Fund.

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

               (i) to pay to the Master Servicer (to the extent not previously
          paid to or withheld by the Master Servicer), as servicing compensation
          in accordance with Section 3.15, 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 to the Master Servicer, those other amounts set forth in
          Section 3.15;

               (ii) to reimburse each of the Master Servicer and the Trustee for
          Advances made by it with respect to the Mortgage Loans, such right of
          reimbursement pursuant to this subclause (ii) being limited to amounts
          received on particular Mortgage Loan(s) (including, for this purpose,
          Liquidation Proceeds, Insurance Proceeds and Subsequent Recoveries)
          that represent late recoveries of payments of principal and/or
          interest on such particular Mortgage Loan(s) in respect of which any
          such Advance was made;

               (iii) [Reserved];

               (iv) to reimburse each of the Master Servicer and the Trustee for
          any Nonrecoverable Advance previously made;

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

               (vi) to pay the Master Servicer any unpaid Servicing Fees and to
          reimburse it for any unreimbursed Servicing Advances, the Master
          Servicer's right to reimbursement of Servicing Advances pursuant to
          this subclause (vi) with respect to any Mortgage Loan being limited to
          amounts received on particular Mortgage Loan(s) (including, for this
          purpose, Liquidation Proceeds, Insurance Proceeds and Subsequent
          Recoveries and purchase and repurchase proceeds) that represent late
          recoveries of the payments for which such advances were made pursuant
          to Section 3.01 or Section 3.06;

               (vii) to pay to the applicable Seller, the Depositor or the
          Master Servicer, as applicable, with respect to each Mortgage Loan or
          property acquired in respect thereof that has been purchased pursuant
          to Section 2.02, 2.03, 2.04 or 3.12, all amounts received thereon and
          not taken into account in determining the related Purchase Price of
          such repurchased Mortgage Loan;

               (viii) to reimburse the applicable Seller, the Master Servicer,
          the NIM Insurer or the Depositor for expenses incurred by any of them
          in connection with the Mortgage Loans or Certificates and reimbursable
          pursuant to Section 6.03 hereof; provided that such amount shall only
          be withdrawn following the

                                      100
<PAGE>

          withdrawal from the Certificate Account for deposit into the
          Distribution Account pursuant to the following paragraph;

               (ix) to pay any lender-paid primary mortgage insurance premiums;

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

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

          In addition, no later than 1:00 p.m. Pacific time on the Distribution
Account Deposit Date, the Master Servicer shall withdraw from the Certificate
Account and remit to the Trustee the Interest Remittance Amount, Principal
Remittance Amount, Prepayment Charges collected and the Master Servicer
Prepayment Charge Payment Amount for each Loan Group, and the Trustee shall
deposit such amount in the Distribution Account.

          The Trustee shall establish and maintain, on behalf of the
Certificateholders, a Principal Reserve Fund in the name of the Trustee. On the
Closing Date, CHL shall deposit into the Principal Reserve Fund $200.00. Funds
on deposit in the Principal Reserve Fund shall not be invested. The Principal
Reserve Fund shall be treated as an "outside reserve fund" under applicable
Treasury regulations and shall not be part of any REMIC created under this
Agreement.

          On the Business Day before the first Distribution Date, the Trustee
shall transfer $100.00 from the Principal Reserve Fund to the Distribution
Account, and on the first Distribution Date, the Trustee shall withdraw $100 and
distribute such amount to the Class A-R Certificates in reduction of the
Certificate Principal Balance thereof.

          On the Business Day before the Class P Principal Distribution Date,
the Trustee shall transfer from the Principal Reserve Fund to the Distribution
Account $100.00 and shall distribute such amount to the Class P Certificates on
the Class P Principal Distribution Date. Following the distributions to be made
in accordance with the preceding sentence, the Trustee shall then terminate the
Principal Reserve Fund.

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

          (b)  The Trustee shall withdraw funds from the Distribution Account
for distribution to the Certificateholders and remittance to the Final Maturity
Reserve Fund and the Swap Account in the manner specified in this Agreement (and
to withhold from the amounts so withdrawn, the amount of any taxes that it is
authorized to retain pursuant to the third paragraph

                                      101
<PAGE>

of Section 8.11). In addition, the Trustee may from time to time make
withdrawals from the Distribution Account for the following purposes:

               (i) to pay the Trustee the Trustee Fee on each Distribution Date;

               (ii) to pay to the Master Servicer, as additional servicing
          compensation, earnings on or investment income with respect to funds
          in or credited to the Distribution Account;

               (iii) to withdraw pursuant to Section 3.05 any amount deposited
          in the Distribution Account and not required to be deposited therein;

               (iv) to reimburse the Trustee for any unreimbursed Advances made
          by it pursuant to Section 4.01(d) hereof, such right of reimbursement
          pursuant to this subclause (iv) being limited to (x) amounts received
          on the related Mortgage Loan(s) in respect of which any such Advance
          was made and (y) amounts not otherwise reimbursed to the Trustee
          pursuant to Section 3.08(a)(ii) hereof;

               (v) to reimburse the Trustee for any Nonrecoverable Advance
          previously made by the Trustee pursuant to Section 4.01(d) hereof,
          such right of reimbursement pursuant to this subclause (v) being
          limited to amounts not otherwise reimbursed to the Trustee pursuant to
          Section 3.08(a)(iv) hereof;

               (vi) to pay to the Co-Trustee, for payment to each Mortgage
          Insurer as provided below, the related Mortgage Insurance Premium; and

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

          The Co-Trustee shall pay the applicable Mortgage Insurance Premium to
the related Mortgage Insurer in accordance with the following wiring
instructions:

          United Guaranty Mortgage Indemnity Company, Account #2035650940583,
Wachovia Bank, 330 North Greene Street, Greensboro, North Carolina 27401, ABA
#053000219, Txt: Attention: Lynn Ellis, CWABS 2006-26 Pool, Bulk Deal 77.

          Mortgage Guaranty Insurance Corporation, Account #112663706, US Bank,
777 E. Wisconsin Ave., Milwaukee, Wisconsin 53201, ABA #075000022, Txt:
Attention: Premium Pay - ID 3147644562 deal #2079.

          (c)  The Trustee shall withdraw funds from the Carryover Reserve Fund
for distribution to the Certificateholders in the manner specified in this
Agreement (and to withhold from the amounts so withdrawn, the amount of any
taxes that it is authorized to retain pursuant to the third paragraph of Section
8.11). In addition, the Trustee may from time to time make withdrawals from the
Carryover Reserve Fund for the following purposes:

               (1)  to withdraw any amount deposited in the Carryover Reserve
     Fund and not required to be deposited therein; and

                                      102
<PAGE>

               (2)  to clear and terminate the Carryover Reserve Fund upon
     termination of the Agreement pursuant to Section 9.01 hereof.

          Section 3.09  [Reserved].

          Section 3.10  Maintenance of Hazard Insurance.

          The Master Servicer shall cause to be maintained, for each Mortgage
Loan, hazard insurance with extended coverage in an amount that is at least
equal to the lesser of (i) the maximum insurable value of the improvements
securing such Mortgage Loan and (ii) the greater of (a) the outstanding
principal balance of the Mortgage Loan and (b) an amount such that the proceeds
of such policy shall be sufficient to prevent the related Mortgagor and/or
mortgagee from becoming a co-insurer. Each such policy of standard hazard
insurance shall contain, or have an accompanying endorsement that contains, a
standard mortgagee clause. The Master Servicer shall also cause flood insurance
to be maintained on property acquired upon foreclosure or deed in lieu of
foreclosure of any Mortgage Loan, to the extent described below. Pursuant to
Section 3.05 hereof, any amounts collected by the Master Servicer under any such
policies (other than the amounts to be applied to the restoration or repair of
the related Mortgaged Property or property thus acquired or amounts released to
the Mortgagor in accordance with the Master Servicer's normal servicing
procedures) shall be deposited in the Certificate Account. Any cost incurred by
the Master Servicer in maintaining any such insurance shall not, for the purpose
of calculating monthly distributions to the Certificateholders or remittances to
the Trustee for their benefit, be added to the principal balance of the Mortgage
Loan, notwithstanding that the terms of the Mortgage Loan so permit. Such costs
shall be recoverable by the Master Servicer out of late payments by the related
Mortgagor or out of Liquidation Proceeds or Subsequent Recoveries to the extent
permitted by Section 3.08 hereof. It is understood and agreed that no earthquake
or other additional insurance is to be required of any Mortgagor or maintained
on property acquired in respect of a Mortgage other than pursuant to such
applicable laws and regulations as shall at any time be in force and as shall
require such additional insurance. If the Mortgaged Property is located at the
time of origination of the Mortgage Loan in a federally designated special flood
hazard area and such area is participating in the national flood insurance
program, the Master Servicer shall cause flood insurance to be maintained with
respect to such Mortgage Loan. Such flood insurance shall be in an amount equal
to the lesser of (i) the original principal balance of the related Mortgage
Loan, (ii) the replacement value of the improvements that are part of such
Mortgaged Property, or (iii) the maximum amount of such insurance available for
the related Mortgaged Property under the Flood Disaster Protection Act of 1973,
as amended. If the hazard policy contains a deductible clause, the Master
Servicer will be required to deposit from its own funds into the Certificate
Account the amounts that would have been deposited therein but for the
deductible clause.

          Section 3.11  Enforcement of Due-On-Sale Clauses; Assumption
                        Agreements.

          (a)  Except as otherwise provided in this Section 3.11(a), when any
property subject to a Mortgage has been or is about to be conveyed by the
Mortgagor, the Master Servicer shall to the extent that it has knowledge of such
conveyance, enforce any due-on-sale clause contained in any Mortgage Note or
Mortgage, to the extent permitted under applicable law and governmental
regulations, but only to the extent that such enforcement will not adversely
affect

                                      103
<PAGE>

or jeopardize coverage under any Required Insurance Policy. Notwithstanding the
foregoing, the Master Servicer is not required to exercise such rights with
respect to a Mortgage Loan if the Person to whom the related Mortgaged Property
has been conveyed or is proposed to be conveyed satisfies the terms and
conditions contained in the Mortgage Note and Mortgage related thereto and the
consent of the mortgagee under such Mortgage Note or Mortgage is not otherwise
so required under such Mortgage Note or Mortgage as a condition to such
transfer. In the event that the Master Servicer is prohibited by law from
enforcing any such due-on-sale clause, or if coverage under any Required
Insurance Policy would be adversely affected, or if nonenforcement is otherwise
permitted hereunder, the Master Servicer is authorized, subject to Section
3.11(b), to take or enter into an assumption and modification agreement from or
with the person to whom such property has been or is about to be conveyed,
pursuant to which such person becomes liable under the Mortgage Note and, unless
prohibited by applicable state law, the Mortgagor remains liable thereon,
provided that the Mortgage Loan shall continue to be covered (if so covered
before the Master Servicer enters such agreement) by the applicable Required
Insurance Policies. The Master Servicer, subject to Section 3.11(b), is also
authorized with the prior approval of the insurers under any Required Insurance
Policies to enter into a substitution of liability agreement with such Person,
pursuant to which the original Mortgagor is released from liability and such
Person is substituted as Mortgagor and becomes liable under the Mortgage Note.
The Master Servicer shall notify the Trustee that any such substitution,
modification or assumption agreement has been completed by forwarding to the
Co-Trustee the executed original of such substitution or assumption agreement,
which document 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.

          (b)  Subject to the Master Servicer's duty to enforce any due-on-sale
clause to the extent set forth in Section 3.11(a) hereof, in any case in which a
Mortgaged Property has been conveyed to a Person by a Mortgagor, and such Person
is to enter into an assumption agreement or modification agreement or supplement
to the Mortgage Note or Mortgage that requires the signature of the Trustee, or
if an instrument of release signed by the Trustee is required releasing the
Mortgagor from liability on the Mortgage Loan, the Master Servicer shall prepare
and deliver or cause to be prepared and delivered to the Trustee for signature
and shall direct, in writing, the Trustee to execute the assumption agreement
with the Person to whom the Mortgaged Property is to be conveyed and such
modification agreement or supplement to the Mortgage Note or Mortgage or other
instruments as are reasonable or necessary to carry out the terms of the
Mortgage Note or Mortgage or otherwise to comply with any applicable laws
regarding assumptions or the transfer of the Mortgaged Property to such Person.
In connection with any such assumption, no material term of the Mortgage Note
(including, but not limited to, the Mortgage Rate, the amount of the Scheduled
Payment, the Maximum Mortgage Rate, the Minimum Mortgage Rate, the Gross Margin,
the Initial Periodic Rate Cap, the Subsequent Periodic Rate Cap, the Adjustment
Date and any other term affecting the amount or timing of payment on the
Mortgage Loan) may be changed. In addition, the substitute Mortgagor and the
Mortgaged Property must be acceptable to the Master Servicer in accordance with
its underwriting standards as then in effect. The Master Servicer shall notify
the Trustee that any such substitution or assumption agreement has been
completed by forwarding to the Trustee the original of such substitution or
assumption agreement, which in the case of the original shall be added to the
related Mortgage File and shall, for all purposes, be considered a part of such
Mortgage File to the same extent as all other documents and instruments
constituting a part

                                      104
<PAGE>

thereof. Any fee collected by the Master Servicer for entering into an
assumption or substitution of liability agreement will be retained by the Master
Servicer as additional servicing compensation.

          Section 3.12  Realization Upon Defaulted Mortgage Loans; Determination
                        of Excess Proceeds and Realized Losses; Repurchase of
                        Certain Mortgage Loans.

          (a)  The Master Servicer may agree to a modification of any Mortgage
Loan (the "Modified Mortgage Loan") if (i) CHL purchases the Modified Mortgage
Loan from the Trust Fund immediately following the modification as described
below and (ii) the Stated Principal Balance of such Mortgage Loan, when taken
together with the aggregate of the Stated Principal Balances of all other
Mortgage Loans in the same Loan Group that have been so modified since the
Closing Date at the time of those modifications, does not exceed an amount equal
to 5% of the aggregate initial Certificate Principal Balance of the
Certificates. Effective immediately after the modification, and, in any event,
on the same Business Day on which the modification occurs, all interest of the
Trustee in the Modified Mortgage Loan shall automatically be deemed transferred
and assigned to CHL and all benefits and burdens of ownership thereof, including
the right to accrued interest thereon from the date of modification and the risk
of default thereon, shall pass to CHL. The Master Servicer shall promptly
deliver to the Trustee a certification of a Servicing Officer to the effect that
all requirements of this paragraph have been satisfied with respect to the
Modified Mortgage Loan. For federal income tax purposes, the Trustee shall
account for such purchase as a prepayment in full of the Modified Mortgage Loan.
CHL shall remit the Purchase Price to the Master Servicer for deposit into the
Certificate Account pursuant to Section 3.05 within one Business Day after the
purchase of the Modified Mortgage Loan. Upon receipt by the Trustee of written
notification of any such deposit signed by a Servicing Officer, the Trustee
shall release to CHL or its designee the related Mortgage File and shall execute
and deliver such instruments of transfer or assignment, in each case without
recourse, as shall be necessary to vest in CHL any Modified Mortgage Loan
previously transferred and assigned pursuant hereto. CHL covenants and agrees to
indemnify the Trust Fund against any liability for any "prohibited transaction"
taxes and any related interest, additions, and penalties imposed on the Trust
Fund established hereunder as a result of any modification of a Mortgage Loan
effected pursuant to this subsection (a), any holding of a Modified Mortgage
Loan by the Trust Fund or any purchase of a Modified Mortgage Loan by CHL (but
such obligation shall not prevent CHL or any other appropriate Person from in
good faith contesting any such tax in appropriate proceedings and shall not
prevent CHL from withholding payment of such tax, if permitted by law, pending
the outcome of such proceedings). CHL shall have no right of reimbursement for
any amount paid pursuant to the foregoing indemnification, except to the extent
that the amount of any tax, interest, and penalties, together with interest
thereon, is refunded to the Trust Fund or CHL. If the Master Servicer agrees to
a modification of any Mortgage Loan pursuant to this Section 3.12(a), and if
such Mortgage Loan carries a Prepayment Charge provision, CHL shall deliver to
the Trustee the amount of the Prepayment Charge, if any, that would have been
due had such Mortgage Loan been prepaid at the time of such modification, for
deposit into the Certificate Account (not later than 1:00 p.m. Pacific time on
the Master Servicer Advance Date immediately succeeding the date of such
modification) for distribution in accordance with the terms of this Agreement.

                                      105
<PAGE>

          (b)  The Master Servicer shall use reasonable efforts to foreclose
upon or otherwise comparably convert the ownership of properties securing such
of the Mortgage Loans as come into and continue in default and as to which no
satisfactory arrangements can be made for collection of delinquent payments. In
connection with such foreclosure or other conversion, the Master Servicer shall
follow such practices and procedures as it shall deem necessary or advisable and
as shall be normal and usual in its general mortgage servicing activities and
the requirements of the insurer under any Required Insurance Policy; provided
that the Master Servicer shall not be required to expend its own funds in
connection with any foreclosure or towards the restoration of any property
unless it shall determine (i) that such restoration and/or foreclosure will
increase the proceeds of liquidation of the Mortgage Loan after reimbursement to
itself of such expenses and (ii) that such expenses will be recoverable to it
through Liquidation Proceeds (respecting which it shall have priority for
purposes of withdrawals from the Certificate Account pursuant to Section 3.08
hereof). The Master Servicer shall be responsible for all other costs and
expenses incurred by it in any such proceedings; provided that it shall be
entitled to reimbursement thereof from the proceeds of liquidation of the
related Mortgaged Property and any related Subsequent Recoveries, as
contemplated in Section 3.08 hereof. If the Master Servicer has knowledge that a
Mortgaged Property that the Master Servicer is contemplating acquiring in
foreclosure or by deed-in-lieu of foreclosure is located within a one-mile
radius of any site with environmental or hazardous waste risks known to the
Master Servicer, the Master Servicer will, prior to acquiring the Mortgaged
Property, consider such risks and only take action in accordance with its
established environmental review procedures.

          With respect to any REO Property, the deed or certificate of sale
shall be taken in the name of the Trustee for the benefit of the
Certificateholders (or the Trustee's nominee on behalf of the
Certificateholders). The Trustee's name shall be placed on the title to such REO
Property solely as the Trustee hereunder and not in its individual capacity. The
Master Servicer shall ensure that the title to such REO Property references this
Agreement and the Trustee's capacity thereunder. Pursuant to its efforts to sell
such REO Property, the Master Servicer shall either itself or through an agent
selected by the Master Servicer protect and conserve such REO Property in the
same manner and to such extent as is customary in the locality where such REO
Property is located and may, incident to its conservation and protection of the
interests of the Certificateholders, rent the same, or any part thereof, as the
Master Servicer deems to be in the best interest of the Master Servicer and the
Certificateholders for the period prior to the sale of such REO Property. The
Master Servicer shall prepare for and deliver to the Trustee a statement with
respect to each REO Property that has been rented showing the aggregate rental
income received and all expenses incurred in connection with the management and
maintenance of such REO Property at such times as is necessary to enable the
Trustee to comply with the reporting requirements of the REMIC Provisions. The
net monthly rental income, if any, from such REO Property shall be deposited in
the Certificate Account no later than the close of business on each
Determination Date. The Master Servicer shall perform the tax reporting and
withholding related to foreclosures, abandonments and cancellation of
indebtedness income as specified by Sections 1445, 6050J and 6050P of the Code
by preparing and filing such tax and information returns, as may be required.

          In the event that the Trust Fund acquires any Mortgaged Property as
aforesaid or otherwise in connection with a default or imminent default on a
Mortgage Loan, the Master Servicer shall dispose of such Mortgaged Property as
soon as practicable in a manner that

                                      106
<PAGE>

maximizes the Liquidation Proceeds, but in no event later than three years after
its acquisition by the Trust Fund or, at the expense of the Trust Fund, the
Master Servicer shall request, more than 60 days prior to the day on which such
three-year period would otherwise expire, an extension of the three-year grace
period. In the event the Trustee shall have been supplied with an Opinion of
Counsel (such opinion not to be an expense of the Trustee) to the effect that
the holding by the Trust Fund of such Mortgaged Property subsequent to such
three-year period will not result in the imposition of taxes on "prohibited
transactions" of the Trust Fund as defined in section 860F of the Code or cause
any REMIC formed hereunder to fail to qualify as a REMIC at any time that any
Certificates are outstanding, and the Trust Fund may continue to hold such
Mortgaged Property (subject to any conditions contained in such Opinion of
Counsel) after the expiration of such three-year period. 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 the Trust Fund to the imposition of any federal, state
or local income taxes on the income earned from such Mortgaged Property under
section 860G(c) of the Code or otherwise, unless the Master Servicer has agreed
to indemnify and hold harmless the Trust Fund with respect to the imposition of
any such taxes.

          The decision of the Master Servicer to foreclose on a defaulted
Mortgage Loan shall be subject to a determination by the Master Servicer that
the proceeds of such foreclosure would exceed the costs and expenses of bringing
such a proceeding. The income earned from the management of any Mortgaged
Properties acquired through foreclosure or other judicial proceeding, net of
reimbursement to the Master Servicer for expenses incurred (including any
property or other taxes) in connection with such management and net of
unreimbursed Servicing Fees, Advances, Servicing Advances and any management fee
paid or to be paid with respect to the management of such Mortgaged Property,
shall be applied to the payment of principal of, and interest on, the related
defaulted Mortgage Loans (with interest accruing as though such Mortgage Loans
were still current) and all such income shall be deemed, for all purposes in
this Agreement, to be payments on account of principal and interest on the
related Mortgage Notes and shall be deposited into the Certificate 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 and
any Subsequent Recoveries, net of any payment to the Master Servicer as provided
above, shall be deposited in the Certificate Account as provided in Section 3.05
for distribution on the related Distribution Date, except that any Excess
Proceeds shall be retained by the Master Servicer as additional servicing
compensation.

          The proceeds of any Liquidated Mortgage Loan, as well as any recovery
resulting from a partial collection of Liquidation Proceeds or any income from
an REO Property, will be applied in the following order of priority: first, to
reimburse the Master Servicer for any related unreimbursed Servicing Advances
and Servicing Fees, pursuant to Section 3.08(a)(vi) or this Section 3.12;
second, to reimburse the Master Servicer for any unreimbursed Advances, pursuant

                                      107
<PAGE>

to Section 3.08(a)(ii) or this Section 3.12; 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 Due Date
occurring in the month in which such amounts are required to be distributed; and
fourth, as a recovery of principal of the Mortgage Loan.

          (c)  [Reserved].

          (d)  The Master Servicer, in its sole discretion, shall have the right
to elect (by written notice sent to the Trustee) to purchase for its own account
from the Trust Fund any Mortgage Loan that is 150 days or more delinquent at a
price equal to the Purchase Price; provided, however, that the Master Servicer
may only exercise this right on or before the last day of the calendar month in
which such Mortgage Loan became 150 days delinquent (such month, the "Eligible
Repurchase Month"); provided further, that any such Mortgage Loan which becomes
current but thereafter becomes delinquent may be purchased by the Master
Servicer pursuant to this Section in any ensuing Eligible Repurchase Month. The
Purchase Price for any Mortgage Loan purchased hereunder shall be deposited in
the Certificate Account. Any purchase of a Mortgage Loan pursuant to this
Section 3.12(d) shall be accomplished by remittance to the Master Servicer for
deposit in the Certificate Account of the Purchase Price. The Trustee, upon
receipt of certification from the Master Servicer of such deposit and a Request
for File Release from the Master Servicer, shall release or cause to be released
to the purchaser of such Mortgage Loan the related Mortgage File and shall
execute and deliver such instruments of transfer or assignment prepared by the
purchaser of such Mortgage Loan, in each case without recourse, as shall be
necessary to vest in the purchaser of such Mortgage Loan any Mortgage Loan
released pursuant hereto and the purchaser of such Mortgage Loan shall succeed
to all the Trustee's right, title and interest in and to such Mortgage Loan and
all security and documents related thereto. Such assignment shall be an
assignment outright and not for security. The purchaser of such Mortgage Loan
shall thereupon own such Mortgage Loan, and all security and documents, free of
any further obligation to the Trustee or the Certificateholders with respect
thereto.

          Section 3.13  Co-Trustee to Cooperate; Release of Mortgage Files.

          Upon the payment in full of any Mortgage Loan, or the receipt by the
Master Servicer of a notification that payment in full will be escrowed in a
manner customary for such purposes, the Master Servicer will promptly notify the
Co-Trustee by delivering a Request for File Release. Upon receipt of such
request, the Co-Trustee shall promptly release the related Mortgage File to the
Master Servicer, and the Co-Trustee shall at the Master Servicer's direction
execute and deliver to the Master Servicer the request for reconveyance, deed of
reconveyance or release or satisfaction of mortgage or such instrument releasing
the lien of the Mortgage in each case provided by the Master Servicer, together
with the Mortgage Note with written evidence of cancellation thereon. The Master
Servicer is authorized to cause the removal from the registration on the MERS(R)
System of such Mortgage and to execute and deliver, on behalf of the Trust Fund
and the Certificateholders or any of them, any and all instruments of
satisfaction or cancellation or of partial or full release. No expenses incurred
in connection with any instrument of satisfaction or deed of reconveyance shall
be chargeable to the Certificate Account, the Distribution Account, the
Carryover Reserve Fund or the related subservicing account. From time to time
and as shall be appropriate for the servicing or foreclosure of any Mortgage
Loan,

                                      108
<PAGE>

including for such purpose, collection under any policy of flood insurance any
fidelity bond or errors or omissions policy, or for the purposes of effecting a
partial release of any Mortgaged Property from the lien of the Mortgage or the
making of any corrections to the Mortgage Note or the Mortgage or any of the
other documents included in the Mortgage File, the Co-Trustee shall, upon
delivery to the Co-Trustee of a Request for Document Release or a Request for
File Release, as applicable, release the documents specified in such request or
the Mortgage File, as the case may be, to the Master Servicer. Subject to the
further limitations set forth below, the Master Servicer shall cause the
Mortgage File or documents so released to be returned to the Co-Trustee when the
need therefor by the Master Servicer no longer exists, unless the Mortgage Loan
is liquidated and the proceeds thereof are deposited in the Certificate Account,
in which case the Master Servicer shall deliver to the Co-Trustee a Request for
File Release for any remaining documents in the Mortgage File not in the
possession of the Master Servicer.

          If the Master Servicer at any time seeks to initiate a foreclosure
proceeding in respect of any Mortgaged Property as authorized by this Agreement,
the Master Servicer shall deliver or cause to be delivered to the Trustee, for
signature, as appropriate, any court pleadings, requests for trustee's sale or
other documents necessary to effectuate such foreclosure or any legal action
brought to obtain judgment against the Mortgagor on the Mortgage Note or the
Mortgage or to obtain a deficiency judgment or to enforce any other remedies or
rights provided by the Mortgage Note or the Mortgage or otherwise available at
law or in equity. Notwithstanding the foregoing, the Master Servicer shall cause
possession of any Mortgage File or of the documents therein that shall have been
released by the Co-Trustee to be returned to the Co-Trustee within 21 calendar
days after possession thereof shall have been released by the Co-Trustee unless
(i) the Mortgage Loan has been liquidated and the Liquidation Proceeds relating
to the Mortgage Loan have been deposited in the Certificate Account, and the
Master Servicer shall have delivered to the Co-Trustee a Request for File
Release or (ii) the Mortgage File or document shall have been delivered to an
attorney or to a public trustee or other public official as required by law for
purposes of initiating or pursuing legal action or other proceedings for the
foreclosure of the Mortgaged Property and the Master Servicer shall have
delivered to the Trustee an Officer's Certificate of a Servicing Officer
certifying as to the name and address of the Person to which the Mortgage File
or the documents therein were delivered and the purpose or purposes of such
delivery.

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

          Notwithstanding any other provisions of this Agreement, the Master
Servicer shall transmit to the Co-Trustee as required by this Agreement all
documents and instruments in respect of a Mortgage Loan coming into the
possession of the Master Servicer from time to time and shall account fully to
the Trustee for any funds received by the Master Servicer or that otherwise are
collected by the Master Servicer as Liquidation Proceeds, Insurance Proceeds or
Subsequent Recoveries in respect of any Mortgage Loan. All Mortgage Files and
funds collected or held by, or under the control of, the Master Servicer in
respect of any Mortgage Loans, whether from the collection of principal and
interest payments or from Liquidation Proceeds or Subsequent Recoveries
including but not limited to, any funds on deposit in the Certificate Account,
shall be held by the Master Servicer for and on behalf of the Trust Fund and
shall be and remain the sole and exclusive property of the Trust Fund, subject
to the applicable

                                      109
<PAGE>

provisions of this Agreement. The Master Servicer also agrees that it shall not
create, incur or subject any Mortgage File or any funds that are deposited in
the Certificate Account, the Distribution Account, the Carryover Reserve Fund or
in any Escrow Account (as defined in Section 3.06), or any funds that otherwise
are or may become due or payable to the Trustee for the benefit of the
Certificateholders, to any claim, lien, security interest, judgment, levy, writ
of attachment or other encumbrance, or assert by legal action or otherwise any
claim or right of set off against any Mortgage File or any funds collected on,
or in connection with, a Mortgage Loan, except, however, that the Master
Servicer shall be entitled to set off against and deduct from any such funds any
amounts that are properly due and payable to the Master Servicer under this
Agreement.

          Section 3.15  Servicing Compensation.

          As compensation for its activities hereunder, the Master Servicer
shall be entitled to retain or withdraw from the Certificate Account out of each
payment of interest on a Mortgage Loan included in the Trust Fund an amount
equal to interest at the applicable Servicing Fee Rate on the Stated Principal
Balance of the related Mortgage Loan for the period covered by such interest
payment.

          Additional servicing compensation in the form of any Excess Proceeds,
assumption fees, late payment charges, Prepayment Interest Excess, and all
income and gain net of any losses realized from Permitted Investments shall be
retained by the Master Servicer to the extent not required to be deposited in
the Certificate Account pursuant to Section 3.05 or 3.12(b) hereof. The Master
Servicer shall be required to pay all expenses incurred by it in connection with
its servicing activities hereunder (including payment of any premiums for hazard
insurance, as required by Section 3.10 hereof and maintenance of the other forms
of insurance coverage required by Section 3.10 hereof) and shall not be entitled
to reimbursement therefor except as specifically provided in Sections 3.08 and
3.12 hereof.

          Section 3.16  Access to Certain Documentation.

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

          Section 3.17  Annual Statement as to Compliance.

          (a)  The Master Servicer shall deliver to the Depositor and the
Trustee on or before March 15 of each year, commencing with its 2007 fiscal
year, an Officer's Certificate stating, as to the signer thereof, that (i) a
review of the activities of the Master Servicer during

                                      110
<PAGE>

the preceding calendar year (or applicable portion thereof) and of the
performance of the Master Servicer under this Agreement, has been made under
such officer's supervision and (ii) to the best of such officer's knowledge,
based on such review, the Master Servicer has fulfilled all its obligations
under this Agreement, in all material respects throughout such year (or
applicable 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 and (iii) to the best of such
officer's knowledge, each Subservicer has fulfilled all its obligations under
its Subservicing Agreement in all material respects throughout such year, or, if
there has been a failure to fulfill any such obligation in any material respect
specifying each such failure known to such officer and the nature and status
thereof.

          (b)  The Master Servicer shall cause each Subservicer to deliver to
the Depositor and the Trustee on or before March 15 of each year, commencing
with its 2007 fiscal year, an Officer's Certificate stating, as to the signer
thereof, that (i) a review of the activities of such Subservicer during the
preceding calendar year (or applicable portion thereof) and of the performance
of the Subservicer under the applicable Subservicing Agreement or primary
servicing agreement, has been made under such officer's supervision and (ii) to
the best of such officer's knowledge, based on such review, such Subservicer has
fulfilled all its obligations under the applicable Subservicing Agreement or
primary servicing agreement, in all material respects throughout such year (or
applicable 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.

          (c)  The Trustee shall forward a copy of each such statement to each
Rating Agency. Copies of such statement shall be provided by the Trustee to any
Certificateholder or Certificate Owner upon request at the Master Servicer's
expense, provided such statement is delivered by the Master Servicer to the
Trustee.

          Section 3.18  [Reserved].

          Section 3.19  [Reserved].

          Section 3.20  Prepayment Charges.

          (a)  Notwithstanding anything in this Agreement to the contrary, in
the event of a Principal Prepayment in full or in part of a Mortgage Loan, the
Master Servicer may not waive any Prepayment Charge or portion thereof required
by the terms of the related Mortgage Note unless (i) such Mortgage Loan is in
default or the Master Servicer believes that such a default is imminent, and the
Master Servicer determines that such waiver would maximize recovery of
Liquidation Proceeds for such Mortgage Loan, taking into account the value of
such Prepayment Charge, or (ii) (A) the enforceability thereof is limited (1) by
bankruptcy, insolvency, moratorium, receivership, or other similar law relating
to creditors' rights generally or (2) due to acceleration in connection with a
foreclosure or other involuntary payment, or (B) the enforceability is otherwise
limited or prohibited by applicable law. In the event of a Principal Prepayment
in full or in part with respect to any Mortgage Loan, the Master Servicer shall
deliver to the Trustee an Officer's Certificate substantially in the form of
Exhibit T no later than the third Business Day following the immediately
succeeding Determination Date with a

                                      111
<PAGE>

copy to the Class P Certificateholders. If the Master Servicer has waived or
does not collect all or a portion of a Prepayment Charge relating to a Principal
Prepayment in full or in part due to any action or omission of the Master
Servicer, other than as provided above, the Master Servicer shall deliver to the
Trustee, together with the Principal Prepayment in full or in part, the amount
of such Prepayment Charge (or such portion thereof as had been waived) for
deposit into the Certificate Account (not later than 1:00 p.m. Pacific time on
the immediately succeeding Master Servicer Advance Date, in the case of such
Prepayment Charge) for distribution in accordance with the terms of this
Agreement.

          (b)  Upon discovery by the Master Servicer or a Responsible Officer of
the Trustee of a breach of the foregoing subsection (a), the party discovering
the breach shall give prompt written notice to the other parties.

          (c)  CHL represents and warrants to the Depositor and the Trustee, as
of the Closing Date and each Subsequent Transfer Date, that the information in
the Prepayment Charge Schedule (including the attached prepayment charge
summary) is complete and accurate in all material respects at the dates as of
which the information is furnished and each Prepayment Charge is permissible and
enforceable in accordance with its terms under applicable state law, except as
the enforceability thereof is limited due to acceleration in connection with a
foreclosure or other involuntary payment.

          (d)  Upon discovery by the Master Servicer or a Responsible Officer of
the Trustee of a breach of the foregoing clause (c) that materially and
adversely affects right of the Holders of the Class P Certificates to any
Prepayment Charge, the party discovering the breach shall give prompt written
notice to the other parties. Within 60 days of the earlier of discovery by the
Master Servicer or receipt of notice by the Master Servicer of breach, the
Master Servicer shall cure the breach in all material respects or shall pay into
the Certificate Account the amount of the Prepayment Charge that would otherwise
be due from the Mortgagor, less any amount representing such Prepayment Charge
previously collected and paid by the Master Servicer into the Certificate
Account.

          Section 3.21  Swap Contract.

          CHL shall cause The Bank of New York to enter into the Swap Contract
Administration Agreement and shall assign all of its right, title and interest
in and to the interest rate swap transaction evidenced by the Swap Contract to,
and shall cause all of its obligations in respect of such transaction to be
assumed by, the Swap Contract Administrator, on the terms and conditions set
forth in the Swap Contract Assignment Agreement. The Trustee's rights to receive
certain proceeds of the Swap Contract as provided in the Swap Contract
Administration Agreement shall be rights of the Trustee as Swap Trustee
hereunder, shall be an asset of the Swap Trust and shall not be an asset of the
Trust Fund nor of any REMIC. The Swap Trustee shall deposit any amounts received
from time to time from the Swap Contract Administrator with respect to the Swap
Contract into the Swap Account. The Master Servicer shall deposit any amounts
received on behalf of the Swap Trustee from time to time with respect to the
Swap Contract into the Swap Account.

                                      112
<PAGE>

          On the Business Day preceding each Distribution Date, the Swap Trustee
shall notify the Swap Contract Administrator of any amounts distributable to the
Interest-Bearing Certificates pursuant to Section 4.04(d)(3) through (8) that
will remain unpaid following all distributions to be made on such Distribution
Date pursuant to Section 4.04(a) through (c).

          No later than two Business Days following each Distribution Date, the
Trustee shall provide the Swap Contract Administrator with information regarding
the aggregate Certificate Principal Balance of the Interest-Bearing Certificates
after all distributions on such Distribution Date.

          Upon the Swap Contract Administrator obtaining actual knowledge of the
rating of the Swap Counterparty falling below the Approved Ratings Threshold (as
defined in the ISDA Master Agreement) or upon the Swap Contract Administrator
obtaining actual knowledge of the rating of the Swap Counterparty falling below
the Required Ratings Threshold (as defined in the ISDA Master Agreement), the
Swap Trustee shall direct the Swap Contract Administrator to (i) demand payment
of the Delivery Amount (as defined in the ISDA Master Agreement) from the Swap
Counterparty on each Valuation Date (as defined in the ISDA Master Agreement)
and perform its other obligations in accordance with the ISDA Master Agreement
and (ii) take such other action required under the ISDA Master Agreement. If a
Delivery Amount is demanded, the Swap Contract Administrator, in accordance with
the Swap Contract Administration Agreement, shall establish an account to hold
cash and other eligible investments pledged under the ISDA Master Agreement. Any
cash or other Eligible Collateral (as defined in the ISDA Master Agreement)
pledged under the ISDA Master Agreement shall not be part of the Distribution
Account or the Swap Account unless remitted to such accounts by the Swap
Contract Administrator in accordance with the Swap Contract Administration
Agreement. If Eligible Collateral with a value equal to the Delivery Amount is
not delivered to the Swap Contract Administrator by the Swap Counterparty, the
Swap Trustee shall direct the Swap Contract Administrator to notify the Swap
Counterparty of such failure.

          Upon the Swap Trustee obtaining actual knowledge of a Failure to Pay
or Deliver (as defined in the ISDA Master Agreement), the Swap Trustee shall
direct the Swap Contract Administrator to demand payment under the Swap
Guarantee.

          Upon the Swap Trustee obtaining actual knowledge of an Event of
Default (as defined in the ISDA Master Agreement) or Termination Event (as
defined in the ISDA Master Agreement) for which the Swap Contract Administrator
has the right to designate an Early Termination Date (as defined in the ISDA
Master Agreement), the Swap Trustee shall act at the written direction of the
Depositor as to whether to direct the Swap Contract Administrator to designate
an Early Termination Date; provided, however, that the Swap Trustee shall
provide written notice to each Rating Agency following the Event of Default or
Termination Event. Upon the termination of the Swap Contract under the
circumstances contemplated by this Section 3.21, the Swap Trustee shall use its
reasonable best efforts to enforce the rights of the Swap Contract Administrator
as may be permitted by the terms of the ISDA Master Agreement and consistent
with the terms hereof and CHL shall assist the Swap Contract Administrator in
procuring a replacement swap contract with terms approximating those of the
original Swap Contract.

                                      113
<PAGE>

          Any Swap Termination Payment received from the Swap Counterparty shall
be used to pay any upfront amount required under any replacement swap contract
and any excess shall be distributed to CHL and will not be available to make
distributions in respect of any Class of Certificates. In the event that a
replacement swap contract cannot be procured, any Swap Termination Payment
received from the Swap Counterparty in respect of the termination of the
original Swap Contract shall, in accordance with the Swap Contract
Administration Agreement, be retained by the Swap Contract Administrator and
remitted to the Swap Trustee on subsequent Distribution Dates up to and
including the Swap Contract Termination Date to pay any amounts distributable to
the Interest-Bearing Certificates pursuant to Section 4.04(d)(3) through (8)
that will remain unpaid following all distributions to be made on such
Distribution Date pursuant to Section 4.04(a) through (c). Any portion of such
upfront amount remaining after the Swap Contract Termination Date shall be
distributed to CHL and will not be available to make distributions in respect of
any Class of Certificates.

          In the event that the swap counterparty in respect of a replacement
swap contract pays any upfront amount to the Swap Contract Administrator in
connection with entering into the replacement swap contract and such upfront
amount is received by the Swap Contract Administrator prior to the Distribution
Date on which any Swap Termination Payment will be payable to the Swap
Counterparty in respect of the original Swap Contract, a portion of that upfront
amount equal to the lesser of (x) that upfront amount and (y) the amount of the
Swap Termination Payment due to the Swap Counterparty in respect of the original
Swap Contract (the "Adjusted Replacement Upfront Amount") shall be included in
Interest Funds for Loan Group 1 and Loan Group 2 for that Distribution Date, pro
rata, based upon their respective Interest Funds for that Distribution Date, and
any upfront amount in excess of the Adjusted Replacement Upfront Amount shall be
distributed to CHL and will not be available to make distributions in respect of
any Class of Certificates. Any upfront amount paid to the Swap Contract
Administrator by the swap counterparty in respect of a replacement swap contract
after the Distribution Date on which any Swap Termination Payment will be
payable to the Swap Counterparty in respect of the original Swap Contract, such
upfront amount shall, in accordance with the Swap Contract Administration
Agreement, be retained by the Swap Contract Administrator and remitted to the
Swap Trustee on subsequent Distribution Dates up to and including the Swap
Contract Termination Date to pay any amounts distributable to the
Interest-Bearing Certificates pursuant to Section 4.04(d)(3) through (8) that
will remain unpaid following all distributions to be made on such Distribution
Date pursuant to Section 4.04(a) through (c).

          The Swap Counterparty shall be an express third party beneficiary of
this Agreement for the purpose of enforcing the provisions hereof to the extent
of the Swap Counterparty's rights explicitly specified herein as if a party
hereto.

                                   ARTICLE IV.
                DISTRIBUTIONS AND ADVANCES BY THE MASTER SERVICER

          Section 4.01  Advances; Remittance Reports.

          (a)  Within two Business Days after each Determination Date, the
Master Servicer shall deliver to the Trustee by facsimile or electronic mail (or
by such other means as the Master Servicer and the Trustee, as the case may be,
may agree from time to time) a

                                      114
<PAGE>

Remittance Report with respect to the related Distribution Date. The Trustee
shall not be responsible to recompute, recalculate or verify any information
provided to it by the Master Servicer.

          (b)  Subject to the conditions of this Article IV, the Master
Servicer, as required below, shall make an Advance and deposit such Advance in
the Certificate Account. Each such Advance shall be remitted to the Certificate
Account no later than 1:00 p.m. Pacific time on the Master Servicer Advance Date
in immediately available funds. The Trustee will provide notice to the Master
Servicer by facsimile by the close of business on any Master Servicer Advance
Date in the event that the amount remitted by the Master Servicer to the Trustee
on the Distribution Account Deposit Date is less than the Advances required to
be made by the Master Servicer for such Distribution Date. The Master Servicer
shall be obligated to make any such Advance only to the extent that such advance
would not be a Nonrecoverable Advance. If the Master Servicer shall have
determined that it has made a Nonrecoverable Advance or that a proposed Advance
or a lesser portion of such Advance would constitute a Nonrecoverable Advance,
the Master Servicer shall deliver (i) to the Trustee for the benefit of the
Certificateholders funds constituting the remaining portion of such Advance, if
applicable, and (ii) to the Depositor, each Rating Agency and the Trustee an
Officer's Certificate setting forth the basis for such determination.

          (c)  In lieu of making all or a portion of such Advance from its own
funds, the Master Servicer may (i) cause to be made an appropriate entry in its
records relating to the Certificate Account that any Amount Held for Future
Distributions has been used by the Master Servicer in discharge of its
obligation to make any such Advance and (ii) transfer such funds from the
Certificate Account to the Distribution Account. Any funds so applied and
transferred shall be replaced by the Master Servicer by deposit in the
Certificate Account no later than the close of business on the Business Day
immediately preceding the Distribution Date on which such funds are required to
be distributed pursuant to this Agreement. The Master Servicer shall be entitled
to be reimbursed from the Certificate Account for all Advances of its own funds
made pursuant to this Section as provided in Section 3.08. The obligation to
make Advances with respect to any Mortgage Loan shall continue until such
Mortgage Loan is paid in full or becomes a Liquidated Mortgage Loan or until the
purchase or repurchase thereof (or substitution therefor) from the Trustee
pursuant to any applicable provision of this Agreement, except as otherwise
provided in this Section 4.01.

          (d)  If the Master Servicer determines that it will be unable to
comply with its obligation to make the Advances as and when described in
paragraphs (b) and (c) immediately above, it shall use its best efforts to give
written notice thereof to the Trustee (each such notice a "Trustee Advance
Notice"; and such notice may be given by facsimile), not later than 3:00 p.m.,
New York time, on the Business Day immediately preceding the related Master
Servicer Advance Date, specifying the amount that it will be unable to deposit
(each such amount an "Advance Deficiency") and certifying that such Advance
Deficiency constitutes an Advance hereunder and is not a Nonrecoverable Advance.
If the Trustee receives a Trustee Advance Notice on or before 3:30 p.m., (New
York time) on a Master Servicer Advance Date, the Trustee shall, not later than
3:00 p.m., (New York time), on the related Distribution Date, deposit in the
Distribution Account an amount equal to the Advance Deficiency identified in
such Trustee Advance Notice unless it is prohibited from so doing by applicable
law. Notwithstanding the

                                      115
<PAGE>

foregoing, the Trustee shall not be required to make such deposit if the Trustee
shall have received written notification from the Master Servicer that the
Master Servicer has deposited or caused to be deposited in the Certificate
Account an amount equal to such Advance Deficiency. All Advances made by the
Trustee pursuant to this Section 4.01(d) shall accrue interest on behalf of the
Trustee at the Trustee Advance Rate from and including the date such Advances
are made to but excluding the date of repayment, with such interest being an
obligation of the Master Servicer and not the Trust Fund. The Master Servicer
shall reimburse the Trustee for the amount of any Advance made by the Trustee
pursuant to this Section 4.01(d) together with accrued interest, not later than
6:00 p.m. (New York time) on the Business Day following the related Distribution
Date. In the event that the Master Servicer does not reimburse the Trustee in
accordance with the requirements of the preceding sentence, the Trustee shall
immediately (i) terminate all of the rights and obligations of the Master
Servicer under this Agreement in accordance with Section 7.01 and (ii) subject
to the limitations set forth in Section 3.04, assume all of the rights and
obligations of the Master Servicer hereunder.

          (e)  The Master Servicer shall, not later than the close of business
on the second Business Day immediately preceding each Distribution Date, deliver
to the Trustee a report (in form and substance reasonably satisfactory to the
Trustee) that indicates (i) the Mortgage Loans with respect to which the Master
Servicer has determined that the related Scheduled Payments should be advanced
and (ii) the amount of the related Scheduled Payments. The Master Servicer shall
deliver to the Trustee on the related Master Servicer Advance Date an Officer's
Certificate of a Servicing Officer indicating the amount of any proposed Advance
determined by the Master Servicer to be a Nonrecoverable Advance.

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

          In the event that any Mortgage Loan is the subject of a Prepayment
Interest Shortfall, the Master Servicer shall remit any related Compensating
Interest as part of the related Interest Remittance Amount as provided in this
Agreement. The Master Servicer shall not be entitled to any recovery or
reimbursement for Compensating Interest from the Depositor, the Trustee, any
Seller, the Trust Fund or the Certificateholders.

          Section 4.03  [Reserved].

          Section 4.04  Distributions.

          (a)  On each Distribution Date, the Interest Funds for such
Distribution Date shall be distributed by the Trustee from the Distribution
Account in the following order of priority:

               (i) from the Interest Funds for Loan Group 1 and Loan Group 2,
          pro rata based on the Interest Funds for each such Loan Group, to the
          Final Maturity Reserve Fund, the Final Maturity Reserve Deposit with
          respect to such Distribution Date;

               (ii) from the Interest Funds for Loan Group 1 and Loan Group 2,
          pro rata based on the Interest Funds for each such Loan Group, to the
          Swap Account,

                                      116
<PAGE>

          the amount of any Net Swap Payment and any Swap Termination Payment
          (other than a Swap Termination Payment due to a Swap Counterparty
          Trigger Event) payable to the Swap Counterparty with respect to such
          Distribution Date;

               (iii) concurrently:

                    (a) from Interest Funds for Loan Group 1, to the Class 1-A
               Certificates, the Current Interest and Interest Carry Forward
               Amount for such Class and such Distribution Date,

                    (b) from Interest Funds for Loan Group 2, concurrently to
               each Class of Class 2-A Certificates, the Current Interest and
               Interest Carry Forward Amount for each such Class and such
               Distribution Date, pro rata, based on their respective
               entitlements;

               (iv) from the remaining Interest Funds for Loan Group 1 and Loan
          Group 2, concurrently, to each Class of Class A Certificates, any
          remaining Current Interest and Interest Carry Forward Amount not paid
          pursuant to clause (iii)(a) and (iii)(b), pro rata, based on the
          Certificate Principal Balances thereof, to the extent needed to pay
          any Current Interest and Interest Carry Forward Amount for each such
          Class; provided that Interest Funds remaining after such allocation to
          pay any Current Interest and Interest Carry Forward Amount based on
          the Certificate Principal Balances of the Certificates will be
          distributed to each Class of Class A Certificates with respect to
          which there remains any unpaid Current Interest and Interest Carry
          Forward Amount (after the distribution based on Certificate Principal
          Balances), pro rata, based on the amount of such remaining unpaid
          Current Interest and Interest Carry Forward Amount; and

               (v) from the remaining Interest Funds for Loan Group 1 and Loan
          Group 2, sequentially:

                    (a) 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
               and Class B Certificates, in that order, the Current Interest for
               each such Class, and

                    (b) any remainder as part of the Excess Cashflow.

                                      117
<PAGE>

          (b)  On each Distribution Date, the Principal Distribution Amount for
such Distribution Date with respect to Loan Group 1 and Loan Group 2 shall be
distributed by the Trustee from the Distribution Account in the following order
of priority:

               (1)  with respect to any Distribution Date prior to the Stepdown
     Date or on which a Trigger Event is in effect, sequentially:

               (A)  concurrently:

               (i) from the Principal Distribution Amount for Loan Group 1,
          sequentially:

                    (a) to the Class 1-A Certificates, until the Certificate
               Principal Balance thereof is reduced to zero; and

                    (b) to the Classes of Class 2-A Certificates (after the
               distribution of the Principal Distribution Amount from Loan Group
               2 as provided in clause (ii)(a) below), in the order and
               priorities set forth in clause (3) below, until the Certificate
               Principal Balances thereof are reduced to zero;

               (ii) from the Principal Distribution Amount for Loan Group 2,
          sequentially:

                    (a) to the Classes of Class 2-A Certificates, in the order
               and priorities set forth in clause (3) below, until the
               Certificate Principal Balances thereof are reduced to zero; and

                    (b) to the Class 1-A Certificates (after the distribution of
               the Principal Distribution Amount from Loan Group 1 as provided
               in clause (i)(a) above), until the Certificate Principal Balance
               thereof is reduced to zero;

               (B) from the remaining Principal Distribution Amounts for Loan
          Group 1 and Loan Group 2, sequentially:

               (i) 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 and Class B
          Certificates, in that order, in each case until the Certificate
          Principal Balance thereof is reduced to zero; and

               (ii) any remainder as part of the Excess Cashflow.

               (2)  with respect to any Distribution Date on or after the
     Stepdown Date and so long as a Trigger Event is not in effect,
     sequentially:

               (A) in an amount up to the Class A Principal Distribution Target
          Amount, pro rata based on the related Class A Principal Distribution
          Allocation

                                      118
<PAGE>

          Amount for the Class 1-A and Class 2-A Certificates, concurrently: (i)
          to the Class 1-A Certificates, in an amount up to the Class 1-A
          Principal Distribution Amount, until the Certificate Principal Balance
          thereof is reduced to zero; and (ii) to the Classes of Class 2-A
          Certificates in an amount up to the Class 2-A Principal Distribution
          Amount, allocated in the amounts and order of priority set forth in
          clause (3) below, until the Certificate Principal Balances thereof are
          reduced to zero; provided, however, that if (a) the Certificate
          Principal Balance of the Class 1-A Certificates and/or (b) the
          aggregate Certificate Principal Balance of the Class 2-A Certificates
          is reduced to zero, then any remaining unpaid Class A Principal
          Distribution Target Amount will be distributed to the remaining
          classes of Senior Certificates after distributions from clauses (i)
          and (ii) above (and, in the case of the Class 2-A Certificates, in the
          amounts and order of priority described in clause (3) below), until
          the Certificate Principal Balance(s) thereof is/are reduced to zero;

               (B) sequentially, to the Class M-1, Class M-2 and Class M-3
          Certificates, in that order, the Combined Class M-1, M-2 and M-3
          Principal Distribution Amount, until the Certificate Principal
          Balances thereof are reduced to zero;

               (C) sequentially, to the Class M-4, Class M-5, Class M-6, Class
          M-7, Class M-8, Class M-9 and Class B Certificates, in that order, the
          Subordinate Class Principal Distribution Amount for each such Class,
          in each case until the Certificate Principal Balance thereof is
          reduced to zero; and

               (D) any remainder as part of the Excess Cashflow.

               (3)  On each Distribution Date on which any principal amounts are
     to be distributed to the Class 2-A Certificates, such amounts shall be
     distributed sequentially, to the Class 2-A-1, Class 2-A-2, Class 2-A-3 and
     Class 2-A-4 Certificates, in that order, in each case until the Certificate
     Principal Balances thereof are reduced to zero.

          (c)  With respect to any Distribution Date, any Excess Cashflow and,
in the case of clauses (1) and (2) below and in the case of the payment of
Unpaid Realized Loss Amounts pursuant to clause (3) below, any Credit Comeback
Excess Cashflow, shall be distributed in the following order of priority, in
each case first to the extent of the remaining Credit Comeback Excess Cashflow,
if applicable, and second to the extent of the remaining Excess Cashflow:

               (1)  to the Class or Classes of Interest-Bearing Certificates
     then entitled to receive distributions in respect of principal, in an
     aggregate amount equal to the Extra Principal Distribution Amount for each
     Loan Group, payable to each such Class as part of the Principal
     Distribution Amount for Loan Group 1 and Loan Group 2 pursuant to Section
     4.04(b) above;

                                      119
<PAGE>

               (2)  concurrently, to each Class of Class A Certificates, pro
     rata based on the Unpaid Realized Loss Amount for each such Class, in an
     amount equal to the Unpaid Realized Loss Amount for each such Class;

               (3)  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 and Class B
     Certificates, in that order, in each case first in an amount equal to any
     Interest Carry Forward Amount for such Class and then in an amount equal to
     the Unpaid Realized Loss Amount for such Class;

               (4)  to the Carryover Reserve Fund and from the Carryover Reserve
     Fund to each Class of Interest-Bearing Certificates, pro rata based on the
     Certificate Principal Balances thereof, to the extent needed to pay any Net
     Rate Carryover for each such Class; provided that any Excess Cashflow
     remaining after such allocation to pay Net Rate Carryover based on the
     Certificate Principal Balances of those Classes shall be distributed to
     each Class of Interest-Bearing Certificates with respect to which there
     remains any unpaid Net Rate Carryover (after the distribution based on the
     Certificate Principal Balances), pro rata, based on the amount of such
     unpaid Net Rate Carryover;

               (5)  to the Carryover Reserve Fund, in an amount equal to the
     Required Carryover Reserve Fund Deposit (after giving effect to other
     deposits and withdrawals therefrom on such Distribution Date);

               (6)  if the Final Maturity OC Trigger is in effect, sequentially,
     in the following order of priority:

               (i) to the Classes of Class A Certificates, pro rata, based on
          the Class 1-A Principal Distribution Amount (in the case of clause
          (x)) and the Class 2-A Principal Distribution Amount (in the case of
          clause (y)), concurrently: (x) to the Class 1-A Certificates, until
          the Certificate Principal Balance thereof is reduced to zero, and (y)
          sequentially, to the Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class
          2-A-4 Certificates, in that order, in each case, until the Certificate
          Principal Balance thereof is reduced to zero; provided, however, that
          any amounts remaining after such allocation based on the Class 1-A
          Principal Distribution Amount and the Class 2-A Principal Distribution
          Amount will be distributed to the outstanding Class 1-A Certificates
          or the outstanding Classes of Class 2-A Certificates, as the case may
          be, pursuant to clause (x) or clause (y), as the case may be; and

               (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 and Class B
          Certificates, in that order, in each case until the Certificate
          Principal Balance thereof is reduced to zero;

               (7)  to the Swap Account, in an amount equal to any Swap
     Termination Payment due to the Swap Counterparty as a result of a Swap
     Counterparty Trigger Event;

                                      120
<PAGE>

               (8)  to the Class C Certificates, the Class C Distributable
     Amount for such Distribution Date; and

               (9)  to the Class A-R Certificates, any remaining amount.

          (d)  On each Distribution Date on or prior to the Swap Contract
Termination Date, following the deposits to the Swap Account pursuant to Section
4.04(a)(ii) and Section 4.09 and the distributions described under Section
4.04(c), the Swap Trustee shall distribute amounts on deposit in the Swap
Account in the following amounts and order of priority:

               (1)  to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Net Swap Payment payable to the Swap Counterparty with
     respect to such Distribution Date;

               (2)  to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Swap Termination Payment (other than a Swap Termination
     Payment due to a Swap Counterparty Trigger Event) payable to the Swap
     Counterparty with respect to such Distribution Date;

               (3)  concurrently, to each Class of Class A Certificates, any
     remaining Current Interest and Interest Carry Forward Amount, pro rata
     based on their respective entitlements;

               (4)  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 and Class B
     Certificates, in that order, in each case in an amount equal to any
     remaining Current Interest and Interest Carry Forward Amount for such
     Class;

               (5)  to the Class or Classes of Interest-Bearing Certificates
     then entitled to receive distributions in respect of principal, in an
     aggregate amount equal to the Overcollateralization Deficiency Amount
     remaining unpaid following the distributions described under Section
     4.04(c), payable to such Classes in the same manner in which the Extra
     Principal Distribution Amount in respect of Loan Group 1 and Loan Group 2
     would be distributed to such Classes as described under Section 4.04(c);

               (6)  concurrently, to each Class of Interest-Bearing
     Certificates, to the extent needed to pay any remaining Net Rate Carryover
     for each such Class, pro rata, based on the amount of such remaining Net
     Rate Carryover;

               (7) concurrently, to each Class of Class A Certificates, pro
     rata, based on the remaining Unpaid Realized Loss Amount for each such
     Class, in an amount equal to the remaining Unpaid Realized Loss Amount for
     each such Class;

               (8)  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 and Class B
     Certificates, in that order, in each case in an amount equal to the
     remaining Unpaid Realized Loss Amount for each such Class; and

                                      121
<PAGE>

               (9)  to the Swap Contract Administrator for payment to the Swap
     Counterparty, any Swap Termination Payment due to a Swap Counterparty
     Trigger Event payable to the Swap Counterparty with respect to such
     Distribution Date.

          (e)  To the extent that a Class of Interest-Bearing Certificates
receives interest in excess of the applicable Net Rate Cap, if such interest is
paid pursuant to Section 4.04(c), then it shall be deemed to have been paid to
the Carryover Reserve Fund and then paid by the Carryover Reserve Fund to those
Certificateholders, and if such interest is paid pursuant to Section 4.04(d),
then such interest shall be deemed to have been paid to the Swap Account and
then paid by the Swap Account to those Certificateholders. For purposes of the
Code, amounts deemed deposited in the Carryover Reserve Fund shall be deemed to
have first been distributed to the Class C Certificates.

          (f)  On each Distribution Date, all Prepayment Charges and Master
Servicer Prepayment Charge Payment Amounts shall be distributed to the Class P
Certificates. On the Class P Principal Distribution Date, the Trustee shall make
the $100.00 distribution to the Class P Certificates as specified in Section
3.08.

          (g)  On each Distribution Date, the Trustee shall allocate any Applied
Realized Loss Amount to reduce the Certificate Principal Balances of the Class
B, Class M-9, Class M-8, Class M-7, Class M-6, Class M-5, Class M-4, Class M-3,
Class M-2 and Class M-1 Certificates, sequentially, in that order, in each case
until the Certificate Principal Balance thereof is reduced to zero. After the
Certificate Principal Balances of the Subordinate Certificates have been reduced
to zero, (i) the Trustee shall allocate any Applied Realized Loss Amount with
respect to Loan Group 1 to reduce the Certificate Principal Balance of the Class
1-A Certificates, until the Certificate Principal Balance of such Class has been
reduced to zero, and (ii) the Trustee shall allocate any Applied Realized Loss
Amount with respect to Loan Group 2 to reduce the Certificate Principal Balances
of each Class of Class 2-A Certificates, on a pro rata basis according to their
respective Certificate Principal Balances, until the Certificate Principal
Balances of such Classes have been reduced to zero.

          (h)  On each Distribution Date, the Trustee shall allocate the amount
of the Subsequent Recoveries with respect to either Loan Group, if any, first to
increase the Certificate Principal Balance of the Class 1-A Certificates (in the
case of any Subsequent Recoveries with respect to Loan Group 1) or the
Certificate Principal Balances of the Classes of Class 2-A Certificates (in the
case of any Subsequent Recoveries with respect to Loan Group 2) to which Applied
Realized Loss Amounts have been previously allocated (such increases, in the
case of Subsequent Recoveries with respect to Loan Group 2, to be made among the
Classes of Class 2-A Certificates on a pro rata basis according to their
respective Certificate Principal Balances), in each case by not more than the
amount of the Unpaid Realized Loss Amount of such Class, and then to increase
the Certificate Principal Balance of the Subordinate Certificates to which
Applied Realized Loss Amounts have been previously allocated, 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 and Class B Certificates, in that order, in each case by
not more than the amount of the Unpaid Realized Loss Amount of such Class.

                                      122
<PAGE>

          Holders of Certificates to which any Subsequent Recoveries have been
allocated shall 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.

          Subject to Section 9.02 hereof respecting the final distribution, on
each Distribution Date the Trustee shall make distributions to each
Certificateholder of record on the preceding Record Date either by wire transfer
in immediately available funds to the account of such Holder at a bank or other
entity having appropriate facilities therefor, if (i) such Holder has so
notified the Trustee at least five Business Days prior to the related Record
Date and (ii) such Holder shall hold Regular Certificates with an aggregate
initial Certificate Principal Balance of not less than $1,000,000 or evidencing
a Percentage Interest aggregating 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 9.02 hereof respecting the final
distribution, distributions with respect to Certificates registered in the name
of a Depository shall be made to such Depository in immediately available funds.

          On or before 5:00 p.m. Pacific time on the fifth Business Day
following each Determination Date (but in no event later than 5:00 p.m. Pacific
time on the third Business Day before the related Distribution Date), the Master
Servicer shall deliver a report to the Trustee (in the form of a computer
readable magnetic tape or by such other means as the Master Servicer and the
Trustee may agree from time to time) containing such data and information as
agreed to by the Master Servicer and the Trustee (including, without limitation,
the actual mortgage rate for each Credit Comeback Loan) such as to permit the
Trustee to prepare the Monthly Statement and make the required distributions for
the related Distribution Date (the "Remittance Report"). The Trustee shall not
be responsible to recompute, recalculate or verify information provided to it by
the Master Servicer and shall be permitted to conclusively rely on any
information provided to it by the Master Servicer.

          (i)  On the earlier of (i) the Distribution Date in December 2036 and
(ii) the termination of this Agreement pursuant to Section 9.01, after giving
effect to the distribution of all available funds, all amounts on deposit in the
Final Maturity Reserve Fund will be distributed in the following order of
priority:

               (1)  to the Classes of Class A Certificates, pro rata, based on
     the Class 1-A Principal Distribution Amount (in the case of clause (x)) and
     the Class 2-A Principal Distribution Amount (in the case of clause (y)),
     concurrently: (x) to the Class 1-A Certificates, until the Certificate
     Principal Balance thereof is reduced to zero, and (y) sequentially, to the
     Class 2-A-1, Class 2-A-2, Class 2-A-3 and Class 2-A-4 Certificates, in that
     order, in each case, until the Certificate Principal Balance thereof is
     reduced to zero; provided, however, that any amounts remaining after such
     allocation based on the Class 1-A Principal Distribution Amount and the
     Class 2-A Principal Distribution Amount will be distributed to the
     outstanding Class 1-A Certificates or the outstanding Classes of Class 2-A
     Certificates, as the case may be, pursuant to clause (x) or clause (y), as
     the case may be; and

                                      123
<PAGE>

               (2)  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 and Class B
     Certificates, in that order, until the Certificate Principal Balances
     thereof are reduced to zero; and

               (3)  to the Class C Certificates, all remaining amounts.

          Section 4.05  Monthly Statements to Certificateholders.

          (a)  Concurrently with each distribution on a Distribution Date, the
Trustee will forward by mail to each Rating Agency and make available to
Certificateholders on the Trustee's website
(http://www.bnyinvestorreporting.com) a statement generally setting forth the
information contained in Exhibit W.

          (b)  The Trustee's responsibility for disbursing the above information
to the Certificateholders is limited to the availability, timeliness and
accuracy of the information derived from the Master Servicer. The Trustee shall
send a copy of each statement provided pursuant to this Section 4.05 to each
Rating Agency and the NIM Insurer. The Trustee may make the above information
available to Certificateholders via the Trustee's website at
http://www.bnyinvestorreporting.com.

          (c)  Within a reasonable period of time after the end of each calendar
year, the Trustee shall cause to be furnished to each Person who at any time
during the calendar year was a Certificateholder, a statement containing the
information regarding (i) the amount of distributions to that Certificateholder
allocable to principal, separately identifying (A) the aggregate amount of any
Principal Prepayments included therein and (B) the aggregate of all scheduled
payments of principal included therein, (ii) the amount of distributions to that
Certificateholder allocable to interest and (iii) the related amount of the
Servicing Fees paid to or retained by the Master Servicer, in each case
aggregated for such calendar year or applicable portion thereof during which
such Person was a Certificateholder. Such obligation of the Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Trustee pursuant to any requirements of the
Code as from time to time in effect.

          (d)  Upon filing with the Internal Revenue Service, the Trustee shall
furnish to the Holders of the Class A-R Certificates the Form 1066 and each Form
1066Q and shall respond promptly to written requests made not more frequently
than quarterly by any Holder of Class A-R Certificates with respect to the
following matters:

               (1)  The original projected principal and interest cash flows on
     the Closing Date on each related Class of regular and residual interests
     created hereunder and on the Mortgage Loans, based on the Prepayment
     Assumption;

               (2)  The projected remaining principal and interest cash flows as
     of the end of any calendar quarter with respect to each related Class of
     regular and residual interests created hereunder and the Mortgage Loans,
     based on the Prepayment Assumption;

                                      124
<PAGE>

               (3)  The applicable Prepayment Assumption and any interest rate
     assumptions used in determining the projected principal and interest cash
     flows described above;

               (4)  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 related 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;

               (5)  The treatment of losses realized with respect to the
     Mortgage Loans or the regular interests created hereunder, including the
     timing and amount of any cancellation of indebtedness income of the related
     REMIC with respect to such regular interests or bad debt deductions claimed
     with respect to the Mortgage Loans;

               (6)  The amount and timing of any non-interest expenses of the
     related REMIC; and

               (7)  Any taxes (including penalties and interest) imposed on the
     related 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 (1), (2), (3)and (4) above shall
be provided by the Depositor pursuant to Section 8.11.

          Section 4.06  Termination of a Mortgage Insurance Policy.

          If on any given date the rating of Mortgage Guaranty Insurance
Corporation's claims-paying ability is downgraded below and remains below "AA-"
from S&P or "Aa3" from Moody's, the Master Servicer may direct the Co-Trustee to
terminate the Mortgage Insurance Policy issued by Mortgage Guaranty Insurance
Corporation and the Co-Trustee shall act in accordance with such direction. The
Master Servicer hereby covenants and agrees that it will not direct the
Co-Trustee to exercise its right to terminate such Mortgage Insurance Policy
unless the Co-Trustee obtains a mortgage insurance policy that meets the
following conditions: (i) such mortgage insurance policy must be issued by a
mortgage insurer that has a rating with respect to its claims-paying ability at
or above "AA " from S&P or "Aa3" from Moody's and (ii) such mortgage insurance
policy must cover the related Covered Mortgage Loans outstanding as of such
date.

          In addition, if during the period which the Depositor is required to
file Exchange Act Reports with respect to the Trust Fund, either (a) Mortgage
Guaranty Insurance Corporation shall fail to provide to CHL any information
required to be provided pursuant to Section 2(b) of the Item 1114 Agreement,
dated as of November 7, 2006, between CHL, the Depositor, CWMBS, Inc., CWALT,
Inc., CWHEQ, Inc. and Mortgage Guaranty Insurance Corporation, within the time
period required by such agreement, or (b) United Guaranty Mortgage Indemnity
Company shall fail to provide to CHL any information reasonably requested by CHL
for the purposes of compliance with Item 1114 of Regulation AB, then the
Co-Trustee shall act at the written direction of the Depositor as to whether to
terminate the applicable Mortgage Insurance

                                      125
<PAGE>

Policy; provided, however, that the Co-Trustee shall provide written notice to
each Rating Agency of any such termination. Upon the termination of such
Mortgage Insurance Policy under the circumstances contemplated by this
paragraph, CHL shall assist the Co-Trustee in procuring a replacement mortgage
insurance policy that meets the criteria for a replacement mortgage insurance
policy specified in the preceding paragraph.

          Section 4.07  Carryover Reserve Fund.

          (a)  On the Closing Date, the Trustee shall establish and maintain in
its name, in trust for the benefit of the Holders of the Certificates, the
Carryover Reserve Fund and shall deposit $1,000 therein. The Carryover Reserve
Fund shall be an Eligible Account, and funds on deposit therein shall be held
separate and apart from, and shall not be commingled with, any other moneys,
including without limitation, other moneys held by the Trustee pursuant to this
Agreement.

          (b)  The Trustee shall make withdrawals from the Carryover Reserve
Fund to make distributions in respect of Net Rate Carryover as to the extent
required by Section 4.04.

          (c)  The Carryover Reserve Fund shall not constitute an asset of any
REMIC created hereunder. The Class C Certificates shall evidence ownership of
the Carryover Reserve Fund for federal tax purposes.

          (d)  Funds in the Carryover Reserve Fund shall be invested by the
Trustee in The Bank of New York cash reserves. All investments shall be made in
the name of the Trustee, for the benefit of the Holders of the Interest-Bearing
Certificates. Any net investment earnings on such amounts shall be retained
therein until withdrawn as provided in Section 3.08.

          Section 4.08  Credit Comeback Excess Account.

          On the Closing Date, the Trustee shall establish and maintain in its
name, in trust for the benefit of the Certificateholders, the Credit Comeback
Excess Account. The Credit Comeback Excess Account shall be an Eligible Account,
and funds on deposit therein shall be held separate and apart from, and shall
not be commingled with, any other moneys, including without limitation, other
moneys held by the Trustee pursuant to this Agreement.

          On each Distribution Date, the Trustee shall deposit all Credit
Comeback Excess Amounts in the Credit Comeback Excess Account. The Trustee shall
make withdrawals from the Credit Comeback Excess Account to make distributions
as and to the extent required by Section 4.04.

          Funds in the Credit Comeback Excess Account with respect to Loan Group
1 and Loan Group 2 may be invested in Permitted Investments at the written
direction of the Majority Holder of the Class C Certificates, which Permitted
Investments shall mature not later than the Business Day immediately preceding
the first Distribution Date that follows the date of such investment (except
that if such Permitted Investment is an obligation of the institution that
maintains the Credit Comeback Excess Account, then such Permitted Investment
shall mature not later than such Distribution Date) and shall not be sold or
disposed of prior to maturity. All such Permitted Investments shall be made in
the name of the Trustee, for the benefit of the

                                      126
<PAGE>

Certificateholders. In the absence of such written direction, all funds in the
Credit Comeback Excess Account shall be invested by the Trustee in The Bank of
New York cash reserves. Any net investment earnings on amounts in the Credit
Comeback Excess Account with respect to Loan Group 1 and Loan Group 2 shall be
payable pro rata to the Holders of the Class C Certificates in accordance with
their Percentage Interests. Any losses incurred in the Credit Comeback Excess
Account in respect of any such investments shall be charged against amounts on
deposit in the Credit Comeback Excess Account (or such investments) immediately
as realized.

          The Trustee shall not be liable for the amount of any loss incurred in
respect of any investment or lack of investment of funds held in the Credit
Comeback Excess Account and made in accordance with this Section 4.08. The
Credit Comeback Excess Account shall not constitute an asset of any REMIC
created hereunder. The Class C Certificates shall evidence ownership of the
Credit Comeback Excess Account for federal tax purposes.

          Section 4.09  Swap Trust and Swap Account.

          On the Closing Date, there is hereby established a separate trust (the
"Swap Trust"), the assets of which shall consist of the Trustee's rights and
obligations under the Swap Contract Administration Agreement. The Swap Trust
shall be maintained by the Swap Trustee, who initially, shall be the Trustee.
The Swap Trustee shall hold the assets of the Swap Trust in trust for the
benefit of the Holders of the Interest-Bearing Certificates and the Swap
Counterparty. No later than the Closing Date, the Swap Trustee shall establish
and maintain a separate, segregated trust account to be held in the Swap Trust,
titled, "Swap Account, The Bank of New York, as Swap Trustee, in trust for the
Swap Counterparty and the registered holders of CWABS, Inc., Asset-Backed
Certificates, Series 2006-26." Such account shall be an Eligible Account and
funds on deposit therein shall be held separate and apart from, and shall not be
commingled with, any other moneys, including, without limitation, other moneys
of the Trustee held pursuant to this Agreement. Amounts therein shall be held
uninvested. Funds on deposit in the Swap Account shall be distributed in the
amounts and in the order of priority described under Section 4.04(d). For
federal income tax purposes, the Swap Trust, including the Swap Account, shall
be owned by the Class C Certificates.

          On each Distribution Date, the Trustee shall make a deposit to the
Swap Account pursuant to Section 4.04(a)(ii), and to the extent that the amount
of such deposit is insufficient to pay any Net Swap Payment and/or Swap
Termination Payment (other than a Swap Termination Payment due to a Swap
Counterparty Trigger Event) due to the Swap Counterparty with respect to such
Distribution Date, the Trustee shall withdraw, out of amounts on deposit in the
Distribution Account in respect of the Principal Remittance Amount for Loan
Group 1 and Loan Group 2, pro rata on the basis of those respective Principal
Remittance Amounts, such additional amount as is necessary to cover the
remaining portion of any such Net Swap Payment and/or Swap Termination Payment
(other than a Swap Termination Payment due to a Swap Counterparty Trigger Event)
due to the Swap Counterparty with respect to such Distribution Date.

                                      127
<PAGE>

          Section 4.10  Final Maturity Reserve Trust and Final Maturity Reserve
                        Fund.

          (a)  On the Closing Date, there is hereby established a separate trust
(the "Final Maturity Reserve Trust"), the assets of which shall consist of the
Final Maturity Reserve Fund.

          (b)  On the Closing Date, the Final Maturity Reserve Trustee shall
establish and maintain in its name, in trust for the benefit of the Holders of
the Interest-Bearing Certificates, the Final Maturity Reserve Fund and shall
deposit $1,000 therein upon receipt from or on behalf of the Depositor of such
amount. The Final Maturity Reserve Fund shall be an Eligible Account, and funds
on deposit therein shall be held separate and apart from, and shall not be
commingled with, any other moneys, including without limitation, other moneys
held by the Trustee pursuant to this Agreement. The Final Maturity Reserve Fund
shall not constitute an asset of the Trust Fund or any REMIC created hereunder.

          The Final Maturity Reserve Trustee shall make deposits to and
withdrawals from the Final Maturity Reserve Fund as specified in Section 4.04.

          Funds in the Final Maturity Reserve Fund may be invested in Permitted
Investments at the direction of the Holders of the Class C Certificates, which
Permitted Investments shall mature not later than the Business Day immediately
preceding the first Distribution Date that follows the date of such investment
(except that if such Permitted Investment is an obligation of the institution
that maintains the Final Maturity Reserve Fund, then such Permitted Investment
shall mature not later than such Distribution Date) and shall not be sold or
disposed of prior to maturity. All such Permitted Investments shall be made in
the name of the Final Maturity Reserve Trustee, for the benefit of the Holders
of the Certificates. In the absence of such written direction, all funds in the
Final Maturity Reserve Fund shall be invested by the Final Maturity Reserve
Trustee in The Bank of New York cash reserves. Any net investment earnings on
such amounts shall be retained therein until withdrawn as provided in Section
3.08. Any losses incurred in the Final Maturity Reserve Fund in respect of any
such investments shall be charged against amounts on deposit in the Final
Maturity Reserve Fund (or such investments) immediately as realized. The Final
Maturity Reserve Trustee shall not be liable for the amount of any loss incurred
in respect of any investment or lack of investment of funds held in the Final
Maturity Reserve Fund and made in accordance with this Section 4.10.

          The Final Maturity Reserve Trustee may withhold from the amounts
withdrawn from the Final Maturity Reserve Fund pursuant to Section 4.04 the
amount of any taxes that it is authorized to retain pursuant to the third
paragraph of Section 8.11. In addition, the Final Maturity Reserve Trustee may
from time to time make withdrawals from the Final Maturity Reserve Fund for the
following purposes:

          (i)  to withdraw any amount deposited in the Final Maturity Reserve
Fund and not required to be deposited therein; and

          (ii) to clear and terminate the Final Maturity Reserve Fund upon the
termination of this Agreement pursuant to Section 9.01.

                                      128
<PAGE>

                                   ARTICLE V.
                                THE CERTIFICATES

          Section 5.01  The Certificates.

          The Certificates shall be substantially in the forms attached hereto
as Exhibits A-1 through A-15, Exhibit B, Exhibit C, Exhibit D and Exhibit E. The
Certificates shall be issuable in registered form, in the minimum dollar
denominations, integral dollar multiples in excess thereof and aggregate dollar
denominations as set forth in the following table:

                                             Integral              Original
                                            Multiples            Certificate
                        Minimum             in Excess             Principal
    Class            Denomination           of Minimum             Balance
--------------------------------------------------------------------------------
     1-A                $20,000                 $1              $ 449,571,000
    2-A-1               $20,000                 $1              $ 218,331,000
    2-A-2               $20,000                 $1              $  76,956,000
    2-A-3               $20,000                 $1              $ 164,548,000
    2-A-4               $20,000                 $1              $  64,394,000
     M-1                $20,000                 $1              $  49,200,000
     M-2                $20,000                 $1              $  48,600,000
     M-3                $20,000                 $1              $  14,400,000
     M-4                $20,000                 $1              $  19,200,000
     M-5                $20,000                 $1              $  15,600,000
     M-6                $20,000                 $1              $  12,000,000
     M-7                $20,000                 $1              $  15,000,000
     M-8                $20,000                 $1              $   7,800,000
     M-9                $20,000                 $1              $  12,000,000
      B                $100,000                 $1              $  11,400,000
     A-R               $99.95(1)                N/A             $         100
      C                   N/A                   N/A                       N/A
      P                   N/A                   N/A             $         100

(1)  The Tax Matters Person Certificate may be issued in a denomination of
     $0.05.

          The Certificates shall be executed by manual or facsimile signature on
behalf of the Trustee by an authorized officer. Certificates bearing the manual
or facsimile signatures of individuals who were, at the time when such
signatures were affixed, authorized to sign on behalf of the Trustee shall bind
the Trustee, notwithstanding that such individuals or any of them have ceased to
be so authorized prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such authentication and delivery. No
Certificate shall be entitled to any benefit under this Agreement, or be valid
for any purpose, unless there appears on such Certificate a certificate of
authentication substantially in the form set forth as attached hereto executed
by the Trustee by manual signature, and such certificate of authentication upon
any Certificate shall be conclusive evidence, and the only evidence, that such
Certificate has been duly authenticated and delivered hereunder. All
Certificates shall be dated the date of their authentication. On the Closing
Date, the Trustee shall authenticate the Certificates to be issued at the
written direction of the Depositor, or any affiliate thereof.

                                      129
<PAGE>

          The Depositor shall provide, or cause to be provided, to the Trustee
on a continuous basis, an adequate inventory of Certificates to facilitate
transfers.

          Section 5.02  Certificate Register; Registration of Transfer and
                        Exchange of Certificates.

          (a)  The Trustee shall maintain a Certificate Register for the Trust
Fund in which, subject to the provisions of subsections (b) and (c) below and to
such reasonable regulations as it may prescribe, the Trustee shall provide for
the registration of Certificates and of Transfers and exchanges of Certificates
as herein provided. Upon surrender for registration of Transfer of any
Certificate, the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Certificates of the same
Class and of like aggregate Percentage Interest.

          At the option of a Certificateholder, Certificates may be exchanged
for other Certificates of the same Class in authorized denominations and
evidencing the same aggregate Percentage Interest upon surrender of the
Certificates to be exchanged at the office or agency of the Trustee. Whenever
any Certificates are so surrendered for exchange, the Trustee shall execute,
authenticate, and deliver the Certificates that the Certificateholder making the
exchange is entitled to receive. Every Certificate presented or surrendered for
registration of Transfer or exchange shall be accompanied by a written
instrument of Transfer in form satisfactory to the Trustee duly executed by the
Holder thereof or his attorney duly authorized in writing.

          No service charge to the Certificateholders shall be made for any
registration of Transfer or exchange of Certificates, but payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in
connection with any Transfer or exchange of Certificates may be required.

          All Certificates surrendered for registration of Transfer or exchange
shall be canceled and subsequently destroyed by the Trustee in accordance with
the Trustee's customary procedures.

          (b)  No Transfer of a Private Certificate shall be made unless such
Transfer is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or is exempt from the
registration requirements under the Securities Act and such state securities
laws. In the event that a transfer is to be made in reliance upon an exemption
from the Securities Act and such state securities laws, in order to assure
compliance with the Securities Act and such state securities laws, the
Certificateholder desiring to effect such Transfer and such Certificateholder's
prospective transferee shall (except in connection with any transfer of a
Private Certificate to an affiliate of the Depositor (either directly or through
a nominee) in connection with the initial issuance of the Certificates) each
certify to the Trustee in writing the facts surrounding the Transfer in
substantially the form set forth in Exhibit J-2 (a "Transferor Certificate") and
(i) deliver a letter in substantially the form of either Exhibit K (in the case
of the Class P and Class C Certificates and in the case of a Class B Certificate
that after the proposed transfer will be a Definitive Certificate) (the
"Investment Letter") or Exhibit L (in the case of any Private Certificate) (the
"Rule 144A Letter") or (ii) there shall be delivered to the Trustee at the
expense of the Certificateholder desiring to effect such transfer an Opinion of

                                      130
<PAGE>

Counsel that such Transfer may be made pursuant to an exemption from the
Securities Act; provided, however, that in the case of the delivery of an
Investment Letter in connection with the transfer of any Class C or Class P
Certificate to a transferee that is formed with the purpose of issuing notes
backed by such Class C or Class P Certificate, as the case may be, clause (b)
and (c) of the form of Investment Letter shall not be applicable and shall be
deleted by such transferee. 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 Co-Trustee, the Trustee and
the Master Servicer shall cooperate with the Depositor in providing the Rule
144A information referenced in the preceding sentence, including providing to
the Depositor such information regarding the Certificates, the Mortgage Loans
and other matters regarding the Trust Fund as the Depositor shall reasonably
request to meet its obligation under the preceding sentence. Each Holder of a
Private Certificate desiring to effect such Transfer shall, and does hereby
agree to, indemnify the Co-Trustee, the Trustee, the Depositor, the Trust Fund,
each Seller, the Master Servicer and the NIM Insurer 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 beneficial interest in any Class B Certificate that is a Book-Entry
Certificate may be held by any Person that is not a Qualified Institutional
Buyer. Notwithstanding the foregoing, a beneficial interest in a Class B
Certificate that is a Book-Entry Certificate may be transferred by any
Certificate Owner holding such interest to any Institutional Accredited Investor
(other than a Qualified Institutional Buyer) that takes delivery in the form of
a Definitive Certificate upon delivery to the Trustee of (i) such certifications
and/or opinions as are contemplated by the first paragraph of this Section
5.02(b) and (ii) such written orders and instructions as are required under the
applicable procedures of the Depository to direct the Trustee to debit the
account of a Depository Participant by the denomination of the transferred
interests in such Book-Entry Certificate. Upon delivery to the Trustee of the
certifications and/or opinions contemplated by the first paragraph of this
Section 5.02(b), the Trustee, subject to and in accordance with the applicable
procedures of the Depository, shall reduce the denomination of the subject
Book-Entry Certificate by the denomination of the transferred interests in such
Book-Entry Certificate, and shall cause a Definitive Certificate of the same
Class as such Book-Entry Certificate, and in a denomination equal to the
reduction in the denomination of such Book-Entry Certificate, to be executed,
authenticated and delivered in accordance with this Agreement to the applicable
transferee. Also notwithstanding the foregoing, any Class B Certificate that is
a Definitive Certificate may be transferred by any Certificateholder holding
such Certificate to any Qualified Institutional Buyer that takes delivery in the
form of a beneficial interest in a Book-Entry Certificate upon delivery to the
Trustee of (i) such certifications and/or opinions as are contemplated by the
first paragraph of this Section 5.02(b) and (ii) such written orders and
instructions as are required under the applicable procedures of the Depository
to direct the Trustee to credit the account of a Depository Participant by the
denomination of the transferred interests in such Class B Certificate. Upon
delivery to the Trustee of the Definitive Certificate to be transferred and the
certifications and/or opinions contemplated by the first paragraph of this
Section 5.02(b), the Trustee, subject to and in accordance with the applicable
procedures of the Depository, shall increase the denomination of the existing
Book-Entry Certificate for the Class

                                      131
<PAGE>

B Certificates by the denomination of the transferred interests in such
Definitive Certificate, shall instruct the Depository to credit the account of
the applicable Depository Participant, and shall cause the subject Definitive
Certificate to be cancelled.

          No Transfer of an ERISA-Restricted Certificate (other than a transfer
of an ERISA-Restricted Certificate to an affiliate of the Depositor (either
directly or through a nominee) in connection with the initial issuance of the
Certificates) shall be made unless the Trustee shall have received either (i) a
written representation from the transferee of such Certificate acceptable to and
in form and substance satisfactory to the Trustee (in the event such Certificate
is a Private Certificate, such requirement is satisfied only by the Trustee's
receipt of a representation letter from the transferee substantially in the form
of Exhibit K or Exhibit L, or in the event such Certificate is a Residual
Certificate, such requirement is satisfied only by the Trustee's receipt of a
representation letter from the transferee substantially in the form of Exhibit
I), to the effect that (x) such transferee is not a Plan, or (y) in the case of
an ERISA-Restricted Certificate that has been the subject of an ERISA-Qualifying
Underwriting, a representation that the transferee is an insurance company which
is purchasing such Certificate with funds contained in an "insurance company
general account" (as such term is defined in section V(e) of Prohibited
Transaction Class Exemption 95-60 ("PTCE 95-60")) and that the purchase and
holding of such Certificate satisfy the requirements for exemptive relief under
Sections I and III of PTCE 95-60 or (ii) in the case of any ERISA-Restricted
Certificate presented for registration in the name of an employee benefit plan
or arrangement subject to ERISA, or a plan or arrangement subject to Section
4975 of the Code (or comparable provisions of any subsequent enactments), or a
trustee of any such plan or arrangement or any other person acting on behalf of
any such plan or arrangement, an Opinion of Counsel satisfactory to the Trustee,
addressed to the Trustee and the Master Servicer, to the effect that the
purchase and holding of such ERISA-Restricted Certificate will not result in a
non-exempt prohibited transaction under ERISA or the Code and will not subject
the Trustee or the Master Servicer to any obligation in addition to those
expressly undertaken in this Agreement, which Opinion of Counsel shall not be an
expense of the Trustee, the Master Servicer, or the Trust Fund. For purposes of
the preceding sentence, one of such representations, as appropriate, shall be
deemed to have been made to the Trustee by the transferee's acceptance of an
ERISA-Restricted Certificate (or the acceptance by a Certificate Owner of the
beneficial interest in any such Class of ERISA-Restricted Certificates) unless
the Trustee shall have received from the transferee an Opinion of Counsel as
described in clause (ii) or a written representation acceptable in form and
substance to the Trustee. Notwithstanding anything else to the contrary herein,
any purported transfer of an ERISA-Restricted Certificate to or on behalf of an
employee benefit plan subject to Section 406 of ERISA or a plan subject to
Section 4975 of the Code without the delivery to the Trustee of an Opinion of
Counsel satisfactory to the Trustee meeting the requirements of clause (i) of
the first sentence of this paragraph as described above shall be void and of no
effect. The Trustee shall be under no liability to any Person for any
registration of transfer of any ERISA-Restricted Certificate that is in fact not
permitted by this Section 5.02(b) or for making any payments due on such
Certificate to the Holder thereof or taking any other action with respect to
such Holder under the provisions of this Agreement so long as the Trustee, with
respect to the transfer of such Classes of Certificates, required delivery of
such certificates and other documentation or evidence as are expressly required
by the terms of this Agreement and examined such certificates and other
documentation or evidence to determine compliance as to form with the express
requirements hereof. The Trustee shall be entitled, but not obligated, to
recover from any Holder of any

                                      132
<PAGE>

ERISA-Restricted Certificate that was in fact an employee benefit plan or
arrangement subject to Section 406 of ERISA or a plan or arrangement subject to
Section 4975 of the Code or a Person acting on behalf of any such plan or
arrangement at the time it became a Holder or, at such subsequent time as it
became such a plan or arrangement or Person acting on behalf of such a plan or
arrangement, all payments made on such ERISA-Restricted Certificate at and after
either such time. Any such payments so recovered by the Trustee shall be paid
and delivered by the Trustee to the last preceding Holder of such Certificate
that is not such a plan or arrangement or Person acting on behalf of a plan or
arrangement.

          Until the Swap Trust and the Final Maturity Reserve Fund terminate, no
transfer of an Interest-Bearing Certificate that is not an ERISA-Restricted
Certificate (other than a transfer of an Interest-Bearing Certificate to an
affiliate of the Depositor (either directly or through a nominee) in connection
with the initial issuance of the Certificates) shall be made unless the Trustee
shall have received either (i) a written representation from the transferee of
such Interest-Bearing Certificate acceptable to and in form and substance
satisfactory to the Trustee to the effect that such transferee is not a Plan, or
(ii) a written representation that the purchase and holding of the
Interest-Bearing Certificate satisfy the requirements for exemptive relief under
PTCE 84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23, the service provider
exemption provided under Section 408(b)(17) of ERISA and Section 4975(d)(20) of
the Code or a similar exemption. In the event that such representation is not
delivered, one of the foregoing representations, as appropriate, shall be deemed
to have been made by the transferee's (including an initial acquiror's)
acceptance of the Interest-Bearing Certificate. In the event that such
representation is violated, such transfer or acquisition shall be void and of no
effect.

          Each Plan that acquires a Private Certificate (or any beneficial
interest therein) that is not an ERISA-Restricted Certificate will be required
to deliver to the Trustee or its transferor a representation that it is an
"accredited investor" as defined in Rule 501(a)(1) under the Securities Act, and
each investor that acquires a Private Certificate (or any beneficial interest
therein) that is not an ERISA-Restricted Certificate will be required to deliver
to the Trustee or its transferor an agreement to obtain from its transferee such
a representation and agreement. For purposes of the preceding sentence, any
investor acquiring a Private Certificate (or any beneficial interest therein)
that is not an ERISA-Restricted Certificate shall be deemed to have made to the
Trustee or its transferor the representation and agreement set forth in the
preceding sentence by the transferee's acceptance of such Certificate (or
beneficial interest therein).

          (c)  Each Person who has or who acquires any Ownership Interest in a
Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

               (1)  Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall be a Permitted Transferee and shall promptly
     notify the Trustee of any change or impending change in its status as a
     Permitted Transferee.

               (2)  Except in connection with (i) the registration of the Tax
     Matters Person Certificate in the name of the Trustee or (ii) any
     registration in the name of, or transfer of a Class A-R Certificate to, an
     affiliate of the Depositor (either directly or

                                      133
<PAGE>

     through a nominee) in connection with the initial issuance of the
     Certificates, no Ownership Interest in a Class A-R Certificate may be
     registered or transferred, and the Trustee shall not register the Transfer
     of any Class A-R Certificate, unless the Trustee shall have been furnished
     with a certificate (a "Transferor Certificate") of the transferor in the
     form attached hereto as Exhibit J-1 and an affidavit (a "Transfer
     Affidavit") of the initial owner or the proposed transferee in the form
     attached hereto as Exhibit I.

               (3)  Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class A-R Certificate, (B) to obtain a Transfer Affidavit
     from any Person for whom such Person is acting as nominee, trustee or agent
     in connection with any Transfer of a Class A-R Certificate and (C) not to
     Transfer its Ownership Interest in a Class A-R Certificate, or to cause the
     Transfer of an Ownership Interest in a Class A-R Certificate to any other
     Person, if it has actual knowledge that such Person is not a Permitted
     Transferee or that such Transfer Affidavit is false.

               (4)  Any attempted or purported Transfer of any Ownership
     Interest in a Class A-R Certificate in violation of the provisions of this
     Section 5.02(c) shall be absolutely null and void and shall vest no rights
     in the purported Transferee. If any purported transferee shall become a
     Holder of a Class A-R Certificate in violation of the provisions of this
     Section 5.02(c), then the last preceding Permitted Transferee shall be
     restored to all rights as Holder thereof retroactive to the date of
     registration of Transfer of such Class A-R Certificate. The Trustee shall
     be under no liability to any Person for any registration of Transfer of a
     Class A-R Certificate that is in fact not permitted by Section 5.02(b) and
     this Section 5.02(c) or for making any payments due on such Certificate to
     the Holder thereof or taking any other action with respect to such Holder
     under the provisions of this Agreement so long as the Transfer was
     registered after receipt of the related Transfer Affidavit and Transferor
     Certificate. The Trustee shall be entitled but not obligated to recover
     from any Holder of a Class A-R Certificate that was in fact not a Permitted
     Transferee at the time it became a Holder or, at such subsequent time as it
     became other than a Permitted Transferee, all payments made on such Class
     A-R Certificate at and after either such time. Any such payments so
     recovered by the Trustee shall be paid and delivered by the Trustee to the
     last preceding Permitted Transferee of such Certificate.

               (5)  The Master Servicer shall use its best efforts to make
     available, upon receipt of written request from the Trustee, all
     information necessary to compute any tax imposed under section 860E(e) of
     the Code as a result of a Transfer of an Ownership Interest in a Class A-R
     Certificate to any Holder who is not a Permitted Transferee.

          The restrictions on Transfers of a Class A-R Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Class A-R Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trustee, any Seller or the Master
Servicer, to the effect that the elimination of such restrictions will not cause
any REMIC

                                      134
<PAGE>

formed hereunder to fail to qualify as a REMIC at any time that the Certificates
are outstanding or result in the imposition of any tax on the Trust Fund, a
Certificateholder or another Person. Each Person holding or acquiring any
Ownership Interest in a Class A-R Certificate, by acceptance of its Ownership
Interest, shall be deemed to consent to any amendment of this Agreement that,
based on an Opinion of Counsel furnished to the Trustee, is reasonably necessary
(a) to ensure that the record ownership of, or any beneficial interest in, a
Class A-R Certificate is not transferred, directly or indirectly, to a Person
that is not a Permitted Transferee and (b) to provide for a means to compel the
Transfer of a Class A-R Certificate that is held by a Person that is not a
Permitted Transferee to a Holder that is a Permitted Transferee.

          (d)  The preparation and delivery of all affidavits, certifications
and opinions referred to above in this Section 5.02 shall not be an expense of
the Trust Fund, the Trustee, the Depositor, any Seller or the Master Servicer.

          Section 5.03  Mutilated, Destroyed, Lost or Stolen Certificates.

          If (a) any mutilated Certificate is surrendered to the Trustee, or the
Trustee receives evidence to its satisfaction of the destruction, loss or theft
of any Certificate and of the ownership thereof and (b) there is delivered to
the Master Servicer and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Trustee that such Certificate has been acquired by a bona fide purchaser,
the Trustee shall execute, authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like Class, tenor and Percentage Interest. In connection with the issuance of
any new Certificate under this Section 5.03, the Trustee may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and
expenses of the Trustee) connected therewith. Any replacement Certificate issued
pursuant to this Section 5.03 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 Trustee under the terms of this Section 5.03
shall be canceled and destroyed by the Trustee in accordance with its standard
procedures without liability on its part.

          Section 5.04  Persons Deemed Owners.

          The Master Servicer, the Trustee, the NIM Insurer and any agent of the
Master Servicer, the Trustee or the NIM Insurer 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 Master Servicer, the Trustee, the NIM
Insurer or any agent of the Master Servicer, the Trustee or the NIM Insurer
shall be affected by any notice to the contrary.

          Section 5.05  Access to List of Certificateholders' Names and
                        Addresses.

          If three or more Certificateholders or Certificate Owners (a) request
such information in writing from the Trustee, (b) state that such
Certificateholders or Certificate Owners desire to communicate with other
Certificateholders or Certificate Owners with respect

                                      135
<PAGE>

to their rights under this Agreement or under the Certificates and (c) provide a
copy of the communication that such Certificateholders or Certificate Owners
propose to transmit or if the Depositor or Master Servicer shall request such
information in writing from the Trustee, then the Trustee shall, within ten
Business Days after the receipt of such request, provide the Depositor, the
Master Servicer or such Certificateholders or Certificate Owners at such
recipients' expense the most recent list of the Certificateholders of the Trust
Fund held by the Trustee, if any. The Depositor and every Certificateholder or
Certificate Owner, by receiving and holding a Certificate, agree that the
Trustee shall not be held accountable by reason of the disclosure of any such
information as to the list of the Certificateholders hereunder, regardless of
the source from which such information was derived.

          Section 5.06  Book-Entry Certificates.

          The Book-Entry Certificates, upon original issuance, shall be issued
in the form of one typewritten Certificate (or more than one, if required by the
Depository) for each Class of such 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 5.08. Unless and until definitive, fully
registered Certificates ("Definitive Certificates") have been issued to the
Certificate Owners of such Certificates pursuant to Section 5.08:

          (a)  the provisions of this Section shall be in full force and effect;

          (b)  the Depositor, the Sellers, the Master Servicer and the Trustee
may deal with the Depository and the Depository Participants for all purposes
(including the making of distributions) as the authorized representative of the
respective Certificate Owners of such Certificates;

          (c)  registration of the Book-Entry Certificates may not be
transferred by the Trustee except to another Depository;

          (d)  the rights of the respective Certificate Owners of such
Certificates shall be exercised only through the Depository and the Depository
Participants and shall be limited to 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 5.08, the Depository will make
book-entry transfers among the Depository Participants and receive and transmit
distributions of principal and interest on the related Certificates to such
Depository Participants;

          (e)  the Depository may collect its usual and customary fees, charges
and expenses from its Depository Participants;

          (f)  the Trustee may rely and shall be fully protected in relying upon
information furnished by the Depository with respect to its Depository
Participants; and

          (g)  to the extent the provisions of this Section conflict with any
other provisions of this Agreement, the provisions of this Section shall
control.

                                      136
<PAGE>

          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 (or, in the case of the Class
B Certificates, by Certificate Owners (acting through the Depository and the
Depository Participants) owning Book-Entry Certificates and by
Certificateholders (other than the Depository) owning Definitive Certificates).

          Section 5.07  Notices to Depository.

          Whenever any notice or other communication is required to be given to
Certificateholders of any Class with respect to which Book-Entry Certificates
have been issued, unless and until Definitive Certificates shall have been
issued to the related Certificate Owners, the Trustee shall give all such
notices and communications to the Depository.

          Section 5.08  Definitive Certificates.

          If, after Book-Entry Certificates have been issued with respect to any
Certificates, (a) the Depositor advises the Trustee that the Depository is no
longer willing or able to discharge properly its responsibilities under the
Depository Agreement with respect to such Certificates and the Trustee or the
Depositor is unable to locate a qualified successor or (b) after the occurrence
and continuation of an Event of Default, Certificate Owners of such Book-Entry
Certificates having not less than 51% of the Voting Rights evidenced by any
Class of Book-Entry Certificates advise the Trustee and the Depository in
writing through the Depository Participants that the continuation of a
book-entry system with respect to Certificates of such Class through the
Depository (or its successor) is no longer in the best interests of the
Certificate Owners of such Class, then the Trustee shall notify all Certificate
Owners of such Certificates, through the Depository, of the occurrence of any
such event and of the availability of Definitive Certificates to Certificate
Owners of such Class requesting the same. The Depositor shall provide the
Trustee with an adequate inventory of Certificates to facilitate the issuance
and transfer of Definitive Certificates. Upon surrender to the Trustee of any
such Certificates by the Depository, accompanied by registration instructions
from the Depository for registration, the Trustee shall authenticate and deliver
such Definitive Certificates. Neither the Depositor nor the Trustee shall be
liable for any delay in delivery of such instructions and each may conclusively
rely on, and shall be protected in relying on, such instructions. Upon the
issuance of such Definitive Certificates, all references herein to obligations
imposed upon or to be performed by the Depository shall be deemed to be imposed
upon and performed by the Trustee, to the extent applicable with respect to such
Definitive Certificates and the Trustee shall recognize the Holders of such
Definitive Certificates as Certificateholders hereunder.

          Section 5.09  Maintenance of Office or Agency.

          The Trustee will maintain or cause to be maintained at its expense an
office or offices or agency or agencies in New York City where Certificates may
be surrendered for registration of transfer or exchange. The Trustee initially
designates its offices at 101 Barclay

                                      137
<PAGE>

Street, New York, New York 10286, Attention: Corporate Trust MBS Administration,
as offices for such purposes. The Trustee will give prompt written notice to the
Certificateholders of any change in such location of any such office or agency.

                                   ARTICLE VI.
               THE DEPOSITOR, THE MASTER SERVICER AND THE SELLERS

          Section 6.01  Respective Liabilities of the Depositor, the Master
                        Servicer and the Sellers.

          The Depositor, the Master Servicer and each Seller shall each be
liable in accordance herewith only to the extent of the obligations specifically
and respectively imposed upon and undertaken by them herein.

          Section 6.02  Merger or Consolidation of the Depositor, the Master
                        Servicer or the Sellers.

          The Depositor will keep in full effect its existence, rights and
franchises as a corporation under the laws of the United States or under the
laws of one of the states thereof and will each obtain and preserve its
qualification to do business as a foreign corporation in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, or any of the Mortgage Loans and to perform
its duties under this Agreement. The Master Servicer will keep in effect its
existence, rights and franchises as a limited partnership under the laws of the
United States or under the laws of one of the states thereof and will obtain and
preserve its qualification or registration to do business as a foreign
partnership in each jurisdiction in which such qualification or registration is
or shall be necessary to protect the validity and enforceability of this
Agreement or any of the Mortgage Loans and to perform its duties under this
Agreement.

          Any Person into which the Depositor, the Master Servicer or any Seller
may be merged or consolidated, or any Person resulting from any merger or
consolidation to which the Depositor, the Master Servicer or any Seller shall be
a party, or any person succeeding to the business of the Depositor, the Master
Servicer or any Seller, shall be the successor of the Depositor, the Master
Servicer or such Seller, as the case may be, hereunder, without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
anything herein to the contrary notwithstanding; provided that the successor or
surviving Person to the Master Servicer shall be qualified to service mortgage
loans on behalf of Fannie Mae and Freddie Mac.

          As a condition to the effectiveness of any merger or consolidation, at
least 15 calendar days prior to the effective date of any merger or
consolidation of the Master Servicer, the Master Servicer shall provide (x)
written notice to the Depositor of any successor pursuant to this Section and
(y) in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
a replacement Master Servicer.

                                      138
<PAGE>

          Section 6.03  Limitation on Liability of the Depositor, the Sellers,
                        the Master Servicer, the NIM Insurer and Others.

          None of the Depositor, the Sellers, the NIM Insurer or the Master
Servicer or any of the directors, officers, employees or agents of the
Depositor, the Sellers, the NIM Insurer or the Master Servicer shall be under
any liability to the Trustee (except as provided in Section 8.05), the Trust
Fund or the Certificateholders for any action taken or for refraining from the
taking of any action in good faith pursuant to this Agreement, or for errors in
judgment; provided that this provision shall not protect the Depositor, the
Sellers, the Master Servicer or any such Person against any breach of
representations or warranties made by it herein or protect the Depositor, the
Sellers, the Master Servicer or any such Person from any liability that would
otherwise be imposed by reasons of willful misfeasance, bad faith or gross
negligence in the performance of duties or by reason of reckless disregard of
obligations and duties hereunder. The Depositor, the Sellers, the NIM Insurer,
the Master Servicer and any director, officer, employee or agent of the
Depositor, the Sellers, the NIM Insurer or 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. The Depositor, the Sellers,
the NIM Insurer, the Master Servicer and any director, officer, employee or
agent of the Depositor, the Sellers, the NIM Insurer or the Master Servicer
shall be indemnified by the Trust Fund and held harmless against any loss,
liability or expense incurred in connection with any audit, controversy or
judicial proceeding relating to a governmental taxing authority or any legal
action relating to this Agreement or the Certificates, other than any loss,
liability or expense related to any specific Mortgage Loan or Mortgage Loans
(except as any such loss, liability or expense shall be otherwise reimbursable
pursuant to this Agreement) and any loss, liability or expense incurred by
reason of willful misfeasance, bad faith or gross negligence in the performance
of duties hereunder or by reason of reckless disregard of obligations and duties
hereunder. None of the Depositor, the Sellers, the NIM Insurer or the Master
Servicer shall be under any obligation to appear in, prosecute or defend any
legal action that is not incidental to its respective duties hereunder and that
in its opinion may involve it in any expense or liability; provided that any of
the Depositor, the Sellers, the NIM Insurer or the Master Servicer may, in its
discretion undertake any such action that it may deem necessary or desirable in
respect of this Agreement and the rights and duties of the parties hereto and
interests of the Trustee and the Certificateholders hereunder. In such event,
the legal expenses and costs of such action and any liability resulting
therefrom shall be, expenses, costs and liabilities of the Trust Fund, and the
Depositor, the Sellers, the NIM Insurer and the Master Servicer shall be
entitled to be reimbursed therefor out of the Certificate Account as provided by
Section 3.08 hereof.

          Section 6.04  Limitation on Resignation of Master Servicer.

          The Master Servicer shall not resign from the obligations and duties
hereby imposed on it except (i) upon determination that its duties hereunder are
no longer permissible under applicable law or (ii) upon appointment of a
successor servicer that is reasonably acceptable to the Trustee and the NIM
Insurer and the written confirmation from each Rating Agency (which confirmation
shall be furnished to the Depositor, the Trustee and the NIM Insurer) that such
resignation will not cause such Rating Agency to reduce the then-current rating
of the Certificates. Any such determination pursuant to clause (i) of the
preceding sentence permitting the resignation of the Master Servicer shall be
evidenced by an Opinion of Counsel to

                                      139
<PAGE>

such effect delivered to the Trustee. No resignation of the Master Servicer
shall become effective until the Trustee 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 and the Depositor shall have received the information described in the
following sentence. As a condition to the effectiveness of any such resignation,
at least 15 calendar days prior to the effective date of such resignation, the
Master Servicer shall provide (x) written notice to the Depositor of any
successor pursuant to this Section and (y) in writing and in form and substance
reasonably satisfactory to the Depositor, all information reasonably requested
by the Depositor in order to comply with its reporting obligation under Item
6.02 of Form 8-K with respect to the resignation of the Master Servicer.

          Section 6.05  Errors and Omissions Insurance; Fidelity Bonds.

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

          The Master Servicer shall provide the Trustee and the NIM Insurer
(upon such party's reasonable request) with copies of any such insurance
policies and fidelity bond. The Master Servicer shall be deemed to have complied
with this provision if an Affiliate of the Master Servicer has such errors and
omissions and fidelity bond coverage and, by the terms of such insurance policy
or fidelity bond, the coverage afforded thereunder extends to the Master
Servicer.

                                  ARTICLE VII.
                     DEFAULT; TERMINATION OF MASTER SERVICER

          Section 7.01  Events of Default.

          "Event of Default," wherever used herein, means any one of the
following events:

               (1)  any failure by the Master Servicer to deposit in the
     Certificate Account or the Distribution Account or remit to the Trustee any
     payment (excluding a payment required to be made under Section 4.01 hereof)
     required to be made under the terms of this Agreement, which failure shall
     continue unremedied for five calendar days and, with respect to a payment
     required to be made under Section 4.01(b) or (c) hereof, for one Business
     Day, after the date on which written notice of such failure shall have been
     given to the Master Servicer by the Trustee, the NIM Insurer or the
     Depositor, or to the Trustee, the NIM Insurer and the Master Servicer by
     the Holders of Certificates evidencing not less than 25% of the Voting
     Rights; or

                                      140
<PAGE>

               (2)  any failure by the Master Servicer to observe or perform in
     any material respect any other of the covenants or agreements on the part
     of the Master Servicer contained in this Agreement (except with respect to
     a failure related to a Limited Exchange Act Reporting Obligation) or any
     representation or warranty shall prove to be untrue, which failure or
     breach shall continue unremedied for a period of 60 days after the date on
     which written notice of such failure shall have been given to the Master
     Servicer by the Trustee, the NIM Insurer or the Depositor, or to the
     Trustee by the Holders of Certificates evidencing not less than 25% of the
     Voting Rights; provided, that the sixty-day cure period shall not apply to
     the initial delivery of the Mortgage File for Delay Delivery Mortgage Loans
     or the failure to repurchase or substitute in lieu thereof; or

               (3)  a decree or order of a court or agency or supervisory
     authority having jurisdiction in the premises for the appointment of a
     receiver or liquidator in any insolvency, readjustment of debt, marshalling
     of assets and liabilities or similar proceedings, or for the winding-up or
     liquidation of its affairs, shall have been entered against the Master
     Servicer and such decree or order shall have remained in force undischarged
     or unstayed for a period of 60 consecutive days; or

               (4)  the Master Servicer shall consent to the appointment of a
     receiver or liquidator in any insolvency, readjustment of debt, marshalling
     of assets and liabilities or similar proceedings of or relating to the
     Master Servicer or all or substantially all of the property of the Master
     Servicer; or

               (5)  the Master Servicer shall admit in writing its inability to
     pay its debts generally as they become due, file a petition to take
     advantage of, or commence a voluntary case under, any applicable insolvency
     or reorganization statute, make an assignment for the benefit of its
     creditors, or voluntarily suspend payment of its obligations; or

               (6)  the Master Servicer shall fail to reimburse in full the
     Trustee not later than 6:00 p.m. (New York time) on the Business Day
     following the related Distribution Date for any Advance made by the Trustee
     pursuant to Section 4.01(d) together with accrued and unpaid interest.

          If an Event of Default shall occur, then, and in each and every such
case, so long as such Event of Default shall not have been remedied, the Trustee
shall, but only at the direction of either the NIM Insurer or the Holders of
Certificates evidencing not less than 25% of the Voting Rights, by notice in
writing to the Master Servicer (with a copy to each Rating Agency and the
Depositor), terminate all of the rights and obligations of the Master Servicer
under this Agreement and in and to the Mortgage Loans and the proceeds thereof,
other than its rights as a Certificateholder hereunder. In addition, if during
the period that the Depositor is required to file Exchange Act Reports with
respect to the Trust Fund, the Master Servicer shall fail to observe or perform
any of the obligations that constitute a Limited Exchange Act Reporting
Obligation or the obligations set forth in Section 3.17(a) or Section
11.07(a)(1) and (2), and such failure continues for the lesser of 10 calendar
days or such period in which the applicable Exchange Act Report can be filed
timely (without taking into account any extensions), so long as such failure

                                      141
<PAGE>

shall not have been remedied, the Trustee shall, but only at the direction of
the Depositor, terminate all of the rights and obligations of the Master
Servicer under this Agreement and in and to the Mortgage Loans and the proceeds
thereof, other than its rights as a Certificateholder hereunder. The Depositor
shall not be entitled to terminate the rights and obligations of the Master
Servicer if a failure of the Master Servicer to identify a Subcontractor
"participating in the servicing function" within the meaning of Item 1122 of
Regulation AB was attributable solely to the role or functions of such
Subcontractor with respect to mortgage loans other than the Mortgage Loans.

          On or after the receipt by the Master Servicer of such written notice,
all authority and power of the Master Servicer hereunder, whether with respect
to the Mortgage Loans or otherwise, shall pass to and be vested in the Trustee.
The Trustee shall thereupon make any Advance described in Section 4.01 hereof
subject to Section 3.04 hereof. The Trustee is hereby authorized and empowered
to execute and deliver, on behalf of the Master Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement or
assignment of the Mortgage Loans and related documents, or otherwise. Unless
expressly provided in such written notice, no such termination shall affect any
obligation of the Master Servicer to pay amounts owed pursuant to Article VIII.
The Master Servicer agrees to cooperate with the Trustee in effecting the
termination of the Master Servicer's responsibilities and rights hereunder,
including, without limitation, the transfer to the Trustee of all cash amounts
which shall at the time be credited to the Certificate Account, or thereafter be
received with respect to the Mortgage Loans. The Trustee shall promptly notify
the Rating Agencies and the Depositor of the occurrence of an Event of Default.

          Notwithstanding any termination of the activities of a Master Servicer
hereunder, such Master Servicer shall be entitled to receive, out of any late
collection of a Scheduled Payment on a Mortgage Loan that was due prior to the
notice terminating such Master Servicer's rights and obligations as Master
Servicer hereunder and received after such notice, that portion thereof to which
such Master Servicer would have been entitled pursuant to Sections 3.08(a)(i)
through (viii), and any other amounts payable to such Master Servicer hereunder
the entitlement to which arose prior to the termination of its activities
hereunder.

          If the Master Servicer is terminated, the Trustee shall provide the
Depositor in writing and in form and substance reasonably satisfactory to the
Depositor, all information reasonably requested by the Depositor in order to
comply with its reporting obligation under Item 6.02 of Form 8-K with respect to
a successor master servicer in the event the Trustee should succeed to the
duties of the Master Servicer as set forth herein.

          Section 7.02  Trustee to Act; Appointment of Successor.

          On and after the time the Master Servicer receives a notice of
termination pursuant to Section 7.01 hereof, the Trustee shall, to the extent
provided in Section 3.04, be the successor to the Master Servicer in its
capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties and
liabilities relating thereto placed on the Master Servicer by the terms and
provisions hereof

                                      142
<PAGE>

and applicable law including the obligation to make advances pursuant to Section
4.01. As compensation therefor, the Trustee shall be entitled to all fees, costs
and expenses relating to the Mortgage Loans that the Master Servicer would have
been entitled to if the Master Servicer had continued to act hereunder.
Notwithstanding the foregoing, if the Trustee has become the successor to the
Master Servicer in accordance with Section 7.01 hereof, the Trustee may, if it
shall be unwilling to so act, or shall, if it is prohibited by applicable law
from making Advances pursuant to Section 4.01 hereof or if it is otherwise
unable to so act, (i) appoint any established mortgage loan servicing
institution reasonably acceptable to the NIM Insurer (as evidenced by the prior
written consent of the NIM Insurer), or (ii) if it is unable for 60 days to
appoint a successor servicer reasonably acceptable to the NIM Insurer, 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 and the NIM Insurer guaranteed notes
(without giving any effect to any policy or guaranty provided by the NIM
Insurer) by each Rating Agency as the successor to the Master Servicer hereunder
in the assumption of all or any part of the responsibilities, duties or
liabilities of the Master Servicer hereunder. Any successor Master Servicer
shall be an institution that is a Fannie Mae and Freddie Mac approved
seller/servicer in good standing, that has been approved by each Mortgage
Insurer if required, that has a net worth of at least $15,000,000 and that is
willing to service the Mortgage Loans and executes and delivers to the Depositor
and the Trustee an agreement accepting such delegation and assignment, that
contains an assumption by such Person of the rights, powers, duties,
responsibilities, obligations and liabilities of the Master Servicer (other than
liabilities and indemnities of the Master Servicer under Section 6.03 hereof
incurred prior to termination of the Master Servicer under Section 7.01), with
like effect as if originally named as a party to this Agreement; and provided
further that each Rating Agency acknowledges that its rating of the Certificates
in effect immediately prior to such assignment and delegation will not be
qualified or reduced as a result of such assignment and delegation. No
appointment of a successor to the Master Servicer hereunder shall be effective
until (i) the Trustee shall have consented thereto, (ii) written notice of such
proposed appointment shall have been provided by the Trustee to each
Certificateholder and (iii) at least 15 calendar days prior to the effective
date of such appointment, (x) the Trustee shall provide written notice to the
Depositor of such successor pursuant to this Section 7.02 and (y) such successor
Master Servicer shall provide to the Depositor in writing and in form and
substance reasonably satisfactory to the Depositor, all information reasonably
requested by the Depositor in order to comply with its reporting obligation
under Item 6.02 of Form 8-K with respect to a replacement master servicer. The
Trustee shall not resign as servicer until a successor servicer has been
appointed and has accepted such appointment. Pending appointment of a successor
to the Master Servicer hereunder, the Trustee, unless the Trustee is prohibited
by law from so acting, shall, subject to Section 3.04 hereof, act in such
capacity as herein above provided. In connection with such appointment and
assumption, the Trustee may make such arrangements for the compensation of such
successor out of payments on Mortgage Loans as it and such successor shall
agree; provided that no such compensation shall be in excess of that permitted
the Master Servicer hereunder. The Trustee and such successor shall take such
action, consistent with this Agreement, as shall be necessary to effectuate any
such succession. Neither the Trustee nor any other successor 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

                                      143
<PAGE>

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.

          Any successor to the Master Servicer as servicer shall give notice to
the NIM Insurer and the Mortgagors of such change of servicer and shall, during
the term of its service as servicer maintain in force the policy or policies
that the Master Servicer is required to maintain pursuant to Section 6.05.

          In connection with the termination or resignation of the Master
Servicer hereunder, either (i) the successor Master Servicer, including the
Trustee if the Trustee is acting as successor Master Servicer, shall represent
and warrant that it is a member of MERS in good standing and shall agree to
comply in all material respects with the rules and procedures of MERS in
connection with the servicing of the Mortgage Loans that are registered with
MERS, or (ii) the predecessor Master Servicer shall cooperate with the successor
Master Servicer in causing MERS to execute and deliver an assignment of Mortgage
in recordable form to transfer the Mortgage from MERS to the Trustee and to
execute and deliver such other notices, documents and other instruments as may
be necessary or desirable to effect a transfer of such Mortgage Loan or
servicing of such Mortgage Loan on the MERS(R) System to the successor Master
Servicer. The predecessor Master Servicer shall file or cause to be filed any
such assignment in the appropriate recording office. The successor Master
Servicer shall cause such assignment to be delivered to the Trustee promptly
upon receipt of the original with evidence of recording thereon or a copy
certified by the public recording office in which such assignment was recorded.

          Section 7.03  Notification to Certificateholders.

          (a)  Upon any termination of or appointment of a successor to the
Master Servicer, the Trustee shall give prompt written notice thereof to
Certificateholders and to each Rating Agency.

          (b)  Within 60 days after the occurrence of any Event of Default, the
Trustee shall transmit by mail to all Certificateholders notice of each such
Event of Default hereunder known to the Trustee, unless such Event of Default
shall have been cured or waived.

                                  ARTICLE VIII.
                    CONCERNING THE TRUSTEE AND THE CO-TRUSTEE

          Section 8.01  Duties of Trustee.

          The Trustee, prior to the occurrence of an Event of Default and after
the curing of all Events of Default that may have occurred, shall undertake to
perform such duties and only such duties as are specifically set forth in this
Agreement. In case an Event of Default has occurred and remains uncured, the
Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
such person's own affairs.

                                      144
<PAGE>

          The Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Trustee (or the Co-Trustee, to the extent provided in this Agreement)
that 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, to the extent provided in this Agreement. If any
such instrument is found not to conform to the requirements of this Agreement in
a material manner, the Trustee shall take action as it deems appropriate to have
the instrument corrected.

          No provision of this Agreement shall be construed to relieve the
Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure to
perform its obligations in compliance with this Agreement, or any liability that
would be imposed by reason of its willful misfeasance or bad faith; provided
that:

               (1)  prior to the occurrence of an Event of Default, and after
     the curing of all such Events of Default that may have occurred, the duties
     and obligations of the Trustee shall be determined solely by the express
     provisions of this Agreement, the Trustee shall not be liable, individually
     or as Trustee, except for the performance of such duties and obligations as
     are specifically set forth in this Agreement, no implied covenants or
     obligations shall be read into this Agreement against the Trustee and the
     Trustee may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon any certificates or
     opinions furnished to the Trustee and conforming to the requirements of
     this Agreement that it reasonably believed in good faith to be genuine and
     to have been duly executed by the proper authorities respecting any matters
     arising hereunder;

               (2)  the Trustee shall not be liable, individually or as Trustee,
     for an error of judgment made in good faith by a Responsible Officer or
     Responsible Officers of the Trustee, unless the Trustee was grossly
     negligent or acted in bad faith or with willful misfeasance;

               (3)  the Trustee shall not be liable, individually or as Trustee,
     with respect to any action taken, suffered or omitted to be taken by it in
     good faith in accordance with the direction of the Holders of each Class of
     Certificates evidencing not less than 25% of the Voting Rights of such
     Class relating to the time, method and place of conducting any proceeding
     for any remedy available to the Trustee, or exercising any trust or power
     conferred upon the Trustee under this Agreement; and

               (4)  without in any way limiting the provisions of this Section
     8.01 or Section 8.02 hereof, the Trustee shall be entitled to rely
     conclusively on the information delivered to it by the Master Servicer in a
     Trustee Advance Notice in determining whether or not it is required to make
     an Advance under Section 4.01(d), shall have no responsibility to ascertain
     or confirm any information contained in any Trustee Advance Notice, and
     shall have no obligation to make any Advance under Section 4.01(d) in the
     absence of a Trustee Advance Notice or actual knowledge by a Responsible
     Officer that (A) a required Advance was not made and (B) such required
     Advance was not a Nonrecoverable Advance.

                                      145
<PAGE>

          The Trustee hereby represents, warrants, covenants and agrees that,
except as permitted by Article IX hereof, it shall not cause the Trust Fund to
consolidate or amalgamate with, or merge with or into, or transfer all or
substantially all of the Trust Fund to, another Person.

          Section 8.02  Certain Matters Affecting the Trustee.

          (a)  Except as otherwise provided in Section 8.01:

               (1)  the Trustee may request and rely upon and shall be protected
     in acting or refraining from acting upon any resolution, Officer's
     Certificate, certificate of auditors or any other certificate, statement,
     instrument, opinion, report, notice, request, consent, order, appraisal,
     bond or other paper or document believed by it to be genuine and to have
     been signed or presented by the proper party or parties;

               (2)  the Trustee may consult with counsel and any Opinion of
     Counsel shall be full and complete authorization and protection in respect
     of any action taken or suffered or omitted by it hereunder in good faith
     and in accordance with such Opinion of Counsel;

               (3)  the Trustee shall not be liable, individually or as Trustee,
     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;

               (4)  prior to the occurrence of an Event of Default hereunder and
     after the curing of all Events of Default that may have occurred, the
     Trustee shall not be bound to make any investigation into the facts or
     matters stated in any resolution, certificate, statement, instrument,
     opinion, report, notice, request, consent, order, approval, bond or other
     paper or document, unless requested in writing so to do by the NIM Insurer
     or the Holders of each Class of Certificates evidencing not less than 25%
     of the Voting Rights of such Class; provided, however, that if the payment
     within a reasonable time to the Trustee of the costs, expenses or
     liabilities likely to be incurred by it in the making of such investigation
     is, in the opinion of the Trustee not reasonably assured to the Trustee by
     the NIM Insurer or such Certificateholders, the Trustee may require
     reasonable indemnity against such expense, or liability from the NIM
     Insurer or such Certificateholders as a condition to taking any such
     action;

               (5)  the Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents, accountants or attorneys;

               (6)  the Trustee shall not be required to expend its own funds or
     otherwise incur any financial liability in the performance of any of its
     duties hereunder if it shall have reasonable grounds for believing that
     repayment of such funds or adequate indemnity against such liability is not
     assured to it;

                                      146
<PAGE>

               (7)  the Trustee shall not be liable, individually or as Trustee,
     for any loss on any investment of funds pursuant to this Agreement (other
     than as issuer of the investment security);

               (8)  the Trustee shall not be deemed to have knowledge of an
     Event of Default until a Responsible Officer of the Trustee shall have
     received written notice thereof; and

               (9)  the Trustee shall be under no obligation to exercise any of
     the trusts or powers vested in it by this Agreement or to make any
     investigation of matters arising hereunder or to institute, conduct or
     defend any litigation hereunder or in relation hereto at the request, order
     or direction of the NIM Insurer or any of the Certificateholders, pursuant
     to the provisions of this Agreement, unless the NIM Insurer or such
     Certificateholders, as applicable, shall have offered to the Trustee
     reasonable security or indemnity against the costs, expenses and
     liabilities that may be incurred therein or thereby.

          (b)  All rights of action under this Agreement or under any of the
Certificates, enforceable by the Trustee, may be enforced by the Trustee without
the possession of any of the Certificates, or the production thereof at the
trial or other proceeding relating thereto, and any such suit, action or
proceeding instituted by the Trustee shall be brought in its name for the
benefit of all the Holders of the Certificates, subject to the provisions of
this Agreement.

          The Depositor hereby directs the Trustee to execute, deliver and
perform its obligations under the Swap Contract Administration Agreement (in its
capacity as Swap Trustee). The Sellers, the Depositor, the Master Servicer and
the Holders of the Interest-Bearing Certificates by their acceptance of such
Certificates acknowledge and agree that the Trustee shall execute, deliver and
perform its obligations under the Swap Contract Administration Agreement and
shall do so solely in its capacity as Swap Trustee, as the case may be, and not
in its individual capacity. Every provision of this Agreement relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall apply to the Trustee's execution of the Swap Contract Administration
Agreement in its capacity as Swap Trustee, and the performance of its duties and
satisfaction of its obligations thereunder.

          Section 8.03  Trustee Not Liable for Mortgage Loans.

          The recitals contained herein shall be taken as the statements of the
Depositor or the Master Servicer, as the case may be, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Agreement or of any Mortgage Loan or related
document or of MERS or the MERS(R) System other than with respect to the
Trustee's execution and authentication of the Certificates. The Trustee shall
not be accountable for the use or application by the Depositor or the Master
Servicer of any funds paid to the Depositor or the Master Servicer in respect of
the Mortgage Loans or deposited in or withdrawn from the Certificate Account by
the Depositor or the Master Servicer.

                                      147
<PAGE>

          Section 8.04  Trustee May Own Certificates.

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Certificates with the same rights as it would have if it
were not the Trustee.

          Section 8.05  Master Servicer to Pay Trustee's Fees and Expenses.

          The Master Servicer covenants and agrees to pay or reimburse the
Trustee, upon its request, for all reasonable expenses, disbursements and
advances incurred or made by the Trustee on behalf of the Trust Fund in
accordance with any of the provisions of this Agreement (including, without
limitation: (A) the reasonable compensation and the expenses and disbursements
of its counsel, but only for representation of the Trustee acting in its
capacity as Trustee hereunder and (B) to the extent that the Trustee must engage
persons not regularly in its employ to perform acts or services on behalf of the
Trust Fund, which acts or services are not in the ordinary course of the duties
of a trustee, paying agent or certificate registrar, in the absence of a breach
or default by any party hereto, the reasonable compensation, expenses and
disbursements of such persons, except any such expense, disbursement or advance
as may arise from its negligence, bad faith or willful misconduct). The Trustee
and any director, officer, employee or agent of the Trustee shall be indemnified
by the Master Servicer and held harmless against any loss, liability or expense
(i) incurred in connection with any legal action relating to this Agreement or
the Certificates, or in connection with the performance of any of the Trustee's
duties hereunder, other than any loss, liability or expense incurred by reason
of willful misfeasance, bad faith or negligence in the performance of any of the
Trustee's duties hereunder or by reason of reckless disregard of the Trustee's
obligations and duties hereunder or (ii) resulting from any error in any tax or
information return prepared by the Master Servicer. Such indemnity shall survive
the termination of this Agreement or the resignation or removal of the Trustee
hereunder.

          Section 8.06  Eligibility Requirements for Trustee.

          The Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000, subject
to supervision or examination by federal or state authority and with a credit
rating that would not cause any of the Rating Agencies to reduce their
respective ratings of any Class of Certificates below the ratings issued on the
Closing Date (or having provided such security from time to time as is
sufficient to avoid such reduction). If such corporation or association
publishes reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section 8.06 the combined capital and surplus of such
corporation or association shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 8.06, the Trustee shall resign immediately in the
manner and with the effect specified in Section 8.07 hereof. The corporation or
national banking association serving as Trustee may have normal banking and
trust relationships with the Depositor, the Sellers and the Master Servicer and
their respective affiliates; provided that such corporation cannot be an

                                      148
<PAGE>

affiliate of the Master Servicer other than the Trustee in its role as successor
to the Master Servicer.

          Section 8.07  Resignation and Removal of Trustee.

          The Trustee may at any time resign and be discharged from the trusts
hereby created by (1) giving written notice of resignation to the Depositor and
the Master Servicer and by mailing notice of resignation by first class mail,
postage prepaid, to the Certificateholders at their addresses appearing on the
Certificate Register and each Rating Agency, not less than 60 days before the
date specified in such notice when, subject to Section 8.08, such resignation is
to take effect, and (2) acceptance of appointment by a successor trustee in
accordance with Section 8.08 and meeting the qualifications set forth in Section
8.06. If no successor trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice or resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor trustee.

          As a condition to the effectiveness of any such resignation, at least
15 calendar days prior to the effective date of such resignation, the Trustee
shall provide (x) written notice to the Depositor of any successor pursuant to
this Section and (y) in writing and in form and substance reasonably
satisfactory to the Depositor, all information reasonably requested by the
Depositor in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to the resignation of the Trustee.

          If at any time (i) the Trustee shall cease to be eligible in
accordance with the provisions of Section 8.06 hereof and shall fail to resign
after written request thereto by the NIM Insurer or the Depositor, (ii) the
Trustee shall become incapable of acting, or shall be adjudged as bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, (iii)(A) a tax is imposed with respect to the Trust Fund by any
state in which the Trustee or the Trust Fund is located, (B) the imposition of
such tax would be avoided by the appointment of a different trustee and (C) the
Trustee fails to indemnify the Trust Fund against such tax, or (iv) during the
period which the Depositor is required to file Exchange Act Reports with respect
to the Trust Fund, the Trustee fails to comply with its obligations under the
last sentence of Section 7.01, the preceding paragraph, Section 8.09 or Article
XI and such failure is not remedied within the lesser of 10 calendar days or
such period in which the applicable Exchange Act Report can be filed timely
(without taking into account any extensions), then, in the case of clauses (i)
through (iii), the Depositor, the NIM Insurer or the Master Servicer, or in the
case of clause (iv), the Depositor, may remove the Trustee and appoint a
successor trustee, reasonably acceptable to the NIM Insurer, by written
instrument, in triplicate, one copy of which instrument shall be delivered to
the Trustee, one copy of which shall be delivered to the Master Servicer and one
copy of which shall be delivered to the successor trustee.

          The Holders evidencing at least 51% of the Voting Rights of each Class
of Certificates may at any time remove the Trustee and appoint a successor
trustee by written instrument or instruments, in triplicate, signed by such
Holders or their attorneys-in-fact duly authorized, one complete set of which
instruments shall be delivered by the successor Trustee to

                                      149
<PAGE>

the Master Servicer one complete set to the Trustee so removed, one complete set
to the successor so appointed and one complete set to the Depositor, together
with a written description of the basis for such removal. Notice of any removal
of the Trustee shall be given to each Rating Agency by the successor Trustee.

          Any resignation or removal of the Trustee and appointment of a
successor trustee pursuant to any of the provisions of this Section 8.07 shall
become effective upon acceptance of appointment by the successor trustee as
provided in Section 8.08 hereof.

          Section 8.08  Successor Trustee.

          Any successor trustee appointed as provided in Section 8.07 hereof
shall execute, acknowledge and deliver to the Depositor, its predecessor trustee
and the Master Servicer an instrument accepting such appointment hereunder and
thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with the like effect as if originally
named as trustee herein. In addition, if the Swap Contract is still outstanding,
the Person appointed as successor trustee shall execute, acknowledge and deliver
to the predecessor trustee, CHL and the Master Servicer an instrument accepting
the appointment as successor Swap Contract Administrator under the Swap Contract
Administration Agreement.

          No successor trustee shall accept appointment as provided in this
Section 8.08 unless at the time of such acceptance such successor trustee shall
be eligible under the provisions of Section 8.06 hereof, is reasonably
acceptable to the NIM Insurer, its appointment shall not adversely affect the
then-current ratings of the Certificates and has provided to the Depositor in
writing and in form and substance reasonably satisfactory to the Depositor, all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K with respect to a replacement
Trustee. Upon acceptance of appointment by a successor trustee as provided in
this Section 8.08, the Depositor shall mail notice of the succession of such
trustee hereunder to the NIM Insurer and all Holders of Certificates. If the
Depositor fails to mail such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be mailed at the expense of the Depositor.

          Section 8.09  Merger or Consolidation of Trustee.

          Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to substantially all of the corporate trust business of
the Trustee, shall be the successor of the Trustee hereunder, provided that such
corporation shall be eligible under the provisions of Section 8.06 hereof
without the execution or filing of any paper or further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding.

          As a condition to the effectiveness of any merger or consolidation, at
least 15 calendar days prior to the effective date of any merger or
consolidation of the Trustee, the

                                      150
<PAGE>

Trustee shall provide (x) written notice to the Depositor of any successor
pursuant to this Section and (y) in writing and in form and substance reasonably
satisfactory to the Depositor, all information reasonably requested by the
Depositor in order to comply with its reporting obligation under Item 6.02 of
Form 8-K with respect to a replacement Trustee.

          Section 8.10  Appointment of Co-Trustee or Separate Trustee.

          Notwithstanding any other provisions of this Agreement, at any time,
for the purpose of meeting any legal requirements of any jurisdiction in which
any part of the Trust Fund or property securing any Mortgage Note may at the
time be located, the Master Servicer and the Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Trustee and reasonably acceptable to the NIM Insurer to
act as co-trustee or co-trustees jointly with the Trustee, or separate trustee
or separate trustees, of all or any part of the Trust Fund, and to vest in such
Person or Persons, in such capacity and for the benefit of the
Certificateholders, such title to the Trust Fund or any part thereof, whichever
is applicable, and, subject to the other provisions of this Section 8.10, such
powers, duties, obligations, rights and trusts as the Master Servicer and the
Trustee may consider necessary or desirable. If the Master Servicer shall not
have joined in such appointment, or the NIM Insurer shall not have approved such
appointment, within 15 days after receipt by it of a request to do so, or in the
case an Event of Default shall have occurred and be continuing, the Trustee
shall have the power to make such appointment. No co-trustee or separate trustee
hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 8.06 and no notice to Certificateholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 8.08.

          Every separate trustee and co-trustee shall, to the extent permitted
by law, be appointed and act subject to the following provisions and conditions:

               (1)  All rights, powers, duties and obligations conferred or
     imposed upon the Trustee, except for the obligation of the Trustee under
     this Agreement to advance funds on behalf of the Master Servicer, shall be
     conferred or imposed upon and exercised or performed by the Trustee and
     such separate trustee or co-trustee jointly (it being understood that such
     separate trustee or co-trustee is not authorized to act separately without
     the Trustee joining in such act), except to the extent that under any law
     of any jurisdiction in which any particular act or acts are to be performed
     (whether as Trustee hereunder or as successor to the Master Servicer
     hereunder), the Trustee shall be incompetent or unqualified to perform such
     act or acts, in which event such rights, powers, duties and obligations
     (including the holding of title to the Trust Fund or any portion thereof in
     any such jurisdiction) shall be exercised and performed singly by such
     separate trustee or co-trustee, but solely at the direction of the Trustee;

               (2)  No trustee hereunder shall be held personally liable by
     reason of any act or omission of any other trustee hereunder; and

               (3)  The Trustee may at any time accept the resignation of or
     remove any separate trustee or co-trustee.

                                      151
<PAGE>

          Any notice, request or other writing given to the Trustee shall be
deemed to have been given to each of the then separate trustees and co-trustees,
as effectively as if given to each of them. Every instrument appointing any
separate trustee or co-trustee shall refer to this Agreement and the conditions
of this Article VIII. Each separate trustee and co-trustee upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified
in its instrument of appointment, either jointly with the Trustee or separately,
as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct
of, affecting the liability of, or affording protection to, the Trustee. Every
such instrument shall be filed with the Trustee and a copy thereof given to the
Master Servicer and the Depositor.

          Any separate trustee or co-trustee may, at any time, constitute the
Trustee its agent or attorney-in-fact, with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Agreement on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, without the appointment of a new or
successor trustee.

          Section 8.11  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 created pursuant
to the Preliminary Statement qualifies as, a "real estate mortgage investment
conduit" as defined in and in accordance with the REMIC Provisions. In
furtherance of such intention, the Trustee covenants and agrees that it shall
act as agent (and the Trustee is hereby appointed to act as agent) on behalf of
the Trust Fund and that in such capacity it shall: (a) prepare and file, or
cause to be prepared and filed, in a timely manner, a U.S. Real Estate Mortgage
Investment Conduit Income Tax 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 REMIC created hereunder containing such information and at the times and
in the manner as may be required by the Code or state or local tax laws,
regulations, or rules, and furnish or cause to be furnished to
Certificateholders the schedules, statements or information at such times and in
such manner as may be required thereby; (b) within thirty days of the Closing
Date, furnish or cause to be furnished to the Internal Revenue Service, on Forms
8811 or as otherwise may be required by the Code, the name, title, address, and
telephone number of the person that the Holders of the Certificates may contact
for tax information relating thereto, together with such additional information
as may be required by such Form, and update such information at the time or
times in the manner required by the Code for the Trust Fund; (c) make or cause
to be made elections, on behalf of each REMIC created hereunder to be treated as
a REMIC on the federal tax return of each such REMIC for its first taxable year
(and, if necessary, under applicable state law); (d) prepare and forward, or
cause to be prepared and forwarded, to the Certificateholders and to the
Internal Revenue Service and, if necessary, state tax authorities, all
information returns and reports as and when required to be provided to them in
accordance with the REMIC Provisions, including without limitation, the
calculation of any original issue discount using the Prepayment Assumption; (e)
provide information necessary for the computation of tax imposed on the transfer
of a Class A-R Certificate to a Person that is not a Permitted Transferee, or an
agent

                                      152
<PAGE>

(including a broker, nominee or other middleman) of a Non-Permitted Transferee,
or a pass-through entity in which a Non-Permitted Transferee is the record
holder of an interest (the reasonable cost of computing and furnishing such
information may be charged to the Person liable for such tax); (f) to the extent
that they are under its control conduct the affairs of the Trust Fund at all
times that any Certificates are outstanding so as to maintain the status of each
REMIC created hereunder as a REMIC under the REMIC Provisions; (g) not knowingly
or intentionally take any action or omit to take any action that would cause the
termination of the REMIC status of any REMIC created hereunder; (h) pay, from
the sources specified in the third paragraph of this Section 8.11, the amount of
any federal, state and local taxes, including prohibited transaction taxes as
described below, imposed on any REMIC created hereunder prior to the termination
of the Trust Fund when and as the same shall be due and payable (but such
obligation shall not prevent the Trustee or any other appropriate Person from
contesting any such tax in appropriate proceedings and shall not prevent the
Trustee from withholding payment of such tax, if permitted by law, pending the
outcome of such proceedings); (i) sign or cause to be signed federal, state or
local income tax or information returns; (j) maintain records relating to each
REMIC created hereunder, including but not limited to the income, expenses,
assets and liabilities of each such REMIC, and the fair market value 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; and (k) as and when necessary and
appropriate, 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 created 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 any REMIC created hereunder in
relation to any tax matter involving any such REMIC.

          In order to enable the Trustee to perform its duties as set forth
herein, the Depositor shall provide, or cause to be provided, to the Trustee
within ten days after the Closing Date all information or data that the Trustee
requests in writing and determines to be relevant for tax purposes to the
valuations and offering prices of the Certificates, including, without
limitation, the price, yield, prepayment assumption and projected cash flows of
the Certificates and the Mortgage Loans (and, to the extent not part of the
aforementioned, the information referred to in paragraphs (1), (2), (3)and (4)
of Section 4.05(d)). Thereafter, the Depositor shall provide to the Trustee
promptly upon written request therefor, any such additional information or data
that the Trustee may, from time to time, request in order to enable the Trustee
to perform its duties as set forth herein. The Depositor hereby indemnifies the
Trustee for any losses, liabilities, damages, claims or expenses of the Trustee
arising from any errors or miscalculations of the Trustee that result from any
failure of the Depositor to provide, or to cause to be provided, accurate
information or data to the Trustee on a timely basis.

          In the event that any tax is imposed on "prohibited transactions" of
the Trust Fund 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 the Trust Fund 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 the
Trust Fund pursuant to sections 23153 and 24872 of the California Revenue and
Taxation Code if not paid as otherwise provided for herein, such tax shall be
paid by (i) the Trustee, if any such

                                      153
<PAGE>

other tax arises out of or results from a breach by the Trustee of any of its
obligations under this Agreement, (ii) (x) the Master Servicer, in the case of
any such minimum tax, and (y) any party hereto (other than the Trustee) to the
extent any such other tax arises out of or results from a breach by such other
party of any of its obligations under this Agreement or (iii) in all other
cases, or in the event that any liable party here 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 A-R Certificateholders, and
second with amounts otherwise to be distributed to all other Certificateholders
in the same manner as if such tax were a Realized Loss that occurred ratably
within each Loan Group. Notwithstanding anything to the contrary contained
herein, to the extent that such tax is payable by the Class A-R Certificates,
the Trustee is hereby authorized to retain on any Distribution Date, from the
Holders of the Class A-R Certificates (and, if necessary, second, from the
Holders of all other Certificates in the priority specified in the preceding
sentence), funds otherwise distributable to such Holders in an amount sufficient
to pay such tax. The Trustee agrees to promptly notify in writing the party
liable for any such tax of the amount thereof and the due date for the payment
thereof.

          The Trustee shall treat the Carryover Reserve Fund and the Swap Trust,
including the Swap Account, as outside reserve funds within the meaning of
Treasury Regulation 1.860G-2(h), neither of which is an asset of any REMIC
created hereunder. The Carryover Reserve Fund shall be treated as owned by the
Class C Certificateholders and the Swap Trust, including the Swap Account, shall
be treated as owned by the Class C Certificateholders. The rights of the Holders
of each Class of Certificates (other than the Class P and Class A-R
Certificates) to receive payments from, and the deemed obligations of such
Holders to make payments to, the Carryover Reserve Fund or the Swap Trust,
including the Swap Account, shall be treated as rights and obligations with
respect to notional principal contracts written by the Holders of the Class C
Certificates in respect of any Net Rate Carryover distributed pursuant to
Sections 4.04(c)(4), and (ii) the Swap Counterparty in respect of any Net Rate
Carryover funded by the Swap Contract and in respect of any residual payments
from such Swap Contract received by the Class C Certificates. Thus, the
Certificates (other than the Class P and Class A-R Certificates), shall be
treated as representing ownership of Master REMIC regular interests coupled with
contractual rights and obligations within the meaning of Treasury Regulation
1.860G-2(i). For purposes of determining the issue price of the various Master
REMIC regular interests, the Trustee shall treat the $1,280,000 upfront amount
received by CHL from the Swap Counterparty in connection with the execution of
the Confirmation as an additional amount paid by the Certificateholders for the
Master REMIC regular interests. Any differences in the distributions to a
Certificateholder (positive or negative) that would result from the application
of the Strip REMIC Cap rather than the applicable Net Rate Cap shall be treated
by the Trustee as reconciled among the Certificates by swap payments made
pursuant to notional principal contracts entered into among the
Certificateholders.

          The Trustee shall treat the entitlement to Credit Comeback Excess
Amounts as owned by the Holders of the Class C Certificates and not as an asset
of, or interest in, any REMIC created hereunder. Further, the Trustee shall
treat any payments of Credit Comeback Excess Amounts to Persons other than the
Holders of the Class C Certificates as payments made by the Holders of the Class
C Certificates pursuant to a credit enhancement contract under Treasury
Regulation 1.860G-2(c). The Trustee shall also treat any amount payable to a
Class C Certificate with respect to the STR-C-OC Interest as deposited into the
Carryover Reserve Fund.

                                      154
<PAGE>

To the extent the amount payable with respect to the Swap Contract exceeds the
amount payable with respect to the Class C Certificates, the Trustee, for
federal income tax purposes, shall treat such excess as Realized Losses from
Mortgage Loans and to the extent such Realized Losses (if they had occurred)
would be allocated to a Certificateholder, the Trustee shall treat such amount
as first payable to the Certificateholder as principal and as then payable by
the Certificateholder with respect to a notional principal contract.

          The Trustee shall treat the Final Maturity Reserve Fund as an outside
reserve fund within the meaning of Treasury Regulation 1.860G-2(h) that is owned
by the Holders of the Class C Certificates, and that is not an asset of any
REMIC created hereunder. Beginning on the Distribution Date in January 2017, the
Trustee shall treat any monies payable to the Class C Certificateholders with
respect to their interest in the STR-C-40 Year IO, as first paid to the Class C
Certificates and then deposited in the Final Maturity Reserve Fund. Any monies
payable on the STR-C-40 Year IO in excess of the Final Maturity Required Deposit
shall be the "Excess Deposit." For income tax purposes, to the extent the amount
of any Excess Deposit is payable to Holders of Certificates other than the Class
C Certificates, such amount shall be treated as payable to such Holders as Net
Rate Carryover and any remaining amount of Excess Deposit shall be treated as
payable to the Holders of the Class C Certificates. Any other monies received by
the Holders of the Interest-Bearing Certificates from the Final Maturity Reserve
Fund will be treated as monies paid by the Holders of the Class C Certificates
to acquire the Interest-Bearing Certificates receiving such monies. Thus, with
respect to such other monies, the Interest-Bearing Certificates and the Class C
Certificates shall be treated as representing ownership of not only a Master
REMIC regular interest, but also ownership of an interest in a forward purchase
contract and the Trustee shall treat the rights of the holders of the
Interest-Bearing Certificates to receive such other monies from the Final
Maturity Reserve Fund as rights in forward purchase contracts entered into with
the Holders of the Class C Certificates.

          Section 8.12  Co-Trustee.

          (a)  The Co-Trustee, upon receipt of all resolutions, certificates,
statements, opinions, reports, documents, orders or other instruments furnished
to the Co-Trustee that 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, to the extent required by this Agreement.
If any such instrument is found not to conform to the requirements of this
Agreement in a material manner, the Co-Trustee shall take action as it deems
appropriate to have the instrument corrected. In addition, the Co-Trustee shall
act as the insured under each Mortgage Insurance Policy and hereby directs the
Master Servicer, on behalf of the Co-Trustee, to take all actions appropriate or
required of the Co-Trustee under each Mortgage Insurance Policy, other than the
payment of each Mortgage Insurance Premium and obtaining the approval of each
Mortgage Insurer with respect to the appointment of a successor servicer.

                                      155
<PAGE>

          (b)  No provision of this Agreement shall be construed to relieve the
Co-Trustee from liability for its own grossly negligent action, its own gross
negligent failure to act or its own misconduct, its grossly negligent failure to
perform its obligations in compliance with this Agreement, or any liability that
would be imposed by reason of its willful misfeasance or bad faith; provided
that:

               (1)  the duties and obligations of the Co-Trustee shall be
     determined solely by the express provisions of this Agreement with the
     exception of Section 8.10, the Co-Trustee shall not be liable, individually
     or as Co-Trustee, except for the performance of such duties and obligations
     as are specifically set forth in this Agreement, no implied covenants or
     obligations shall be read into this Agreement against the Co-Trustee and
     the Co-Trustee may conclusively rely, as to the truth of the statements and
     the correctness of the opinions expressed therein, upon any certificates or
     opinions furnished to the Co-Trustee and conforming to the requirements of
     this Agreement that it reasonably believed in good faith to be genuine and
     to have been duly executed by the proper authorities respecting any matters
     arising hereunder; and

               (2)  the Co-Trustee shall not be liable, individually or as
     Co-Trustee, for an error of judgment made in good faith by a Responsible
     Officer or Responsible Officers of the Co-Trustee, unless the Co-Trustee
     was grossly negligent or acted in bad faith or with willful misfeasance.

          (c)  Except as otherwise provided in paragraph (b) above:

               (1)  the Co-Trustee may request and rely upon and shall be
     protected in acting or refraining from acting upon any resolution,
     Officer's Certificate, certificate of auditors or any other certificate,
     statement, instrument, opinion, report, notice, request, consent, order,
     appraisal, bond or other paper or document believed by it to be genuine and
     to have been signed or presented by the proper party or parties;

               (2)  the Co-Trustee may consult with counsel and any Opinion of
     Counsel shall be full and complete authorization and protection in respect
     of any action taken or suffered or omitted by it hereunder in good faith
     and in accordance with such Opinion of Counsel;

               (3)  the Co-Trustee shall not be liable, individually or as
     Co-Trustee, 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;

               (4)  the Co-Trustee shall not be bound to make any investigation
     into the facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, consent, order, approval,
     bond or other paper or document;

               (5)  the Co-Trustee may execute any of the trusts or powers
     hereunder or perform any duties hereunder either directly or by or through
     agents, accountants or attorneys; and

                                      156
<PAGE>

               (6)  the Co-Trustee shall not be required to expend its own funds
     or otherwise incur any financial liability in the performance of any of its
     duties hereunder if it shall have reasonable grounds for believing that
     repayment of such funds or adequate indemnity against such liability is not
     assured to it.

          (d)  The recitals contained herein shall be taken as the statements of
the Depositor or the Master Servicer, as the case may be, and the Co-Trustee
assumes no responsibility for their correctness. The Co-Trustee makes no
representations as to the validity or sufficiency of this Agreement or of any
Mortgage Loan or related document or of MERS or the MERS(R) System. The
Co-Trustee shall not be accountable for the use or application by the Depositor
or the Master Servicer of any funds paid to the Depositor or the Master Servicer
in respect of the Mortgage Loans or deposited in or withdrawn from the
Certificate Account by the Depositor or the Master Servicer.

          (e)  The Co-Trustee in its individual or any other capacity may become
the owner or pledgee of Certificates with the same rights as it would have if it
were not the Co-Trustee.

          (f)  The Master Servicer covenants and agrees (i) to pay to the
Co-Trustee from time to time, and the Co-Trustee shall be entitled to, such
compensation as shall be agreed in writing by the Master Servicer and the
Co-Trustee (which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) for all services rendered by it
in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Co-Trustee and (ii)
to pay or reimburse the Co-Trustee, upon its request, for all reasonable
expenses, disbursements and advances incurred or made by the Co-Trustee on
behalf of the Trust Fund in accordance with any of the provisions of this
Agreement (including, without limitation: (A) the reasonable compensation and
the expenses and disbursements of its counsel, but only for representation of
the Co-Trustee acting in its capacity as Co-Trustee hereunder and (B) to the
extent that the Co-Trustee must engage persons not regularly in its employ to
perform acts or services on behalf of the Trust Fund, which acts or services are
not in the ordinary course of the duties of a trustee, paying agent or
certificate registrar, in the absence of a breach or default by any party
hereto, the reasonable compensation, expenses and disbursements of such persons,
except any such expense, disbursement or advance as may arise from its
negligence, bad faith or willful misconduct). The Co-Trustee and any director,
officer, employee or agent of the Co-Trustee shall be indemnified by the Master
Servicer and held harmless against any loss, liability or expense (i) incurred
in connection with any legal action relating to this Agreement or the
Certificates, or in connection with the performance of any of the Co-Trustee's
duties hereunder, other than any loss, liability or expense incurred by reason
of willful misfeasance, bad faith or negligence in the performance of any of the
Co-Trustee's duties hereunder or by reason of reckless disregard of the
Co-Trustee's obligations and duties hereunder and (ii) resulting from any error
in any tax or information return prepared by the Master Servicer. Such indemnity
shall survive the termination of this Agreement or the resignation or removal of
the Co-Trustee hereunder.

          (g)  The Co-Trustee hereunder shall, at all times, be a corporation or
association organized and doing business under the laws of a state or the United
States of America, authorized under such laws to exercise corporate trust
powers, having a combined

                                      157
<PAGE>

capital and surplus of at least $50,000,000, subject to supervision or
examination by federal or state authority and with a credit rating that would
not cause any of the Rating Agencies to reduce their respective ratings of any
Class of Certificates below the ratings issued on the Closing Date (or having
provided such security from time to time as is sufficient to avoid such
reduction). If such corporation or association publishes reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section 8.12
the combined capital and surplus of such corporation or association shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Co-Trustee shall cease
to be eligible in accordance with the provisions of this Section 8.12, the
Co-Trustee shall resign immediately in the manner and with the effect specified
in paragraph (h) below. The corporation or national banking association serving
as Co-Trustee may have normal banking and trust relationships with the
Depositor, the Sellers and the Master Servicer and their respective affiliates;
provided that such corporation cannot be an affiliate of the Master Servicer
other than the Trustee in its role as successor to the Master Servicer.

          (h)  The Co-Trustee may at any time resign and be discharged from the
trusts hereby created by giving 30 days prior written notice of resignation to
the Trustee, the Depositor and the Master Servicer. Upon such resignation the
Trustee (x) may appoint a successor Co-Trustee meeting the requirements in
paragraph (g) above and acceptable to the Master Servicer and the NIM Insurer
(in their sole discretion), so long as such Co-Trustee executes and delivers to
the other parties hereto an instrument agreeing to be bound by the provisions of
this Agreement or (y) may if permitted by the Master Servicer (in its sole
discretion) assume the rights and duties of the resigning Co-Trustee so long as
the Trustee executes and delivers an instrument to that effect.

          Section 8.13  Access to Records of the Trustee.

          The Trustee and the Co-Trustee shall afford the Sellers, the
Depositor, the Master Servicer, the NIM Insurer and each Certificate Owner upon
reasonable notice during normal business hours access to all records maintained
by the Trustee or the Co-Trustee in respect of its duties under this Agreement
and access to officers of the Trustee and the Co-Trustee responsible for
performing its duties. Upon request, the Trustee or the Co-Trustee shall furnish
the Depositor, the Master Servicer, the NIM Insurer and any requesting
Certificate Owner with its most recent financial statements. The Trustee and the
Co-Trustee shall cooperate fully with the Sellers, the Master Servicer, the
Depositor, the NIM Insurer and the Certificate Owner for review and copying any
books, documents, or records requested with respect to the Trustee's and the
Co-Trustee's respective duties under this Agreement. The Sellers, the Depositor,
the Master Servicer and the Certificate Owner shall not have any responsibility
or liability for any action for failure to act by the Trustee or the Co-Trustee
and are not obligated to supervise the performance of the Trustee or the
Co-Trustee under this Agreement or otherwise.

          Section 8.14  Suits for Enforcement.

          If an Event of Default or other material default by the Master
Servicer or the Depositor under this Agreement occurs and is continuing, at the
direction of the Certificateholders holding not less than 51% of the Voting
Rights or the NIM Insurer, the

                                      158
<PAGE>

Trustee shall proceed to protect and enforce its rights and the rights of the
Certificateholders or the NIM Insurer under this Agreement by a suit, action, or
proceeding in equity or at law or otherwise, whether for the specific
performance of any covenant or agreement contained in this Agreement or in aid
of the execution of any power granted in this Agreement or for the enforcement
of any other legal, equitable, or other remedy, as the Trustee, being advised by
counsel, and subject to the foregoing, shall deem most effectual to protect and
enforce any of the rights of the Trustee, the NIM Insurer and the
Certificateholders.

                                   ARTICLE IX.
                                   TERMINATION

          Section 9.01  Termination upon Liquidation or Repurchase of all
                        Mortgage Loans.

          Subject to Section 9.03 and Section 9.04, the Trust Fund shall
terminate and the obligations and responsibilities of the Depositor, the Master
Servicer, the Sellers, the Trustee and the Co-Trustee created hereby with
respect to the Trust Fund shall terminate upon the earliest of (a) the purchase
by the Master Servicer or NIM Insurer (the party exercising such purchase
option, the "Terminator") of all of the Mortgage Loans (and REO Properties) at a
price (the "Termination Price") equal to the sum of (i) 100% of the Stated
Principal Balance of each Mortgage Loan (other than in respect of an REO
Property), (ii) accrued interest thereon at the applicable Mortgage Rate (or, if
such repurchase is effected by the Master Servicer, at the applicable Net
Mortgage Rate), (iii) the appraised value of any 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 Terminator and the Trustee, (iv) any
remaining unpaid costs and damages incurred by the Trust Fund that arises out of
an actual violation of any predatory or abusive lending law or regulation and
(v) if the Terminator is the NIM Insurer, any unreimbursed Servicing Advances,
and the principal portion of any unreimbursed Advances, made on the Mortgage
Loans prior to the exercise of such repurchase, (b) the purchase by the Winning
Bidder of all of the Mortgage Loans (and REO Properties) after a Successful
Auction is conducted pursuant to Section 9.04 and the related auction proceeds
are distributed pursuant to Section 9.02(c) and (c) 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 the Certificateholders of all amounts
required to be distributed to them pursuant to this Agreement, as applicable. In
no event shall the trusts created hereby continue beyond the earlier of (i) the
expiration of 21 years from the death of the last survivor of the descendants of
Joseph P. Kennedy, the late Ambassador of the United States to the Court of St.
James's, living on the date hereof and (ii) the Latest Possible Maturity Date.

          Notwithstanding anything set forth herein to the contrary (including,
without limitation, in Section 9.04), the right to purchase all Mortgage Loans
and REO Properties by the Terminator or the Winning Bidder pursuant to clause
(a) or clause (b) of the immediately preceding paragraph, as the case may be,
shall be conditioned upon (1) the Stated Principal Balance of the Mortgage
Loans, at the time of any such repurchase, aggregating ten percent (10%) or less
of the sum of the aggregate Cut-off Date Principal Balance of the Initial
Mortgage Loans and the Pre-Funded Amount, (2) unless the NIM Insurer otherwise
consents, the purchase price for such Mortgage Loans and REO Properties shall
result in a final distribution on any NIM

                                      159
<PAGE>

Insurer guaranteed notes that is sufficient (x) to pay such notes in full and
(y) to pay any amounts due and payable to the NIM Insurer pursuant to the
indenture related to such notes and (3) only in case of a purchase by the Master
Servicer pursuant to clause (a) of the immediately preceding paragraph, the
absence of a request for an auction, or the absence of a Successful Auction, of
the Mortgage Loans and REO Properties pursuant to Section 9.04.

          The NIM Insurer's right to purchase all Mortgage Loans and REO
Properties shall be further conditioned upon the written consent of the Master
Servicer.

          The Swap Trust shall terminate on the earliest of (i) the Swap
Contract Termination Date, (ii) the reduction of the aggregate Certificate
Principal Balance of the Interest-Bearing Certificates to zero and (iii) the
termination of this Agreement.

          Section 9.02  Final Distribution on the Certificates.

     (a)  Timing of Notice of Final Distribution, Auction or Optional
Termination.

               (1)  If on any Determination Date, the Master Servicer determines
          that there are no Outstanding Mortgage Loans and no other funds or
          assets in the Trust Fund other than the funds in the Certificate
          Account, then the Master Servicer shall direct the Trustee promptly to
          send a final distribution notice to each Certificateholder in
          accordance with Section 9.02(b). In the event such notice is given,
          the Master Servicer shall cause all funds in the Certificate Account
          to be remitted to the Trustee for deposit in the Distribution Account
          on or before the Business Day prior to the applicable Distribution
          Date, net of any amounts permitted to be withdrawn pursuant to Section
          3.08(a). Upon such final deposit with respect to the Trust Fund and
          the receipt by the Trustee of a Request for File Release therefor, the
          Co-Trustee shall promptly release to the Master Servicer the Mortgage
          Files for the Mortgage Loans.

               (2)  If the Directing Certificateholder chooses to exercise its
          right to cause an auction pursuant to Section 9.04, then the Directing
          Certificateholder shall provide written notice to the Master Servicer
          no later than the first day of the calendar month in which such
          auction is to be conducted. If a Successful Auction is held pursuant
          to the requirements of Section 9.04, then the Trustee shall distribute
          the proceeds of the Successful Auction that have been remitted to the
          Distribution Account to the Certificateholders pursuant to Sections
          4.04 and 9.04 hereof on the Distribution Date in the calendar month
          immediately following the calendar month in which the Successful
          Auction occurs.

               (3)  If the Directing Certificateholder does not exercise its
          right to cause an auction pursuant to Section 9.04 and the Terminator
          (after prior written notice to the Master Servicer if the Terminator
          is the NIM Insurer) elects to terminate the Trust Fund pursuant to
          Section 9.01, then at least 20 days prior to the date notice is to be
          mailed to Certificateholders in accordance with Section 9.02(b), the
          Terminator shall notify the Depositor and the Trustee of (a) its
          election to terminate the Trust Fund, (b) the Distribution Date on
          which it intends to terminate the Trust Fund pursuant to Section 9.01
          and (c) the applicable purchase price of the Mortgage Loans and REO
          Properties. In

                                      160
<PAGE>

          the event such notice is given, the Terminator shall remit to the
          Master Servicer, on or before the Business Day prior to the final
          Distribution Date, for deposit into the Certificate Account, the
          Termination Price. The Master Servicer shall cause all funds in the
          Certificate Account, including the Termination Price, net of any
          amounts permitted to be withdrawn pursuant to Section 3.08(a), to be
          remitted to the Trustee for deposit in the Distribution Account on or
          before the Business Day prior to the applicable Distribution Date.
          Upon such final deposit with respect to the Trust Fund and the receipt
          by the Trustee of a Request for File Release therefor, the Co-Trustee
          shall promptly release to the Master Servicer the Mortgage Files for
          the Mortgage Loans.

     (b)  Timing of Notice to Certificateholders of Termination. Notice of any
termination of the Trust Fund (whether because of a Successful Auction, Optional
Termination or otherwise), specifying the Distribution Date on which
Certificateholders may surrender their Certificates for payment of the final
distribution and cancellation, shall be given promptly by the Trustee by letter
to Certificateholders mailed not earlier than the 10th day and no later than the
15th day of the month immediately preceding the month of such final
distribution. Any such notice shall specify (i) the Distribution Date upon which
final distribution on the Certificates will be made upon presentation and
surrender of such Certificates at the office therein designated, (ii) the amount
of such final distribution, (iii) the location of the office or agency at which
such presentation and surrender must be made, and (iv) that the Record Date
otherwise applicable to such Distribution Date is not applicable, distributions
being made only upon presentation and surrender of such Certificates at the
office therein specified. The Master Servicer will give such notice to each
Rating Agency and the Swap Counterparty at the time such notice is given to
Certificateholders.

     (c)  Upon presentation and surrender of the Certificates, the Trustee shall
cause to be distributed to the Certificateholders of each Class, in each case on
the final Distribution Date and in the order and priority set forth in Section
4.04 (and with respect to the Class C Certificates after a Successful Auction,
Sections 9.04(g) and (k)) hereof and in proportion to their respective
Percentage Interests from the Distribution Account (and, if applicable, the
Carryover Reserve Fund) an amount equal to (i) as to each Class of Regular
Certificates, the Certificate Principal Balance thereof plus accrued interest
thereon (or on its Notional Amount, if applicable) in the case of an
interest-bearing Certificate and (ii) as to the Class A-R Certificates, the
amount, if any, which remains on deposit in the Distribution Account (other than
the amounts retained to meet claims) after application pursuant to clause (i)
above. Notwithstanding the reduction of the Certificate Principal Balance of any
Class of Certificates to zero, such Class will be outstanding hereunder (solely
for the purpose of receiving distributions (if any) to which it may be entitled
pursuant to the terms of this Agreement and not for any other purpose) until the
termination of the respective obligations and responsibilities of the Depositor,
each Seller, the Master Servicer and the Trustee hereunder in accordance with
Article IX.

     (d)  In the event that any affected Certificateholders shall not surrender
their respective Certificates for cancellation within six months after the date
specified in the above mentioned written notice, the Trustee shall give a second
written notice to the remaining Certificateholders to surrender their
Certificates for cancellation and receive the final distribution with respect
thereto. If within six months after the second notice all the applicable
Certificates shall not have been surrendered for cancellation, the Trustee may
take appropriate steps, or may

                                      161
<PAGE>

appoint an agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets that remain a part of
the Trust Fund. If within one year after the second notice all Certificates
shall not have been surrendered for cancellation, the Class A-R Certificates
shall be entitled to all unclaimed funds and other assets of the Trust Fund that
remain subject to this Agreement.

          Section 9.03  Additional Termination Requirements.

          (a)  In the event the Terminator exercises its purchase option as
provided in Section 9.01 or there is a Successful Auction pursuant to Section
9.04, the Trust Fund shall be terminated in accordance with the following
additional requirements, unless the Trustee has been supplied with an Opinion of
Counsel, at the expense of the Terminator (or the Directing Certificateholder,
in the case of a Successful Auction), to the effect that the failure of the
Trust Fund to comply with the requirements of this Section 9.03 will not (i)
result in the imposition of taxes on "prohibited transactions" on any REMIC as
defined in Section 860F of the Code, or (ii) cause any REMIC created hereunder
to fail to qualify as a REMIC at any time that any Certificates are outstanding:

               (1)  The Master Servicer shall establish a 90-day liquidation
     period and notify the Trustee thereof, which shall in turn specify the
     first day of such period in a statement attached to the Trust Fund's final
     Tax Return pursuant to Treasury Regulation Section 1.860F-1. The Master
     Servicer shall prepare a plan of complete liquidation and shall otherwise
     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 delivered to the Trustee and the Depositor obtained at the expense
     of the Terminator (or the Directing Certificateholder, in the case of a
     Successful Auction); and

               (2)  Within 90 days after the time of adoption of such a plan of
     complete liquidation, the Trustee shall sell all of the assets of the Trust
     Fund to the Terminator (or the Winning Bidder in the case of a Successful
     Auction) for cash in accordance with Section 9.01 and, if applicable,
     Section 9.04.

          (b)  By their acceptance of the Certificates, the Holders thereof
hereby authorize the Master Servicer to prepare and the Trustee to adopt and
sign a plan of complete liquidation which authorization shall be binding upon
all successor Certificateholders. The Trustee shall attach a statement to the
final federal income tax return for each of any REMIC created hereunder stating
that pursuant to Treasury Regulation Section 1.860F-1, the first day of the
90-day liquidation period for each the REMIC was the date on which the Trustee
sold the assets of the Trust Fund to the Terminator.

          (c)  The Trustee, as agent for any REMIC created hereunder, hereby
agrees to adopt and sign such a plan of complete liquidation upon the written
request of the Master Servicer, and the receipt of the Opinion of Counsel
referred to in Section 9.03(a)(1) and to take such other action in connection
therewith as may be reasonably requested by the Terminator or the Directing
Certificateholder, as applicable.

        Section 9.04    Auction of the Mortgage Loans and REO Properties.

                                      162
<PAGE>

          (a)  On or after the Optional Termination Date, the Holder of the
largest Percentage Interest of the Class C Certificates (the "Directing
Certificateholder"), at its option, may by written instruction direct the Master
Servicer to direct the Trustee to solicit bids in a commercially reasonable
manner from Qualified Bidders for the purchase of the Mortgage Loans and any REO
Properties owned by the Trust Fund. The Directing Certificateholder shall
provide written notice to the Master Servicer as provided in Section 9.02(a)(2).
Any such direction by the Directing Certificateholder shall (i) be made in
writing and (ii) include contact information for the Directing
Certificateholder. Upon receipt of any direction from the Directing
Certificateholder meeting the requirements of the immediately preceding
sentence, the Trustee shall commence the auction process described in this
Section 9.04. The Trustee may engage a financial advisor, which financial
advisor may be CHL or one of its affiliates, in order to perform any of the
duties of the Trustee specified in Section 9.04. To effectuate such sale, the
Trustee (or such financial advisor) shall follow the procedures specified in
Section 9.04(b) below. The Trustee shall facilitate the sale of the assets in
the Trust Fund to the Winning Bidder so long as the Trustee (or any financial
advisor on its behalf) has received at least three bids from Qualified Bidders
and at least one such bid is at least equal to the Acceptable Bid Amount. In the
event the auction is not a Successful Auction, the Trustee may repeat this
process periodically thereafter as directed by the Directing Certificateholder
until a Successful Auction is conducted or the Terminator purchases all of the
Mortgage Loans and REO Properties pursuant to Section 9.01. The Trustee shall be
reimbursed for its reasonable costs, including expenses associated with engaging
any financial advisor, from the Directing Certificateholder if the auction is
not a Successful Auction, and, if the auction is a Successful Auction, from the
proceeds of the auction before the proceeds are distributed to
Certificateholders.

          The Trustee, upon inquiry from the Master Servicer, agrees to provide
the Master Servicer with the Percentage Interest of Class C Certificates held by
the Directing Certificateholder.

          If CHL or any of its affiliates is the Directing Certificateholder,
such Directing Certificateholder shall not have the right to direct the Trustee
to solicit bids for the purchase of the Mortgage Loans and any REO Properties
owned by the Trust Fund.

          (b)  The Trustee (or any financial advisor on its behalf) shall
solicit bids for the purchase of assets owned by the Trust Fund as provided in
Section 9.04(a) not later than two Business Days following receipt of the
Directing Certificateholder's written instruction by contacting by telephone or
in writing at least three Qualified Bidders and requesting that each Qualified
Bidder bid on the Mortgage Loans and REO Properties owned by the Trust Fund (on
a non-recourse basis with no representations or warranties of any nature
whatsoever made by the Trustee (or such financial advisor)) and providing to the
Qualified Bidder any information relating to the Mortgage Loans and REO
Properties owned by the Trust Fund reasonably requested by such Qualified
Bidder, subject to the Qualified Bidder's written agreement not to use such
information in the purchase or sale of Certificates (it being understood no
Qualified Bidder shall be obligated to submit a bid or take any other action in
connection with any auction). The Master Servicer shall cooperate with the
Trustee (and any financial advisor on its behalf) during the auction process. At
1:00 p.m. New York time on the second Business Day after the date on which bids
are last solicited (such second day, the "Bid Determination Date"),

                                      163
<PAGE>

the Trustee (or any financial advisor on its behalf) shall determine the highest
bid based on the bids received by the Trustee (or any financial advisor on its
behalf) on or before such time.

          (c)  If the highest of the bids that are submitted by Qualified
Bidders are less than the Minimum Auction Amount, then the Trustee shall
promptly inform the Directing Certificateholder of the amount of the shortfall
and indicate that the Directing Certificateholder must notify the Trustee within
24 hours whether it will contribute the amount of such difference (such
difference being the "Auction Supplement Amount") so that the auction will be a
Successful Auction. If the highest of the bids that are submitted by Qualified
Bidders is equal to or greater than the Minimum Auction Amount, or if the
Directing Certificateholder notifies the Trustee within 24 hours of its receipt
of notice as described in the previous sentence that it will contribute the
Auction Supplement Amount, then the Trustee (or any financial advisor on its
behalf) shall notify promptly (but in any event no later than 3:00 p.m. New York
time on the Business Day following the Bid Determination Date) the Winning
Bidder that its bid was the highest bid and shall provide wiring instructions
for payment of the bid amount into the Certificate Account by 12:00 p.m. New
York time on the second Business Day following the Bid Determination Date and,
if applicable, provide the Directing Certificateholder with wiring instructions
for payment of the Auction Supplement Amount into the Certificate Account by
such time.

          (d)  If such Winning Bidder does not wire the bid amount so that it is
received in the Certificate Account in immediately available funds by 12:00 p.m.
New York time on the second Business Day following the Bid Determination Date,
the Trustee shall repeat the process specified in the preceding paragraph with
respect to the second highest bid, but only if such bid is at least the Minimum
Auction Amount or the Directing Certificateholder agrees to pay the new Auction
Supplement Amount. If no other bids are available to be accepted pursuant to the
preceding sentence, or if the amount remitted by the Winning Bidder plus any
Auction Supplement Amount remitted by the Directing Certificateholder is less
than the Minimum Auction Amount, then the auction shall be considered to have
failed for all purposes.

          (e)  The Trustee shall not be liable with regard to the selection or
engagement of, or for any act or omission of, a financial advisor pursuant to
this Section 9.04 if the Trustee engages CHL to be such financial advisor.

          (f)  In the event of a Successful Auction and so long as the Winning
Bidder has wired its bid amount (and the Directing Certificateholder has wired
any Auction Supplement Amount, if applicable) to the Certificate Account as
provided above, then the Trustee shall promptly convey to the Winning Bidder the
Mortgage Loans and REO Properties owned by the Trust Fund. The Master Servicer
shall take all reasonable actions requested by the Trustee to effect such
conveyance, including remitting to the Distribution Account from the Certificate
Account, on the Business Day prior to the Distribution Date on which final
distribution on the Certificates is required to be paid under this Agreement,
all amounts on deposit in the Certificate Account, net of any amounts permitted
to be withdrawn pursuant to Section 3.08(a) and amounts owing to the Trustee in
reimbursement of its reasonable costs, including expenses associated with
engaging any financial advisor, incurred in connection with the auction process.
Such amounts owed to the Trustee shall be withdrawn from the Certificate Account
by the Master Servicer and paid to the Trustee.

                                      164
<PAGE>

          (g)  Any amount paid by the Winning Bidder in excess of the Minimum
Auction Amount shall be distributed by the Trustee pro rata to the Class C
Certificates on the Distribution Date on which the final distribution on the
Certificates is made.

          (h)  In the event of a Successful Auction and to the extent the Swap
Contract is still outstanding, the Directing Certificateholder shall either:

          (1)  if any Swap Termination Payment would be payable by the Swap
     Contract Administrator to the Swap Counterparty were the Swap Contract to
     be terminated following final distribution on the Certificates, either:

               (A)  pay to the Swap Contract Administrator any such Swap
          Termination Payment; or

               (B)  accept assignment of the Swap Contract to the extent that
          the Directing Certificateholder is an acceptable counterparty for the
          Swap Counterparty;

          (2)  if any Swap Termination Payment would be payable by the Swap
     Counterparty to the Swap Contract Administrator were the Swap Contract to
     be terminated following final distribution on the Certificates, either

               (A)  (i) if the Directing Certificateholder does not own 100% of
          the Class C Certificates, accept assignment of the Swap Contract to
          the extent that the Directing Certificateholder is an acceptable
          counterparty for the Swap Counterparty and pay to the Swap Contract
          Administrator the Swap Termination Payment that would be owed to the
          Swap Contact Administrator by the Swap Counterparty if the Swap
          Contract were terminated by the Swap Contract Administrator following
          distribution on the Certificates or (ii) if the Directing
          Certificateholder owns 100% of the Class C Certificates, accept
          assignment of the Swap Contract to the extent that the Directing
          Certificateholder is an acceptable counterparty for the Swap
          Counterparty; or

               (B)  instruct the Swap Contract Administrator to accept from the
          Swap Counterparty any Swap Termination Payment that would be owed to
          the Swap Contract Administrator.

          (i)  Any amounts paid to the Swap Contract Administrator pursuant to
subsection (h)(2) above shall be distributed to the Class C Certificates, pro
rata, based on entitlement, by the Swap Contract Administrator.

          (j)  The Master Servicer may purchase the Mortgage Loans and REO
Properties owned by the Trust Fund for its own account pursuant to Section 9.01
or consent to the NIM Insurer's purchase of the Mortgage Loans and REO
Properties owned by the Trust Fund pursuant to Section 9.01 only if (1) the
Directing Certificateholder chooses not to request an auction as described above
or if the immediately preceding auction is unsuccessful or (2) the Master
Servicer notifies the Directing Certificateholder no later than 30 days prior to
the date on which the Master Servicer or the NIM Insurer, as applicable, intends
to effect the purchase of the

                                      165
<PAGE>

Mortgage Loans and REO Properties owned by the Trust Fund and the Directing
Certificateholder does not direct the Trustee to conduct an auction prior to the
end of that 30-day period.

          (k)  If the Directing Certificateholder pays any Auction Supplement
Amount pursuant to Section 9.04(c) or any Swap Termination Payment pursuant to
Section 9.04(h)(1)(A), on the final Distribution Date any amounts to be
distributed to the Class C Certificates pursuant to Section 4.02 will be
distributed as follows, first to the Directing Certificateholder, in an amount
up to the sum of such Auction Supplement Amount and such Swap Termination
Payment and second to the Class C Certificates, pro rata. For federal income tax
purposes, such Auction Supplement Amount and such Swap Termination Payment so
distributed shall be deemed paid pro rata to the Class C Certificates, and the
portion of such amounts deemed distributed to holders of the Class C
Certificates other than the Directing Certificateholder shall be deemed paid
from such other holders to the Directing Certificateholder.

                                   ARTICLE X.

                            MISCELLANEOUS PROVISIONS

          Section 10.01 Amendment.

          This Agreement may be amended from time to time by the Depositor, the
Master Servicer, the Sellers, the Trustee and the Co-Trustee with the consent of
the NIM Insurer, without the consent of any of the Certificateholders (i) to
cure any ambiguity, (ii) to correct or supplement any provisions herein, (iii)
to conform this Agreement to the Prospectus Supplement or the Prospectus, (iv)
to modify, alter, amend, add to or rescind any of the terms or provisions
contained in this Agreement to comply with any rules or regulations promulgated
by the Securities and Exchange Commission from time to time, or (v) 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; 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, it being
understood and agreed that any such letter in and of itself will not represent a
determination as to the materiality of any such amendment and will represent a
determination only as to the credit issues affecting any such rating. Any
amendment described above made solely to conform this Agreement to the
Prospectus or the Prospectus Supplement shall be deemed not to adversely affect
in any material respect the interests of the Certificateholders. Notwithstanding
the foregoing, no amendment that significantly changes the permitted activities
of the trust created by this Agreement may be made without the consent of
Certificateholders representing not less than 51% of the Voting Rights of each
Class of Certificates affected by such amendment. Each party to this Agreement
hereby agrees that it will cooperate with each other party in amending this
Agreement pursuant to clause (iv) above.

                                      166
<PAGE>

          The Trustee, the Co-Trustee, the Depositor, the Master Servicer and
the Sellers with the consent of the NIM Insurer may also at any time and from
time to time amend this Agreement, without the consent of the
Certificateholders, to modify, eliminate or add to any of its provisions to such
extent as shall be necessary or appropriate to maintain the qualification of the
Trust Fund as a REMIC under the Code or to avoid or minimize the risk of the
imposition of any tax on the Trust Fund pursuant to the Code that would be a
claim against the Trust Fund at any time prior to the final redemption of the
Certificates, provided that the Trustee 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, to the effect that such action
is necessary or appropriate to maintain such qualification or to avoid or
minimize the risk of the imposition of such a tax.

          This Agreement may also be amended from time to time by the Depositor,
the Master Servicer, the Sellers, the Trustee and the Co-Trustee with the
consent of the NIM Insurer and the Holders of each Class of Certificates
affected thereby evidencing not less than 51% of the Voting Rights of such Class
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Holders of Certificates; provided that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments required to be distributed on any Certificate without the consent of
the Holder of such Certificate, (ii) adversely affect in any material respect
the interests of the Holders of any Class of Certificates in a manner other than
as described in (i), without the consent of the Holders of Certificates of such
Class evidencing 66% or more of the Voting Rights of such Class, or (iii) reduce
the aforesaid percentages of Certificates the Holders of which are required to
consent to any such amendment without the consent of the Holders of all such
Certificates then outstanding.

          Notwithstanding any contrary provision of this Agreement, no amendment
shall adversely affect in any material respect the Swap Counterparty without at
least ten Business Days' prior notice to the Swap Counterparty and without the
prior written consent of the Swap Counterparty, which consent shall not be
unreasonably withheld. CHL shall provide the Swap Counterparty with prior
written notice of any proposed material amendment of this Agreement.

          Notwithstanding any contrary provision of this Agreement, the Trustee
and the NIM Insurer shall not consent to any amendment to this Agreement unless
each shall have first received an Opinion of Counsel satisfactory to the Trustee
and the NIM Insurer, which opinion shall be an expense of the party requesting
such amendment but in any case shall not be an expense of the Trustee or the NIM
Insurer, to the effect that such amendment will not cause the imposition of any
tax on the Trust Fund or the Certificateholders or cause any REMIC formed
hereunder to fail to qualify as a REMIC at any time that any Certificates are
outstanding.

          Promptly after the execution of any amendment to this Agreement, the
Trustee shall furnish written notification of the substance of such amendment to
the Swap Counterparty, to each Certificateholder (if the consent of
Certificateholders is required) 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

                                      167
<PAGE>

shall approve the substance thereof. The manner of obtaining such consents and
of evidencing the authorization of the execution thereof by Certificateholders
shall be subject to such reasonable regulations as the Trustee may prescribe.

          Nothing in this Agreement shall require the Trustee to enter into an
amendment without receiving an Opinion of Counsel, reasonably satisfactory to
the Trustee and the NIM Insurer that (i) such amendment is permitted and is not
prohibited by this Agreement and that all requirements for amending this
Agreement have been complied with; and (ii) either (A) the amendment does not
adversely affect in any material respect the interests of any Certificateholder
or (B) the conclusion set forth in the immediately preceding clause (A) is not
required to be reached pursuant to this Section 10.01.

          Section 10.02 Recordation of Agreement; Counterparts.

          This Agreement is subject to recordation in all appropriate public
offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the properties subject to the Mortgages are
situated, and in any other appropriate public recording office or elsewhere,
such recordation to be effected by the Master Servicer at its expense.

          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 10.03 Governing Law.

          THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND
TO BE PERFORMED IN THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HERETO AND THE CERTIFICATEHOLDERS SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          Section 10.04 Intention of Parties.

          (a)  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 Depositor to the Trustee be, and be construed as, an absolute sale
thereof to the Trustee. It is, further, not the intention of the parties that
such conveyance be deemed a pledge thereof by the Depositor to the Trustee.
However, in the event that, notwithstanding the intent of the parties, such
assets are held to be the property of the Depositor, or if for any other reason
this Agreement or any Subsequent Transfer 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) with respect to all such assets and security interests
and (ii) the conveyance provided for in this Agreement and any Subsequent
Transfer Agreement shall be deemed to be an assignment and a grant pursuant to
the terms of this Agreement by the Depositor to the

                                      168
<PAGE>

Trustee, for the benefit of the Certificateholders and the Swap Counterparty, 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, the NIM
Insurer and the Swap Counterparty shall, to the extent consistent with this
Agreement, take such actions as may be necessary to ensure that, if this
Agreement were deemed to create a security interest in the assets of the Trust
Fund, such security interest would be deemed to be a perfected security interest
of first priority under applicable law and will be maintained as such throughout
the term of the Agreement. The Depositor shall arrange for filing any Uniform
Commercial Code continuation statements in connection with any security interest
granted or assigned to the Trustee for the benefit of the Certificateholders and
the Swap Counterparty.

          (b)  The Depositor hereby represents that:

               (i)  This Agreement creates a valid and continuing security
          interest (as defined in the Uniform Commercial Code as enacted in the
          State of New York (the "NY UCC")) in the Mortgage Notes in favor of
          the Trustee, which security interest is prior to all other liens, and
          is enforceable as such as against creditors of and purchasers from the
          Depositor.

               (ii) The Mortgage Notes constitute "instruments" within the
          meaning of the NY UCC.

               (iii) Immediately prior to the assignment of each Mortgage Loan
          to the Trustee, the Depositor owns and has good and marketable title
          to such Mortgage Loan free and clear of any lien, claim or encumbrance
          of any Person.

               (iv) The Depositor has received all consents and approvals
          required by the terms of the Mortgage Loans to the sale of the
          Mortgage Loans hereunder to the Trustee.

               (v)  All original executed copies of each Mortgage Note that are
          required to be delivered to the Co-Trustee pursuant to Section 2.01
          have been delivered to the Co-Trustee.

               (vi) Other than the security interest granted to the Trustee
          pursuant to this Agreement, the Depositor has not pledged, assigned,
          sold, granted a security interest in, or otherwise conveyed any of the
          Mortgage Loans. The Depositor has not authorized the filing of and is
          not aware of any financing statements against the Depositor that
          include a description of collateral covering the Mortgage Loans other
          than any financing statement relating to the security interest granted
          to the Trustee hereunder or that has been terminated. The Depositor is
          not aware of any judgment or tax lien filings against the Depositor.

          (c)  The Master Servicer shall take such action as is reasonably
necessary to maintain the perfection and priority of the security interest of
the Trustee in the Mortgage Loans; provided, however, that the obligation to
deliver the Mortgage File to the Co-Trustee pursuant to

                                      169
<PAGE>

Section 2.01 shall be solely the Depositor's obligation and the Master Servicer
shall not be responsible for the safekeeping of the Mortgage Files by the
Co-Trustee.

          (d)  It is understood and agreed that the representations and
warranties set forth in subsection (b) above shall survive delivery of the
Mortgage Files to the Co-Trustee. Upon discovery by the Depositor or the Trustee
of a breach of any of the foregoing representations and warranties set forth in
subsection (b) above, which breach materially and adversely affects the interest
of the Certificateholders, the party discovering such breach shall give prompt
written notice to the others and to each Rating Agency.

          Section 10.05 Notices.

          (a)  The Trustee shall use its best efforts to promptly provide notice
to each Rating Agency and the Swap Counterparty with respect to each of the
following of which it has actual knowledge:

               (1)  Any material change or amendment to this Agreement;

               (2)  The occurrence of any Event of Default that has not been
     cured;

               (3)  The resignation or termination of the Master Servicer or the
     Trustee and the appointment of any successor;

               (4)  The repurchase or substitution of Mortgage Loans pursuant to
     Sections 2.02, 2.03, 2.04 and 3.12; and

               (5)  The final payment to Certificateholders.

          (b)  In addition, the Trustee shall promptly furnish to each Rating
Agency copies of the following:

               (1)  Each report to Certificateholders described in Section 4.05;

               (2)  Each annual statement as to compliance described in Section
     3.17; and

               (3)  Each annual independent public accountants' servicing report
     described in Section 11.07.

          (c)  All directions, demands and notices hereunder shall be in writing
and shall be deemed to have been duly given when sent by facsimile transmission,
first class mail or delivered to (i) in the case of the Depositor, CWABS, Inc.,
4500 Park Granada, Calabasas, California 91302, facsimile number: (818)
225-4016, Attention: Josh Adler, or such other address as may be hereafter
furnished to the Sellers, the Master Servicer and the Trustee by the Depositor
in writing; (ii) in the case of CHL, Countrywide Home Loans, Inc., 4500 Park
Granada, Calabasas, California 91302, facsimile number (818) 225-4016,
Attention: Josh Adler, or such other address as may be hereafter furnished to
the Depositor, the Master Servicer and the Trustee by the Sellers in writing;
(iii) in the case of Park Monaco, Park Monaco Inc., 4500 Park

                                      170
<PAGE>

Granada, Calabasas, California 91302, facsimile number (818) 225-4028,
Attention: Paul Liu, or such other address as may be hereafter furnished to the
Depositor, the Master Servicer and the Trustee by the Sellers in writing; (iv)
in the case of Park Sienna, Park Sienna LLC, 4500 Park Granada, Calabasas,
California 91302, facsimile number (818) 225-4028, Attention: Paul Liu, or such
other address as may be hereafter furnished to the Depositor, the Master
Servicer and the Trustee by the Sellers in writing; (v) in the case of the
Master Servicer, Countrywide Home Loans Servicing LP, 7105 Corporate Drive,
Plano, Texas 75024, facsimile number (805) 520-5623, Attention: Mark Wong or
such other address as may be hereafter furnished to the Depositor, the Sellers
and the Trustee by the Master Servicer in writing; (vi) in the case of the
Trustee, The Bank of New York, 101 Barclay Street, New York, New York 10286,
Attention: Corporate Trust MBS Administration, CWABS, Series 2006-26, or such
other address as the Trustee may hereafter furnish to the parties hereto; (vii)
in the case of the Co-Trustee, The Bank of New York Trust Company, N.A., 5730
Katella Avenue, Cypress, California 90630, Attention: MBS Support Services, or
such other address as the Co-Trustee may hereafter furnish to the Depositor, the
Master Servicer and the Trustee; (viii) in the case of the Rating Agencies, (x)
Moody's Investors Service, Inc., Attention: ABS Monitoring Department, 99 Church
Street, Sixth Floor, New York, New York 10007, and (y) Standard & Poor's Ratings
Services, a division of The McGraw-Hill Companies, Attention: Mortgage
Surveillance Group, 55 Water Street, 41st Floor, New York, New York 10041; and
(viii) in the case of the Swap Counterparty, Lehman Brothers Special Financing
Inc., Attention: Documentation Manager, Facsimile: (212) 526-7672 Telephone:
(212) 526-7187, or such other address as may be hereafter furnished by the Swap
Counterparty. Notices to Certificateholders shall be deemed given when mailed,
first postage prepaid, to their respective addresses appearing in the
Certificate Register.

          Section 10.06 Severability of Provisions.

          If any one or more of the covenants, agreements, provisions or terms
of this Agreement shall be for any reason whatsoever held invalid, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Agreement and shall
in no way affect the validity or enforceability of the other provisions of this
Agreement or of the Certificates or the rights of the Holders thereof.

          Section 10.07 Assignment.

          Notwithstanding anything to the contrary contained herein, except as
provided pursuant to Section 6.02, this Agreement may not be assigned by the
Master Servicer without the prior written consent of the Trustee and the
Depositor.

          Section 10.08 Limitation on Rights of Certificateholders.

          The death or incapacity of any Certificateholder shall not operate to
terminate this Agreement or the Trust 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.

                                      171
<PAGE>

          No Certificateholder shall have any right to vote (except as provided
herein) or in any manner otherwise control the operation and management of the
Trust Fund, or the obligations of the parties hereto, nor shall anything herein
set forth or contained in the terms of the Certificates be construed so as to
constitute the Certificateholders from time to time as partners or members of an
association; nor shall any Certificateholder be under any liability to any third
party by reason of any action taken by the parties to this Agreement pursuant to
any provision hereof.

          No Certificateholder shall have any right by virtue or by availing
itself of any provisions of this Agreement to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Agreement,
unless such Holder previously shall have given to the Trustee a written notice
of an Event of Default and of the continuance thereof, as hereinbefore provided,
the Holders of Certificates evidencing not less than 25% of the Voting Rights
shall also have made written request to the Trustee to institute such action,
suit or proceeding in its own name as Trustee hereunder and shall have offered
to the Trustee such reasonable indemnity as it may require against the costs,
expenses, and liabilities to be incurred therein or thereby, and the Trustee,
for 60 days after its receipt of such notice, request and offer of indemnity
shall have neglected or refused to institute any such action, suit or
proceeding; it being understood and intended, and being expressly covenanted by
each Certificateholder with every other Certificateholder and the Trustee, that
no one or more Holders of Certificates shall have any right in any manner
whatever by virtue or by availing itself or themselves of any provisions of this
Agreement to affect, disturb or prejudice the rights of the Holders of any other
of the Certificates, or to obtain or seek to obtain priority over or preference
to any other such Holder or to enforce any right under this Agreement, except in
the manner herein provided and for the common benefit of all Certificateholders.
For the protection and enforcement of the provisions of this Section 10.08, each
and every Certificateholder and the Trustee shall be entitled to such relief as
can be given either at law or in equity.

          Section 10.09 Inspection and Audit Rights.

          The Master Servicer agrees that, on reasonable prior notice, it will
permit any representative of the Depositor, any Seller, the NIM Insurer or the
Trustee during the Master Servicer's normal business hours, to examine all the
books of account, records, reports and other papers of the Master Servicer
relating to the Mortgage Loans, to make copies and extracts therefrom, to cause
such books to be audited by independent certified public accountants selected by
the Depositor, a Seller, the NIM Insurer or the Trustee and to discuss its
affairs, finances and accounts relating to the Mortgage Loans with its officers,
employees and independent public accountants (and by this provision the Master
Servicer hereby authorizes such accountants to discuss with such representative
such affairs, finances and accounts), all at such reasonable times and as often
as may be reasonably requested. Any out-of-pocket expense incident to the
exercise by the Depositor, any Seller, the NIM Insurer or the Trustee of any
right under this Section 10.09 shall be borne by the party requesting such
inspection; all other such expenses shall be borne by the Master Servicer.

                                      172
<PAGE>

          Section 10.10 Certificates Nonassessable and Fully Paid.

          It is the intention of the Depositor that Certificateholders shall not
be personally liable for obligations of the Trust Fund, that the interests in
the Trust Fund represented by the Certificates shall be nonassessable for any
reason whatsoever, and that the Certificates, upon due authentication thereof by
the Trustee pursuant to this Agreement, are and shall be deemed fully paid.

          Section 10.11 Rights of NIM Insurer.

          (a)  The rights of the NIM Insurer under this Agreement shall exist
only so long as either:

               (1)  the notes certain payments on which are guaranteed by the
     NIM Insurer remain outstanding or

               (2)  the NIM Insurer is owed amounts paid by it with respect to
     that guaranty.

          (b)  The rights of the NIM Insurer under this Agreement are
exercisable by the NIM Insurer only so long as no default by the NIM Insurer
under its guaranty of certain payments under notes backed or secured by the
Class C or Class P Certificates has occurred and is continuing. If the NIM
Insurer is the subject of any insolvency proceeding, the rights of the NIM
Insurer under this Agreement will be exercisable by the NIM Insurer only so long
as:

               (1)  the obligations of the NIM Insurer under its guaranty of
     notes backed or secured by the Class C or Class P Certificates have not
     been disavowed and

               (2)  CHL and the Trustee have received reasonable assurances that
     the NIM Insurer will be able to satisfy its obligations under its guaranty
     of notes backed or secured by the Class C or Class P Certificates.

          (c)  The NIM Insurer is a third party beneficiary of this Agreement to
the same extent as if it were a party to this Agreement and may enforce any of
those rights under this Agreement.

          (d)  A copy of any documents of any nature required by this Agreement
to be delivered by the Trustee, or to the Trustee or the Rating Agencies, shall
in each case at the same time also be delivered to the NIM Insurer. Any notices
required to be given by the Trustee, or to the Trustee or the Rating Agencies,
shall in each case at the same time also be given to the NIM Insurer. If the
Trustee receives a notice or document that is required hereunder to be delivered
to the NIM Insurer, and if such notice or document does not indicate that a copy
thereof has been previously sent to the NIM Insurer, the Trustee shall send the
NIM Insurer a copy of such notice or document. If such document is an Opinion of
Counsel, the NIM Insurer shall be an addressee thereof or such Opinion of
Counsel shall contain language permitting the NIM Insurer to rely thereon as if
the NIM Insurer were an addressee thereof.

                                      173
<PAGE>

          (e)  Anything in this Agreement that is conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned to the
Certificates by the Rating Agencies shall also be conditioned on not resulting
in the downgrading or withdrawal of the ratings then assigned by the Rating
Agencies to the notes backed or secured by the Class C or Class P Certificates
(without giving effect to any policy or guaranty provided by the NIM Insurer).

                                      174
<PAGE>

                                   ARTICLE XI.
                             EXCHANGE ACT REPORTING

          Section 11.01 Filing Obligations.

          The Master Servicer, the Trustee and each Seller shall reasonably
cooperate with the Depositor in connection with the satisfaction of the
Depositor's reporting requirements under the Exchange Act with respect to the
Trust Fund. In addition to the information specified below, if so requested by
the Depositor for the purpose of satisfying its reporting obligation under the
Exchange Act, the Master Servicer, the Trustee and each Seller shall (and the
Master Servicer shall cause each Subservicer to) provide the Depositor with (a)
such information which is available to such Person without unreasonable effort
or expense and within such timeframe as may be reasonably requested by the
Depositor to comply with the Depositor's reporting obligations under the
Exchange Act and (b) to the extent such Person is a party (and the Depositor is
not a party) to any agreement or amendment required to be filed, copies of such
agreement or amendment in EDGAR-compatible form.

          Section 11.02 Form 10-D Filings.

          (a)  In accordance with the Exchange Act, the Trustee shall prepare
for filing and file within 15 days after each Distribution Date (subject to
permitted extensions under the Exchange Act) with the Commission with respect to
the Trust Fund, a Form 10-D with copies of the Monthly Statement and, to the
extent delivered to the Trustee, no later than 10 days following the
Distribution Date, such other information identified by the Depositor or the
Master Servicer, in writing, to be filed with the Commission (such other
information, the "Additional Designated Information"). If the Depositor or
Master Servicer directs that any Additional Designated Information is to be
filed with any Form 10-D, the Depositor or Master Servicer, as the case may be,
shall specify the Item on Form 10-D to which such information is responsive and,
with respect to any Exhibit to be filed on Form 10-D, the Exhibit number. Any
information to be filed on Form 10-D shall be delivered to the Trustee in
EDGAR-compatible form or as otherwise agreed upon by the Trustee and the
Depositor or the Master Servicer, as the case may be, at the Depositor's
expense, and any necessary conversion to EDGAR-compatible format will be at the
Depositor's expense. At the reasonable request of, and in accordance with the
reasonable directions of, the Depositor or the Master Servicer, subject to the
two preceding sentences, the Trustee shall prepare for filing and file an
amendment to any Form 10-D previously filed with the Commission with respect to
the Trust Fund. The Master Servicer shall sign the Form 10-D filed on behalf of
the Trust Fund.

          (b)  No later than each Distribution Date, each of the Master Servicer
and the Trustee shall notify (and the Master Servicer shall cause any
Subservicer to notify) the Depositor and the Master Servicer of any Form 10-D
Disclosure Item, together with a description of any such Form 10-D Disclosure
Item in form and substance reasonably acceptable to the Depositor. In addition
to such information as the Master Servicer and the Trustee are obligated to
provide pursuant to other provisions of this Agreement, if so requested by the
Depositor, each of the Master Servicer and the Trustee shall provide such
information which is available to the Master Servicer and the Trustee, as
applicable, without unreasonable effort or expense regarding the performance or
servicing of the Mortgage Loans (in the case of the Trustee, based on the

                                      175
<PAGE>

information provided by the Master Servicer) as is reasonably required to
facilitate preparation of distribution reports in accordance with Item 1121 of
Regulation AB. Such information shall be provided concurrently with the
Remittance Reports in the case of the Master Servicer and the Monthly Statement
in the case of the Trustee, commencing with the first such report due not less
than five Business Days following such request.

          (c)  The Trustee shall not have any responsibility to file any items
(other than those generated by it) that have not been received in a format
suitable (or readily convertible into a format suitable) for electronic filing
via the EDGAR system and shall not have any responsibility to convert any such
items to such format (other than those items generated by it or that are readily
convertible to such format). The Trustee shall have no liability to the
Certificateholders, the Trust Fund, the Master Servicer, the Depositor or the
NIM Insurer with respect to any failure to properly prepare or file any of Form
10-D to the extent that such failure is not the result of any negligence, bad
faith or willful misconduct on its part.

          Section 11.03 Form 8-K Filings.

          The Master Servicer shall prepare and file on behalf of the Trust Fund
any Form 8-K required by the Exchange Act. Each Form 8-K must be signed by the
Master Servicer. Each of the Master Servicer (and the Master Servicer shall
cause any Subservicer to promptly notify) and the Trustee shall promptly notify
the Depositor and the Master Servicer (if the notifying party is not the Master
Servicer), but in no event later than one (1) Business Day after its occurrence,
of any Reportable Event of which it has actual knowledge. Each Person shall be
deemed to have actual knowledge of any such event to the extent that it relates
to such Person or any action or failure to act by such Person. Concurrently with
any Subsequent Transfer, CHL shall notify the Depositor and the Master Servicer,
if any material pool characteristic of the actual asset pool at the time of
issuance of the Certificates differs by 5% or more (other than as a result of
the pool assets converting into cash in accordance with their terms) from the
description of the asset pool in the Prospectus Supplement.

          Section 11.04 Form 10-K Filings.

          Prior to March 30th of each year, commencing in 2007 (or such earlier
date as may be required by the Exchange Act), the Depositor shall prepare and
file on behalf of the Trust Fund a Form 10-K, in form and substance as required
by the Exchange Act. A senior officer in charge of the servicing function of the
Master Servicer shall sign each Form 10-K filed on behalf of the Trust Fund.
Such Form 10-K shall include as exhibits each (i) annual compliance statement
described under Section 3.17, (ii) annual report on assessments of compliance
with servicing criteria described under Section 11.07 and (iii) accountant's
report described under Section 11.07. Each Form 10-K shall also include any
Sarbanes-Oxley Certification required to be included therewith, as described in
Section 11.05.

          If the Item 1119 Parties listed on Exhibit Z have changed since the
Closing Date, no later than March 1 of each year, the Master Servicer shall
provide each of the Master Servicer (and the Master Servicer shall provide any
Subservicer) and the Trustee with an updated Exhibit Z setting forth the Item
1119 Parties. No later than March 15 of each year, commencing in 2007, the
Master Servicer and the Trustee shall notify (and the Master Servicer shall
cause any

                                      176
<PAGE>

Subservicer to notify) the Depositor and the Master Servicer of any Form 10-K
Disclosure Item, together with a description of any such Form 10-K Disclosure
Item in form and substance reasonably acceptable to the Depositor. Additionally,
each of the Master Servicer and the Trustee shall provide, and shall cause each
Reporting Subcontractor retained by the Master Servicer or the Trustee, as
applicable, and in the case of the Master Servicer shall cause each Subservicer,
to provide, the following information no later than March 15 of each year in
which a Form 10-K is required to be filed on behalf of the Trust Fund: (i) if
such Person's report on assessment of compliance with servicing criteria
described under Section 11.07 or related registered public accounting firm
attestation report described under Section 11.07 identifies any material
instance of noncompliance, notification of such instance of noncompliance and
(ii) if any such Person's report on assessment of compliance with servicing
criteria or related registered public accounting firm attestation report is not
provided to be filed as an exhibit to such Form 10-K, information detailing the
explanation why such report is not included.

          Section 11.05 Sarbanes-Oxley Certification.

          Each Form 10-K shall include a certification (the "Sarbanes-Oxley
Certification") required by Rules 13a-14(d) and 15d-14(d) under the Exchange Act
(pursuant to Section 302 of 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)). No later than March 15 of
each year, beginning in 2007, the Master Servicer and the Trustee shall (unless
such person is the Certifying Person), and the Master Servicer shall cause each
Subservicer and each Reporting Subcontractor and the Trustee shall cause each
Reporting Subcontractor to, provide to the Person who signs the Sarbanes-Oxley
Certification (the "Certifying Person") a certification (each, a "Performance
Certification"), in the form attached hereto as Exhibit X-1 (in the case of a
Subservicer or any Reporting Subcontractor of the Master Servicer or a
Subservicer) and Exhibit X-2 (in the case of the Trustee or any Reporting
Subcontractor of the Trustee), on 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 in charge of
the servicing function of the Master Servicer shall serve as the Certifying
Person on behalf of the Trust Fund. Neither the Master Servicer nor the
Depositor will request delivery of a certification under this clause unless the
Depositor is required under the Exchange Act to file an annual report on Form
10-K with respect to the Trust Fund. In the event that prior to the filing date
of the Form 10-K in March of each year, the Trustee or the Depositor has actual
knowledge of information material to the Sarbanes-Oxley Certification, the
Trustee or the Depositor, as the case may be, shall promptly notify the Master
Servicer and the Depositor. The respective parties hereto agree to cooperate
with all reasonable requests made by any Certifying Person or Certification
Party in connection with such Person's attempt to conduct any due diligence that
such Person reasonably believes to be appropriate in order to allow it to
deliver any Sarbanes-Oxley Certification or portion thereof with respect to the
Trust Fund.

          Section 11.06 Form 15 Filing.

          Prior to January 30 of the first year in which the Depositor is able
to do so under applicable law, the Depositor shall file a Form 15 relating to
the automatic suspension of reporting in respect of the Trust Fund under the
Exchange Act.

                                      177
<PAGE>

          Section 11.07 Report on Assessment of Compliance and Attestation.

          (a)  On or before March 15 of each calendar year, commencing in 2007:

               (1)  Each of the Master Servicer and the Trustee shall deliver to
     the Depositor and the Master Servicer a report (in form and substance
     reasonably satisfactory to the Depositor) regarding the Master Servicer's
     or the Trustee's, as applicable, assessment of compliance with the
     Servicing Criteria during the immediately preceding calendar year, as
     required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of
     Regulation AB. Such report shall be signed by an authorized officer of such
     Person and shall address each of the Servicing Criteria specified on a
     certification substantially in the form of Exhibit Y hereto delivered to
     the Depositor concurrently with the execution of this Agreement. To the
     extent any of the Servicing Criteria are not applicable to such Person,
     with respect to asset-backed securities transactions taken as a whole
     involving such Person and that are backed by the same asset type backing
     the Certificates, such report shall include such a statement to that
     effect. The Depositor and the Master Servicer, and each of their respective
     officers and directors shall be entitled to rely on upon each such
     servicing criteria assessment.

               (2)  Each of the Master Servicer and the Trustee shall deliver to
     the Depositor and the Master Servicer a report of a registered public
     accounting firm reasonably acceptable to the Depositor that attests to, and
     reports on, the assessment of compliance made by Master Servicer or the
     Trustee, as applicable, and delivered pursuant to the preceding paragraphs.
     Such attestation shall be in accordance with Rules 1-02(a)(3)and 2-02(g) of
     Regulation S-X under the Securities Act and the Exchange Act, including,
     without limitation that 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. To the
     extent any of the Servicing Criteria are not applicable to such Person,
     with respect to asset-backed securities transactions taken as a whole
     involving such Person and that are backed by the same asset type backing
     the Certificates, such report shall include such a statement that that
     effect.

               (3)  The Master Servicer shall cause each Subservicer and each
     Reporting Subcontractor to deliver to the Depositor an assessment of
     compliance and accountant's attestation as and when provided in paragraphs
     (a) and (b) of this Section 11.07.

               (4)  The Trustee shall cause each Reporting Subcontractor to
     deliver to the Depositor and the Master Servicer an assessment of
     compliance and accountant's attestation as and when provided in paragraphs
     (a) and (b) of this Section.

               (5)  The Master Servicer and the Trustee shall execute (and the
     Master Servicer shall cause each Subservicer to execute, and the Master
     Servicer and the Trustee shall cause each Reporting Subcontractor to
     execute) a reliance certificate to enable the Certification Parties to rely
     upon each (i) annual compliance statement provided pursuant to Section
     3.17, (ii) annual report on assessments of compliance with servicing
     criteria

                                      178
<PAGE>

     provided pursuant to this Section 11.07 and (iii) accountant's report
     provided pursuant to this Section 11.07 and shall include a certification
     that each such annual compliance statement or report discloses any
     deficiencies or defaults described to the registered public accountants of
     such Person to enable such accountants to render the certificates provided
     for in this Section 11.07.

          (b)  In the event the Master Servicer, any Subservicer, the Trustee or
Reporting Subcontractor is terminated or resigns during the term of this
Agreement, such Person shall provide documents and information required by this
Section 11.07 with respect to the period of time it was subject to this
Agreement or provided services with respect to the Trust Fund, the Certificates
or the Mortgage Loans.

          (c)  Each assessment of compliance provided by a Subservicer pursuant
to Section 11.07(a)(3)shall address each of the Servicing Criteria specified on
a certification substantially in the form of Exhibit Y hereto delivered to the
Depositor concurrently with the execution of this Agreement or, in the case of a
Subservicer subsequently appointed as such, on or prior to the date of such
appointment. An assessment of compliance provided by a Subcontractor pursuant to
Section 11.07(a)(3)or (4) need not address any elements of the Servicing
Criteria other than those specified by the Master Servicer or the Trustee, as
applicable, pursuant to Section 11.07(a)(1).

          Section 11.08 Use of Subservicers and Subcontractors.

          (a)  The Master Servicer shall cause any Subservicer used by the
Master Servicer (or by any Subservicer) for the benefit of the Depositor to
comply with the provisions of Section 3.17 and this Article XI to the same
extent as if such Subservicer were the Master Servicer (except with respect to
the Master Servicer's duties with respect to preparing and filing any Exchange
Act Reports or as the Certifying Person). The Master Servicer shall be
responsible for obtaining from each Subservicer and delivering to the Depositor
any servicer compliance statement required to be delivered by such Subservicer
under Section 3.17, any assessment of compliance and attestation required to be
delivered by such Subservicer under Section 11.07 and any certification required
to be delivered to the Certifying Person under Section 11.05 as and when
required to be delivered. As a condition to the succession to any Subservicer as
subservicer under this Agreement by any Person (i) into which such Subservicer
may be merged or consolidated, or (ii) which may be appointed as a successor to
any Subservicer, the Master Servicer shall provide to the Depositor, at least 15
calendar days prior to the effective date of such succession or appointment, (x)
written notice to the Depositor of such succession or appointment and (y) in
writing and in form and substance reasonably satisfactory to the Depositor, all
information reasonably requested by the Depositor in order to comply with its
reporting obligation under Item 6.02 of Form 8-K.

          (b)  It shall not be necessary for the Master Servicer, any
Subservicer or the Trustee to seek the consent of the Depositor or any other
party hereto prior to the utilization of any Subcontractor. The Master Servicer
or the Trustee, as applicable, shall promptly upon request provide to the
Depositor (or any designee of the Depositor, such as the Master Servicer or
administrator) a written description (in form and substance satisfactory to the
Depositor) of the role and function of each Subcontractor utilized by such
Person (or in the case of the Master

                                      179
<PAGE>

Servicer, any Subservicer), specifying (i) the identity of each such
Subcontractor, (ii) which (if any) of such Subcontractors 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 Subcontractor identified pursuant to clause (ii)
of this paragraph.

          As a condition to the utilization of any Subcontractor determined to
be a Reporting Subcontractor, the Master Servicer or the Trustee, as applicable,
shall cause any such Subcontractor used by such Person (or in the case of the
Master Servicer, any Subservicer) for the benefit of the Depositor to comply
with the provisions of Sections 11.07 and 11.09 of this Agreement to the same
extent as if such Subcontractor were the Master Servicer (except with respect to
the Master Servicer's duties with respect to preparing and filing any Exchange
Act Reports or as the Certifying Person) or the Trustee, as applicable. The
Master Servicer or the Trustee, as applicable, shall be responsible for
obtaining from each Subcontractor and delivering to the Depositor and the Master
Servicer, any assessment of compliance and attestation required to be delivered
by such Subcontractor under Section 11.05 and Section 11.07, in each case as and
when required to be delivered.

          Section 11.09 Amendments.

          In the event the parties to this Agreement desire to further clarify
or amend any provision of this Article XI, this Agreement shall be amended to
reflect the new agreement between the parties covering matters in this Article
XI pursuant to Section 10.01, which amendment shall not require any Opinion of
Counsel or Rating Agency confirmations or the consent of any Certificateholder
or the NIM Insurer.

          If, during the period that the Depositor is required to file Exchange
Act Reports with respect to the Trust Fund, the Master Servicer is no longer an
Affiliate of the Depositor, the Depositor shall assume the obligations and
responsibilities of the Master Servicer in this Article XI with respect to the
preparation and filing of the Exchange Act Reports and/or acting as the
Certifying Person, if the Depositor has received indemnity from such successor
Master Servicer satisfactory to the Depositor, and such Master Servicer has
agreed to provide a Sarbanes-Oxley Certification to the Depositor substantially
in the form of Exhibit AA and the certifications referred to in Section 11.07.

          Section 11.10 Reconciliation of Accounts.

          Any reconciliation of Accounts performed by any party hereto, or any
Subservicer or Subcontractor shall be prepared no later than 45 calendar days
after the bank statement cut-off date.

                                      180
<PAGE>

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

                                        CWABS, INC.,
                                           as Depositor

                                        By:    /s/ Darren Bigby
                                            -------------------
                                            Name:  Darren Bigby
                                            Title: Vice President

                                        COUNTRYWIDE HOME LOANS, INC.,
                                           as a Seller

                                        By:    /s/ Darren Bigby
                                            -------------------
                                            Name:  Darren Bigby
                                            Title: Executive Vice President

                                        PARK MONACO INC.,
                                           as a Seller

                                        By:    /s/ Darren Bigby
                                            -------------------
                                            Name:  Darren Bigby
                                            Title: Vice President

                                        PARK SIENNA LLC,
                                           as a Seller

                                        By:    /s/ Darren Bigby
                                            -------------------
                                            Name:  Darren Bigby
                                            Title: Assistant Vice President

<PAGE>

                                        COUNTRYWIDE HOME LOANS SERVICING LP,
                                           as Master Servicer

                                        By: COUNTRYWIDE GP, INC.

                                        By:    /s/ Darren Bigby
                                            -------------------
                                            Name:  Darren Bigby
                                            Title: Senior Vice President

                                        THE BANK OF NEW YORK,
                                           as Trustee

                                        By:    /s/ Michelle Penson
                                            ----------------------
                                            Name:  Michelle Penson
                                            Title: Vice President

                                        THE BANK OF NEW YORK
                                        (solely with respect to its obligations
                                        under Section 4.01(d))

                                        By:    /s/ Paul Connolly
                                            --------------------
                                            Name:  Paul Connolly
                                            Title: Vice President

<PAGE>

                                        THE BANK OF NEW YORK TRUST COMPANY, N.A.
                                           as Co-Trustee

                                        By:    /s/ Ernest Ulate Jr.
                                            -----------------------
                                            Name:  Ernest Ulate Jr.
                                            Title: Vice President

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Darren Bigby, personally known to me on the basis of
satisfactory evidence to be an Executive Vice President of Countrywide Home
Loans, Inc., one of the corporations that executed the within instrument, and
also known to me to be the person who executed it on behalf of such corporation
and acknowledged to me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Darren Bigby, personally known to me on the basis of
satisfactory evidence to be a Senior Vice President of Countrywide GP, Inc., the
parent company of Countrywide Home Loans Servicing LP, one of the organizations
that executed the within instrument, and also known to me to be the person who
executed it on behalf of such limited partnership and acknowledged to me that
such limited partnership 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.

                                        /s/ Glenda Daniel
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Darren Bigby, personally known to me on the basis of
satisfactory evidence to be a Vice President of CWABS, Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of such corporation and acknowledged to me that
such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Darren Bigby, personally known to me on the basis of
satisfactory evidence to be a Vice President of Park Monaco Inc., one of the
corporations that executed the within instrument, and also known to me to be the
person who executed it on behalf of such corporation and acknowledged to me that
such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Darren Bigby, personally known to me on the basis of
satisfactory evidence to be an Assistant Vice President of Park Sienna LLC, 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 entity and acknowledged to me that
such entity executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                        /s/ Glenda Daniel
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK                           )
                                            )    ss.:
COUNTY OF NEW YORK                          )

          On this 29th day of December, 2006 before me, a notary public in and
for said State, appeared Michelle Penson, personally known to me on the basis of
satisfactory evidence to be a Vice President of The Bank of New York, a New York
banking corporation 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.

                                        /s/ Joanna Ferreri
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF NEW YORK                           )
                                            )    ss.:
COUNTY OF NEW YORK                          )

          On this 29th day of December, 2006 before me, a notary public in and
for said State, appeared Paul Connolly, personally known to me on the basis of
satisfactory evidence to be a Vice President of The Bank of New York, a New York
banking corporation 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.

                                        /s/ Joanna Ferreri
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

STATE OF CALIFORNIA                         )
                                            )    ss.:
COUNTY OF LOS ANGELES                       )

          On this 29th day of December, 2006, before me, a notary public in and
for said State, appeared Ernest Ulate Jr., personally known to me on the basis
of satisfactory evidence to be a Vice President of The Bank of New York Trust
Company, N.A., one of the corporations that executed the within instrument, and
also known to me to be the person who executed it on behalf of such corporation
and acknowledged to me that such corporation executed the within instrument.

          IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                         /s/  Nathan Harvey Reddicks Jr.
                                    --------------------------------------------
                                                   Notary Public

[Notarial Seal]

<PAGE>

                                                                    Exhibits A-1
                                                                    through A-15

                         [Exhibits A-1 through A-15 are
                 photocopies of such Certificates as delivered.]

                [See appropriate documents delivered at closing.]

                                      A-1

<PAGE>

                                                                       Exhibit B

                            Exhibit B is a photocopy
                           of the Class P Certificates
                                  as delivered.

                [See appropriate document delivered at closing.]

                                       B-1
<PAGE>

                                                                       Exhibit C

                            Exhibit C is a photocopy
                           of the Class C Certificates
                                  as delivered.

                [See appropriate document delivered at closing.]

                                       C-1
<PAGE>

                                                                       Exhibit D

                            Exhibit D is a photocopy
                          of the Class A-R Certificate
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                       D-1
<PAGE>

                                                                       Exhibit E

                            Exhibit E is a photocopy
                      of the Tax Matters Person Certificate
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                       E-1
<PAGE>

                                                             Exhibit F-1 and F-2

             [Exhibits F-1 and F-2 are schedules of Mortgage Loans]

         [Delivered to Trustee at closing and on file with the Trustee.]

                                       F-1
<PAGE>

                                   EXHIBIT G-1

                    FORM OF INITIAL CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re:  CWABS Asset-Backed Certificates, Series 2006-26
               -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of December 1, 2006 (the "Pooling and Servicing Agreement") among
CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, the undersigned, as Trustee, and The Bank of
New York Trust Company, N.A., as Co-Trustee, the undersigned, as Trustee, hereby
certifies that, as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or listed in the attached list of
exceptions) the Co-Trustee has received:

          (i)  the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of ______________,
without recourse", or, if the original Mortgage Note has been lost or destroyed
and not replaced, an original lost note affidavit, stating that the original
Mortgage Note was lost or destroyed, together with a copy of the related
Mortgage Note; and

          (ii) a duly executed assignment of the Mortgage or a copy of such
assignment, in either case in the form permitted by Section 2.01 of the Pooling
and Servicing Agreement.

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule or (ii) the collectibility,
insurability, effectiveness or suitability of any such Mortgage Loan.

                                     G-1-1

<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        The Bank of New York,
                                          as Trustee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                     G-1-2

<PAGE>

                                   EXHIBIT G-2

                    FORM OF INTERIM CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re:  CWABS Asset-Backed Certificates, Series 2006-26
               -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of December 1, 2006 (the "Pooling and Servicing Agreement") among
CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, the undersigned, as Trustee, and The Bank of
New York Trust Company, N.A., as Co-Trustee, the undersigned hereby certifies
that [, with respect to the Subsequent Mortgage Loans delivered in connection
with the Subsequent Transfer Agreement, dated as of __________ (the "Subsequent
Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller,
and The Bank of New York, as Trustee], except as listed in the following
paragraph, as to each [Initial Mortgage Loan][Subsequent Mortgage Loan] listed
in the [Mortgage Loan Schedule][Loan Number and Borrower Identification Mortgage
Loan Schedule] (other than any [Mortgage Loan][Loan Number and Borrower
Identification Mortgage Loan Schedule] paid in full or listed on the attached
list of exceptions) the Co-Trustee has received:

          (i)  the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete chain
of endorsement from the originator to the Person endorsing the Mortgage Note
(each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and to
that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (ii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a copy
of such Mortgage, with recording information, and in the case of each [Initial
Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage Loan, the
original Mortgage or a copy of such Mortgage, with recording information, noting
thereon the presence of the MIN of the [Initial

                                     G-2-1
<PAGE>

Mortgage Loan] [Subsequent Mortgage Loan] and language indicating that the
[Initial Mortgage Loan] [Subsequent Mortgage Loan] is a MOM Loan if the [Initial
Mortgage Loan] [Subsequent Mortgage Loan] is a MOM Loan, with evidence of
recording indicated thereon, or a copy of the Mortgage certified by the public
recording office in which such Mortgage has been recorded;

          (iii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-26, CWABS, Inc., by The Bank
of New York, a New York banking corporation, as trustee under the Pooling and
Servicing Agreement dated as of December 1, 2006, without recourse" or a copy of
such assignment, with recording information, or, in the case of each [Initial
Mortgage Loan][Subsequent Mortgage Loan] with respect to property located in the
State of California that is not a MERS Mortgage Loan, a duly executed assignment
of the Mortgage in blank (each such assignment, when duly and validly completed,
to be in recordable form and sufficient to effect the assignment of and transfer
to the assignee thereof, under the Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and all
riders thereto or, in the event such original title policy has not been received
from the insurer, any one of an original title binder, an original preliminary
title report or an original title commitment, or a copy thereof certified by the
title company, with the original policy of title insurance to be delivered
within one year of the Closing Date.

          In the event that in connection with any [Initial Mortgage
Loan][Subsequent Mortgage Loan] that is not a MERS Mortgage Loan the applicable
Seller cannot deliver the original recorded Mortgage or all interim recorded
assignments of the Mortgage satisfying the requirements of clause (ii), (iii) or
(iv), as applicable, the Trustee has received, in lieu thereof, a true and
complete copy of such Mortgage and/or such assignment or assignments of the
Mortgage, as applicable, each certified by the applicable Seller, the applicable
title company, escrow agent or attorney, or the originator of such [Initial
Mortgage Loan][Subsequent Mortgage Loan], as the case may be, to be a true and
complete copy of the original Mortgage or assignment of Mortgage submitted for
recording.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
[Initial Mortgage Loan][Subsequent Mortgage Loan], and (ii) the information set
forth in items (i), (iv), (v), (vi), (viii), (ix) and (xv) of the definition of
the "Mortgage Loan Schedule" in Section 1.01 of the Pooling and Servicing
Agreement accurately reflects information set forth in the Mortgage File.

                                     G-2-2
<PAGE>

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the [Initial Mortgage
Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any such
Mortgage Loan.

                                     G-2-3
<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        The Bank of New York,
                                           as Trustee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                     G-2-4
<PAGE>

                                   EXHIBIT G-3

                      FORM OF DELAY DELIVERY CERTIFICATION

                                     [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re:  CWABS Asset-Backed Certificates, Series 2006-26
               -----------------------------------------------

Gentlemen:

          [Reference is made to the Initial Certification of Trustee relating to
the above-referenced series, with the schedule of exceptions attached thereto,
delivered by the undersigned, as Trustee, on the Closing Date in accordance with
Section 2.02 of the Pooling and Servicing Agreement dated as of December 1, 2006
(the "Pooling and Servicing Agreement") among CWABS, Inc., as Depositor,
Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a Seller, Park
Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP, as Master
Servicer, the undersigned, as Trustee, and The Bank of New York Trust Company,
N.A., as Co-Trustee.] The undersigned hereby certifies that [, with respect to
the Subsequent Mortgage Loans delivered in connection with the Subsequent
Transfer Agreement, dated as of __________ (the "Subsequent Transfer Agreement")
among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, and The Bank of New
York, as Trustee,] as to each Delay Delivery Mortgage Loan listed on the
Schedule A attached hereto (other than any [Initial Mortgage Loan][Subsequent
Mortgage Loan] paid in full or listed on Schedule B attached hereto) it has
received:

          (1)  the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete chain
of endorsement from the originator to the Person endorsing the Mortgage Note
(each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and to
that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (2)  in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-26, CWABS, Inc., by The Bank
of New York, a New York banking corporation, as trustee under the Pooling and
Servicing Agreement dated as of December 1, 2006, without recourse" or a copy of
such assignment, with recording information,

                                     G-3-1
<PAGE>

or, in the case of each [Initial Mortgage Loan][Subsequent Mortgage Loan] with
respect to property located in the State of California that is not a MERS
Mortgage Loan, a duly executed assignment of the Mortgage in blank (each such
assignment, when duly and validly completed, to be in recordable form and
sufficient to effect the assignment of and transfer to the assignee thereof,
under the Mortgage to which such assignment relates).

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the [Initial Mortgage
Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any such
[Initial Mortgage Loan][Subsequent Mortgage Loan].

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        The Bank of New York,
                                          as Trustee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                     G-3-2

<PAGE>

                                   EXHIBIT G-4

                    FORM OF INITIAL CERTIFICATION OF TRUSTEE
                           (SUBSEQUENT MORTGAGE LOANS)

                                     [Date]

[Depositor]

[Sellers]

[Master Servicer]

          Re:  CWABS Asset-Backed Certificates, Series 2006-26
               -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of December 1, 2006 (the "Pooling and Servicing Agreement") among
CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, the undersigned, as Trustee, and The Bank of
New York Trust Company, N.A., as Co-Trustee, the undersigned hereby certifies
that, as to each Subsequent Mortgage Loan listed in the Loan Number and Borrower
Identification Mortgage Loan Schedule (other than any Subsequent Mortgage Loan
paid in full or listed in the attached list of exceptions) the Trustee has
received:

          (1)  the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _______________
without recourse", with all intervening endorsements that show a complete chain
of endorsement from the originator to the Person endorsing the Mortgage Note
(each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and to
that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements; and

          (2)  a duly executed assignment of the Mortgage or a copy of such
assignment with recording information, in either case in the form permitted by
Section 2.01 of the Pooling and Servicing Agreement.

          Based on its review and examination and only as to the foregoing
documents, such documents appear regular on their face and related to such
Mortgage Loan.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to:
(i) the validity, legality, sufficiency, enforceability or genuineness of any
of the documents contained in each Mortgage File of any of

                                     G-4-1
<PAGE>

the Subsequent Mortgage Loans identified on the Loan Number and Borrower
Identification Mortgage Loan Schedule or (ii) the collectibility, insurability,
effectiveness or suitability of any such Subsequent Mortgage Loan.

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        The Bank of New York,
                                           as Trustee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                     G-4-2
<PAGE>

                                    EXHIBIT H

                     FORM OF FINAL CERTIFICATION OF TRUSTEE

                                     [Date]

[Depositor]

[Master Servicer]

[Sellers]

          Re:  CWABS Asset-Backed Certificates, Series 2006-26
               -----------------------------------------------

Gentlemen:

          In accordance with Section 2.02 of the Pooling and Servicing Agreement
dated as of December 1, 2006 (the "Pooling and Servicing Agreement") among
CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a Seller, Park
Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans
Servicing LP, as Master Servicer, the undersigned, as Trustee, and The Bank of
New York Trust Company, N.A., as Co-Trustee, the undersigned hereby certifies
that[, with respect to the Subsequent Mortgage Loans delivered in connection
with the Subsequent Transfer Agreement, dated as of __________ (the "Subsequent
Transfer Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans,
Inc., as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller
and The Bank of New York, as Trustee,] as to each [Initial Mortgage
Loan][Subsequent Mortgage Loan] listed in the [Mortgage Loan Schedule][Loan
Number and Borrower Identification Mortgage Loan Schedule] (other than any
[Initial Mortgage Loan][Subsequent Mortgage Loan] paid in full or listed on the
attached Document Exception Report) it has received:

          (i)  the original Mortgage Note, endorsed by manual or facsimile
signature in blank in the following form: "Pay to the order of _________________
without recourse", with all intervening endorsements that show a complete chain
of endorsement from the originator to the Person endorsing the Mortgage Note
(each such endorsement being sufficient to transfer all right, title and
interest of the party so endorsing, as noteholder or assignee thereof, in and to
that Mortgage Note), or, if the original Mortgage Note has been lost or
destroyed and not replaced, an original lost note affidavit, stating that the
original Mortgage Note was lost or destroyed, together with a copy of the
related Mortgage Note and all such intervening endorsements;

          (ii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, the original recorded Mortgage or a copy
of such Mortgage, with recording information, and in the case of each [Initial
Mortgage Loan][Subsequent Mortgage Loan] that is a MERS Mortgage Loan, the
original Mortgage or a copy of such Mortgage, with recording information, noting
the presence of the MIN of the [Initial Mortgage Loan][Subsequent Mortgage Loan]
and language indicating that the [Initial Mortgage Loan][Subsequent Mortgage
Loan] is a MOM Loan if the [Initial Mortgage Loan][Subsequent

                                      H-1
<PAGE>

Mortgage Loan] is a MOM Loan, with evidence of recording indicated thereon, or a
copy of the Mortgage certified by the public recording office in which such
Mortgage has been recorded];

          (iii) in the case of each [Initial Mortgage Loan][Subsequent Mortgage
Loan] that is not a MERS Mortgage Loan, a duly executed assignment of the
Mortgage to "Asset-Backed Certificates, Series 2006-26, CWABS, Inc., by The Bank
of New York, a New York banking corporation, as trustee under the Pooling and
Servicing Agreement dated as of December 1, 2006, without recourse" or a copy of
such assignment, with recording information, or, in the case of each [Initial
Mortgage Loan][Subsequent Mortgage Loan] with respect to property located in the
State of California that is not a MERS Mortgage Loan, a duly executed assignment
of the Mortgage in blank (each such assignment, when duly and validly completed,
to be in recordable form and sufficient to effect the assignment of and transfer
to the assignee thereof, under the Mortgage to which such assignment relates);

          (iv) the original recorded assignment or assignments of the Mortgage
or a copy of such assignments, with recording information, together with all
interim recorded assignments of such Mortgage or a copy of such assignments,
with recording information (in each case noting the presence of a MIN in the
case of each MERS Mortgage Loan);

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

          (vi) the original or duplicate original lender's title policy or a
copy of lender's title policy or a printout of the electronic equivalent and all
riders thereto or any one of an original title binder, an original preliminary
title report or an original title commitment, or a copy thereof certified by the
title company.

          If the public recording office in which a Mortgage or assignment
thereof is recorded has retained the original of such Mortgage or assignment,
the Trustee has received, in lieu thereof, a copy of the original Mortgage or
assignment so retained, with evidence of recording thereon, certified to be true
and complete by such recording office.

          Based on its review and examination and only as to the foregoing
documents, (i) such documents appear regular on their face and related to such
Mortgage Loan, and (ii) the information set forth in items (i), (iv), (v), (vi),
(viii), (ix) and (xv) of the definition of the "Mortgage Loan Schedule" in
Section 1.01 of the Pooling and Servicing Agreement accurately reflects
information set forth in the Mortgage File.

          The Trustee has made no independent examination of any documents
contained in each Mortgage File beyond the review specifically required in the
Pooling and Servicing Agreement. The Trustee makes no representations as to: (i)
the validity, legality, sufficiency, enforceability or genuineness of any of the
documents contained in each Mortgage File of any of the [Initial Mortgage
Loans][Subsequent Mortgage Loans] identified on the [Mortgage Loan
Schedule][Loan Number and Borrower Identification Mortgage Loan Schedule] or
(ii) the collectibility, insurability, effectiveness or suitability of any such
[Initial Mortgage Loan][Subsequent Mortgage Loan].

                                      H-2
<PAGE>

          Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the Pooling and Servicing Agreement.

                                        The Bank of New York,
                                           as Trustee

                                        By:_____________________________________
                                           Name:
                                           Title:

                                      H-3
<PAGE>

                                    EXHIBIT I

                TRANSFER AFFIDAVIT FOR THE CLASS A-R CERTIFICATES

STATE OF                   )
                           )       ss.:
COUNTY OF                  )

          The undersigned, being first duly sworn, deposes and says as follows:

          1.   The undersigned is an officer of _______________, the proposed
Transferee of an Ownership Interest in a Class A-R Certificate (the
"Certificate") issued pursuant to the Pooling and Servicing Agreement, dated as
of December 1, 2006 (the "Agreement"), by and among CWABS, Inc., as depositor
(the "Depositor"), Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc.,
as a Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP,
as Master Servicer, The Bank of New York, as Trustee, and The Bank of New York
Trust Company, N.A., as Co-Trustee. Capitalized terms used, but not defined
herein or in Exhibit 1 hereto, shall have the meanings ascribed to such terms in
the Agreement. The Transferee has authorized the undersigned to make this
affidavit on behalf of the Transferee.

          2.   The Transferee is not an employee benefit plan that is subject to
Title I of ERISA or to section 4975 of the Internal Revenue Code of 1986, nor is
it acting on behalf of or with plan assets of any such plan. The Transferee is,
as of the date hereof, and will be, as of the date of the Transfer, a Permitted
Transferee. The Transferee will endeavor to remain a Permitted Transferee for so
long as it retains its Ownership Interest in the Certificate. The Transferee is
acquiring its Ownership Interest in the Certificate for its own account.

          3.   The Transferee has been advised of, and understands that (i) a
tax will be imposed on Transfers of the Certificate to Persons that are not
Permitted Transferees; (ii) such tax will be imposed on the transferor, or, if
such Transfer is through an agent (which includes a broker, nominee or
middleman) for a Person that is not a Permitted Transferee, on the agent; and
(iii) the Person otherwise liable for the tax shall be relieved of liability for
the tax if the subsequent Transferee furnished to such Person an affidavit that
such subsequent Transferee is a Permitted Transferee and, at the time of
Transfer, such Person does not have actual knowledge that the affidavit is
false.

          4.   The Transferee has been advised of, and understands that a tax
will be imposed on a "pass-through entity" holding the Certificate if at any
time during the taxable year of the pass-through entity a Person that is not a
Permitted Transferee is the record holder of an interest in such entity. The
Transferee understands that such tax will not be imposed for any period with
respect to which the record holder furnishes to the pass-through entity an
affidavit that such record holder is a Permitted Transferee and the pass-through
entity does not have actual knowledge that such affidavit is false. (For this
purpose, a "pass-through entity" includes a regulated investment company, a real
estate investment trust or common trust fund, a partnership, trust or estate,
and certain cooperatives and, except as may be provided in Treasury Regulations,
persons holding interests in pass-through entities as a nominee for another
Person.)

                                      I-1
<PAGE>

          5.   The Transferee has reviewed the provisions of Section 5.02(c) of
the Agreement (attached hereto as Exhibit 2 and incorporated herein by
reference) and understands the legal consequences of the acquisition of an
Ownership Interest in the Certificate including, without limitation, the
restrictions on subsequent Transfers and the provisions regarding voiding the
Transfer and mandatory sales. The Transferee expressly agrees to be bound by and
to abide by the provisions of Section 5.02(c) of the Agreement and the
restrictions noted on the face of the Certificate. The Transferee understands
and agrees that any breach of any of the representations included herein shall
render the Transfer to the Transferee contemplated hereby null and void.

          6.   The Transferee agrees to require a Transfer Affidavit from any
Person to whom the Transferee attempts to Transfer its Ownership Interest in the
Certificate, and in connection with any Transfer by a Person for whom the
Transferee is acting as nominee, trustee or agent, and the Transferee will not
Transfer its Ownership Interest or cause any Ownership Interest to be
Transferred to any Person that the Transferee knows is not a Permitted
Transferee. In connection with any such Transfer by the Transferee, the
Transferee agrees to deliver to the Trustee a certificate substantially in the
form set forth as Exhibit J-1 to the Agreement (a "Transferor Certificate") to
the effect that such Transferee has no actual knowledge that the Person to which
the Transfer is to be made is not a Permitted Transferee.

          7.   The Transferee does not have the intention to impede the
assessment or collection of any tax legally required to be paid with respect to
the Class A-R Certificates.

          8.   The Transferee's taxpayer identification number is _____.

          9.   The Transferee is a U.S. Person as defined in Code section
7701(a)(30).

          10.  The Transferee is aware that the Class A-R Certificates may be
"noneconomic residual interests" within the meaning of proposed Treasury
regulations promulgated pursuant to the Code and that the transferor of a
noneconomic residual interest will remain liable for any taxes due with respect
to the income on such residual interest, unless no significant purpose of the
transfer was to impede the assessment or collection of tax. In addition, as the
holder of a noneconomic residual interest, the Transferee may incur tax
liabilities in excess of any cash flows generated by the interest and the
Transferee hereby represents that it intends to pay taxes associated with
holding the residual interest as they become due.

          11.  The Transferee has provided financial statements or other
financial information requested by the Transferor in connection with the
transfer of the Class A-R Certificates to permit the Transferor to assess the
financial capability of the Transferee to pay such taxes.

                                  *    *    *

                                      I-2
<PAGE>

          IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
duly authorized officer and its corporate seal to be hereunto affixed, duly
attested, this ____ day of _____________, 20__.

                                        [NAME OF TRANSFEREE]

                                        By:_____________________________________
                                           Name:
                                           Title:

[Corporate Seal]

ATTEST:

_________________________
[Assistant] Secretary

          Personally appeared before me the above-named _____________, known or
proved to me to be the same person who executed the foregoing instrument and to
be the ____________ of the Transferee, and acknowledged that he executed the
same as his free act and deed and the free act and deed of the Transferee.

          Subscribed and sworn before me this ____ day of _______, 20__.

                                        _____________________________________
                                                    NOTARY PUBLIC
                                         My Commission expires the ___ day of
                                                          , 20__.

                                      I-3
<PAGE>

                               Certain Definitions

          "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.

          "Permitted Transferee": Any person other than (i) the United States,
any State or political subdivision thereof, or any agency or instrumentality of
any of the foregoing, (ii) a foreign government, International Organization or
any agency or instrumentality of either of the foregoing, (iii) an organization
(except certain farmers' cooperatives described in section 521 of the Code) that
is exempt from tax imposed by Chapter 1 of the Code (including the tax imposed
by section 511 of the Code on unrelated business taxable income) on any excess
inclusions (as defined in section 860E(c)(1) of the Code) with respect to any
Class A-R Certificate, (iv) rural electric and telephone cooperatives described
in section 1381(a)(2)(C) of the Code, (v) an "electing large partnership" as
defined in section 775 of the Code, (vi) a Person that is not a citizen or
resident of the United States, a corporation, partnership, 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, or 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 unless such Person has furnished the
transferor and the Trustee with a duly completed Internal Revenue Service Form
W-8ECI, and (vii) any other Person so designated by the Trustee based upon an
Opinion of Counsel that the Transfer of an Ownership Interest in a Class A-R
Certificate to such Person may cause any REMIC formed hereunder 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 the Federal Home Loan
Mortgage Corporation, a majority of its board of directors is not selected by
such government unit.

          "Person": Any individual, corporation, limited liability company,
partnership, joint venture, bank, joint stock company, trust (including any
beneficiary thereof), unincorporated organization or government or any agency or
political subdivision thereof.

          "Transfer": Any direct or indirect transfer or sale of any Ownership
Interest in a Certificate, including the acquisition of a Certificate by the
Depositor.

          "Transferee": Any Person who is acquiring by Transfer any Ownership
Interest in a Certificate.

                                      I-4
<PAGE>

                        Section 5.02(c) of the Agreement

          (c)  Each Person who has or who acquires any Ownership Interest in a
Class A-R Certificate shall be deemed by the acceptance or acquisition of such
Ownership Interest to have agreed to be bound by the following provisions, and
the rights of each Person acquiring any Ownership Interest in a Class A-R
Certificate are expressly subject to the following provisions:

          (1)  Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall be a Permitted Transferee and shall promptly
     notify the Trustee of any change or impending change in its status as a
     Permitted Transferee.

          (2)  Except in connection with (i) the registration of the Tax Matters
     Person Certificate in the name of the Trustee or (ii) any registration in
     the name of, or transfer of a Class A-R Certificate to, an affiliate of the
     Depositor (either directly or through a nominee) in connection with the
     initial issuance of the Certificates, no Ownership Interest in a Class A-R
     Certificate may be registered on the Closing Date or thereafter
     transferred, and the Trustee shall not register the Transfer of any Class
     A-R Certificate, unless the Trustee shall have been furnished with an
     affidavit (a "Transfer Affidavit") of the initial owner or the proposed
     transferee in the form attached hereto as Exhibit I.

          (3)  Each Person holding or acquiring any Ownership Interest in a
     Class A-R Certificate shall agree (A) to obtain a Transfer Affidavit from
     any other Person to whom such Person attempts to Transfer its Ownership
     Interest in a Class A-R Certificate, (B) to obtain a Transfer Affidavit
     from any Person for whom such Person is acting as nominee, trustee or agent
     in connection with any Transfer of a Class A-R Certificate and (C) not to
     Transfer its Ownership Interest in a Class A-R Certificate, or to cause the
     Transfer of an Ownership Interest in a Class A-R Certificate to any other
     Person, if it has actual knowledge that such Person is not a Permitted
     Transferee.

          (4)  Any attempted or purported Transfer of any Ownership Interest in
     a Class A-R Certificate in violation of the provisions of this Section
     5.02(c) shall be absolutely null and void and shall vest no rights in the
     purported Transferee. If any purported transferee shall become a Holder of
     a Class A-R Certificate in violation of the provisions of this Section
     5.02(c), then the last preceding Permitted Transferee shall be restored to
     all rights as Holder thereof retroactive to the date of registration of
     Transfer of such Class A-R Certificate. The Trustee shall be under no
     liability to any Person for any registration of Transfer of a Class A-R
     Certificate that is in fact not permitted by Section 5.02(b) and this
     Section 5.02(c) or for making any payments due on such Certificate to the
     Holder thereof or taking any other action with respect to such Holder under
     the provisions of this Agreement so long as the Transfer was registered
     after receipt of the related Transfer Affidavit and Transferor Certificate.
     The Trustee shall be entitled but not obligated to recover from any Holder
     of a Class A-R Certificate that was in fact not a Permitted Transferee at
     the time it became a Holder or, at such subsequent time as it became other
     than a Permitted Transferee, all payments made on such Class A-R
     Certificate at and after either such time. Any such payments so recovered
     by the Trustee shall be paid and delivered by the Trustee to the last
     preceding Permitted Transferee of such Certificate.

                                      I-5
<PAGE>

          (5)  The Master Servicer shall use its best efforts to make available,
     upon receipt of written request from the Trustee, all information necessary
     to compute any tax imposed under section 860E(e) of the Code as a result of
     a Transfer of an Ownership Interest in a Class A-R Certificate to any
     Holder who is not a Permitted Transferee.

          The restrictions on Transfers of a Class A-R Certificate set forth in
this Section 5.02(c) shall cease to apply (and the applicable portions of the
legend on a Class A-R Certificate may be deleted) with respect to Transfers
occurring after delivery to the Trustee of an Opinion of Counsel, which Opinion
of Counsel shall not be an expense of the Trustee, the Sellers or the Master
Servicer to the effect that the elimination of such restrictions will not cause
any constituent REMIC of any REMIC formed hereunder to fail to qualify as a
REMIC at any time that the Certificates are outstanding or result in the
imposition of any tax on the Trust Fund, a Certificateholder or another Person.
Each Person holding or acquiring any ownership Interest in a Class A-R
Certificate hereby consents to any amendment of this Agreement that, based on an
Opinion of Counsel furnished to the Trustee, is reasonably necessary (a) to
ensure that the record ownership of, or any beneficial interest in, a Class A-R
Certificate is not transferred, directly or indirectly, to a Person that is not
a Permitted Transferee and (b) to provide for a means to compel the Transfer of
a Class A-R Certificate that is held by a Person that is not a Permitted
Transferee to a Holder that is a Permitted Transferee.

                                      I-6
<PAGE>

                                   EXHIBIT J-1

            FORM OF TRANSFEROR CERTIFICATE FOR CLASS A-R CERTIFICATES

                                      Date:

CWABS, Inc.
as Depositor
4500 Park Granada
Calabasas, California  91302

The Bank of New York
as Trustee
101 Barclay Street
New York, New York  10286

                Re:   CWABS, Inc. Asset Backed
                      Certificates, Series 2006-26
                      ----------------------------

Ladies and Gentlemen:

          In connection with our disposition of the Class A-R Certificates, we
certify that we have no knowledge that the Transferee is not a Permitted
Transferee. All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as of
December 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller,
Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of New York,
as Trustee, and The Bank of New York Trust Company, N.A., as Co-Trustee.

                                        Very truly yours,

                                        _____________________________________
                                        Name of Transferor

                                        By:_____________________________________
                                        Name:
                                        Title:

                                     J-1-1

<PAGE>

                                   EXHIBIT J-2

                       FORM OF TRANSFEROR CERTIFICATE FOR
                              PRIVATE CERTIFICATES

                                      Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay Street
New York, New York  10286

                Re:   CWABS, Inc. Asset-Backed Certificates,
                      Series 2006-26, Class [   ]

Ladies and Gentlemen:

          In connection with our disposition of the above-captioned Certificates
we certify that (a) we understand that the Certificates have not been registered
under the Securities Act of 1933, as amended (the "Act"), and are being disposed
by us in a transaction that is exempt from the registration requirements of the
Act, (b) we have not offered or sold any Certificates to, or solicited offers to
buy any Certificates from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action which would result in, a violation of Section 5 of the Act. All
capitalized terms used herein but not defined herein shall have the meanings
assigned to them in the Pooling and Servicing Agreement dated as of December 1,
2006, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a
Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide
Home Loans Servicing LP, as Master Servicer, The Bank of New York, as Trustee,
and The Bank of New York Trust Company, N.A., as Co-Trustee.

                                        Very truly yours,

                                        _____________________________________
                                        Name of Transferor

                                        By:_____________________________________
                                        Name:
                                        Title:

                                     J-2-1

<PAGE>

                                    EXHIBIT K

                    FORM OF INVESTMENT LETTER (NON-RULE 144A)

                                      Date:

CWABS, Inc.,
    as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
    as Trustee
101 Barclay St., 8W
New York, New York  10286

                Re:  CWABS, Inc. Asset-Backed Certificates,
                     Series 2006-26, Class [   ]

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned Certificates
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we are an
"accredited investor," as defined in Regulation D under the Act, and have such
knowledge and experience in financial and business matters that we are capable
of evaluating the merits and risks of investments in the Certificates, (c) we
have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) (I) either (i) we are not an employee benefit
plan that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement, or using the assets of any such plan or arrangement to
effect such acquisition or (ii) (A) (if the above-captioned Certificates are
ERISA-Restricted Certificates) if the Certificates have been the subject of an
ERISA-Qualifying Underwriting, we are an insurance company which is purchasing
such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and the purchase and holding of such
Certificates are covered under Sections I and III of PTCE 95-60, or (B) (if the
above-captioned Certificates are not ERISA-Restricted Certificates) it is an
"accredited investor" as defined in Rule 501(a)(1) under the Act, and (II) we
will obtain from our transferee such a representation and agreement described in
this clause (d), (e) we are acquiring the Certificates for investment for our
own account and not with a view to any distribution of such Certificates (but
without prejudice to our right at all times to sell or otherwise dispose of the
Certificates in

                                      K-1
<PAGE>

accordance with clause (g) below), (f) we have not offered or sold any
Certificates to, or solicited offers to buy any Certificates from, any person,
or otherwise approached or negotiated with any person with respect thereto, or
taken any other action which would result in a violation of Section 5 of the
Act, and (g) we will not sell, transfer or otherwise dispose of any Certificates
unless (1) such sale, transfer or other disposition is made pursuant to an
effective registration statement under the Act or is exempt from such
registration requirements, and if requested, we will at our expense provide an
opinion of counsel satisfactory to the addressees of this Certificate that such
sale, transfer or other disposition may be made pursuant to an exemption from
the Act, (2) the purchaser or transferee of such Certificate has executed and
delivered to you a certificate to substantially the same effect as this
certificate, and (3)the purchaser or transferee has otherwise complied with any
conditions for transfer set forth in the Pooling and Servicing Agreement.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as of
December 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller,
Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of New York,
as Trustee, and The Bank of New York Trust Company, N.A., as Co-Trustee.

                                        Very truly yours,

                                        ___________________________________
                                        Name of Transferee

                                        By: _______________________________
                                        Authorized Officer

                                      K-2
<PAGE>

                                    EXHIBIT L

                            FORM OF RULE 144A LETTER

                                      Date:

CWABS, Inc.,
     as Depositor
4500 Park Granada
Calabasas, California 91302

The Bank of New York,
     as Trustee
101 Barclay Street
New York, New York  10286

                Re:  CWABS, Inc. Asset-Backed Certificates,
                     Series 2006-26, Class [   ]

Ladies and Gentlemen:

          In connection with our acquisition of the above-captioned Certificates
we certify that (a) we understand that the Certificates are not being registered
under the Securities Act of 1933, as amended (the "Act"), or any state
securities laws and are being transferred to us in a transaction that is exempt
from the registration requirements of the Act and any such laws, (b) we have
such knowledge and experience in financial and business matters that we are
capable of evaluating the merits and risks of investments in the Certificates,
(c) we have had the opportunity to ask questions of and receive answers from the
Depositor concerning the purchase of the Certificates and all matters relating
thereto or any additional information deemed necessary to our decision to
purchase the Certificates, (d) (I) either (i) we are not an employee benefit
plan that is subject to the Employee Retirement Income Security Act of 1974, as
amended, or a plan or arrangement that is subject to Section 4975 of the
Internal Revenue Code of 1986, as amended, nor are we acting on behalf of any
such plan or arrangement, or using the assets of any such plan or arrangement to
effect such acquisition or (ii) (A) (if the above-captioned Certificates are
ERISA-Restricted Certificates) if the Certificates have been the subject of an
ERISA-Qualifying Underwriting, we are an insurance company which is purchasing
such Certificates with funds contained in an "insurance company general account"
(as such term is defined in Section V(e) of Prohibited Transaction Class
Exemption 95-60 ("PTCE 95-60")) and the purchase and holding of such
Certificates are covered under Sections I and III of PTCE 95-60, or (B) (if the
above-captioned Certificates are not ERISA-Restricted Certificates) it is an
"accredited investor" as defined in Rule 501(a)(1) under the Act, and (II) we
will obtain from our transferee such a representation and agreement described in
this clause (d), (e) we have not, nor has anyone acting on our behalf offered,
transferred, pledged, sold or otherwise disposed of the Certificates, any
interest in the Certificates or any other similar security to, or solicited any
offer to buy or accept a transfer, pledge or other disposition of the
Certificates, any interest in the Certificates or any other similar security
from, or otherwise approached or negotiated with

                                      L-1
<PAGE>

respect to the Certificates, any interest in the Certificates or any other
similar security with, any person in any manner, or made any general
solicitation by means of general advertising or in any other manner, or taken
any other action, that would constitute a distribution of the Certificates under
the Securities Act or that would render the disposition of the Certificates a
violation of Section 5 of the Securities Act or require registration pursuant
thereto, nor will act, nor has authorized or will authorize any person to act,
in such manner with respect to the Certificates, (f) 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 another exemption from registration under the
Securities Act.

          All capitalized terms used herein but not defined herein shall have
the meanings assigned to them in the Pooling and Servicing Agreement dated as of
December 1, 2006, among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc.,
as a Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller,
Countrywide Home Loans Servicing LP, as Master Servicer, The Bank of New York,
as Trustee, and The Bank of New York Trust Company, N.A., as Co-Trustee.

                                        Very truly yours,

                                        __________________________________
                                        Name of Transferee

                                        By: _______________________________
                                        Authorized Officer

                                      L-2
<PAGE>

                              ANNEX 1 TO EXHIBIT L

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

          [For Transferees Other Than Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

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

       In connection with purchases by the Buyer, the Buyer is a "qualified
          institutional buyer" as that term is defined in Rule 144A under the
          Securities Act of 1933, as amended ("Rule 144A") because (i) the Buyer
          owned and/or invested on a discretionary basis either at least
          $100,000,000 in securities or, if Buyer is a dealer, Buyer must own
          and/or invest on a discretionary basis at least $10,000,000 in
          securities (except for the excluded securities referred to below) as
          of the end of the Buyer's most recent fiscal year (such amount being
          calculated in accordance with Rule 144A and (ii) the Buyer satisfies
          the criteria in the category marked below.

          ___  Corporation, etc. The Buyer is a corporation (other than a bank,
               savings and loan association or similar institution),
               Massachusetts or similar business trust, partnership, or
               charitable organization described in Section 501(c)(3)of the
               Internal Revenue Code of 1986, as amended.

          ___  Bank. The Buyer (a) is a national bank or banking institution
               organized under the laws of any State, territory or the District
               of Columbia, the business of which is substantially confined to
               banking and is supervised by the State or territorial banking
               commission or similar official or is a foreign bank or equivalent
               institution, and (b) has an audited net worth of at least
               $25,000,000 as demonstrated in its latest annual financial
               statements, a copy of which is attached hereto.

          ___  Savings and Loan. The Buyer (a) is a savings and loan
               association, building and loan association, cooperative bank,
               homestead association or similar institution, which is supervised
               and examined by a State or Federal authority having supervision
               over any such institutions or is a foreign savings and loan
               association or equivalent institution and (b) has an audited net
               worth of at least $25,000,000 as demonstrated in its latest
               annual financial statements, a copy of which is attached hereto.

          ___  Broker-dealer. The Buyer is a dealer registered pursuant to
               Section 15 of the Securities Exchange Act of 1934.

          ___  Insurance Company. The Buyer is an insurance company whose
               primary and predominant business activity is the writing of
               insurance or the reinsuring of

                                      L-3
<PAGE>

               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.

       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.

       For purposes of determining the aggregate amount of securities owned
          and/or invested on a discretionary basis by the Buyer, the Buyer used
          the cost of such securities to the Buyer and did not include any of
          the securities referred to in the preceding paragraph, except (i)
          where the Buyer reports its securities holdings in its financial
          statements on the basis of their market value, and (ii) no current
          information with respect to the cost of those securities has been
          published. If clause (ii) in the preceding sentence applies, the
          securities may be valued at market. Further, in determining such
          aggregate amount, the Buyer may have included securities owned by
          subsidiaries of the Buyer, but only if such subsidiaries are
          consolidated with the Buyer in its financial statements prepared in
          accordance with generally accepted accounting principles and if the
          investments of such subsidiaries are managed under the Buyer's
          direction. However, such securities were not included if the Buyer is
          a majority-owned, consolidated subsidiary of another enterprise and
          the Buyer is not itself a reporting company under the Securities
          Exchange Act of 1934, as amended.

       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.

                                      L-4
<PAGE>

       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:___________________________________

                                      L-5
<PAGE>

                                                            ANNEX 2 TO EXHIBIT L
                                                            --------------------

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A
            --------------------------------------------------------

           [For Transferees That are Registered Investment Companies]

The undersigned (the "Buyer") hereby certifies as follows to the parties listed
in the Rule 144A Transferee Certificate to which this certification relates with
respect to the Certificates described therein:

          1.   As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933, as amended ("Rule 144A") because Buyer is part of a
Family of Investment Companies (as defined below), is such an officer of the
Adviser.

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

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

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

       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).

       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

                                      L-6
<PAGE>

          agreements, (vi) securities owned but subject to a repurchase
          agreement and (vii) currency, interest rate and commodity swaps.

       The Buyer is familiar with Rule 144A and under-stands that the parties
          listed in the Rule 144A Transferee Certificate to which this
          certification relates are relying and will continue to rely on the
          statements made herein because one or more sales to the Buyer will be
          in reliance on Rule 144A. In addition, the Buyer will only purchase
          for the Buyer's own account.

       Until the date of purchase of the Certificates, the undersigned will
          notify the parties listed in the Rule 144A Transferee Certificate to
          which this certification relates of any changes in the information and
          conclusions herein. Until such notice is given, the Buyer's purchase
          of the Certificates will constitute a reaffirmation of this
          certification by the undersigned as of the date of such purchase.

                                        ________________________________________
                                            Print Name of Buyer or Adviser

                                        By:_____________________________________
                                        Name:
                                        Title:

                                        IF AN ADVISER:

                                        ________________________________________
                                                  Print Name of Buyer

                                        Date:___________________________________

                                      L-7
<PAGE>

                                    EXHIBIT M

                      FORM OF REQUEST FOR DOCUMENT RELEASE

Loan Information

     Name of Mortgagor:                 ________________________________________

     Master Servicer
     Loan No.:                          ________________________________________

Trustee

     Name:                              ________________________________________

     Address:                           ________________________________________

                                        ________________________________________

     Trustee
     Mortgage File No.:                 ________________________________________

          The undersigned Master Servicer hereby acknowledges that it has
received from _______________________________________, as Trustee for the
Holders of Asset-Backed Certificates, Series 2006-26, the documents referred to
below (the "Documents"). All capitalized terms not otherwise defined in this
Request for Document Release shall have the meanings given them in the Pooling
and Servicing Agreement dated as of December 1, 2006 (the "Pooling and Servicing
Agreement") among CWABS, Inc., as Depositor, Countrywide Home Loans, Inc., as a
Seller, Park Monaco Inc., as a Seller, Park Sienna LLC, as a Seller, Countrywide
Home Loans Servicing LP, as Master Servicer, The Bank of New York, as Trustee,
and The Bank of New York Trust Company, N.A., as Co-Trustee.

( )  Mortgage Note dated ___________, ____, in the original principal sum of
     $________, made by __________________, payable to, or endorsed to the order
     of, the Trustee.

( )  Mortgage recorded on _________________ as instrument no. ________________
     in the County Recorder's Office of the County of ________________, State of
     _______________ in book/reel/docket _______________ of official records at
     page/image _____________.

( )  Deed of Trust recorded on _________________ as instrument no. _____________
     in the County Recorder's Office of the County of ________________, State of
     _______________ in book/reel/docket _______________ of official records at
     page/image __________.

( )  Assignment of Mortgage or Deed of Trust to the Trustee, recorded on
     _________________ as instrument no. __________ in the County Recorder's
     Office of

                                      M-1
<PAGE>

     the County of __________, State of _______________ in book/reel/docket
     _______________ of official records at page/image _____________.

( )  Other documents, including any amendments, assignments or other
     assumptions of the Mortgage Note or Mortgage.

( )  ______________________________________________

( )  ______________________________________________

( )  ______________________________________________

( )  ______________________________________________

     The undersigned Master Servicer hereby acknowledges and agrees as
follows:

          (1) The Master Servicer shall hold and retain possession of the
     Documents in trust for the benefit of the Trust Fund, solely for the
     purposes provided in the Pooling and Servicing Agreement.

          (2) The Master Servicer shall not cause or knowingly permit the
     Documents to become subject to, or encumbered by, any claim, liens,
     security interest, charges, writs of attachment or other impositions nor
     shall the Master Servicer assert or seek to assert any claims or rights of
     setoff to or against the Documents or any proceeds thereof.

          (3) The Master Servicer shall return each and every Document
     previously requested from the Mortgage File to the Trustee when the need
     therefor no longer exists, unless the Mortgage Loan relating to the
     Documents has been liquidated and the proceeds thereof have been remitted
     to the Certificate Account and except as expressly provided in the Pooling
     and Servicing Agreement.

          (4) The Documents and any proceeds thereof, including any proceeds of
     proceeds, coming into the possession or control of the Master Servicer
     shall at all times be earmarked for the account of the Trust Fund, and the
     Master Servicer shall keep the Documents and any proceeds separate and
     distinct from all other property in the Master Servicer's possession,
     custody or control.

                                        [Master Servicer]

                                        By  ____________________________________

                                        Its ____________________________________

                                        Date: _________________, ____

                                      M-2
<PAGE>

                                    EXHIBIT N

                        FORM OF REQUEST FOR FILE RELEASE

                     OFFICER'S CERTIFICATE AND TRUST RECEIPT
                           ASSET-BACKED CERTIFICATES,
                                 Series 2006-26

__________________________________________ HEREBY CERTIFIES THAT HE/SHE IS AN
OFFICER OF THE MASTER SERVICER, HOLDING THE OFFICE SET FORTH BENEATH HIS/HER
SIGNATURE, AND HEREBY FURTHER CERTIFIES AS FOLLOWS:

WITH RESPECT TO THE MORTGAGE LOANS, AS THE TERM IS DEFINED IN THE POOLING AND
SERVICING AGREEMENT DESCRIBED IN THE ATTACHED SCHEDULE:

[ALL PAYMENTS OF PRINCIPAL AND INTEREST HAVE BEEN MADE.] [THE PURCHASE PRICE FOR
SUCH MORTGAGE LOANS HAS BEEN PAID.] [THE MORTGAGE LOANS HAVE BEEN LIQUIDATED AND
THE RELATED [INSURANCE PROCEEDS] [LIQUIDATION PROCEEDS] HAVE BEEN DEPOSITED
PURSUANT TO SECTION 3.13 OF THE POOLING AND SERVICING AGREEMENT.] [A REPLACEMENT
MORTGAGE LOAN HAS BEEN DELIVERED TO THE TRUSTEE IN THE MANNER AND OTHERWISE IN
ACCORDANCE WITH THE CONDITIONS SET FORTH IN SECTIONS 2.02 AND 2.03 OF THE
POOLING AND SERVICING AGREEMENT.]

LOAN NUMBER:_______________                 BORROWER'S NAME:_____________

COUNTY:____________________

[For Substitution or Repurchase Only: The Master Servicer certifies that [an]
[no] opinion is required by Section 2.05 [and is attached hereto].]

I HEREBY CERTIFY THAT ALL AMOUNTS RECEIVED IN CONNECTION WITH SUCH PAYMENTS,
THAT ARE REQUIRED TO BE DEPOSITED IN THE CERTIFICATE ACCOUNT PURSUANT TO SECTION
3.05 OF THE POOLING AND SERVICING AGREEMENT, HAVE BEEN OR WILL BE CREDITED.

____________                            _____________________
                                        DATED:____________

/ /                                     VICE PRESIDENT
/ /                                     ASSISTANT VICE PRESIDENT

                                       N-1

<PAGE>

                                                                       Exhibit O

                            Exhibit O is a photocopy
                           of the Depository Agreement
                                  as delivered.

                [See appropriate documents delivered at closing.]

                                       O-1
<PAGE>

                                    EXHIBIT P

                      FORM OF SUBSEQUENT TRANSFER AGREEMENT

          SUBSEQUENT TRANSFER AGREEMENT, dated as of ____________, 200[_] (this
"Subsequent Transfer Agreement"), among CWABS, INC., a Delaware corporation, as
depositor (the "Depositor"), COUNTRYWIDE HOME LOANS, INC., a New York
corporation, in its capacity as a seller under the Pooling and Servicing
Agreement referred to below ("CHL"), PARK MONACO INC., a Delaware corporation,
in its capacity as a seller under the Pooling and Servicing Agreement ("Park
Monaco"), PARK SIENNA LLC, a Delaware limited liability company, in its capacity
as a seller under the Pooling and Servicing Agreement ("Park Sienna" and,
together with CHL and Park Monaco, the "Sellers") and The Bank of New York, a
New York banking corporation, as trustee (the "Trustee");

          WHEREAS, the Depositor, CHL, Park Monaco, Park Sienna, the Trustee,
Countrywide Home Loans Servicing LP, as Master Servicer, and The Bank of New
York Trust Company N.A., as Co-Trustee, have entered in the Pooling and
Servicing Agreement, dated as of December 1, 2006 (the "Pooling and Servicing
Agreement"), relating to the CWABS, Inc. Asset-Backed Certificates, Series
2006-26 (capitalized terms not otherwise defined herein are used as defined in
the Pooling and Servicing Agreement);

          WHEREAS, Section 2.01(b) of the Pooling and Servicing Agreement
provides for the parties hereto to enter into this Subsequent Transfer Agreement
in accordance with the terms and conditions of the Pooling and Servicing
Agreement;

          NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged the parties hereto agree as follows:

          (a)  The "Subsequent Transfer Date" with respect to this Subsequent
Transfer Agreement shall be ________ __, 200[_].

          (b)  The "Subsequent Transfer Date Purchase Amount" with respect to
this Subsequent Transfer Agreement shall be $______________.

          (c)  The Subsequent Mortgage Loans conveyed on the Subsequent Transfer
Date shall be subject to the terms and conditions of the Pooling and Servicing
Agreement.

          (d)  Annex I hereto sets forth a list of the Mortgage Loans which are
Delay Delivery Mortgage Loans.

          (e)  In case any provision of this Subsequent Transfer Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions or obligations shall not in any way be affected or
impaired thereby.

          (f)  In the event of any conflict between the provisions of this
Subsequent Transfer Agreement and the Pooling and Servicing Agreement, the
provisions of the Pooling and Servicing Agreement shall prevail.

                                      P-1
<PAGE>

          (g)  This Subsequent Transfer Agreement shall be governed by, and
shall be construed and enforced in accordance with the laws of the State of New
York.

          (h)  The Subsequent Transfer Agreement may be executed in one or more
counterparts, each of which so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

                                      P-2
<PAGE>

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

                                        CWABS, INC.,
                                           as Depositor

                                        By: __________________________________
                                            Name:
                                            Title:

                                        COUNTRYWIDE HOME LOANS, INC.,
                                           as a Seller

                                        By: __________________________________
                                            Name:
                                            Title:

                                        PARK MONACO INC.,
                                           as a Seller

                                        By: __________________________________
                                            Name:
                                            Title:

                                        PARK SIENNA LLC,
                                           as a Seller

                                        By: __________________________________
                                            Name:
                                            Title:

                                      P-3
<PAGE>

                                        THE BANK OF NEW YORK,
                                           not in its individual capacity,
                                           but solely as Trustee

                                        By: __________________________________
                                            Name:
                                            Title:

                                      P-4
<PAGE>

                                                                         Annex I

      Mortgage Loans for which All or a Portion of a Related Mortgage File
                   is not Delivered to the Trustee on or prior
                         to the Subsequent Transfer Date

                                      P-5
<PAGE>

                                    EXHIBIT Q

                                   [RESERVED]

                                       Q-1

<PAGE>

                                    EXHIBIT R

                                   [RESERVED]

                                       Q-1

<PAGE>

                                   EXHIBIT S-1

                                   [RESERVED]

                                       R-1

<PAGE>

                                   EXHIBIT S-2

                                   [RESERVED]

                                      S-1-1

<PAGE>

                                    EXHIBIT T

                OFFICER'S CERTIFICATE WITH RESPECT TO PREPAYMENTS

                           ASSET-BACKED CERTIFICATES,
                                 Series 2006-26

                                                          [Date]

Via Facsimile

The Bank of New York,
      as Trustee
101 Barclay Street
New York, New York  10286

Dear Sir or Madam:

          Reference is made to the Pooling and Servicing Agreement, dated as of
December 1, 2006, (the "Pooling and Servicing Agreement") among CWABS, Inc., as
Depositor, Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing LP, as
Master Servicer, The Bank of New York, as Trustee, and The Bank of New York
Trust Company, N.A., as Co-Trustee. Capitalized terms used herein shall have the
meanings ascribed to such terms in the Pooling and Servicing Agreement.

          __________________ hereby certifies that he/she is a Servicing
Officer, holding the office set forth beneath his/her name and hereby further
certifies as follows:

          With respect to the Distribution Date in _________ 20[ ] and each
Mortgage Loan set forth in the attached schedule:

          1. A Principal Prepayment in full or in part was received during the
related Prepayment Period;

          2. Any Prepayment Charge due under the terms of the Mortgage Note with
respect to such Principal Prepayment was or was not, as indicated on the
attached schedule using "Yes" or "No", received from the Mortgagor and deposited
in the Certificate Account;

          3. As to each Mortgage Loan set forth on the attached schedule for
which all or part of the Prepayment Charge required in connection with the
Principal Prepayment was waived by the Master Servicer, such waiver was, as
indicated on the attached schedule, based upon:

               (i)  the Master Servicer's determination that such waiver would
     maximize recovery of Liquidation Proceeds for such Mortgage Loan, taking
     into account the value of such Prepayment Charge, or

                                      T-1
<PAGE>

               (ii)(A) the enforceability thereof is limited (1) by bankruptcy,
     insolvency, moratorium, receivership, or other similar law relating to
     creditors' rights generally or (2) due to acceleration in connection with a
     foreclosure or other involuntary payment, or (B) the enforceability is
     otherwise limited or prohibited by applicable law; and

          4. We certify that all amounts due in connection with the waiver of a
Prepayment Charge inconsistent with clause 3 above which are required to be
deposited by the Master Servicer pursuant to Section 3.20 of the Pooling and
Servicing Agreement, have been or will be so deposited.

                                        COUNTRYWIDE HOME LOANS, INC.,
                                          as Master Servicer

                                        By:___________________________________
                                           Name:
                                           Title:

                                      T-2
<PAGE>

         SCHEDULE OF MORTGAGE LOANS FOR WHICH A PREPAYMENT WAS RECEIVED
                      DURING THE RELATED PREPAYMENT PERIOD

--------------------------------------------------------------------------------
Loan Number                Clause 2:  Yes/No          Clause 3:  (i) or (ii)
-------------------------- -------------------------- --------------------------

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

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

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

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

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

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

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

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

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

                                      T-3
<PAGE>

                                    EXHIBIT U

                              FORM OF SWAP CONTRACT

                      [See document delivered at closing.]

                                       U-1

<PAGE>

                                   EXHIBIT V-1

                   FORM OF SWAP CONTRACT ASSIGNMENT AGREEMENT

                      [See document delivered at closing.]

                                      V-1-1

<PAGE>

                                   EXHIBIT V-2

                 FORM OF SWAP CONTRACT ADMINISTRATION AGREEMENT

                      [See document delivered at closing.]

                                      V-2-1

<PAGE>

                                   EXHIBIT V-3

                             FORM OF SWAP GUARANTEE

                      [See document delivered at closing.]

                                     V-3-1

<PAGE>

                                    EXHIBIT W

                            FORM OF MONTHLY STATEMENT

                           [On file with the Trustee.]

                                     W-1-1

<PAGE>

                                   EXHIBIT X-1

                        FORM OF PERFORMANCE CERTIFICATION
                                  (Subservicer)

     Re:  The Pooling and Servicing Agreement dated as of December 1, 2006 (the
          "Pooling and Servicing Agreement") among CWABS, Inc., as Depositor,
          Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
          Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing
          LP, as Master Servicer, The Bank of New York, as Trustee, and The Bank
          of New York Trust Company, N.A., as Co-Trustee, and [Subservicing
          Agreement] dated as of [ ] (the "Agreement")

     I, ________________________________, the _______________________ of [NAME
OF COMPANY] (the "Company"), certify to the Depositor and the Master Servicer,
and their officers, with the knowledge and intent that they will rely upon this
certification, that:

          (1)  I have reviewed the servicer compliance statement of the Company
     provided in accordance with Item 1123 of Regulation AB (the "Compliance
     Statement"), the report on assessment of the Company'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"), all servicing reports, officer's
     certificates and other information relating to the servicing of the
     Mortgage Loans by the Company during 200[ ] that were delivered by the
     Company to the Depositor, the Master Servicer and the Trustee pursuant to
     the Agreement (collectively, the "Company Servicing Information");

          (2)  Based on my knowledge, the Company 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 Company
     Servicing Information;

          (3)  Based on my knowledge, all of the Company Servicing Information
     required to be provided by the Company under the Agreement has been
     provided to the [Depositor] [Master Servicer];

          (4)  I am responsible for reviewing the activities performed by the
     Company as a 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 Company has fulfilled its obligations under
     the Agreement; and

                                     X-1-1
<PAGE>

          (5)  The Compliance Statement required to be delivered by the Company
     pursuant to the Agreement, and the Servicing Assessment and Attestation
     Report required to be provided by the Company 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.

                                        Date: _________________________

                                        By:     ________________________________
                                        Name:
                                        Title:

                                     X-1-2
<PAGE>

                                   EXHIBIT X-2

                        FORM OF PERFORMANCE CERTIFICATION
                                    (Trustee)

     Re:  The Pooling and Servicing Agreement dated as of December 1, 2006 (the
          "Pooling and Servicing Agreement") among CWABS, Inc., as Depositor,
          Countrywide Home Loans, Inc., as a Seller, Park Monaco Inc., as a
          Seller, Park Sienna LLC, as a Seller, Countrywide Home Loans Servicing
          LP, as Master Servicer, The Bank of New York, as Trustee, and The Bank
          of New York Trust Company, N.A., as Co-Trustee

     I, ________________________________, the _______________________ of
[NAME OF COMPANY] (the "Company"), certify to the Depositor and the Master
Servicer, and their officers, with the knowledge and intent that they will rely
upon this certification, that:

          (1)  I have reviewed the report on assessment of the Company'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"), [all
     reports on Form 10-D containing statements to certificateholders filed in
     respect of the period included in the year covered by the annual report of
     the Trust Fund] (collectively, the "Distribution Date Statements");

          (2)  Assuming the accuracy and completeness of the information
     delivered to the Company by the Master Servicer as provided in the Pooling
     and Servicing Agreement and subject to paragraph (4) below, the
     distribution information determined by the Company and set forth in the
     Distribution Date Statements contained in all Form 10-D's included in the
     year covered by the annual report of such Trust on Form 10-K for the
     calendar year 200[ ], is complete and does not contain any material
     misstatement of fact as of the last day of the period covered by such
     annual report;

          (3)  Based solely on the information delivered to the Company by the
     Master Servicer as provided in the Pooling and Servicing Agreement, (i) the
     distribution information required under the Pooling and Servicing Agreement
     to be contained in the Trust Fund's Distribution Date Statements and (ii)
     the servicing information required to be provided by the Master Servicer to
     the trustee for inclusion in the Trust Fund's Distribution Date Statements,
     to the extent received by the Trustee from the Master Servicer in
     accordance with the Pooling and Servicing Agreement, is included in such
     Distribution Date Statements;

          (4)  The Company is not certifying as to the accuracy, completeness or
     correctness of the information which it received from the Master Servicer
     and did not

                                     X-2-1
<PAGE>

     independently verify or confirm the accuracy, completeness or correctness
     of the information provided by the Master Servicer;

          (5)  I am responsible for reviewing the activities performed by the
     Company as a person "performing a servicing function" under the Pooling and
     Servicing Agreement, and based on my knowledge and the compliance review
     conducted in preparing the Servicing Assessment and except as disclosed in
     the Servicing Assessment or the Attestation Report, the Company has
     fulfilled its obligations under the Pooling and Servicing Agreement; and

          (6)  The Servicing Assessment and Attestation Report required to be
     provided by the Company and by Subcontractor pursuant to the Pooling and
     Servicing Agreement, have been provided to the Master Servicer and the
     Depositor. Any material instances of noncompliance described in such
     reports have been disclosed to the Master Servicer and the Depositor. Any
     material instance of noncompliance with the Servicing Criteria has been
     disclosed in such reports.

                                        Date: _________________________

                                        By:  ________________________________
                                        Name:
                                        Title:

                                     X-2-2
<PAGE>

                                    EXHIBIT Y

                                     FORM OF
                      SERVICING CRITERIA TO BE ADDRESSED IN
                       ASSESSMENT OF COMPLIANCE STATEMENT

          The assessment of compliance to be delivered by [the Master Servicer]
[Trustee] [Name of Subservicer] shall address, at a minimum, the criteria
identified as below as "Applicable Servicing Criteria":

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
<S>                  <C>                                                                   <C>
                                       General Servicing Considerations
--------------------                                                                       ----------------------
                     Policies and procedures are instituted to monitor any
                     performance or other triggers and events of default in
1122(d)(1)(i)        accordance with the transaction agreements.
--------------------                                                                       ----------------------
                     If any material servicing activities are outsourced to
                     third parties, policies and procedures are instituted to
                     monitor the third party's performance and compliance with
1122(d)(1)(ii)       such servicing activities.
--------------------                                                                       ----------------------
                     Any requirements in the transaction agreements to maintain
1122(d)(1)(iii)      a back-up servicer for the mortgage loans are maintained.
--------------------                                                                       ----------------------
                     A fidelity bond and errors and omissions policy is in
                     effect on the party participating in the servicing function
                     throughout the reporting period in the amount of coverage
                     required by and otherwise in accordance with the terms of
1122(d)(1)(iv)       the transaction agreements.
--------------------                                                                       ----------------------
                                      Cash Collection and Administration
--------------------                                                                       ----------------------
                     Payments on mortgage loans are deposited into the
                     appropriate custodial bank accounts and related bank
                     clearing accounts no more than two business days following
                     receipt, or such other number of days specified in the
1122(d)(2)(i)        transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made via wire transfer on behalf of an
                     obligor or to an investor are made only by authorized
1122(d)(2)(ii)       personnel.
--------------------                                                                       ----------------------
                     Advances of funds or guarantees regarding collections, cash
                     flows or distributions, and any interest or other fees
                     charged for such advances, are made, reviewed and approved
1122(d)(2)(iii)      as specified in the transaction agreements.
--------------------                                                                       ----------------------
                     The related accounts for the transaction, such as cash
                     reserve accounts or accounts established as a form of
                     overcollateralization, are separately maintained (e.g.,
                     with respect to commingling of cash) as set forth in the
1122(d)(2)(iv)       transaction agreements.
--------------------                                                                       ----------------------
                     Each custodial account is maintained at a federally insured
                     depository institution as set forth in the transaction
                     agreements. For purposes of this criterion, "federally
                     insured depository institution" with respect to a foreign
                     financial institution means a foreign financial institution
                     that meets the requirements of Rule 13k-1(b)(1) of the
1122(d)(2)(v)        Securities Exchange Act.
--------------------                                                                       ----------------------
                     Unissued checks are safeguarded so as to prevent
1122(d)(2)(vi)       unauthorized access.
--------------------                                                                       ----------------------

                                      Y-1
<PAGE>

------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     Reconciliations are prepared on a monthly basis for all
                     asset-backed securities related bank accounts, including custodial
                     accounts and related bank clearing accounts. These reconciliations
                     are (A) mathematically accurate; (B) prepared within 30 calendar
                     days after the bank statement cutoff date, or such other number of
                     days specified in the transaction agreements; (C) reviewed and
                     approved by someone other than the person who prepared the
                     reconciliation; and (D) contain explanations for reconciling items.
                     These reconciling items are resolved within 90 calendar days of
                     their original identification, or such other number of days
1122(d)(2)(vii)      specified in the transaction agreements.
--------------------                                                                       ----------------------
                                      Investor Remittances and Reporting
--------------------                                                                       ----------------------
                     Reports to investors, including those to be filed with the
                     Commission, are maintained in accordance with the transaction
                     agreements and applicable Commission requirements. Specifically,
                     such reports (A) are prepared in accordance with timeframes and
                     other terms set forth in the transaction agreements; (B) provide
                     information calculated in accordance with the terms specified in
                     the transaction agreements; (C) are filed with the Commission as
                     required by its rules and regulations; and (D) agree with
                     investors' or the trustee's records as to the total unpaid
                     principal balance and number of mortgage loans serviced by the
1122(d)(3)(i)        Servicer.
--------------------                                                                       ----------------------
                     Amounts due to investors are allocated and remitted in
                     accordance with timeframes, distribution priority and other
1122(d)(3)(ii)       terms set forth in the transaction agreements.
--------------------                                                                       ----------------------
                     Disbursements made to an investor are posted within two
                     business days to the Servicer's investor records, or such
1122(d)(3)(iii)      other number of days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Amounts remitted to investors per the investor reports
                     agree with cancelled checks, or other form of payment, or
1122(d)(3)(iv)       custodial bank statements.
--------------------                                                                       ----------------------
                                          Pool Asset Administration
--------------------                                                                       ----------------------
                     Collateral or security on mortgage loans is maintained as
                     required by the transaction agreements or related mortgage
1122(d)(4)(i)        loan documents.
--------------------                                                                       ----------------------
                     Mortgage loan and related documents are safeguarded as
1122(d)(4)(ii)       required by the transaction agreements
--------------------                                                                       ----------------------
                     Any additions, removals or substitutions to the asset pool
                     are made, reviewed and approved in accordance with any
1122(d)(4)(iii)      conditions or requirements in the transaction agreements.
--------------------                                                                       ----------------------
                     Payments on mortgage loans, including any payoffs, made in
                     accordance with the related mortgage loan documents are posted to
                     the Servicer's obligor records maintained no more than two business
                     days after receipt, or such other number of days specified in the
                     transaction agreements, and allocated to principal, interest or
                     other items (e.g., escrow) in accordance with the related mortgage
1122(d)(4)(iv)       loan documents.
--------------------                                                                       ----------------------
                     The Servicer's records regarding the mortgage loans agree
                     with the Servicer's records with respect to an obligor's
1122(d)(4)(v)        unpaid principal balance.
--------------------                                                                       ----------------------
                     Changes with respect to the terms or status of an obligor's
                     mortgage loans (e.g., loan modifications or re-agings) are
                     made, reviewed and approved by authorized personnel in
                     accordance with the transaction agreements and related pool
1122(d)(4)(vi)       asset documents.
--------------------                                                                       ----------------------
                     Loss mitigation or recovery actions (e.g., forbearance
                     plans, modifications and deeds in lieu of foreclosure,
                     foreclosures and repossessions, as applicable) are
                     initiated, conducted and concluded in accordance with the
                     timeframes or other requirements established by the
1122(d)(4)(vii)      transaction agreements.
--------------------                                                                       ----------------------

                                      Y-2
<PAGE>

------------------------------------------------------------------------------------------ ----------------------
                                                                                           Applicable Servicing
                                   Servicing Criteria                                            Criteria
------------------------------------------------------------------------------------------ ----------------------
     Reference                                     Criteria
-------------------- --------------------------------------------------------------------- ----------------------
                     Records documenting collection efforts are maintained during the
                     period a mortgage loan is delinquent in accordance with the
                     transaction agreements. Such records are maintained on at least a
                     monthly basis, or such other period specified in the transaction
                     agreements, and describe the entity's activities in monitoring
                     delinquent mortgage loans including, for example, phone calls,
                     letters and payment rescheduling plans in cases where delinquency
1122(d)(4)(viii)     is deemed temporary (e.g., illness or unemployment).
--------------------                                                                       ----------------------
                     Adjustments to interest rates or rates of return for
                     mortgage loans with variable rates are computed based on
1122(d)(4)(ix)       the related mortgage loan documents.
--------------------                                                                       ----------------------
                     Regarding any funds held in trust for an obligor (such as escrow
                     accounts): (A) such funds are analyzed, in accordance with the
                     obligor's mortgage loan documents, on at least an annual basis, or
                     such other period specified in the transaction agreements; (B)
                     interest on such funds is paid, or credited, to obligors in
                     accordance with applicable mortgage loan documents and state laws;
                     and (C) such funds are returned to the obligor within 30 calendar
                     days of full repayment of the related mortgage loans, or such other
1122(d)(4)(x)        number of days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Payments made on behalf of an obligor (such as tax or
                     insurance payments) are made on or before the related
                     penalty or expiration dates, as indicated on the
                     appropriate bills or notices for such payments, provided
                     that such support has been received by the servicer at
                     least 30 calendar days prior to these dates, or such other
1122(d)(4)(xi)       number of days specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Any late payment penalties in connection with any payment
                     to be made on behalf of an obligor are paid from the
                     servicer's funds and not charged to the obligor, unless the
1122(d)(4)(xii)      late payment was due to the obligor's error or omission.
--------------------                                                                       ----------------------
                     Disbursements made on behalf of an obligor are posted
                     within two business days to the obligor's records
                     maintained by the servicer, or such other number of days
1122(d)(4)(xiii)     specified in the transaction agreements.
--------------------                                                                       ----------------------
                     Delinquencies, charge-offs and uncollectible accounts are
                     recognized and recorded in accordance with the transaction
1122(d)(4)(xiv)      agreements.
--------------------                                                                       ----------------------
                     Any external enhancement or other support, identified in
                     Item 1114(a)(1) through (3)or Item 1115 of Regulation AB,
1122(d)(4)(xv)       is maintained as set forth in the transaction agreements.
--------------------                                                                       ----------------------

-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                        [NAME OF MASTER SERVICER] [NAME OF
                                        TRUSTEE] [NAME OF SUBSERVICER]

                                        Date: _________________________

                                        By:     ________________________________
                                        Name:
                                        Title:

                                      Y-3
<PAGE>

                                    EXHIBIT Z

                       [FORM OF] LIST OF ITEM 1119 PARTIES

                           ASSET BACKED CERTIFICATES,
                                 Series 200_-__

                                          [Date]

--------------------------------------------------------------------------------
Party                            Contact Information
-------------------------------- -----------------------------------------------

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

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

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

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

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

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

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

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

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

                                       Z-1

<PAGE>

                                   EXHIBIT AA

                                     FORM OF
                          SARBANES-OXLEY CERTIFICATION
                          (Replacement Master Servicer)

                             (On file with Trustee)

                                      AA-1

<PAGE>

                                   SCHEDULE I

            PREPAYMENT CHARGE SCHEDULE AND PREPAYMENT CHARGE SUMMARY

         [Delivered to Trustee at closing and on file with the Trustee.]

                                     S-I-1

<PAGE>

                                   SCHEDULE II

                               COLLATERAL SCHEDULE

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Characteristic                                                       Applicable      Loan Group 1      Loan Group 2
                                                                      Section
----------------------------------------------------------------- ----------------- ---------------- -----------------
<S>                                                                 <C>              <C>               <C>
Single-Family Detached Dwellings                                    2.03(b)(32)         75.89%            68.30%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Two- to Four-Family Dwellings                                       2.03(b)(32)          4.63%             3.53%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Low-Rise Condominium Units                                          2.03(b)(32)          5.15%             7.30%
----------------------------------------------------------------- ----------------- ---------------- -----------------
High-Rise Condominium Units                                         2.03(b)(32)          0.05%             0.79%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Manufactured Housing                                                2.03(b)(32)          0.00%             0.18%
----------------------------------------------------------------- ----------------- ---------------- -----------------
PUDs                                                                2.03(b)(32)         14.28%            19.87%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Earliest Origination Date                                           2.03(b)(33)        7/19/2006          4/1/2006
----------------------------------------------------------------- ----------------- ---------------- -----------------
Prepayment Penalty                                                  2.03(b)(35)         66.27%            74.82%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Investor Properties                                                 2.03(b)(36)          5.48%             3.57%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Primary Residences                                                  2.03(b)(36)         93.22%            95.43%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Lowest Current Mortgage Rate                                        2.03(b)(48)         4.750%            3.500%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Highest Current Mortgage Rate                                       2.03(b)(48)        13.625%           13.750%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Weighted Average Current Mortgage Rate                              2.03(b)(48)         8.261%            8.019%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Lowest Gross Margin                                                 2.03(b)(50)         2.500%            0.250%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Highest Gross Margin                                                2.03(b)(50)        10.950%            9.450%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Weighted Average Gross Margin                                       2.03(b)(50)         6.580%            5.897%
----------------------------------------------------------------- ----------------- ---------------- -----------------
Date on or before which each Initial Mortgage Loan has a
Due Date                                                            2.03(b)(51)       2/1/2007          2/1/2007
----------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
                                       Adjustable Rate Mortgage
                                           Loans (other than
                                       Two-Year, Three-Year and       Two-Year         Three-Year        Five-Year
                       Applicable      Five-Year Hybrid Mortgage       Hybrid       Hybrid Mortgage       Hybrid
 Adjustment Date        Section                 Loans)             Mortgage Loans        Loans        Mortgage Loans
------------------- ----------------- ---------------------------- ---------------- ----------------- ----------------
   Latest Next
 Adjustment Date      2.03(b)(34)              12/1/2016              1/1/2009         12/1/2009         12/1/2011
----------------------------------------------------------------------------------------------------------------------
<S>                   <C>              <C>                         <C>              <C>               <C>

</TABLE>

                                     S-II-1

<PAGE>

                                  SCHEDULE III

                             40-YEAR TARGET SCHEDULE

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                      January 2017              42,358,458
                     February 2017              41,771,955
                        March 2017              41,193,430
                        April 2017              40,622,773
                          May 2017              40,059,879
                         June 2017              39,504,644
                         July 2017              38,956,962
                       August 2017              38,416,733
                    September 2017              37,883,856
                      October 2017              37,358,230
                     November 2017              36,839,759
                     December 2017              36,328,345
                      January 2018              35,823,893
                     February 2018              35,326,309
                        March 2018              34,835,500
                        April 2018              34,351,374
                          May 2018              33,873,841
                         June 2018              33,402,812
                         July 2018              32,938,199
                       August 2018              32,479,915
                    September 2018              32,027,874
                      October 2018              31,581,993
                     November 2018              31,142,187
                     December 2018              30,708,375
                      January 2019              30,280,475
                     February 2019              29,858,408
                        March 2019              29,442,094
                        April 2019              29,031,457
                          May 2019              28,626,418
                         June 2019              28,226,902
                         July 2019              27,832,835
                       August 2019              27,444,143
                    September 2019              27,060,753
                      October 2019              26,682,593
                     November 2019              26,309,593
                     December 2019              25,941,682
                      January 2020              25,578,793
                     February 2020              25,220,856
                        March 2020              24,867,805
                        April 2020              24,519,574

                                    S-III-1
<PAGE>

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                          May 2020              24,176,097
                         June 2020              23,837,310
                         July 2020              23,503,150
                       August 2020              23,173,554
                    September 2020              22,848,460
                      October 2020              22,527,808
                     November 2020              22,211,536
                     December 2020              21,899,586
                      January 2021              21,591,900
                     February 2021              21,288,419
                        March 2021              20,989,087
                        April 2021              20,693,847
                          May 2021              20,402,644
                         June 2021              20,115,423
                         July 2021              19,832,131
                       August 2021              19,552,714
                    September 2021              19,277,119
                      October 2021              19,005,296
                     November 2021              18,737,192
                     December 2021              18,472,757
                      January 2022              18,211,943
                     February 2022              17,954,698
                        March 2022              17,700,977
                        April 2022              17,450,729
                          May 2022              17,203,909
                         June 2022              16,960,470
                         July 2022              16,720,366
                       August 2022              16,483,552
                    September 2022              16,249,984
                      October 2022              16,019,616
                     November 2022              15,792,407
                     December 2022              15,568,313
                      January 2023              15,347,292
                     February 2023              15,129,301
                        March 2023              14,914,302
                        April 2023              14,702,251
                          May 2023              14,493,110
                         June 2023              14,286,840
                         July 2023              14,083,400
                       August 2023              13,882,754
                    September 2023              13,684,862
                      October 2023              13,489,688
                     November 2023              13,297,194
                     December 2023              13,107,345

                                    S-III-2
<PAGE>

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                      January 2024              12,920,104
                     February 2024              12,735,436
                        March 2024              12,553,307
                        April 2024              12,373,681
                          May 2024              12,196,525
                         June 2024              12,021,804
                         July 2024              11,849,487
                       August 2024              11,679,541
                    September 2024              11,511,933
                      October 2024              11,346,631
                     November 2024              11,183,604
                     December 2024              11,022,822
                      January 2025              10,864,254
                     February 2025              10,707,870
                        March 2025              10,553,640
                        April 2025              10,401,534
                          May 2025              10,251,525
                         June 2025              10,103,583
                         July 2025               9,957,681
                       August 2025               9,813,790
                    September 2025               9,671,884
                      October 2025               9,531,935
                     November 2025               9,393,918
                     December 2025               9,257,805
                      January 2026               9,123,570
                     February 2026               8,991,189
                        March 2026               8,860,636
                        April 2026               8,731,886
                          May 2026               8,604,914
                         June 2026               8,479,697
                         July 2026               8,356,211
                       August 2026               8,234,432
                    September 2026               8,114,336
                      October 2026               7,995,902
                     November 2026               7,879,106
                     December 2026               7,763,926
                      January 2027               7,650,340
                     February 2027               7,538,327
                        March 2027               7,427,864
                        April 2027               7,318,932
                          May 2027               7,211,508
                         June 2027               7,105,573
                         July 2027               7,001,106
                       August 2027               6,898,088

                                    S-III-3
<PAGE>

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                    September 2027               6,796,498
                      October 2027               6,696,318
                     November 2027               6,597,527
                     December 2027               6,500,107
                      January 2028               6,404,040
                     February 2028               6,309,306
                        March 2028               6,215,889
                        April 2028               6,123,769
                          May 2028               6,032,929
                         June 2028               5,943,352
                         July 2028               5,855,021
                       August 2028               5,767,918
                    September 2028               5,682,027
                      October 2028               5,597,331
                     November 2028               5,513,814
                     December 2028               5,431,460
                      January 2029               5,350,253
                     February 2029               5,270,177
                        March 2029               5,191,217
                        April 2029               5,113,359
                          May 2029               5,036,585
                         June 2029               4,960,883
                         July 2029               4,886,237
                       August 2029               4,812,633
                    September 2029               4,740,057
                      October 2029               4,668,494
                     November 2029               4,597,931
                     December 2029               4,528,355
                      January 2030               4,459,751
                     February 2030               4,392,106
                        March 2030               4,325,408
                        April 2030               4,259,643
                          May 2030               4,194,799
                         June 2030               4,130,862
                         July 2030               4,067,822
                       August 2030               4,005,665
                    September 2030               3,944,379
                      October 2030               3,883,953
                     November 2030               3,824,374
                     December 2030               3,765,632
                      January 2031               3,707,714
                     February 2031               3,650,610
                        March 2031               3,594,308
                        April 2031               3,538,797

                                    S-III-4
<PAGE>

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                          May 2031               3,484,067
                         June 2031               3,430,106
                         July 2031               3,376,905
                       August 2031               3,324,453
                    September 2031               3,272,739
                      October 2031               3,221,754
                     November 2031               3,171,487
                     December 2031               3,121,929
                      January 2032               3,073,070
                     February 2032               3,024,901
                        March 2032               2,977,411
                        April 2032               2,930,592
                          May 2032               2,884,435
                         June 2032               2,838,930
                         July 2032               2,794,068
                       August 2032               2,749,841
                    September 2032               2,706,240
                      October 2032               2,663,257
                     November 2032               2,620,882
                     December 2032               2,579,108
                      January 2033               2,537,926
                     February 2033               2,497,329
                        March 2033               2,457,307
                        April 2033               2,417,854
                          May 2033               2,378,961
                         June 2033               2,340,621
                         July 2033               2,302,827
                       August 2033               2,265,570
                    September 2033               2,228,843
                      October 2033               2,192,639
                     November 2033               2,156,951
                     December 2033               2,121,772
                      January 2034               2,087,094
                     February 2034               2,052,912
                        March 2034               2,019,217
                        April 2034               1,986,004
                          May 2034               1,953,266
                         June 2034               1,920,995
                         July 2034               1,889,187
                       August 2034               1,857,833
                    September 2034               1,826,929
                      October 2034               1,796,468
                     November 2034               1,766,444
                     December 2034               1,736,851

                                    S-III-5
<PAGE>

                       Month of                  40-Year
                   Distribution Date            Target ($)
                -----------------------      ----------------
                      January 2035               1,707,682
                     February 2035               1,678,932
                        March 2035               1,650,596
                        April 2035               1,622,667
                          May 2035               1,595,141
                         June 2035               1,568,010
                         July 2035               1,541,271
                       August 2035               1,514,917
                    September 2035               1,488,943
                      October 2035               1,463,345
                     November 2035               1,438,116
                     December 2035               1,413,252
                      January 2036               1,388,747
                     February 2036               1,364,597
                        March 2036               1,340,797
                        April 2036               1,317,342
                          May 2036               1,294,227
                         June 2036               1,271,448
                         July 2036               1,248,999
                       August 2036               1,226,877
                    September 2036               1,205,077
                      October 2036               1,183,594
                     November 2036               1,162,423
                     December 2036               1,141,562

                                    S-III-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]